Payment in coins
"My son just opened his piggy bank, which he has been using for the past three years to save his allowance and monetary gifts. After painstakingly counting the money from the piggy bank, it turned out that my son was able to save P16,000. The total amount was composed of coins amounting to P6,000, and bills amounting to P10,000.
He wants to use the coins to buy a bike, but I am uncertain if the store will accept coins as payment as it will take a long time for them to count the money. Is there anything that we need to consider in using the coins as payment? Can the store decline our payment if we opt to pay using the coins saved by my son?Rodney
Dear Rodney,If you intend to use the coins saved by your son, consider Section 52 of the New Central Bank Act (Republic Act 7653), as amended by Bangko Sentral ng Pilipinas (BSP) Circular 537, Series of 2006, in making your payment. The law provides:
“All notes and coins issued by the Banko Sentral shall be fully guaranteed by the Government of the Republic of the Philippines and shall be legal tender in the Philippines for all debts, both public and private Provided, however, That, unless otherwise fixed by the Monetary Board, coins shall be legal tender in amounts not exceeding One Thousand Pesos (P1,000.00) for denominations of One Peso and above, and in amounts not exceeding One Hundred Pesos (P100.00) for denominations of Twenty Five Centavos or less.”The law merely says that as a general rule, all notes and coins issued by the BSP have a legal tender power, which means they can be used as payment and must be accepted as such. However, there is a limit to the legal tender power of coins. Coins in denominations of P1, P5 and P10, are considered legal tender if used in amounts not exceeding P1,000. While coin denominations of one centavo, five centavos, 10 centavos and 25 centavos, are considered legal tender if used in amounts not exceeding P100. Thus, if you opt to pay in coins, you have to make sure that your payment in coins does not exceed the aforementioned amounts, or else they will not be considered legal tender for payment. Thus, it might be more prudent for you to exchange the coins to bills in your preferred bank prior to purchasing your son’s bike.
We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to "
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"Payment in coins"
was written by Mary
under the Legal Advice
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comments. The article was created on 15 September 2021
and updated on 15 September 2021