Civil Code Art. 1958: Simple Loan or Mutuum

Statute: Civil Code
Article: Art. 1958
Topic: Simple Loan or Mutuum
Status: In force, as amended
Book: BOOK IV Obligations and Contracts
Title: TITLE XI LOAN General Provisions
Chapter: CHAPTER 2 Simple Loan or Mutuum
Year: 1949
Cited by: Multiple Supreme Court decisions

The provision

In the determination of the interest, if it is payable in kind, its value shall be appraised at the current price of the products or goods at the time and place of payment. (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

Spouses Benito Baysa v. Spouses Fidel Plantilla G.R. No. 159271
Land Bank of the Philippines v. Manuel O. Gallego, Jr. G.R. No. 173226

Related provisions in this Chapter

Civil Code, Art. 1959 Simple Loan or Mutuum
Civil Code, Art. 1957 Simple Loan or Mutuum
Civil Code, Art. 1956 Simple Loan or Mutuum
Civil Code, Art. 1955 Simple Loan or Mutuum
Civil Code, Art. 1953 Simple Loan or Mutuum

Civil Code, Art. 1958 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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