G.R. No. 160727 - Union Bank of the Philippines vs. Concepcion

On September 22, 1983, private respondents, through their attorney-in-fact John Francis Cotaoco, invested ₱10,000 each in money market placements with Premiere Financing Corporation (PFC) and received corresponding promissory notes and checks.
PFC referred Cotaoco to Regent Savings Bank (RSB), which, instead of cashing the notes and checks, issued 13 certificates of time deposit (CTDs Nos. 09648–09660) each certifying a ₱10,000 deposit at 14% per annum, insured up to ₱15,000 by PDIC, maturing November 3, 1983.

On maturity (November 3, 1983), RSB sought a short extension to raise funds; Cotaoco agreed, but RSB still failed to pay and advised filing a claim with PDIC.
On June 15, 1984, the Central Bank’s Monetary Board suspended RSB (Res. No. 788) and on December 7, 1984, ordered its liquidation (Res. No. 1496). RSB’s master list of liabilities omitted the CTDs as unfunded.

On September 4, 1984, private respondents filed deposit-insurance claims with PDIC, which were denied because the PFC check (Traders Royal Bank Check No. 299255 for ₱125,846.07) had bounced and was not replaced, leading to CTD cancellation by RSB.
On March 31, 1987, respondents sued PDIC, RSB, and the Central Bank for collection. The trial court (May 29, 1989) held all defendants liable; the Court of Appeals (February 8, 1995) granted the Central Bank’s certiorari petition but affirmed liability of PDIC and RSB. PDIC then elevated the case to the Supreme Court.

Whether the CTDs are negotiable instruments under the Negotiable Instruments Law.
Whether the CTDs were acquired for value and consideration.
Whether PDIC is liable on the CTDs because they state on their face that they are insured.