Civil Code Art. 1958: Simple Loan or Mutuum

Statute: Civil Code
Article: Art. 1958
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

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

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