A fiduciary receipt refers to the written or printed document signed by the grieving person in favor of the confidant and contains terms that are essentially the provisions of Executive Order No. 115 (P.D. No. 115), also known as the Trust Receipts Act. [1] A: No, receiving a sum of money from the bank without reference to the fiduciary duty does not require the bank to use the money received against the fiduciary duty. Compensation also does not occur because compensation is not appropriate if one of the debts consists of civil liability resulting from criminal liability. (Metropolitan Bank and Trust Co.c. Tonda, G.R. No.
134436, 16 August 2000). A: The confidant. An escrow document has two characteristics, credit and security characteristics. The loan is obtained by the fact that the grieving person financed the importation or purchase of the goods under TR. As long as this loan is not paid, the payment obligation continues. If the confidant is made to appear as the owner, then it is only an artificial tool, more a legal fiction than facts, because if that were really the case, he could dispose of the property in the way he wants, which he cannot do. To consider the grieving person as the true owner from the beginning of the transaction would be to disregard the loan characteristic of the transaction. (Rosario Textile Mills Corp.c. Home Bankers Savings and Trust Company, G.R.
No. 137232 June 29, 2005) A: The Trust Receipts Act recognizes the impossibility of imposing a prison sentence on a company. If the person mandated is a corporation, the law may punish officers or employees or other persons responsible for the crime with imprisonment. The reason for this is obvious that companies, partnerships, associations and other legal institutions cannot be put in prison. Therefore, criminal liability lies with the human agent responsible for the violation of the Trust Receipts Act. (Ong v. CA, G.R. No. 119858, 29 April 2003) R.
If the trustee and trustee have entered into an agreement that provides for terms that are inconsistent with the trust agreement, the obligation arising from receiving the trust expires. The breach of the following agreement therefore does not give rise to criminal liability under Article 115 of the P.D., but only to civil liability. (Philippine Bank v. Ong, G.R. Nr. 133176, 8. August 2002) The predominant use of fiduciary income, the risk of misuse and/or misappropriation of property or proceeds from the sale of property, documents or instruments held in trust on behalf of trust banks, and the need to regulate fiduciary receipt transactions in order to protect the rights and enforce the obligations of the parties concerned are the main thrusts of P.D. 115. [9] A: An escrow contract has its own particularities and characteristics. As part of this constellation, a bank grants a loan covered by the letter of credit, with the escrow receipt serving as collateral for the loan. In other words, the transaction includes a loan feature represented by the letter of credit and a guarantee function that is found in the coverage escrow receipt. A fiduciary receipt is therefore a security agreement under which a bank acquires a “security right” in the assets.
It guarantees a debt and there can be no security that does not guarantee an obligation. (Sps. Vintola vs. Insular Bank of Asia and America, G.R. No. 73271, May 29, 1987) In accordance with Article 13 of P.D. No. 1115, which provides for the penalty clause, the failure of the practitioner to comply with any of his above-mentioned obligations constitutes a crime of Estafa under Article 315, paragraph 1 (b) of the Revised Penal Code of the Philippines. Trustee means the person who owns or takes possession of property, documents or instruments in connection with a fiduciary records business, as well as any successor in title that is in the interest of that person for the purposes set out in the fiduciary reception agreement or for the purposes set out in the trust agreement. [2] A fiduciary receipt is a security transaction designed to assist importers and retailers who do not have sufficient funds or resources to finance the importation or purchase of goods and who may only be able to obtain credit by using the imported or purchased goods as security.
[5] There are two obligations in an escrow document transaction. The first is covered by the provision that refers to money by virtue of the obligation to deliver it (entregarla) to the owner of the goods sold. The second relates to the provision relating to goods received under the obligation to return (devolvera) to the owner. [6] P.D. No. 115 recognizes the use of trust receipts as a convenient business means to help importers and distributors resolve their financing issues. Apparently, with the passage of the law, the state tried to find a way to help importers and distributors finance their financing to promote trade in the Philippines. [4] By way of illustration, X is an importer of goods. To facilitate importation, he opened a letter of credit to Y Bank.
Upon arrival of the goods in the Philippines, Y Bank requires X to issue a fiduciary receipt on the basis of which X sells the goods on behalf of Y Bank, with the obligation to hand over the proceeds to them or return the goods if they are unsold….