No. L-36549. October 5, 1988

FACTS:

Private Respondents Tat, Chee and An asked petitioner Far East Realty Investment Inc. to extend an accommodation loan in the sum of Php 4500 which they needed in their business.

They promised to pay, jointly and severally, in one month time; with 14% payment of interest and they delivered China Banking Corporation Check No. VN-915564, dated September 13, 1960, for P4,500.00, drawn by Dy Hian Tat, and signed by them at the back of said check.

In 1964, the check was presented for payment to Chinabank but the check bounced and was not cashed by said bank for the reason that the current account of the drawer had already been closed.