Amending Sections 8 and 10 of Act No. 2655 (Usury Law)
Act No. 2992, approved on February 26, 1921, amends the Usury Law in the Philippines, specifically updating Sections 8 and 10. Section 8 mandates that loans payable in agricultural products or commodities must be appraised at current market prices at the time of payment and requires contracts to be in an intelligible language to the debtor. Additionally, borrowers can recover any delivered products or their value if the contract does not meet these stipulations. Section 10 establishes penalties for violations, including fines, imprisonment, and mandatory restitution of interest collected, holding managers of corporations liable for such offenses. This Act underscores the protection of borrowers in agricultural transactions and enforces accountability for lenders.
Quick Answers
- What is Amending Sections 8 and 10 of Act No. 2655 (Usury Law) about?
- Act No. 2992, approved on February 26, 1921, amends the Usury Law in the Philippines, specifically updating Sections 8 and 10. Section 8 mandates that loans payable in agricultural products or commodities must be appraised at current market prices at the time of payment and requires contracts to be in an intelligible language to the debtor. Additionally, borrowers can recover any delivered products or their value if the contract does not meet these stipulations. Section 10 establishes penalties for violations, including fines, imprisonment, and mandatory restitution of interest collected, holding managers of corporations liable for such offenses. This Act underscores the protection of borrowers in agricultural transactions and enforces accountability for lenders.
- What type of law is Act No. 2992?
- Amending Sections 8 and 10 of Act No. 2655 (Usury Law) (Act No. 2992) is a Philippine Statutes enacted by the Congress of the Philippines.
- When was Amending Sections 8 and 10 of Act No. 2655 (Usury Law) enacted?
- Amending Sections 8 and 10 of Act No. 2655 (Usury Law) (Act No. 2992) was enacted on Feb 26, 1921.
- What is the citation for Amending Sections 8 and 10 of Act No. 2655 (Usury Law)?
- Amending Sections 8 and 10 of Act No. 2655 (Usury Law), Act No. 2992, Feb 26, 1921 (Philippines)
Law Information
- Reference Number
- Act No. 2992
- Date Enacted
- Category
- Statutes
- Subcategory
- Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
February 26, 1921
ACT NO. 2992
AN ACT TO AMEND SECTIONS EIGHT AND TEN OF ACT NUMBERED TWENTY SIX HUNDRED AND FIFTY-FIVE, KNOWN AS THE USURY LAW
Act Numbered Twenty-six hundred and fifty-five, is hereby amended to read as follows:
"SEC. 8.All loans under which payment is to be made in agricultural products or seed or in any other kind of commodities shall also be null and void unless they provide that such products or seed or other commodities shall be appraised at the time when the obligation falls due at the current local market price: Provided, That unless otherwise stated in a document written in a language or dialect intelligible to the debtor and subscribed in the presence of not less than two witnesses, any contract advancing money to be repaid later in agricultural products or seed or any other kind of commodities shall be understood to be a loan, and any person or corporation having paid otherwise shall be entitled in case action is brought within two years after such payment or delivery to recover all the products or seed delivered as interest, or the value thereof, together with the costs and attorney's fees in such sum as may be allowed by the court. Nothing contained in this section shall be construed to prevent the lender from taking interest for the money lent, provided such interest be not in excess of the rate herein fixed." cEaSHC
"SEC. 10.Without prejudice to the proper civil action, violations of this Act shall be subject to criminal prosecution and the guilty person shall, upon conviction, be sentenced to a fine of not less than fifty pesos nor more than two hundred pesos, or to imprisonment for not less than ten days nor more than six months, or both, in the discretion of the court, and to return the entire sum received as interest from the party aggrieved, and in case of non-payment, to suffer subsidiary imprisonment at the rate of one day for every two pesos: Provided, That in case of corporations, associations, societies, or companies the manager, administrator or gerente or the person who has charge of the management or administration of the business shall be criminally responsible for any violation of this Act." cDCaTS
SECTION 3.This Act shall take effect on its approval.
Approved: February 26, 1921.
Cite This Law
Amending Sections 8 and 10 of Act No. 2655 (Usury Law), Act No. 2992, Feb 26, 1921 (Philippines)
Amending Sections 8 and 10 of Act No. 2655 (Usury Law), Act No. 2992 (Phil. 1921)
Related Laws
- Amendments to Act No. 2655 (Usury Law)Act No. 3291 • Dec 2, 1926 • Statutes
- Amendment to Act No. 2655 (Usury Law, as Amended)Act No. 3998 • Dec 5, 1932 • Statutes
- Amendment to Sec. Two of Act No. 2655 (Usury Law), as AmendedAct No. 4070 • Oct 12, 1933 • Statutes
- The Usury LawAct No. 2655 • Feb 24, 1916 • Statutes
- Amending Act No. 4109 Re: Anti-Usury BoardRepublic Act No. 23 • Sep 25, 1946 • Statutes
- Amendments to Sections 2 and 3 of Act No. 2655, as AmendedCommonwealth Act No. 399 • Sep 12, 1938 • Statutes
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