REPUBLIC PLANTERS BANK V. COURT OF APPEALS

216 SCRA 738

 

FACTS:

Yamaguchi   and   Canlas   are   officers   of   the   Worldwide   Garment Manufacturing, which later changed its name to Pinch Manufacturing.  They were authorized to apply for credit facilities with the petitioner bank.  The two officers signed the promissory notes issued to secure the payment of the  obligations.    Later,  the  bank  instituted  an  action  for  collection  of money,  impleading  also  the  two  officers.    The  trial  court  held  the  two officers personally liable also.   
 

HELD:

Canlass  is  solidarily  liable  on  each  of  the  promissory  notes  to  which  his signature  appears.    The  promissory  notes  in  question  are  negotiable instruments and thus, governed by the Negotiable Instruments Law.
 
Under  the  Negotiable Instruments Law,  persons  who  write  their  names  in  the  instrument  are makers are liable as such.  By signing the note, the maker promises to pay to the order of the payee or any holder the tenor of the obligation.  Based on the above provisions of the law, there is no denying that Canlass is one of the co-makers of the promissory note.