Laws Affecting Credit Transactions

RELEVANT LAWS AFFECTING
CREDIT TRANSACTIONS
Source: Credit & Business Transactions (2005)
Judge Jose T. Apolo. National Bookstore, 2005.

RELEVANT LAWS AFFECTING CREDIT
TRANSACTIONS
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The New Civil Code (RA 386, as amended)
Negotiable Instruments Law
Chattel Mortgage Law
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
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b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.

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

WAYS TO “SECURE” CREDIT TRANSACTIONS
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Guarantee
Pledge and Mortgage
Antichresis
Letters of Credit
Reservation of Title
Post-dated Checks
Assignments of Proceeds/Credits/Discounting
of notes

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