ASSOCIATED INSURANCE AND SURETY COMPANY V. IYA, ET. AL 103 SCRA 972 G.R. Nos. L-10837-38 May 30, 1958 ASSOCIATED INSURANCE AND SURETY COMPANY V. IYA, ET. AL 103 SCRA 972 G.R. Nos. L-10837-38 May 30, 1958 FACTS: Spouses Valino were the owners of a house, payable on installments from Philippine Realty Corporation. To be able to purchase on credit rice from NARIC, they filed a surety bond subscribed by petitioner and therefor, they executed an alleged chattel mortgage on the house in favor of the surety company. The spouses didn’t own yet the land on which the house was constructed on at the time of the undertaking. After being able to purchase the land, to be able to secure payment for indebtedness, the spouses executed a real estate mortgage in favor of Iya. The spouses were not able to satisfy obligation with NARIC, petitioner was compelled to pay. The spouses weren’t able to pay the surety company despite demands and thus, the company foreclosed the ch...
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