Effects of Liquidation on Bank Assets
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Questions and Answers

What is the status of the assets of a closed bank in the hands of the receiver?

  • They are deemed in custodia legis (correct)
  • They are returned to the bank's shareholders
  • They are subject to immediate sale
  • They are under the control of the bank's management

    • What is the primary purpose of placing a bank's assets in custodia legis?

  • To facilitate the sale of the bank's assets
  • To protect the bank's assets from creditors (correct)
  • To allow the bank's management to regain control
  • To punish the bank's shareholders

    • What is the effect of a bank's assets being deemed in custodia legis?

  • The assets are returned to the bank's depositors
  • The assets are subject to attachment and garnishment
  • The assets are protected from attachment and garnishment (correct)
  • The assets are sold immediately

    • Who is responsible for managing a closed bank's assets in custodia legis?

    <p>The receiver</p> Signup and view all the answers

    What is the implication of a bank's assets being in custodia legis on the bank's depositors?

    <p>The depositors are protected from losses</p> Signup and view all the answers

    What is the primary purpose of a liquidation proceeding in a bank?

    <p>To administer and dispose of the bank's assets for the benefit of its creditors</p> Signup and view all the answers

    Which entity is responsible for representing and acting on behalf of a closed bank?

    <p>Philippine Deposit Insurance Corporation (PDIC)</p> Signup and view all the answers

    What is the primary goal of deposit insurance coverage?

    <p>To provide protection to depositors in the event of a bank failure</p> Signup and view all the answers

    What is the role of the PDIC Board of Directors in relation to bank regulation?

    <p>To regulate the banking industry</p> Signup and view all the answers

    What happens to a bank that is placed under receivership?

    <p>It is placed under the management of a receiver to rehabilitate or liquidate its assets</p> Signup and view all the answers

    What is the role of the receiver in a bank closure?

    <p>To impose charges and fees for services rendered after bank closure</p> Signup and view all the answers

    What is the primary purpose of the receiver's services after bank closure?

    <p>To execute pertinent deeds and certifications</p> Signup and view all the answers

    When does the receiver impose charges and fees for services rendered?

    <p>After bank closure</p> Signup and view all the answers

    What is the receiver acting on behalf of when imposing charges and fees?

    <p>The closed bank</p> Signup and view all the answers

    What is the outcome of the receiver's services in a bank closure?

    <p>The bank's assets are utilized to settle its liabilities</p> Signup and view all the answers

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