MORNBFI Vol. 1 - Planters Development Bank

APP. Q-5611.31.12rem so that all other interested personswhether known to the parties or not maybe bound by such proceeding. 12. Legal Bases for Liquidation ProceedingsSection 30 of Republic Act No. 7653,otherwise known as the New Central BankActProceedings in Receivership andLiquidation. —“x x x x x x x x x“If the receiver determines that theinstitution cannot be rehabilitated orpermitted to resume business in accordancewith the next preceding paragraph, theMonetary Board shall notify in writing theboard of directors of its findings and directthe receiver to proceed with the liquidationof the institution. The receiver shall:“i. file ex parte with the proper regionaltrial court, and without requirement of priornotice or any other action, a petition forassistance in the liquidation of theinstitution pursuant to a liquidation planadopted x x x. In case of quasi-banks, theliquidation plan shall be adopted by theMonetary Board. Upon acquiringjurisdiction, the court shall, upon motionby the receiver after due notice, adjudicatedisputed claims against the institution,assist the enforcement of individualliabilities of the stockholders, directors andofficers, and decide on other issues as maybe material to implement the liquidationplan adopted. The receiver shall pay the costof the proceedings from the assets of theinstitution.“ii.convert the assets of the institutionto money, dispose of the same to creditorsand other parties, for the purpose of payingthe debts of such institution in accordancewith the rules on concurrence andpreference of credit under the Civil Code ofthe Philippines and he may, in the name ofthe institution, and with the assistance ofcounsel as he may retain, institute suchactions as may be necessary to collect andrecover accounts and assets of, or defendany action against, the institution. Theassets of an institution under receivershipor liquidation shall be deemed in custodialegis in the hands of the receiver and shall,from the moment the institution was placedunder such receivership or liquidation, beexempt from any order of garnishment, levy,attachment, or execution.”Section 56, R.A. No. 8791xxx xxx xxxWhenever a x x x quasi-bank or trustentity persists in conducting its business inan unsafe or unsound manner, the MonetaryBoard may, without prejudice to theadministrative sanctions provided in Section37 of the new Central Bank Act, take actionunder Section 30 of the same Actxxx xxx xxx”Section 91, R.A. No. 8791 in relationto Section 66 of R.A. No. 8791 and Section36 of R.A. No. 7653Section 91, R.A. No. 8791“Sanctions and Penalties. — A trustentity or any of its officers and directorsfound to have willfully violated any pertinentprovisions of this Act, shall be subject tothe sanctions and penalties provided underSection 66 of this Act as well as Sections 36and 37 of the New Central Bank Act.Section 66, R.A. No. 8791Penalty for Violation of this Act. — Unlessotherwise herein provided, the violation ofany of the provisions of this Act shall besubject to Sections 34, 35, 36 and 37 of theNew Central Bank Act. If the offender is adirector or officer of a bank, quasi-bank ortrust entity, the Monetary Board may alsosuspend or remove such director or officer.If the violation is committed by acorporation, such corporation may be1 Chua v. NLRC, 1990Manual of Regulations for Non-Banks Financial InstitutionsAppendix Q-56 - Page 5