Cap. 16 · Civil Code (Cap. 16)
Cap. 16 Art. 1182Acceptance of securities in consideration of a former debt does not produce novation.
Sub-title V
(1) The acceptance of notes or other negotiable securities in consideration of a former debt shall not operate as novation unless it appears clearly from other circumstances that it was intended to extinguish such former debt.
(2) Nor shall novation take place in respect of a debt which was originally of a commercial nature, merely on the ground that such debt is subsequently recorded in a notarial instrument, and secured by a hypothec.