This case has been cited 3 times or more.
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2013-02-18 |
BERSAMIN, J. |
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| Accordingly, the interest rate agreed upon should not be "excessive, iniquitous, unconscionable and exorbitant;" otherwise, the Court may declare the rate illegal.[57] | |||||
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2012-09-12 |
VELASCO JR., J. |
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| Rule 131, Section 2(a) of the Rules of Court, enunciating the principle of estoppel,[45] states, "Whenever a party has, by his own declaration, act or omission, intentionally and deliberately led another to believe a particular thing to be true, and to act upon such belief, he cannot, in any litigation arising out of such declaration, act or omission, be permitted to falsify it." At point is Toledo v. Hyden,[46] where the Court held that "[a] party to a contract cannot deny the validity thereof after enjoying its benefits without outrage to one's sense of justice and fairness." | |||||
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2011-08-22 |
PERALTA, J. |
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| Petitioners contend that the interest rate of 24% per annum stipulated in the mortgage contract, which they executed in favor of respondent Bank, is usurious. This Court has consistently held that for sometime now, usury has been legally non-existent and that interest can now be charged as lender and borrower may agree upon.[19] In fact, Section 1 of Central Bank Circular No. 905, Series of 1982, which took effect on January 1, 1983, expressly provides that "[t]he rate of interest, including commissions, premiums, fees and other charges, on a loan or forbearance of any money, goods, or credits, regardless of maturity and whether secured or unsecured, that may be charged or collected by any person, whether natural or juridical, shall not be subject to any ceiling prescribed under or pursuant to the Usury Law, as amended." Nonetheless, this Court has also held in a number of cases, that nothing in the circular grants lenders carte blanche authority to raise interest rates to levels which will either enslave their borrowers or lead to a hemorrhaging of their assets.[20] Thus, the stipulated interest rates are illegal if they are unconscionable. | |||||