XYY Corp. secured a loan from X Bank in the amount of P120,000. As part of the proceeds of the loan, preferred shares of

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XYY Corp. secured a loan from X Bank in the amount of P120,000.
As part of the proceeds of the loan, preferred shares of stocks
were issued to X Bank, through its officers B and C. In other
words, instead of giving the legal tender totaling to the full
amount of the loan which is P120,000. X Bank lent such amount
partially in the form of money and partially of stockholder
certificates, each for 400 shares with a par value of P10 per
share, or for P4,000 each, for a total of P8,000. Said stock
certificates were in the name of B and C, who subsequently,
however, endorsed the shares in favor of B.

Said certificates of stock bear the following terms and conditions:
The Preferred Stock shall have the following rights, preferences,
qualification, and limitations, to wit:

1. Of the right to receive a quarterly dividend
of 1%, cumulative and participating

2. That such preferred shares may be redeemed by
the system of drawing lots, at any time after 2 years from the date
of issue at the option of the Corporation

Afterward, XYY Corp. proceeded against X Bank and filed a Complaint
anchored on XYY Corp.’s alleged rights to have X Bank redeem the
same under the terms and conditions of the stock
certificates.

Can X Bank be compelled to redeem the preferred shares
issued to XYY Corp.? Why or Why not? Explain your answer
briefly.