MORNBFI Vol. 1 - Planters Development Bank

APP. Q-5611.31.12may be deemed advantageous to theinterest of the creditors and claimants of theclosed NBQB/Trust Entity;5. Convert the assets to money ordispose of the same to creditors and otherparties for the purpose of paying debts ofthe NBQB/Trust Entity in accordance withthe preference of credits provided under theCivil Code;6. Settle the affairs of the NBQB/TrustEntity within a reasonable time preferablywithin three (3) to five (5) years;7. Provide for his own organizationalsupport and for other resource back-up facilitiesto accomplish the liquidation plan,including hiring of counsel;8. Bring suits to enforce liabilities of thedirectors, officers, employees, agents of theclosed NBQB/Trust Entity and other entitiesrelated or connected to the closed NBQB/Trust Entity or to collect, recover andpreserve all assets, including assets overwhich the NBQB/Trust Entity has equitableinterest;9. Incur, disburse, charge and be paidfrom the funds of the NBQB/Trust Entity,liquidator’s fees, salaries/compensation ofsupport personnel and such other necessaryexpenses incurred in the discharge of theliquidation functions subject to approval bythe Liquidation Court; and10. Perform such other functionsnecessary in the liquidation of the NBQB/Trust Entity.c. Safeguards for Preserving the Assets ofan Entity during the Liquidation Process.The liquidator, in the performance ofhis/her/its duties, shall observe duediligence as required under thecircumstances, reasonable skill, sounddiscretion and good faith. Immediately afterhis takeover, the liquidator shall takeappropriate steps to manage, administer andpreserve the assets of the NBQB/Trust Entityin order to conserve and/or maximize thevalue of the assets, including assets in thepossession or administration of thirdpersons or those previously given ascollaterals by the NBQB/Trust Entity to itscreditors. Accordingly, the liquidator shallundertake the following steps:1. All properties included in theinventory of assets and/or under the custodyof the liquidator that are reasonably deemedto have inherent risk, shall be adequatelyinsured;2. The liquidator shall use alllegal means to control the assets, collect allreceivables, bring suit to collect claims andresist all unlawful claims against the assetsof the entity;3. Investible funds shall be limitedto readily marketable government securities;4. The liquidator shall convert theassets into money with convenient speedas may be practicable and at maximumrecovery obtainable under thecircumstances;5. The liquidator and his staff shallbe prohibited from purchasing propertiesof the NBQB/Trust Entity subject ofliquidation;6. The liquidator shall limitadministrative expenses to what isnecessary and reasonable;7. Third parties hired to performcertain activities shall possess theeducation, experience, training andcompetence necessary for the job;8. The liquidator shall maintainappropriate records which may be madeavailable to parties as provided in Section4.6 below; and9. The liquidator shall be required topost a surety bond in an amount not lessthan 10% of the book value of the totalassets of the institution as of takeover. Saidsurety bond shall be renewable every yearand the amount of which shall be at leastten percent (10%) of the realizable assets ofthe preceding quarter.d. Submission of Status Report.Appendix Q-56 - Page 8Manual of Regulations for Non-Banks Financial Institutions