Bank deposit is simple loan

G.R. No. 208293, December 10, 2014, PHILIPPINE NATIONAL BANK, PETITIONER, VS. CARMELITA S. SANTOS, REYME L. SANTOS, ANGEL L. SANTOS, NONENG S. DIANCO, ET AL., RESPONDENTS. 

G.R. No. 208295, LINA B. AGUILAR, PETITIONER, VS. CARMELITA S. SANTOS, REYME L. SANTOS, ANGEL L. SANTOS, BUENVENIDO L. SANTOS, ET AL., RESPONDENTS.

(THE LAWYER’S POST)

 “x x x.

The trial court and the Court of Appeals correctly found that petitioners PNB and Aguilar were negligent in handling the deposit of Angel C. Santos.

The contractual relationship between banks and their depositors is governed by the Civil Code provisions on simple loan.^⁠1 Once a person makes a deposit of his or her money to the bank, he or she is considered to have lent the bank that money.^⁠2 The bank becomes his or her debtor, and he or she becomes the creditor of the bank, which is obligated to pay him or her on demand.^⁠3

X x x.”