MORNBFI Vol. 1 - Planters Development Bank

APP. Q-5611.31.12MASTER LIQUIDATION PLAN FOR NBQBs/TRUST ENTITIES1. Preparation of Schedules of Assets andLiabilities.After the turn-over of the affairs of theinsolvent NBQB/Trust Entity is completed,the Liquidator shall prepare the schedulesof all the assets and liabilities of the entityaccompanied by the following basicinformation:• Statement of condition as of date oforder of liquidation• Exceptions/variances noted in thetakeover• Work program pursuant to the masterliquidation plan2. Inventory of AssetsThe following procedures/guidelinesshall be observed by the Liquidator in preparingthe inventory of assets:2.1. The inventory shall contain allknown assets of the NBQB together withtheir book value and market value basedon the latest available appraisal report.2.2. Supplemental reports shall besubmitted for additional assets discovered,if any, and the Liquidator shall takepossession thereof.2.3. The schedules/reports shall be thebasis for the conversion/disposition of theassets.3. Conversion of Receivables/Loans,Securities, and Other Receivables intoMoneyThe following procedures/guidelinesshall be observed by the Liquidator inconverting the NBQB’s/Trust Entity’s assetsto money:3.1. In case the Liquidator engages theservices of private collection agencies to collectall or particular receivables of the entity,such shall be covered by an agreementin writing.3.2. In case the Liquidator shallundertake the collection of the loanreceivables:3.2.1. At least three (3) demand lettersshall be sent to borrowers whose accountsare not subject to pending cases in courts,furnishing a copy of said letters to respectiveco-makers or guarantors, by registered mailwith return card or by courier;3.2.2. The Liquidator shall cause theappraisal of collaterals to determine theirexistence and valuation, where necessary.3.2.3. Settlement proposals whichrequire at least 20% payment of the totalobligation and the balance (with interest)payable in equal amortizations within aone-year period may be allowed, provided,any deviation from the aforementionedarrangement shall require approval of theLiquidation Court.3.2.4. For borrowers who ignoredemand letters or who fail to settle theiraccounts in accordance with the agreedpayment arrangement, or whose demandletters are returned by the Post Office or bycourier, the following courses of action shallbe taken:3.2.4.a. Secured loans – Immediateforeclosure of the mortgaged property shallbe instituted.3.2.4.b. Unsecured loans – TheLiquidator shall pursue appropriate legalaction.3.2.5. Foreclosure of mortgages may bedone either extra-judicially or judicially. Theamount of bid shall be the current appraisalvalue of the property or the total obligationconsisting of principal, interest, penaltiesand other charges, including attorney’s fees,other foreclosure and collection expensesincurred, whichever is lower. In case thebid price in foreclosure sale is not sufficientto cover the total loan obligation, thenecessary legal remedies shall be institutedagainst the borrower-mortgagor, with theassistance of the counsel engaged by theManual of Regulations for Non-Banks Financial InstitutionsAppendix Q-56 - Page 15