First Metro vs Este del Sol
GR No. 141811, 15 November 2001
369 SCRA 99
FACTS
FMIC
granted Este del Sol a loan to finance a sports/resort complex in Montalban,
Rizal. Under the agreement, the interest was 16% pa based on the diminishing
balance. In case of default, an acceleration clause was provided and the amount
due is subject to 20% one-time penalty on the amount due and such amount shall
bear interest at the highest rate permitted by law. respondent executed a REM,
individual continuing suretyship and an underwriting agreement whereby FMIC
shall underwrite the public offering of one P120,000 common shares of
respondent’s capital stock for one-time underwriting fee of P200,000. For
failure to pay its obligation, FMIC caused the foreclosure of the REM. At the
public auction, FIC was the highest bidder. Petitioner filed to collect for
alleged deficiency balance against respondents since it failed to collect from
the sureties, plus interest at 21% pa. the trial court ruled in favor of FMIC. Respondents
appealed before the CA which held that the fees provided for in the
Underwriting and Consultacy Agreements were mere subterfuges to camouflage the
excessively usurious interest charged. The CA ordered FMIC to reimburse
petitioner representing what is ue to petitioner and what is due to respondent.
ISSUE
Whether
or not the interests are lawful
HELD
No.
an apparently lawful loan is usurious when it is intended that additional
compensation for the loan be disguised by an ostensibly unrelated contract for
the payment by the borrower for the lender’s services which re of little value
or which are not in fact to be rendered. Article 1957 clearly provides:
contracts and stipulations, under any cloak or device whatever, intended to
circumvent the law agaistn usury shall be void. The borrower may recover in
accordance with the laws on usury.
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