Page 386 - Important Provisions of The New Civil Code

Article 1602. The contract shall be presumed to

be an equitable mortgage, in any of the

following cases:

(1) When the price of a sale with right to

repurchase is unusually inadequate;

(2) When the vendor remains in possession

as lessee or otherwise;

(3) When upon or after the expiration of the

right to repurchase another instrument

extending the period of redemption or

granting a new period is executed;

(4) When the purchaser retains for himself a

part of the purchase price;

(5) When the vendor binds himself to pay

the taxes on the thing sold;

(6) In any other case where it may be fairly

inferred that the real intention of the parties