Ampidan, Angela N.

BAENT3A

Reflective No. 3: Law On Credit Transaction

In the group 3 presentation, I gained a better understanding on credit transactions and the
law on credit that each of the borrowers must be informed and should know about it. Typically,
people usually make loans or credit to financial organizations for a variety of reasons. When
there is an emergency, a loan or credit might be helpful, however, if individuals don't know how
to handle it, it could cause them financial stress.

Based on the discussion, there are two different kinds of loan contracts: commodatum and
mutuum. According to Commodatum, it is a kind of loan where the borrower is obligated to pay
back exactly what they borrowed. For instance, a bailee may borrow a bailer's motor to use for a
vital purpose. Under the idea of commodatum, the motor that the bailee borrows from the bailer
must be returned to the bailer in exactly the same condition as it was borrowed. Furthermore,
there are two types of commodatum: on precarium commodatum, the bailer is permitted to
request the return of the item if the loan's duration or purpose are not specified in the contract or
if the owner only permits the borrower's use of the item, while on ordinary commodatum, the
bailer will permit the bailee to use the item but cannot demand to have it returned to him/her
immediately until the loan's purpose has been fulfilled or the period of time has passed. Moving
on, the other type of contract loan is the mutuum. In mutuum, the borrower may consume the
item borrowed and return it in the same quantity, kind, and quality. For instance, if a borrower
borrows equipment from a lender and consumes it, they may not return the same equipment
they took, but rather equipment of similar sort, quality, and quantity. Moreover, the reporter also
discussed in their presentation about the interest. Interest is a rate and fee that the lender
charges to individuals who borrow money. There are several sorts of interest that can be applied
to loans, including conventional interest, compensatory interest, simple interest, compound
interest, and legal interest.

I've arrived at the conclusion that a credit transaction is more than just borrowing; it also has
legal responsibilities that provide both lenders and borrowers rules to follow in order to protect
their respective rights. We saw that whether we are the lenders or the borrowers, we always
have an obligation to comply with and fulfill. In order to avoid being highly indebted, we must
take into account a variety of factors, including our credit capacity, our ability to pay, our
awareness of loan laws, and understanding the terms and conditions of loans. This makes the
subject covered by Group 3 reporters significant because it will help us understand our
protections and rights as lenders, and it will do the same for borrowers by enabling them to
comprehend their rights as borrowers and the potential consequences of breaking the terms
and conditions of the loan agreement. In order for the transaction to go smoothly, properly, and
without any instances of taking advantage of one another, it is crucial that both the lender and
the borrower are aware of their rights and the loan agreement.
Ampidan, Angela N.
BAENT3A

Reflective No. 4: The Bouncing Check Law

A check is a printed paper on which you put a sum of money and the person to whom it
should be paid. Today, checks are one of the most popular alternatives to cash that some
people use. Since checks give customers more convenience when paying their bills, we may
see them both in large and smaller payment transactions. Even if the payor and payee are
geographically separated, using checks allows us to pay debts more quickly. Banks support this
by enabling the transfer of funds from one account to another.

Breaking the Batas Pambansa Blg. 22 also referred to as the Bouncing Checks Law, is seen
as a frequent issue that many businesspeople experience. Typically, there are two BP 22
violations that are punishable: first, drafting or drawing a check and issuing it despite the issuer
knowing he does not have the money available to pay the check's full amount. In the first
infraction punished under BP 22, it should be highlighted that the violation is the issuer's failure
to honor the check within 5 banking days of receiving the Notice of Dishonor and Demand for
Payment not on the creation, drawing, issuance, or dishonor of the check. An example would be
the P30,000.00 cheque that Shane gave to Glaiza. When she sent her the check, she was
conscious of the fact that she did not have P30,000.00 in the bank. If Glaiza takes the check to
the bank to be cashed and it isn't honored, Glaiza should inform Shane and demand payment.
In order to avoid being charged with breaking BP 22, Shane must provide Glaiza P30,000.00
within 5 banking days of when she receives the Notice of Dishonor. Second, not having enough
cash on hand to pay the entire cheque amount. There is sufficient money on deposit with the
bank when the issuer prepares a check in a second violation of BP 22. He breaks the law by
failing to have enough cash on hand at the bank within a reasonable amount of time after
issuing the cheque. Furthermore, the BP 22 and estafa have one thing in common: they may
both be committed by issuing bounced checks. But the two only differ somewhat from one
another. Under BP 22 the drawer has 5 days from the time they get the notice of dishonor to pay
the check or arrange for its payment. Meanwhile, the estafa offender has 3 days to settle the
check or arrange for its payment.

To sum up, as a future entrepreneur despite the fact that checks provide for an
uncomplicated payment transaction, there are several downsides we should be aware of. In
group 4 discussion, I have learned that the Bouncing Checks Law, also known as Batas
Pambansa Blg 22, was designed to safeguard the general public, particularly merchants who
often issue and accept checks. To avoid breaking the law and save us from being a victim of this
crime, it is essential to be familiar with it. Aside from the embarrassment we feel when we break
this law, it can also result in legal issues that could lead to the potential imprisonment, large
penalties or put ourselves in a worst scenario. For this reason, when writing checks and
accepting checks, we must be cautious.