Text of the provision

Art. 1961. Usurious contracts shall be governed by the Usury Law and other special laws, so far as they are not inconsistent with this Code.

(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 renderings and the Official Gazette, all three of which agree word for word.

What this article means

The closing article of the Loan title, immediately before Deposit begins. It is another pointer provision: questions of usury — interest charged in excess of what the law allows — are left to the Usury Law and other special laws, applied only so far as they are not inconsistent with this Code. In practice, Central Bank Circular No. 905 (1982) suspended the Usury Law's numerical interest ceilings, so few loans today are usurious in the strict statutory sense; courts instead police unconscionable interest through their general equity power, but the underlying statutory pointer in this article has never been repealed.

Related provisions

Cases interpreting this article

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.