Sps. Gonzales v GSIS
GR No. L-51997, 10 September 1981
Melencio-Herrera, J.:
FACTS:
On April 2, 1968, August 14, 1968 and November 7, 1968, petitioner-spouses Inocencio H. Gonzales and Rosario Esquivel Gonzales obtained a housing loan of P80,000.00 from the respondent GSIS. This was to be repayable within fifteen years at 6% interest per annum for the first P30,000.00 and pay for the balance. GSIS accepted as collaterals two (2) residential lots located in Quezon City, and two (2) agricultural lands located in Jaen, Nueva Ecija. Petitioners were able to pay several monthly installments of P814.38 until both of them retired compulsorily from government service in 1973, leaving an unpaid obligation of over P73,000.00, which, as of May 31, 1978, amounted to P 135,884.87 because of accumulated interests or arrearages. By virtue of PD No. 27 (Tenants' Emancipation Act), the agricultural lands of petitioners were subdivided and awarded to the tenant-farmers therein. It was only in May of 1979, however, that payment by the Land Bank became remittable covering in particular, the 15- hectare land of petitioners in Jaen.
The land, having been appraised, that sum was tendered by the Land Bank to the GSIS. The GSIS refused acceptance unless the payment in bonds was to be. In effect, the bonds were given a creditable value of only P41,775.00 compared to its face value of P93,500.00.
The instant Petition for mandamus was filed, with petitioners praying that the GSIS be directed to accept the payment of Land Bank bonds at par value, without any discount whatsoever, so that an of petitioners collaterals could be released.
ISSUE:
Whether or not the divisibility of the agricultural land affects the mortgage.
HELD:
No. The fact that only one agricultural land of the four securities was placed under land reform should make no difference. Although it may be conceded that the obligation of the petitioners is, in a sense, divisible because it can be settled partially according to current practice, it does not render the mortgage of four (4) parcels of land also divisible. Generally the divisibility of the principal obligation is not affected by the indivisibility of the mortgage. The mortgage obligation is indivisible; that is, it cannot be divided among the different lots. A real estate mortgage voluntarily constituted by the debtor on two or more parcels of land is one and indivisible. Each and every parcel under mortgage answers for the totality of the debt. Being indivisible, the full value of the one parcel being paid for by the Land Bank should be applied in full to the outstanding loan obligation without any discounting.
