FINANCIAL REHABILITATION and INSOLVENCY ACT FINANCIAL REHABILITATION and INSOLVENCY ACT 1. This act shall be
1. This act shall be knon as the !Financial Rehabilita"on and Insol#enc$ Act!.knon as the !Financial Rehabilita"on and Insol#enc$ Act!. a. RA 1%1&' a. RA 1%1&' b. RA ()'% b. RA ()'% c. Act 1%1&' c. Act 1%1&' d. RA (*)% d. RA (*)% '. It
'. It +e,e+s to ad-inist+a+e,e+s to ad-inist+a"#e e/enses0 ece/t"#e e/enses0 ece/t a. Sellin2 E/ense
a. Sellin2 E/ense
b. 3a$-ent o, ne obli2a"ons b. 3a$-ent o, ne obli2a"ons c. Fees o, the
c. Fees o, the +ehabilita+ehabilita"on +ecei#e+"on +ecei#e+ d. Othe+ e/enses alloed b$ the d. Othe+ e/enses alloed b$ the co4+tco4+t *. It
*. It +e,e+s to de-ands o, hate#e+ nat4+e +e,e+s to de-ands o, hate#e+ nat4+e o+ cha+acte+ a2ainst the debto+.o+ cha+acte+ a2ainst the debto+. a. Clai-s a. Clai-s b. A5liate b. A5liate c. 6e-and c. 6e-and d. Liabilit$ d. Liabilit$
&. It +e,e+s to +eal and /e+sonal /+o/e+t$ o, debto+. &. It +e,e+s to +eal and /e+sonal /+o/e+t$ o, debto+. a. Liabilit$ a. Liabilit$ b. Lien b. Lien c. Collate+al c. Collate+al d. Enc4-be+ed 3+o/e+t$ d. Enc4-be+ed 3+o/e+t$
). It +e,e+s to a nat4+al /e+son that beco-es insol#ent. ). It +e,e+s to a nat4+al /e+son that beco-es insol#ent. a. 6ebto+ a. 6ebto+ b. C+edito+ b. C+edito+ c. Indi#id4al C+edito+ c. Indi#id4al C+edito+
d. Indi#id4al 6ebto+
7. It +e,e+s to /+oceedin2s ini"ated b$ c+edito+s a. Vol4nta+$
b. In#l4nta+$
c. Li84ida"on O+de+ d. In#l4nta+$ Li84ida"on
9. Shall +e,e+ to a stat4to+$ o+ cont+act4al clai-. a. Enc4-be+ed /+o/e+t$
b. Collate+al c. Lien d. a : b
;. It +e,e+s to nat4+al /e+son o+ <4+idical en"t$ a//ointed b$ the co4+t and s4ch /oe+s a+e set ,o+th in this Act.
a. Li84idato+ b. 6ebto+ c. C+edito+ d. a : c
(. It +e,e+s to a nat4+al /e+son holdin2 a -ana2e-ent /osi"on. a. O5ce+
b. Li84idato+ c. BO6 d. 6ebto+
1%. It +e,e+s to a co+/o+a"on hich has cont+ol o#e+ anothe+ co+/o+a"on. a. One+
b. 3a+ent
d. S4+#i#in2 Coo/
11. It +e,e+s to -oneta+$ clai-s a2ainst the debto+. a. Liabili"es
b. =o+t2a2e c. Obli2a"on d. C+edit
1'. It +e,e+s to the >nancial condi"on o, a debto+ that is 2ene+all$ 4nable to /a$ its debts. a. Insol#ent
b. Sol#ent c. Li84idated d. Bank+4/t
1*. The ,olloin2 a+e /a+"es to the /+oceedin2s0 ece/t a. Li84idato+
b. 6ebto+ c. C+edito+ d. Stakeholde+
1&. It +e,e+s to the +esto+a"on o, the debto+ to a condi"on o, s4ccess,4l o/e+a"on and sol#enc$. a. Li84ida"on
b. Reco#e+$ c. Resto+a"on d. Rehabilita"on
1). It +e,e+s to a clai- sec4+ed b$ lien. a. Sec4+ed Lien
b. Clai-c. Lien
d. Sec4+ed
clai-17. It +e,e+s to a c+edito+ ith a sec4+ed clai-. a. Sec4+ed Lien
b. Sec4+ed C+edito+ c. Sec4+ed Clai-d.C+edito+
19. It +e,e+d to a sec4+ed c+edito+ o+ a2ent. a. Sec4+ed c+edito+
b. Sec4+ed a2ent c. Sec4+ed /a+t$ d. a : b
1;. It +e,e+s to /+oceedin2s ini"ated b$ the debto+. a. Vol4nta+$
b. In#ol4nta+$ c. 3+oceedin2s
d. 6ebto+ 3+oceedin2s
1(. It +e,e+s to a co+/o+a"on -o+e than )%? o, #o"n2 stock is oned and cont+olled b$ /a+ent co+/o+a"on.
a. S4bsidia+$ b. 3a+ent c. Non@stock
d. =a<o+ Co+/o+a"on
'%. The te+- debto+ does not incl4de the ,olloin20 ece/t a. 3a+tne+shi/ +e2iste+ed to SEC
b. Bank
d. o#e+n-ent
'1. ho dete+-ines the etent o, liabilit$ o, the one+0 /a+tne+0 di+ecto+ o+ o5ce+ a. Co4+t
b. C+edito+ c. 6ebto+ d. Li84idato+
''. The ,olloin2 a+e +easons ,o+ +e-o#al o, +ehad +ecei#e+0 ece/t a. Skill,4lness
b. Inco-/etence c. Ille2al acts
d. Conict o, Inte+est
'*. The ,olloin2 a+e co-/onents o, c+edito+s co--iDee0 ece/t a. Sec4+ed 6ebto+
b. Sec4+ed C+edito+ c. nsec4+ed C+edito+ d. E-/lo$ee o, 6ebto+
'&. The ,olloin2 a+e +oles i, c+edito+s co--iDee0 ece/t a. Assist +ehab +ecei#e+ in co--4nica"n2 ith the c +edito+ b. Shall be /+i-a+$ liaison bn the +ecei#e+ a-d c+edito+
c. Cannot ee+cise o+ ai#e an$ +i2ht on behal,$ o, an$ c+edito+ d. Not a4tho+iGed b$ co4+t to /e+,o+- othe+ tasks and ,4nc"ons
'). The ,olloin2 -a$ be done b$ the +ehab +ecei#e+ to enhance its +ehab0 ece/t a. ente+ into c+edit a++an2e-ents
b. inc4+ othe+ obli2a"ons
d. allo the sale o+ dis/osi"on o, /+o/e+t$
'7. Co-/ensa"on o, e-/lo$ees +e84i+ed to ca++$ on the b4siness shall be conside+ed an a. Sellin2 e/ense
b. Ad-in. e/ense c. Othe+ e/ense d. Sala+$ e/ense
'9. Recission o, ce+tain /+e@co--ence-ent $+ansac"ons a+e the ,olloin20 ece/t a. in#ol#es accele+ated /a$-ent o,
clai-b. /+o#ides inade84ate consode+a"on to debto+ c. in#ol#es c+edito+s
d. /+o#ides sec4+it$ eec4ted ithin 7% da$s
';. The ,olloin2 shos lack o, ade84ate /+otec"on0 ece/t a. The #al4e o, clai- sec4+ed b$ lien eceeds ,ai+ #al4e
b. 6ebto+ ,ails o+ +e,4se to take +easonabke ste/s to -aintain the /+o/e+t$ c. The /+o/e+t$ has de/+eciated
d. The debto+ ,ails o+ +e,4se to hono+ a /+e@eis"n2 a2+ee-ent '(. The ,olloin2 a+e contents o, +ehab /lan0 ece/t
a. Financial Liabili"es b. Financial 2oals
c. Establish calsses o, #o"n2 c+edito+s
d. Co-/a+e a-o4nts e/ected to be +ecei#ed
*%. The co4+t -a$ con>+- the +ehab /lan i, all ci+c4-stances a+e /+esent0 ece/t a. Co-/lies ith +e84i+e-ents
b. The c+edito+s s4//o+t as ind4ced b$ ,+a4d c. Rehab +ecei#e+ con>+-s the /lan
d. 3+o#ides the ob<ec"n2 class o, c+edito+s
*1. The ,olloin2 a+e ci+c4-stances to >le ob<ec"ons o, +ehab /lan. a. Rehab /lan is not s4//o+ted b$ #o"n2 de bto+s
b. C+edito+s s4//o+t as ind4ced b$ ,+a4d c. 6oc4-ents a+e -ate+iall$ ,alse
d. Rehab /lan is not s4//o+ted b$ #o"n2 c +edito+
*'. The ,olloin2 a+e eects o, con>+-a"on o, +ehab /lan0 ece/t a. Clai-s a+isin2 ae+ a//+o#al a+e s4b<ect to s4s/ension o+de+ b. Its /+o#ision binds 4/on debto+s and all /e+sons aJected c. 6ebto+ shall co-/l$ ith its /+o#isions
d. 3a$-ents shall be -ade to the c+edito+s
**. The ,olloin2 a+e ,ail4+e o, +ehabilita"on0 ece/t a. 6isclos4+e o, /a$-ents to c+edito+s
b. 6is-issal o, /e""on
c. No s4bstan"al likelihood tha debto+ can be +ehabilitated d. Co--ission o, ,+a4d
*&. The co4+t 4/on b$ an aected /a+t$ -a$ do the ,olloin20 ece/t a. Iss4e o+de+ di+ect4n2 the c4+e o, b+each
b. Iss4e o+de+ con#e+"n2 the /+oceedin2s to a li84ida"on c. Allos debto+ to s4b-it a-end-ents to +ehab /lan d. nen,o+ce a//licable /+o#isions
*). The ,olloin2 a+e eects o, te+-ina"on0 ece/t a. 6ischa+2e o, +ehab +ecei#e+
b. Liin2 o, sta$ o+de+
d. nen,o+ce-ent o, a clai- a2ainst the debto+ *7. 3e""on b$ debto+ incl4des the ,olloin20 ece/t a. Sched4le o, debto+Ks debts
b. In#ento+$ o, debto+Ks assets c. 3+e@ne2o"ated +ehab /lan
d. S4--a+$ o, dis/4ted clai-s a2ainst the c+edito+ *9. The ,olloin2 a+e contents i, iss4ed o+de+0 ece/t a. Iden">ca"on o, debto+
b. 6ebto+ is 4nde+ +ehab
c. 6i+ect /4blica"on in a -a2aGine d. S4--a+$ o, 2+o4nds ,o+ /e""on
*;. The ,olloin2 a+e ob<ec"ons to /e""ono, +ehab /lan0 ece/t a. Acc4+atel$ acco4nts clai-s
b. Alle2a"ons a+e -isleadin2
c. =a<o+it$ do not s4//o+t +ehab /lan
d. S4//o+t o, c+edito+ aa ind4ced b$ ,+a4d
*(. =ini-4- +e84i+e-ents o, o4t o, co4+t o+ in,o+-al +ehab /lans0 ece/t a. The c+edito+ -4st a2+ee to in,o+-al +ehab /lans
b. It -4st be a//+o#ed b$ 79? o, sec4+ed obli2a"ons c. It -4st be a//+o#ed b$ 9)? o, 4nsec4+ed obli2a"ons
d. It -4st be a//+o#ed b$ ;)? o, sec4+ed and 4nsec4+ed obli2a"ons &%. The ,olloin2 a+e acts o, insol#enc$0 ece/t
a. S4ch /e+son is abo4t to de/a+t
b. Bein2 absent ,+o- the Re/4blic o, the 3hili//ines itho4t intent to de,+a4d c. He conceals an$ o, his /+o/e+t$ to a#oid bein2 aDached o+ taken on le2al /+ocess
d. That he s4e+ed o+ /+oc4+ed his /+o/e+t$
&1. Li84ida"on o+de+ contains the ,olloin20 ece/t a. O+de+ li84ida"on o, c+edito+
b. 6ecla+e the debto+ insol#ent
c. A4tho+iGe /a$-ents o, ad-inist+a"#e e/ense d. O+de+ /4blica"on o, /e""on
&'. The ,olloin2 a+e eects o, li84ida"on o+de+0 ece/t a. Se/a+ate ac"on ,o+ collec"on o, 4nsec4+ed clai-b. 4+idical debto+ is dissol#ed
c. Le2al "tle is #ested
d. All cont+acts a+e te+-inated &*. Ri2hts o, sec4+ed c+edito+ a. b0 c : d
b. ai#es his +i2ht
c. 3+o#e his clai- on the /+oceedin2 d. =aintain his +i2hts 4nde+ lien
&&. The co4+t -a$ a//oint the li84idato+ i,0 ece/t a. C+edito+s do not aDend on date o, elec"on
b. C+edito+s ,ail o+ +e,4se to elect a li84idato+ c. Li84idato+ ,ails to 84ali,$
d. No #acanc$ occ4+s
&). The ,olloin2 a+e d4"es and +es/onsibili"es o, li84idato+. a. S4e and +eco#e+ all assets
b. Take /ossession o, all /+o/e+t$ c. Redee- -o+ta2es and /led2es
d. All o, the abo#e
&7.It en4-e+ates all the assets and clai-s o, the debto+s a. Rehab /lan
b. Li84ida"on /lan c. Financial State-ent d. SALKN
&9. The sale o, 4nenc4-be+ed assets o, debto+s0 shall be -ade. a. At the /4blic -a+ket
b. B$ the c+edito+ c. B$ /4blic a4c"on d. B$ the li84idato+
&;. The co4+t -a$ iss4e o+de+s to the /+o#ision o, the +elie,0 ece/t a. b0 c : d a+e o+de+s iss4ed b$ the co4+t
d. S4s/endin2 an$ ac"on to en,o+ce clai-s c. Re84i+e s4++ende+ o, /+o/e+t$
d. 3+o#ide othe+ necessa+$ +elie,
&(. The co4+t shal conside+ the ,olloin2 ,acto+s in 2+an"n2 +elie,0 ece/t a. The <4st t+eat-ent o, debto+
b. 3+otec"on o, c+edito+s
c. Fo+ei2n /+oceedin2s +eco2niGes +i2hts o, c+edito+s
d. Incon#enience in /4+s4in2 clai-s in ,o+ei2n /+oceedin2s )%. The ,olloin2 a+e +easons ,o+ /enal"es0 ece/t
a. Hide o+ conceal o+ dest+o$ /+o/e+"es o, debto+s b. 3+otects the /+o/e+t$ o, debto+
d. Mnoin2l$ #iolate a /+ohibi"on#o+ obli2a"on ANSERS 1. A '. A *. A &. 6 ). 6 7. B 9. C ;. A (. A 1%. B 11. A 1'. A 1*. A 1&. 6 1). 6 17. B 19. C 1;. A 1(. A '%. A '1. A ''. A '*. A
'&. 6 '). 6 '7. B '9. C ';. A '(. A *%. B *1. A *'. A **. A *&. 6 *). 6 *7. 6 *9. C *;. A *(. A &%. B &1. A &'. A &*. A &&. 6 &). 6 &7. B &9. C &;. A
&(. A )%. B
