In short
Act 131 of 2026 amends Article 1327 of the Puerto Rico Civil Code (Act 55-2020) to resolve a contradiction with Article 1328. Before, Article 1327 presumed every loan bore interest unless agreed otherwise ("it is onerous"), while Article 1328 said the opposite: no interest is owed unless expressly agreed. The amendment changes a single word — from "onerous" to "gratuitous" — so both articles agree: a loan is presumed interest-free, unless the parties expressly agree there will be interest. This restores the rule that already governed under the 1930 Civil Code and the Uniform Commercial Transactions Act.
What is it?
It is the rule that decides what happens when two people agree to a loan but never discussed interest. Before this law, the Civil Code's text was internally contradictory. Now, the rule is clear: without an express agreement on interest, the loan is interest-free and nothing beyond the amount lent is owed.
Who can do it?
It applies to any loan contract governed by the Puerto Rico Civil Code in which the parties did not expressly agree to the payment of interest.
Requirements
Information pending verification.
Documents you need
Information pending verification.
Cost
Step by step
Step 1: Check whether there was an express interest agreement
The new Article 1327 says: "The loan, absent a different agreement, is gratuitous." If there is no express agreement — oral or written — on paying interest, the legal presumption is that none is owed.
Step 2: A different agreement reverses the presumption
"Absent a different agreement" makes clear the parties can agree that interest will be paid. What matters is that agreement actually exists and is identifiable, not that it is automatically presumed.
Step 3: This rule now matches what Article 1328 already said
The exposición de motivos quotes Article 1328: "no interest shall be owed, except when expressly agreed." Before this amendment, Article 1327 contradicted that rule; now both articles say the same thing.
Where to do it
It is not a procedure: it is a Civil Code rule that automatically applies to any loan contract with no express interest agreement. If you have a dispute over whether interest is owed on a specific loan, that is a matter to resolve with legal counsel or, if necessary, before the courts.
How long it takes
What to do if something goes wrong
What we do not publish, and why. We did not read the full Article 1328 of the Civil Code, only the sentence this law's exposición de motivos quotes, so we do not describe what else that article covers. Nor did we read the 1930 Civil Code or Act 241-1996 beyond the specific provisions this law cites. A note on the date: the handwritten legislative stamp on the document we read says "131 — July 15, 26," matching the OGP catalog's own "131-2026" numbering, but the printed Department of State certification block on the same page says "Date: JULY 16, 2025" — a year off. We flag it exactly as it appears, without resolving the discrepancy, and cite the law number the OGP catalog itself uses.
Common mistakes
- Assuming every loan automatically bears interest: the rule is now the opposite.
- Thinking the interest agreement must be in writing: the law only requires it be express, and we did not read a requirement for a specific form.
- Confusing this Civil Code rule with regulated interest rates for commercial lenders or financial institutions, which have their own laws.
- Applying this presumption to negotiable instruments without checking Act 241-1996, which has its own similar rule but is a separate law.
Frequently asked questions
I lent someone money and we never discussed interest — do they owe it to me?
No, unless there was an express agreement that interest would be paid. The legal presumption, after this law, is that the loan is interest-free.
Can I agree to interest on a loan between individuals?
Yes. The law says "absent a different agreement," so the parties can expressly agree that the loan will bear interest.
What exactly changed in the Civil Code?
A single word in Article 1327: from "onerous" to "gratuitous," so it no longer contradicts Article 1328.
Official sources
These are the government pages this guide is based on.
- Poder Judicial de Puerto Rico
Poder Judicial
bvirtualogp.pr.gov
Last verified
August 26, 2026
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