4 stipulation in chattel mor 3 8 valid. IF 15 a play 'BSRe contract that it the objects oe sold for more, the mortgagor can recover the The pledge p OVER the excess except if there is a stipulation to the MUTUUM — WreRESTS Interest rate is now 6% per annuin, There has been a change in the rules o here as interest fm 12% per anno to 6% per annum in view of the ment to Cireular No, 905 Series of 1982 by Gre Nir rae Sipping tine, anor Foie gt 1994. 254 SCRA 78. no longer coming in vieteeao eee ee oe a Eee ‘and/or Felipe Bordey, Jr, GR. No. 189671, August 13 2013, Peralta, jy * [ Nature ofa credit ine, ‘credit ine i realy a loan agree Savings una Trust Co, GR.No. 137232 1 t gereement between the paltiesidn Rosorio Textile Mils Corporation v. Home Bankers ae June 29, 2005, 462 SCRA BU, was said that» credit Hine that amouat of money Sivonee ndlse which a banker, a merchant of suppter agrees to supply toa person on credit and generally agreed to ich the lace fed limit of credit granted by « bank. retailer, oF credit card issuer to a customer, to the fll extent of Wich the latter may avail himself of his dealings with the former but which he must ot exceed andi usually Sntended to Toe Series of transactions, in which case, when the customer's imevol credit is nearly exhavsted, he is expected to reduce hs indebtedness by navments before making any fr ther drawings. (Ops. Dela Crus, Planters Produce ne. G1 No. 188649, February 18, 2073, Revsamin, }) ae ie Compounding of interest must be in writing, 1) there RE ComPaunding oF interest should be in writing, Provision payment of monetary inserest shall be aue only £2) there Was an express stipulation forthe payment of unterest; aud (2) the agreement for suct payment was reduced in ‘iting, Thus, the collection of interest without any stipolation thereafin wring s prohibited by aw. ‘The ‘rst requirement--that there be zn express stipulatian for the payment of interest—is not sulficient\y complied with for purposes of smposing compounded interest on the Yoan. The requirement does not only entail reduciny le writing the interest rate to be earned but also the manner of eataing the same, ft Is to be compounded. Failure t specily the manner of earning interest, however, shall not aucomateylly Fendes-the stipulation impasing the interest rate ‘aid since tis readily apparent trom the contract itself thatthe partiggherein agreed forthe Inan to bear interest Instead, ls default of any stipulation on the manner of earning interest, simple’ interest shall accrue. (SPOUSES TAGUMPAY N ALBOS and AIDA C, ALBOS «. SPOUSES NESTOR M. EMBISAN, etal, GBR-No, 210831, November 26, 2014, THIRD DIVISION Velaxco, Rj: TING TING PUA v. SPOUSES BENITO LO BUN TIONG et al, G32 No, 198660, October 23, 2013, Velasco, Jr I.) tipulated interest of 3% or wiore is excessive; Vol A contract of Inan secured by mortgage was entered inio witha &tipulatea interest of 3% per month isnot valid 4s void because 1s excessive, migurtous, unconscionable and exerbrant, hence, egal. and void for being contrary to sorals In Ayner v BPL Inc, twas rule that settled 's the principle dav supulated interest retes of three percent (39%) pet ‘month and higher are excessive, iniquitous, unconscionable, and exorbitant, While Central Bank Circular No, 905-82 which took effect on January 1, 1983, {as amended by Cir. No, 799) effectively, removed the ceiling on interest rates for both secured and unsecured loans, rezardless of maturity. nhing in the said elreular could possibly be read as granting carte blanche authority to tenders to raise interest rates to levels waich would either enslave their borrowers of lead to a vorrhaging of their assers Shice che stipulation on the iaterest rate is void for being contrary to morals, if not against the law. tis a8 there was nu expeess coatract on said interest rate: thus, the interest rate may be reduced ss reason and equity demand. (Marilagv. Martinez, GR. No 201292, uly 22, 2015; Perlas-Bernabe. 1) Effect if there is ack of a written stipulation to pay interest on thelazned amount. Weil setried is the nule chat there is no express stipulation on interest, no interest shall be due (De La Paz v L& | Dev. Co. GR No. 183360, September B, 2014, Del Castillo). Under Article 1956 of the Civil Code, no interest shall be due unless t has been expressly stipulated in writing Jurisprudence on'the matter also holds that for interest to be due and payable, two conditions mest concur: (a) express stipulation for the payment of interest; and (b) the agreement to pay terest reduced in writing if the-parties did not put sown in writing their agreement, no interest is due, The colleciion without stipelation in seriting is prohibited by faw. (Siga-an v. Villanueva, 596 Phit 760, 769 {2009}; Sun Life of Canada (Phils), ine. v Sandra Tan Kit, et aly GR-Mo. 283272, Ctober 15, 2014, Del Castille; Federal Builders, Inc. v. Foudnation Specialsts, Inc, GR. No. 194507, Sepucmber’8, 2014). - QUASL-DELICT and DAMAGES Employer is liable for the loss of cargo due to acts of its employees. IF there is a contract for the delivery of cargo, but there was failure to deliver because the employees were instrumental in the hijacking or robbery of the shipment the employer is lable for the acts of the employees. The employer should be made answerable for damages. Whenever an employee's negligence causes damage or Injury to another, there instantly arises a presumption juris tancum that the employer failed to exercise diligentissimi patris families a the selection (culpa m eligiendo) ar supervision (eulpo invigilande) ofits employees. (Tan v. jam Transie, tac, GR Nc. 183198, November 25, 2009, 605 SCRA 659, 675, citing Delsan Transport Lines. In. C&A Construction, Inc, 459 Phil. 156 (2003). To avoid liability for a quasi-delict committed by Its employes, an employer must overcome the resumption by presenting convincing proof that he exercised the'care and diligence of a good father of a family in the selection and supervision of his employee. in his regard, Loadmasters failed. (Loadmasters Customs Services, Ine. Glodel Brokerage Corp. et al, G.R. No. 179446, January 10,2011) Effect if there are several causes for the resulting damages of goods that are supposed to be delivered by a party. AgRc2 Magic Areas in Cul Law Law /EVSA/erys 31