Practice question
A bank owes a demandable ordinary deposit. The depositor owes a separate loan debt to the bank, but that loan debt is not yet due, and no valid acceleration or contractual setoff basis is invoked. Does debtor-creditor status alone satisfy ordinary legal compensation?
- Yes, maturity is irrelevant
- No; the separate both-debts-due condition remains unmet.
- Yes, every future debt is immediately payable
- Only the bank’s office address matters
- The deposit becomes ownerless
Legal references
- Civil Code, Articles 1278-1279, 1290, 1953 and 1980: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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