Practice question
A bank claims its payment to another bank necessarily makes the depositor its debtor and permits setoff. The controlling facts establish the depositor has no indebtedness for that payment. Under Areza, which is correct?
- Any interbank payment creates every customer’s debt
- The bank’s assertion conclusively proves mutuality
- Every deposit is exempt from all possible compensation
- Without the claimed depositor indebtedness, the requisite mutual debts do not exist and that legal-compensation theory fails.
- Only the size of the payment matters
Legal references
- Areza v. Express Savings Bank, G.R. No. 176697, September 10, 2014, main decision: https://lawphil.net/judjuris/juri2014/sep2014/gr_176697_2014.html
- Civil Code, Articles 1278-1279, 1290, 1953 and 1980: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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