Practice question
A qualifying buyer paid PHP2,000,000 over fifteen complete installment years. The seller calculates fifty percent plus five percent for each year after year five, giving one hundred percent. What does Section3(b) require for the statutory cash surrender value?
- Apply the ninety-percent cap, producing PHP1,800,000
- Pay one hundred percent because the cap disappears after ten years
- Pay only five percent
- Pay nothing because the buyer paid too long
- Double all payments automatically
Legal references
- RA6552: https://lawphil.net/statutes/repacts/ra1972/ra_6552_1972.html Section3(a)–(b).
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