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RELEVANT LAWS AFFECTING CREDIT TRANSACTIONS

Source: Credit & Business Transactions (2005) Judge Jose T. Apolo. National Bookstore, 2005.

RELEVANT LAWS AFFECTING CREDIT TRANSACTIONS

1. The New Civil Code (RA 386, as amended) 2. Negotiable Instruments Law 3. Chattel Mortgage Law 4. Revised Penal Code – specifically on estafa and other forms of

fraud 5. Bouncing Checks Law (BP 22) 6. Insolvency Law (RA1956) 7. Financing Law (RA 5980 as amended by RA 1454 and the Usury

Law) 8. Truth in Lending Act 9. Corporation Law 10. Warehouse Receipts Law 11. Banking and Retail Trade Law 12. Rules of Court

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Relevant New Civil Code Provisions

a. Emancipation and Age of Majority (Articles 397 to 406) b. Obligations and Contracts (Arts. 1156 to 1439) c. Sales (Arts. 1458 to 1638) d. Barter or Exchange (Arts. 1638 to 1641) e. Lease (Arts. 1642 to 1688 f. Partnerships (Arts. 1767 to 1866) g. Agency (Arts. 1868 to 1932, special/general power of attorney) h. Loan (Arts. 1933 to 1960) i. Deposit (Arts. 1962 to 1967) j. Compromise and Arbitration (Arts. 2028 to 2046) k. Guarantee (Arts. 2047 to 2081) l. Pledge, Mortgage and Antichresis (Arts. 2085 to 2141) m. Concurrence and Preference of Credits (Arts. 2236 to 2251)

WAYS TO “SECURE” CREDIT TRANSACTIONS

• Guarantee

• Pledge and Mortgage

• Antichresis

• Letters of Credit

• Reservation of Title

• Post-dated Checks

• Assignments of Proceeds/Credits/Discounting of notes