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	GR No. 177729 2011-09-28	PHILIPPINE EXPORT v. AMALGAMATED MANAGEMENT BERSAMIN, J.
In contracts, the law empowers the courts to reduce interest rates and penalty charges that are iniquitous, unconscionable and exorbitant.[33] Whether an interest rate or penalty charge is reasonable or excessive is addressed to the sound discretion of the courts. In determining what is iniquitous and unconscionable, courts must consider the circumstances of the case.[34]
	GR No. 164195 2009-12-04	APO FRUITS CORPORATION v. CA BERSAMIN, J.
Law and jurisprudence empower courts to equitably reduce interest rates[59] and penalty charges. Under Article 1229 of the Civil Code, "[t]he judge shall equitably reduce the penalty when the principal obligation has been partly or irregularly complied with by the debtor." Article 1229 of the Civil Code provides that the court shall equitably reduce the penalty when the principal obligation has been partly or irregularly complied with by the debtor. And, even if there has been no performance, the penalty may also be reduced if it is iniquitous or leonine. While there may be no more ceiling on interest rates on obligations, it does not mean that creditors have carte blanche authority to impose interest rates to levels which will either enslave the debtors or lead to a hemorrhaging of the latter's assets.[60]