Legal Insights

Plain-language guides and case briefs on Philippine law — researched from the firm's law library of 184,000+ statutes, Supreme Court decisions, and agency issuances, and written so non-lawyers can understand and act on them.

Showing 110 of 10 articles for central bank circular

Decoding Loan Payments: How Courts Apply Payments to Interest vs Principal in Philippine Law

Philippine Supreme Court clarifies how loan payments are applied to interest before principal, and when chattel mortgages cover future loans.

Mutuality of Contracts: When Banks Cannot Unilaterally Raise Interest Rates

Philippine Supreme Court ruling on Silos v. PNB explains why unilateral interest rate hikes violate the mutuality principle in loan contracts.

Res Judicata and Forum Shopping in Foreclosure Disputes: Villanueva v. Court of Appeals

The Supreme Court explains how res judicata and forum shopping bar repeated challenges to loan interest rates and foreclosure proceedings.

Unconscionable Interest Rates: Protecting Borrowers From Excessive Loan Costs

The Supreme Court affirms that monthly interest rates of 5% to 7% are unconscionable and may be reduced to 12% per annum.

Mutuality of Contracts: The Limits of Bank Discretion in Setting Interest Rates

Philippine Supreme Court clarifies that unilateral interest rate setting violates mutuality of contracts, but the principal loan obligation remains valid and enforceable.

Is 24% Interest Legal in the Philippines? Bacolor v. Banco Filipino Explained

The Supreme Court in Bacolor v. Banco Filipino ruled that a 24% annual interest rate agreed upon in writing is not usurious or unconscionable.

Usury Law and Loan Obligations: Balancing Lender Rights and Borrower Protection

Philippine Supreme Court ruling on 21% interest validity, 3% monthly surcharge nullity, and borrower obligations under the Usury Law.

Legal Interest in Philippine Judgments: Simple vs. Compound Interest Explained

Philippine courts apply simple legal interest on monetary judgments unless compound interest is explicitly stipulated. Learn the rules from David vs. Court of Appeals.

Legal Interest Rates in the Philippines: When Does 6% vs 12% Apply

Philippine Supreme Court clarifies when 6% or 12% legal interest applies—loans and forbearance versus other obligations. Learn the rules.

Liability for Damage to Stored Goods: Negligence and Interest Rates Explained

A warehouse operator's negligence can mean paying for damaged goods. Learn the rules on liability and the correct interest rates.