Article 1175: Usurious transactions shall be governed by special laws

Simple loan or mutuum

- parties deliver to another same amount of the same kind

Usury
- Receiving interest in excess amount allowed by the law

Requisites of recovery interest

1. Payment of interest must be expressly stipulated
2. Agreement must be in writing;
3. Interest must be lawful

Stipulation of usurious interest is VOID, but lender can recover principal amount

Article 1176: The receipt of the principal by the creditor, without reservation with respect
to the interest, shall give rise to the presumption that said interest has been paid.
The receipt of a later installment of debt without reservation to prior installments
shall likewise raise the presumption that such installments have been paid.

Presumption
- Not actually knowing

Two kinds of presumptions

1. Conclusive presumption
- Cannot be contradicted
2. Disputable (or rebuttable) presumption
- Can be contradicted by presenting proof

When presumptions in Article 1176 do not apply

1. With reservations as the interest
- If there is reservation that no payment has been made
2. Receipt without indication of particular installment paid
3. Receipt for a part of the principal
 4. Payment of taxes
5. Non-payment proven

Articles 1177: The creditors, after having pursued the property in possession of the
debtor to satisfy their claims, may exercise all the rights and bring all the actions of the
latter for the same purpose, save those which are inherent of his person; they may also
impugn the acts which the debtor may have done to defraud them

Remedies available to creditors for the satisfaction of their claims

1. Exact fulfillment with the right to damages;
2. Pursue the leviable property of the debtor;
3. Exercise all the rights (like right to redeem) and bring all actions of the debtor (like right
to collect from the debtor of his debtor)
4. Ask the court to rescind or impugn acts