Text of the provision
Art. 1890. If the agent has been empowered to borrow money, he may himself be the lender at the current rate of interest. If he has been authorized to lend money at interest, he cannot borrow it without the consent of the principal.
(n)
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
An agent empowered to borrow may lend to himself at the current rate; but an agent authorized to lend cannot borrow the money without the principal's consent (self-dealing risk).
Related provisions
- Article 1889 — Preferring the Agent's Own Interest.
- Article 1891 — Duty to Account.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.
Note. The text of the provision above is reproduced in full from the official enactment (Republic Act No. 386), verified against the LawPhil and ChanRobles renderings. The annotation and commentary around it are the work of Vivas & Nobles Law Office and are general legal information, not legal advice. How a provision applies to a particular situation depends on facts that only a lawyer reviewing your case can assess.