[Solved] A obtained a loan from Metrobank. As security, he delivered and deposit certificate maturing on April 29, 2011. A failed to pay, hence, the bank encashed the deposit certificate. A contended that it is pactum commissorium. Is A correct?

Q.	A obtained a loan from Metrobank. As security, he delivered and deposit certificate maturing on April 29, 2011. A failed to pay, hence, the bank encashed the deposit certificate. A contended that it is pactum commissorium. Is A correct?
A.	Yes, because the encashment is an automatic appropriation of the security;
B.	A is not correct because the bank had yet to perform an act to appropriate the money deposited;
C.	A is not correct because the act done was a matter of compensation; (BPI v. CA, 232 SCRA 302; Art. 1980, NCC)
D.	A is correct because there can be no compensation since the relationship between the bank and A is one of deposit.
Answer» C. A is not correct because the act done was a matter of compensation; (BPI v. CA, 232 SCRA 302; Art. 1980, NCC)

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