Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

2-2 > Banking Laws & FRIA > Flashcards

Banking Laws & FRIA Flashcards

1
Q

Is an investment company that is engaged in the lending of funds a bank?

A

No. An investment company that is engaged solely in investing, reinvesting, or trading in securities is not engaged in banking.

However, an investment company which loans out money of its customers, collects interests, and charges a commission to both the lender and borrower is engaged in banking.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Entry of Foreign Banks

A

RA 10641 allows the full entry of foreign banks in the Philippines. The following modes are:

  1. By acquiring, purchasing or owning up to 100% of the voting stock in an exisiting bank;
  2. By investing up to 100% of the voting stocks of a new banking subsidiary incorporaetd under Philippine Law
  3. Establishing branches with full banking authority
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Prohibited Acts of Banks

A
  1. Engaging in insurance business
  2. Outsourcing of functions is generally prohibited
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Secrecy of Bank Deposits

A

All deposits of whatever nature with banks in the Philippines

including investments in bonds issued by the PH govt

are considered absolutely confidential and may not be examined, inquired or looked into by any person, government, bureau, or office.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Prohibited Acts under the Bank Secrecy Law

A
  1. Bank deposits may not be examined, inquired or looked into by any person, government official, bureau or office.

2.Any official or employee of a banking institution may not disclose to any person other than thosee mentioned in Section 2 any information regarding said peposits.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Exception to the Bank Secrecy Law

A
  1. When there is a written permission of the depositor or investor.
  2. Impeachment cases
  3. Upon order of a competent court in cases where the money deposited or invested is a subject of litigation
  4. Court order of unexplained wealt udner RA 3019
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Instances when AMLC may inquire into deposits without a court order

A
  1. Kidnapping for ransom Under Art. 267 of the RPC
  2. Violations of specific sections of RA 9165
  3. Hijacking and other violations under RA 6235,
  4. Destructive arson and murder, including those perpetrated by terrorists against non-combatant persons and similar targets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Insured Deposit under the PDIC

A

The amount due to any bona fide depositor for legitimate deposits in an insure bank does not exceed P500,000.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Splitting of deposit

A
  1. Existence of source account/s in a bank with a balance or aggregate balance of more than the maximum deposit insurance coverage.
  2. There is a break up and transfer of said accounts into two or more accounts in the name of another person or entities
  3. The transferees have no Beneficial Ownershop over the transferred funds
  4. Transfer occurred within 120 days immediately preceding or during a bank declared holiday or immediately preceding bank closure
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Insurance on Joint Accounts

A

A joint account regardless of whether the conjuction “and” “or” “and/or” is used shall be insured SEPARATELY from any individually owner deposit account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Primary function of the PDIC

A

Act as:
1. Deposit insurere
2. co-regulator banks
3. receiver and liquidator of closed banks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

PDIC’s powers before closure

A
  1. Make loans to, or purchase the asset of, or assume liabilities of, or make deposits in a bank in danger of closing upon its acquisition by a qualified investor or in the qualified investor that makes the purchase
  2. Institute corrective actions if no corrective action is instituted by the monetary board
  3. PDIC is authorized to terminate the insured status of bank, if the latter engages in unsafe and unsound banking practices
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

PDIC powers after closure

A
  1. PDIC may immediately proceed to liquidation when a bank is ordered closed.
  2. PDIC has the authority to facilitate and implement the purchase of the assets of the closed bank and th assumption of its liabilities by another bamk without need for approval and liquidation of the court.
  3. Banks ordered closed by the monetary board shall no longer be rehabilitated
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Examination vs Investigation

A

Examination (Requires prior consent of MB)
- involves an evaluation of the current status of a bank and determines its compliance with the set standards regarding: (SLAM SOC)

Solvency
Liquidity
Asset Valuation
Operations
Systems
Management
Compliance

with banking records

Investigation (Does not require consent of the MB
- Conducted based on certain findings, acts or omissions which are subject of a complaint or Final report of Examination made by PDIC.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Elements of Money Laundering

A

(1) ex parte application by the Anti-Money Laundering Council (AMLC); (2) determination of probable cause by the Court of Appeals (CA); and (3) exception of court order in cases involving unlawful activities defined in Section 3(i)(1), (2), and (12).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Is Section 11 of AMLA unconstitutional?

A

No. Section 11 of the Anti-Money Laundering Act (AMLA) providing for ex parte application and inquiry by the Anti-Money Laundering Council (AMLC) into certain bank deposits and investments does not violate substantive due process, there being no physical seizure of property involved at that stage.

17
Q

When is a court order required for examination by AMLC

A

In cases of violation of RA 9160, when it has been that there is probable cause that the deposits or investments, including related accounts involved, are related to:

  1. Unlawful activities
  2. Money laundering offense
18
Q

When is no court order required for examination by AMLA?

A
  1. Kidnapping for ransom
  2. violation of RA 9165
  3. Hijacking and other violations under RA 6235
  4. Terrorism and conspiracy to commit terrorism
19
Q

Define Insolvent

A
  1. Refers to the financial condition of a debtor that is generally unable to pay its or his liabilities when they fall due in the ordinary course of business or has liabilities that are greater than his assets
20
Q

Who may file a voluntary rehabilitation for parternships?

A

Majority of Partners

21
Q

Who may file a voluntary rehab for corps?

A
  1. Majority of the Directors or Trustees; and
  2. Stockholders representing 2.3 of the OCS or 2/3 members of non-stock
22
Q

Who may file an involuntary rehab of SP, P and Corps?

A

Creditor or group of creditors with an aggregate claim of at least 1M, or at least 25% of the subscribed capital stock whichever is higher

23
Q

Rehabilitation

A

Restoration of the debtor to a condition of successful operation and insolvency, if it is shown that:
1. Its continuance of operation is economically feasible; and
2. Its creditors can recover by way of the present value of payments projected in the plan more rather than its immediate liquidation

24
Q

What must be established for voluntary rehabilitation?

A
  1. There must be a verified petition
  2. The insolvency of the debtor
  3. The viability of the rehabilitation
25
Q

What must be established for involuntary rehabilitation?

A
  1. There is no genuine issue of fact or law on the claim/s of the petitioner and that the due demandable payments thereon have not been made for at least 60 days or that the debtor has generally failed to meet its liabilities when they fall due
  2. A creditor, other than the petitioner, has initiated foreclosure proceedings against the debtor, that will prevent the debtor from paying its debts as they become due or will render it insovent
26
Q

Cram Down Rule

A

The rehab plan confirmed by the court shall be binding upon the debtor and all persons who may be affected by it whether ornot such persons have participated in the proceedings or opposed the plan, or WON their claims have been scheduled.

27
Q

Effects of a Stay Order

A
  1. Suspend all actions or proceedings, in court or otherwise, for the enforcement of claims against the debtor
  2. Suspend all actions to enforce any judgment, attachment or any other provisional remedies against the debtor
  3. Prohibit the debtor from selling, encumbering, transferring or disposing in any manner any of its properties except in the ordinary course of business
  4. Prohibit the debtor from making any payments of its liabilities outstanding as of the commencement date except as may be provided in the law.
28
Q

Prohibited Acts of BSP Personnel

A
  1. Being an officer, director, lawyer agent or employee of any institution subject to supervision or examination of BSP. XP: Non-stock savings and loan associations exclusively for employees.
  2. Directly or indirectly receiving any gift or benefit for himself or another from any institution subject to S/E by BSP
  3. Revealing in any manner, XP order of the court, Congress or govt, information relating to the condition or business of any institution
  4. Borrowing from any institution subject to S/E by BSP. XP: Borrowing in transacted on an arm’s length basis.
29
Q

When may a bank be placed under conservatorship?

A

When the MB finds that a bank or QB is in a state of continuing inability ro maintain a condition of liquidity deemed adequate to protect its depositors and creditors

30
Q

Legal Effects when a bank is placed under receivership?

A
  1. It operates to suspend the authority of the bank and of its directors and officers over its property and effects.
  2. The bank shall be forbidden to do business. It is not liable to pay interests on deposits
  3. A case for BP22 against a bank under receivershi shall be dismissed.
  4. Receiver shall immediately gather and take charge of the assets and liabilities of the institution.
31
Q

Is Sec. 11 of AMLA unconstitutional?

A

No. Section 11 of the Anti-Money Laundering Act (AMLA) providing for ex parte application and inquiry by the Anti-Money Laundering Council (AMLC) into certain bank deposits and investments does not violate substantive due process, there being no physical seizure of property involved at that stage. Subido Pagente Certeza Mendoza and Binay Law Offices vs. Court of Appeals, 813 SCRA 1, G.R. No. 216914 December 6, 2016

32
Q

Twin Reqs Under RA 9225

A

swearing to an Oath of Allegiance and executing a Renunciation of Foreign Citizenship as found in Republic Act No. 9225. Maquiling vs. Commission on Elections, 696 SCRA 420, G.R. No. 195649 April 16, 2013

33
Q

Rule on Succession in Election

A

When the candidate who garnered the highest number of votes is deemed not to have been a candidate at all, such votes in his favor are considered stray votes. Hence, the candidate who garnered the second highest number of votes shall be deemed the winner.

34
Q

Term Limits

A

Only three consecutive terms count in determining the three-limit term rule. Involuntary severance from office for any length of time interrupts continuity of service.

After three consecutive terms, an elective local official cannot seek immediate relection for a fourth term.

2-2 (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions