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ADVOCATES FOR TRUTH IN LENDING v. BANGKO SENTRAL MONETARY BOARD

This case has been cited 3 times or more.

	GR No. 186332 2013-10-23	PLANTERS DEVELOPMENT BANK v. SPS. ERNESTO LOPEZ AND FLORENTINA LOPEZ BRION, J.
This provision amends Section 2 of Central Bank (CB) Circular No. 905-82, Series of 1982, which took effect on January 1, 1983. Notably, we recently upheld the constitutionality of CB Circular No. 905-82 in Advocates for Truth in Lending, Inc., et al. v. Bangko Sentral ng Pilipinas Monetary Board, etc.[49] Section 2 of CB Circular No. 905-82 provides: Section 2. The rate of interest for the loan or forbearance of any money, goods or credits and the rate allowed in judgments, in the absence of express contract as to such rate of interest, shall continue to be twelve [percent] (12%) per annum. [emphasis ours]
	GR No. 189871 2013-08-13	DARIO NACAR v. GALLERY FRAMES PERALTA, J.
Corollarily, in the recent case of Advocates for Truth in Lending, Inc. and Eduardo B. Olaguer v. Bangko Sentral Monetary Board,[41] this Court affirmed the authority of the BSP-MB to set interest rates and to issue and enforce Circulars when it ruled that "the BSP-MB may prescribe the maximum rate or rates of interest for all loans or renewals thereof or the forbearance of any money, goods or credits, including those for loans of low priority such as consumer loans, as well as such loans made by pawnshops, finance companies and similar credit institutions. It even authorizes the BSP-MB to prescribe different maximum rate or rates for different types of borrowings, including deposits and deposit substitutes, or loans of financial intermediaries."
	GR No. 179665 2013-04-03	SOLID BUILDERS v. CHINA BANKING CORPORATION LEONARDO-DE CASTRO, J.
As debtor-mortgagors, however, SBI and MFII do not have a right to prevent the creditor-mortgagee CBC from foreclosing on the mortgaged properties simply on the basis of alleged "usurious, exorbitant and confiscatory rate of interest."[30] First, assuming that the interest rate agreed upon by the parties is usurious, the nullity of the stipulation of usurious interest does not affect the lender's right to recover the principal loan, nor affect the other terms thereof.[31] Thus, in a usurious loan with mortgage, the right to foreclose the mortgage subsists, and this right can be exercised by the creditor upon failure by the debtor to pay the debt due.[32]