RFBT

• RECTO LAW


  Law on Installment payments of personal properties. Seller-focused
• ARTICLE 1484-1486


  • Provisions
• REMEDIES OF THE UNPAID SELLER

  • Exact fulfillment, if only one installment is unpaid
  • Rescind or Cancel the Sale, available if already 2 installments are unpaid
  • Foreclosure of Chattel Mortgage, available if already 2 installments are unpaid
• Foreclosure of Chattel Mortgage

  The foreclosure only becomes available if there is a mortgaged personal property. Any deficiency from the foreclosure of item which is the object of the obligation itself, cannot be recovered by the seller. However if the foreclosed item is a different item, deficiencies can be recovered.
• MACEDA LAW


  RA 6552. Sale on installment of residential properties in installments (not for credit). Buyer-focused provisions.
• REMEDIES OF THE BUYER


  • Exact fulfillment
• Paid less than 2 Years and defaults


  Grace period of 60 days from the last installment. In cases of an elapsed grace period, the seller can cancel the sale through notarial demand. Cancellation becomes effective 30 after the buyer was notified.
• Paid At Least 2 Years and defaults


  Grace period of 30 days from the last installment. The buyer can pay the balance without interest.
• If The Seller wants to Cancel

  1. 2-5 Years 50 percent payback of the actual payments

  2. 5 years above 50 percent plus 5 percent in every year not exceeding 90 percent.
• BATAS PAMBANSA BILANG 22


  An act penalizing the making, drawing and issuance of checks without sufficient funds or credit and for other purposes
• SECTION 1: CHECKS WITHOUT SUFFICIENT FUNDS


  Any person who makes, draws, or issues any check to apply on account or for value, with the knowledge that the fund is insufficient, where the check was subsequently dishonored for the same reason and due to cancellation of payment without valid reason is liable under this Act
• SECTION 2: IMPORTANT DAYS TO REMEMBER

  1. 5 banking days to replenish the fund

  2. Within 90 days, the drawer is aware of the balances of its funds, hence if the check is presented within the same timeframe if it is insufficient the law assumes that it is a prima facie evidence of the knowledge

  3. 180 days stale check period
• Failure to replenish the insufficient credit within 5 banking days


  Constitutes a violation
• Unless replenished within 5 days from the receipt of notice of dishonorment


  The drawer, maker or issuer cannot be liable under the Act
• SECTION 3: DUTY OF THE DRAWEE BANK

  1. The drawee bank is obliged to send the notice of dishonorment to the issuer of the check stipulating the cause of dishonorment through written, printed, or stamped marking

  2. The notice of dishonorment must be sent to the drawer for the latter to be aware an knowlegeable of the dishonorment
• When the check is issued by a corporation


  The signatory person shall be liable under this Act