12 Questions
What is the main purpose of bank rehabilitation through conservatorship?
To save the bank from bankruptcy and ultimate liquidation
Who is responsible for overseeing the bank's operations during conservatorship?
The Conservator
What is the maximum duration of conservatorship?
1 year
What is one limitation to the Conservator's power?
The Conservator cannot revoke perfected and enforceable contracts
Under what condition can the bank be placed under receivership or liquidation?
When continuance of the business would involve probable loss to depositors and creditors
Who has the power to terminate the conservatorship?
The Monetary Board
What is the purpose of a Receiver in a bank under receivership?
To administer the assets and liabilities of the bank for the benefit of creditors
What is the duration of a bank under receivership?
90 days, with no extensions
What is the role of a Liquidator in a bank under liquidation?
To assist the BSP in determining the claims of creditors against the bank
What happens to the assets of a bank under liquidation?
They are converted to money and distributed to creditors
What is the purpose of a bank being placed under receivership?
To protect the bank's creditors and depositors
What is the next step after a bank is determined to be unable to be rehabilitated?
The bank is placed under liquidation
Learn about the three levels of bank rehabilitation, conservatorship, and its duration, powers, and role of the conservator in saving a bank from bankruptcy. Understand the process of helping a bank through effective management reforms and additional capital infusion.
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