Limited Legal Tender Power

Legal tender is that kind of money that the law compels a creditor to accept in payment of a debt when tendered by the debtor in the right amount.

Under Sec. 52 of RA 7653, all notes and coins issued by the BSP shall be legal tender in the Philippines. However, it must be remembered that oins have limited legal tender power in this country. Peso coins are legal tender up to 1,000 pesos. Centavo coins are legal tender up to 100 pesos only. (BSP Circular No. 537, Series of 2006)

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