15 Questions
What is the status of the assets of a closed bank in the hands of the receiver?
They are deemed in custodia legis
What is the primary purpose of placing a bank's assets in custodia legis?
To protect the bank's assets from creditors
What is the effect of a bank's assets being deemed in custodia legis?
The assets are protected from attachment and garnishment
Who is responsible for managing a closed bank's assets in custodia legis?
The receiver
What is the implication of a bank's assets being in custodia legis on the bank's depositors?
The depositors are protected from losses
What is the primary purpose of a liquidation proceeding in a bank?
To administer and dispose of the bank's assets for the benefit of its creditors
Which entity is responsible for representing and acting on behalf of a closed bank?
Philippine Deposit Insurance Corporation (PDIC)
What is the primary goal of deposit insurance coverage?
To provide protection to depositors in the event of a bank failure
What is the role of the PDIC Board of Directors in relation to bank regulation?
To regulate the banking industry
What happens to a bank that is placed under receivership?
It is placed under the management of a receiver to rehabilitate or liquidate its assets
What is the role of the receiver in a bank closure?
To impose charges and fees for services rendered after bank closure
What is the primary purpose of the receiver's services after bank closure?
To execute pertinent deeds and certifications
When does the receiver impose charges and fees for services rendered?
After bank closure
What is the receiver acting on behalf of when imposing charges and fees?
The closed bank
What is the outcome of the receiver's services in a bank closure?
The bank's assets are utilized to settle its liabilities
This quiz covers the consequences of a bank's liquidation on its assets, including their legal status and protection from attachment or execution. Understand the role of the receiver and the implications of custodia legis. Test your knowledge of banking law and liquidation processes.
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