Article 1175

Article 1175. Usurious transactions shall be governed by special laws.

Ang mga transakyon na may labis na pagpapatubo ay sasaklawin ng espesyal na batas.

Usury- is the contracting for or receiving something in excess of the amount allowed by law for the loan or use of money, goods, chattels ( something that a person owns other than land or buildings. e.g furniture, tools) or credits.

Usury law is now legally non-existent.

Special Laws that use to govern usury:

1. Commonwealth Act No. 399

2. Act No. 2655 as amended by Act No. 3998

3. Republic Act No. 337

4. Presidential Decree No. 116, 858 and 1684

Loan- giving a sum of money, goods, or credit to another, with a promise to repay but not a promised to return the same thing

Interest- income produced by money in relation to its amount and to the time that it cannot be utilized by its owner. Interest s may either be moratory  (paid in contractual obligations to pay a sum of money, or as the stipulated advanced determination of the damages due to the delay in fulfillment of the obligation) or compensatory (interest on obligations which have an extra contractual or delictual origin)