Text of the provision
Art. 1198. The debtor shall lose every right to make use of the period:
(1) When after the obligation has been contracted, he becomes insolvent, unless he gives a guaranty or security for the debt;
(2) When he does not furnish to the creditor the guaranties or securities which he has promised;
(3) When by his own acts he has impaired said guaranties or securities after their establishment, and when through a fortuitous event they disappear, unless he immediately gives new ones equally satisfactory;
(4) When the debtor violates any undertaking, in consideration of which the creditor agreed to the period;
(5) When the debtor attempts to abscond.
(1129a)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
The debtor loses the right to the period — the debt becomes immediately demandable — when he becomes insolvent (without giving security), fails to furnish promised guaranties, impairs them, violates an undertaking that induced the period, or attempts to abscond.
Questions about this provision
Related provisions
- Article 1196 — Period Presumed for Both Parties.
- Article 1200 — Alternative Obligations; Right of Choice.
Cases citing this article
- Philippine Bank of Communications vs. Spouses Jose C. Go and Elvy T. Go, G.R. No. 175514, February 14, 2011 — read the decision on LawPhil →
- Eugene L. Lim vs. BPI Agriculture Development Bank, G.R. No. 179230, March 9, 2010 — read the decision on LawPhil →
- Siain Enterprises, Inc. vs. Cupertino Realty Corp. and Edwin R. Catacutan, G.R. No. 170782, June 22, 2009 — read the decision on LawPhil →
- Development Bank of the Philippines vs. Spouses Jesus and Anacorita Doyon, G.R. No. 167238, March 25, 2009 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.