QuestionsQuestions (Act No. 2655.)
The rate is six percent (6%) per annum.
It is twelve percent (12%) per annum. Mutual building and loan societies incorporated under the Corporation Act may charge up to eighteen percent (18%) per annum but not more, including premiums, interest, and fines.
It is fourteen percent (14%) per annum.
If the sum lent is less than ₱100: up to 3% per month. If ₱100 but not exceeding ₱500: up to 2% per month. If more than ₱500: up to 14% per annum. The pawnbroker/agent must be duly licensed and have an establishment open to the public (for the Act’s benefits).
No. Compound interest shall not be reckoned except by agreement; otherwise, in default, whenever the debt is judicially claimed, it draws 6% per annum.
The borrower may recover the whole interest paid or delivered with costs and attorney’s fees as allowed by the court, provided the action is filed within two (2) years from such payment or delivery.
No, the creditor is not obliged to return interest collected in advance when the debtor pays the obligation before it is due, provided the interest does not exceed 10%–12% per annum (depending on whether it falls under Sec. 2 or Sec. 3).
They are void.
A merely clerical error in the computation of interest made without intent to evade the Act does not render the contract void.
A purchaser of negotiable mercantile paper for valuable consideration before maturity is protected if there was no intent to evade the Act and the purchase was not part of the original usurious transaction.
The maker may recover from the original holder the whole interest paid thereon, and in case of litigation, also costs and attorney’s fees as allowed by the court.
They are null and void unless the obligation provides that the products/seed/commodities shall be appraised at the current local market price when the obligation falls due.
If action is brought within two (2) years after payment/delivery, the borrower may recover all products/seed delivered as interest (or the value thereof), plus costs and attorney’s fees as allowed by the court.
No. The lender may take interest for the money lent as long as such interest is not in excess of the lawful rates fixed by the Act.
The sued party must file a written answer under oath to the complaint before a competent court; lack of oath in the answer is treated as an admission of the facts in the complaint.
They may be subject to criminal prosecution. Upon conviction, the guilty person is sentenced to a fine equivalent to the total interest stipulated or the value of the products/seed agreed upon as interest, and subsidiary imprisonment may be imposed in case of insolvency.
The manager, administrator/gerente, or the person in charge of management or administration of the business.
Yes. All acts and parts of acts inconsistent with the Act are repealed (Sec. 11). It took effect on May 1, 1916 (Sec. 12).