sic itur ad astra

In 1973 , Lirag Textile Mills, Inc. (Litex) opened an i rrevocable commercial letter of credit with Prudential Bank for US$498,000 to import 5,000 spindles for spinning machinery and accessories. The imported items were released to Litex under "trust receipts" executed in favor of Prudential Bank. Litex installed and used the items in its textile mill located in Montalban, Rizal.. On October 10, 1980 , Development Bank of the Philippines (DBP) granted Litex a foreign currency loan of US$4,807,551, secured by real estate and chattel mortgages on the Montalban plant, including the items covered by the trust receipts. In June 1982 , Prudential Bank learned of DBP’s plan to rehabilitate Litex. On July 14, 1982 , Prudential Bank  asserted its ownership of the trust receipt items in a letter to DBP. Due to non-payment, DBP foreclosed on Litex's mortgages, acquiring the foreclosed properties at an auction on April 19, 1983. In September 1984 , DBP announced a public sa...

Landl and Company (Phil.) Inc. sells imported welding rods and alloys. On June 17, 1983 , it opened a commercial letter of credit with Metropolitan Bank and Trust Company (Metrobank) for US$19,606.77 (₱218,733.92) to purchase welding rods and electrodes from Perma Alloys, Inc., New York. It was evidenced by a Pro-Forma Invoice dated March 10, 1983 . The corporation deposited ₱50,414.00 from a separate clean loan as a marginal deposit. As additional security, Metrobank required Percival G. Llaban and Manuel P. Lucente to execute a: Continuing Suretyship Agreement for ₱400,000.00 and  Deed of Assignment (Lucente only) for ₱35,000.00. Upon meeting these conditions, Metrobank opened an irrevocable letter of credit. Metrobank also required a Trust Receipt equivalent to the letter of credit, obligating the corporation to hold the goods in trust, sell them, and remit the proceeds, or return unsold goods by November 23, 1983. Upon arrival pf the goods in the Philippines, the c...