Article 2209

RA 386 · Civil Code of the PhilippinesKey provision

ELI5— what this means for you

If the obligation consists of payment of money and the debtor is in default, the creditor is entitled to legal interest (currently 6% per annum as set by the Bangko Sentral ng Pilipinas) from the time of default.

Key point

Unpaid debts accrue interest of 6% per year from the moment you default — as set by BSP Circular 799.

Official text — RA 386

If the obligation consists in the payment of a sum of money, and the debtor incurs in delay, the indemnity for damages, there being no stipulation to the contrary, shall be the payment of the interest agreed upon, and in the absence of stipulation, the legal interest, which is six per cent per annum. (1108)

Source: lawphil.net (RA 386 as amended)

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