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.
Related provisions
- Article 1196 — Period Presumed for Both Parties.
- Article 1200 — Alternative Obligations; Right of Choice.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.