Developments in the Law on Credit Transactions 2010-2013

Presentation for the U.P. Law Mandatory Continuing Legal Education Lecture

Outline of Developments in the Law on Credit Transactions 2010-2013

Outline of the Lecture for the Mandatory Continuing Legal Education Program 

of the U.P. Law Center

Part 1. Law and Jurisprudence

I. The Concept of Loan

Nature of Credit Card Transactions

Pantaleon v. American Express International, Inc., G.R. No. 174269, August 25, 2010, 629 SCRA 276.

II. Simple Loan

A. Interest

1. Conventional Interest

Escalation Clauses

Spouses Juico v. China Banking Corporation, G.R. No. 187678, April 10, 2013. 

2. Compensatory, Penalty or Indemnity Interest

a. Forbearance of Money

Estores v. Spouses Supangan, G.R. No. 175139, April 18, 2012.

b. Legal Interest Rate

Central Bank Circular No. 799, Series of 2013, effective July 1, 2013

Nacar v. Gallery Frames and/or Bordey, G.R. No. 189871, August 13, 2013, EN BANC.

B. Usury

Constitutionality of the Suspension of the Usury Law

Advocates for Truth in Lending, Inc. and Olaguer v. Bangko Sentral Monetary Board, 
G.R. No. 192986, January 15, 2013, EN BANC.

III. The Concept of Security

Kinds of Security Transactions

R.A. No. 10142, Sec. 4 (p) (ll) (kk) (jj) (qq) (pp) (t) 

The Maroon Pride Project

It started, like most ideas, out of need. The U.P. fighting maroons men’s basketball team needed financial support. So Bong Somera, one of the team managers, a board member of the University of the Philippines Alumni Association, and a veteran of fund-raising activities for various organizations, harnessed the idea of print advertisements to raise funds.

But he expanded this idea, until it became larger than the usual souvenir program, larger even than just the men’s basketball team. With the support of Chitong Rivera, UPAA’s Centennial President, it became what Maroon Pride magazine is today - a collaborative effort of U.P. students and alumni featuring the U.P. varsity teams and athletes, their training and trials, their accomplishments and victories. But even more than that, Maroon Pride has become a catalyst for the development of the sports program of U.P., one of the essential components for determining the completeness of a university as an institute of learning. 

Comments Submitted to the Sub-Committee on Commercial Courts of the Philippine Supreme Court on Behalf of the U.P. College of Law

Subject:            Draft Financial Rehabilitation Rules of Procedure (2012)

References to Rules and Sections are based on the matrix prepared by the Sub-Committee on Commercial Courts.

Section	Comments
Rule 1
1	Note the year.
2	It would be very helpful if the Rules cover the entire FRIA, and not just rehabilitation, specially since there are several instances when the FRIA allows conversion of proceedings.
3	Is there an intention to make the Judicial Affidavit Rule apply to these proceedings?
5 (c)	Why is it necessary for the value of an Asset to appear in the last 3 annual audited financial statements?  Is it the intention to exclude newly acquired assets?
5 (i)	Revise to read – “Insolvency shall refer to the financial condition of a debtor that is generally unable to pay its liabilities as these fall due in the ordinary course of business, or whenever its liabilities are greater than its assets.”
5 (j)	Revise to read – “Liquidation shall refer to the judicial insolvency proceedings under Chapter V of the Act by which the assets of an insolvent debtor are recovered and their value preserved and maximized for the purpose of converting the same into money, and discharging, to the extent possible, all the claims against the insolvent debtor.”