Usurious transactions, A1176 Civil Code

1. Usurious transactions

Article 1175. Usurious transactions shall be governed by special laws. (n) (CIVIL CODE)

See related:

• Usury law

2. Presumptions

Article 1176. The receipt of the principal by the creditor without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid. x x x (1110a) (CIVIL CODE)
Article 1176. x x x
The receipt of a later installment of a debt without reservation as to prior installments, shall likewise raise the presumption that such installments have been paid. (1110a) (CIVIL CODE)

Under the Civil Code, there are two presumptions related to usury:

1) Receipt by the creditor of the payment of the principal without reservation with respect to the interest gives rise to the presumption that the said interest has been paid (CIVIL CODE, Article 1176); and

2) Receipt by the creditor of a later installment of a debt without reservation as to prior installments gives rise to the presumption that such installments have been paid (CIVIL CODE, Article 1176).

References

Chapter 2 – Nature and Effects of Obligations, Title I, Book IV, Republic Act No. 386, Civil Code

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