Global Holiday v. Metropolitan Bank

Summary

This Supreme Court case established that while Act 3135 governing extrajudicial foreclosure requires only posting and publication of notice, parties to a mortgage contract may validly stipulate additional requirements such as personal notice to the mortgagor. When Global Holiday Ownership Corporation's mortgage with Metropolitan Bank contained such a stipulation in Paragraph 14, the bank's failure to provide personal notice before foreclosure rendered the proceedings null and void. The Court granted preliminary injunction to prevent the irregular sale, emphasizing that contractual obligations in mortgage agreements must be strictly observed and that banks have fiduciary duties requiring high standards of integrity. The decision reinforces the principle that mortgage contracts are binding on both parties and additional safeguards for mortgagors beyond statutory minimums are enforceable when properly stipulated.