SEC. 7. It shall be unlawful to use the proceeds of the loan or any part thereof, for any purpose or purposes other than that set out in the application therefor. Any violation of this provision shall be sufficient cause for the recission of the contract in which case the balance of the loan and the interest thereon shall become immediately due and demandable.
Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026
CitationRA 1292 Section 7 (LawPlayer, data as of July 4, 2026)
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
