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GlobalBank, a licensed bank under the General Banking Law (R.A. No. 8791), extends a loan to DeltaTech Systems, Inc. Principal: ₱120,000,000. The loan agreement provides: (i) Interest at 2.2% per month; (ii) Default interest at 3.8% per month on overdue amounts; (iii) Processing charge of 0.6% of the principal; (iv) Clause: 'All charges, including interest and penalties, are valid and enforceable under law.' After nine months, DeltaTech defaults; GlobalBank sues for principal, accrued interest, and penalties. DeltaTech defends that the stipulated interest and penalties are usurious and void; GlobalBank contends that stipulations on interest are permitted for banks under RA 8791 and that the contract is enforceable.
(a) Identify the doctrine governing stipulation on interest in bank lending under RA 8791.
(b) Distinguish the controlling rule for banks versus ordinary borrowers and state the test to determine the validity of interest stipulations.
(c) Apply the rule to the facts and determine what portions of GlobalBank’s claim are likely enforceable and why.