Civil Code Art. 1957: Simple Loan or Mutuum

Statute: Civil Code
Article: Art. 1957
Topic: Simple Loan or Mutuum
Book: BOOK IV Obligations and Contracts
Title: TITLE XI LOAN General Provisions
Chapter: CHAPTER 2 Simple Loan or Mutuum
Year: 1949

The provision

Contracts and stipulations, under any cloak or device whatever, intended to circumvent the laws against usury shall be void. The borrower may recover in accordance with the laws on usury. (n)

Note on current application: this provision remains in force. The interest-rate ceilings of the Usury Law were suspended by Central Bank Circular No. 905 (1982), so there is no fixed statutory ceiling; Philippine courts may still reduce interest rates found to be unconscionable or iniquitous.

Cases applying this article

Fabiana Arriola y Cabrera v. Carolina Gomez de La Serna G.R. No. 5397

Related provisions in this Chapter

Civil Code, Art. 1956 Simple Loan or Mutuum
Civil Code, Art. 1958 Simple Loan or Mutuum
Civil Code, Art. 1959 Simple Loan or Mutuum
Civil Code, Art. 1955 Simple Loan or Mutuum
Civil Code, Art. 1953 Simple Loan or Mutuum

Civil Code, Art. 1957 is found in CHAPTER 2 Simple Loan or Mutuum of TITLE XI LOAN General Provisions of BOOK IV Obligations and Contracts of the Civil Code of the Philippines (Republic Act No. 386).

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