BAM 242

REGULATORY FRAMEWORK & LEGAL ISSUES IN BUSINESS

PRE- FINAL EXAMINATIONS POINTERS

(SPECIAL COMMERCIAL LAWS)

MULTIPLE CHOICE QUESTIONS. (60 points).

1, BANK SECRECY LAW:

 Deposits of whatever nature with banks can be examined or inquired or looked into as an exception to
the Secrecy of Bank Deposits law. Which is not an exception to the coverage of the said law?
 ABC Bank thru its manager, disclosed to the court sheriff the outstanding balance of X’s deposit with the
bank upon its receipt of the garnishment notice. X filed a criminal complaint against ABC bank for
violation of R.A. 1405. Will the complaint prosper?
 Is the bank manager justified in his refusal to reveal the identity of the drawer?
 Duty of the revenue district officer
 Necessity of a court order

2. BATAS PAMBANSA BLG. 22

 Elements and what the law punishes

 Stale check
 Prosecution for BP 22

3. SUSPENSION OF PAYMENTS, INSOLVENCY LAW, CORPORATE

REHABILITATION & THE FINANCIAL REHABILITATION &
INSOLVENCY ACT

 Suspension of payments is a petition filed by a debtor who has enough assets to meet liabilities but
foresees he impossibility of meeting his obligation when they fall due.
 An individual debtor filing for suspension of payment only claims of unsecured creditors are covered by
the Stay Order and For by a partnership or a corporation, all claims whether secured or unsecured shall
be suspended when a petition for suspension of payment is approved under Presidential Decree 902-A.
 Corporate rehabilitation is a a process to try and conserve and administer the corporation’s assets in the
hope that it may eventually be able to return from financial stress to solvency.
 The Rehabilitation Receiver shall not take over the management and control of the debtor but shall
closely oversee and monitor the operations of the debtor during the pendency of the proceedings.
 The damage suit will be suspended pending the insolvency proceedings
 The Securities and Exchange Commission will not register the by-laws of any bank unless
accompanied by a certificate of authority from the BSP
 The Monetary Board may authorize the organization of any bank provided it is a stock corporation with
par value shares of stock
 Rehabilitation Plan is a plan by which the financial well-being and viability of the insolvent debtor can be
restored.
 The Cram Down Rule under the FRIA means that the Plan confirmed by the court shall be binding upon
everyone, including those creditors who did not participate or opposed the plan.

4. PDIC LAW

 Functions of the Philippine Deposit Insurance Corporation (PDIC)

 Extent of liability of the PDIC per depositor on a per bank basis if the bank was closed by order of the
Monetary Board
 The receiver received the assets of the closed bank in custogia legis.

5. ANTI-MONEY LAUNDERING LAW

 The stages of money laundering as defined under the Anti-Money Laundering Law
 Persons covered
 Predicate crimes of money laundering
 Minimum amount of covered transactions
 Meaning of suspicious transactions

6. BANKING LAWS
 Meaning of universal bank
 Meaning o frural bank
 Meaning of savings account
 DORSI Account
 A bank cannot outsource its functions by hiring another company to accept deposits
 A bank cannot engage in a contract of deposit
 Powers of the BSP
 Monetary Board

7. ASSIGNMENT OF CREDIT

 On June 19, 2019 D executed a loan agreement whereby he borrowed P100,000 from C to mature on
February 19, 2020. While waiting for the payment, C became indebted to A and the loan with the latter
will mature on January 19, 2020 and so he executed an assignment of credit in favour of A on
December 19, 2019. Under the assignment, the assignor made himself responsible for the solvency of
the debtor but no duration of such warranty was stipulated in the contract. Based on the facts stated,
until what time will the assignor warrants the credit in case of insolvency of the debtor?

8. LETTER OF CREDIT & TRUST RECEIPT LAW

 Letters of Credit is an engagement by a bank or other person made at the request of a customer that
the issuer will honor drafts or other demands for payment upon compliance with the conditions specified
in the credit.
 The Doctrine of Strict Compliance is the issuing or confirming bank to examine all documents to make
sure that the conditions of the Letter of Credit are strictly complied with.
 Trust receipt is a security transaction intended to aid in financing importers or dealers in a merchandise
by allowing them to obtain delivery of goods under certain covenants like when the bank becomes the
entruster of good and the buyer-importer becomes its entrustee.

9. WAREHOUSE RECEIPT LAW

 A warehouse receipt is a document of title and is an evidence of receipt of goods

 Delivery of warehouse receipt

10. BULK SALES LAW

 During the epidemic, Mr. Donald executed contracts of sale with the city government wherein he will sell
all the burgers produced by his restaurant in bulk at half the price for a period of one month. Later Mr.
Donald’s business was ruined due to financial losses. The creditors of Mr. Donald complained that he
was not following the required formalities of the Bulk Sales Law such as furnishing a sworn statement of
the list of his creditors, their addresses and the amount owing to them.

11. INTELLECTUAL PROPERTY CODE

 What compose intellectual property

 Infringement vs unfair competition
 First to file rule
 Elements of patentable invention
 Trademarks allowed to be registered
 Trademarks vs Patents vs Copyright

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