This case has been cited 1 times or more.
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2006-01-20 |
YNARES-SANTIAGO, J. |
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| In any of the foregoing cases, any money, fruits, or other benefit to be received by the vendee as rent or otherwise shall be considered as interest which shall be subject to the usury laws. (Emphasis added) It is an established rule that the presence of even one of the circumstances set forth in Article 1602 is sufficient to declare a contract of sale with right to repurchase an equitable mortgage.[20] Thus, under the wise, just and equitable presumption in Article 1602, a document which appears on its face to be a sale absolute or with pacto de retro may be proven by the vendor or vendor-a-retro to be one of a loan with mortgage. In such case, parol evidence becomes competent and admissible to prove that the instrument was in truth and in fact given merely as a security for the payment of a loan. And upon proof of the truth of such allegations, the court will enforce the agreement or understanding in consonance with the true intent of the parties at the time of the execution of the contract.[21] | |||||