2009 bar questions

7/23/2019 2009 Bar Questions

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2009 Bar Questions

1. Banks; Insolvency; Actions of the Monetary Board

Q: Maharlikang Pilipino Banking Corporation (MPBC) operates several branches of

Maharlikang Pilipino Rural Bank in Eastern Visayas. Alost all the branch anagers areclose relatives of the ebers of the Boar! of "irectors of the corporation. Many

un!eserving relatives of the branch anagers #ere grante! loans. $n tie% the branches

coul! not settle their obligations to !epositors an! cre!itors.

Receiving reports of these irregularities% the &upervising an! E'aining "epartent

(&E") of the Monetary Boar! prepare! a !etaile! report (&E" Report) specifying the

facts an! the chronology of events relative to the probles that beset MPBC rural bank branches. he report conclu!e! that the bank branches #ere unable to pay their liabilities

as they fell !ue% an! coul! not possibly continue in business #ithout incurring substantial

losses to its !epositors an! cre!itors.

(A May the Monetary Boar! or!er the closure of the MPBC rural banks relying only on

the &E" Report% #ithout nee! of an e'aination E'plain. (*+)

!"##$!%$& A'!$): ,es. -pon receipt of the report of the &E"% the Monetary

Boar! is authorie! to take any of the actions enuerate! un!er &ec. */% Republic Act 0o. 123*% other#ise kno#n as the 0e# Central Bank Act% lea!ing to the receivership an!

li4ui!ation of a bank or 4uasi5bank. here is no re4uireent that an e'aination be first

con!ucte! before a banking institution ay be place! un!er receivership ( Rural Bank of

Buhi v. Court of Appeals% 627 &CRA 788 (6988)).

(B $f MPBC hires you as la#yer because the Monetary Boar! has forbi!!en it frocarrying on its business !ue to its iinent insolvency% #hat action #ill you institute to4uestion the Monetary Boar!:s or!er E'plain. (*+);

!"##$!%$& A'!$): he or!er of the Monetary Boar! ay be 4uestione! on a petition for certiorari on the groun! that the action taken #as in e'cess of <uris!iction or

#ith grave abuse of !iscretion aounting to lack or e'cess of <uris!iction. he petition of

certiorari ay only be file! by the stockhol!ers of recor! representing the a<ority of the

capital stock #ithin ten (6/) !ays fro receipt by the boar! of !irectors of MPBC of theor!er !irecting receivership% li4ui!ation or conservatorship (&ec. */% par. (7)% R.A. 0o.

123*).



2. Banks; )eceivershi*; +rohi,ited %ransaction

Q: A bank un!er receivership can still grant ne# loans an! accept ne# !eposits.

!"##$!%$& A'!$): =alse. "uring the receivership% the assets an! properties of

the corporation are being gathere! for conversion into cash in preparation for !istribution

to cre!itors. >ranting ne# loans an! accepting ne# !eposits #oul! constitute !oing business for the bank in the or!inary course of business #hich is contrary to the purpose

an! nature of a receivership procee!ing.

-. Banks; !ecrecy of Bank &e*osits

Q: $f the ?bu!san is convince! that there is a violation of la# after investigating a

coplaint alleging illicit bank !eposits of public officer% the ?bu!san ay or!er the

bank concerne! to allo# in caera inspection of bank recor!s an! !ocuents.

!"##$!%$& A'!$): =alse. he Bank &ecretary @a# prohibits the inspection of a bank account unless the perission of the account hol!er is obtaine!% or upon la#ful

or!er of the court or #hen the !eposit is the sub<ect of litigation. $nvestigation by the

?bu!san is not consi!ere! as a pen!ing litigation to allo# the e'aination of the bank recor!s an! !ocuents (Mar4ue v. "esierto% *39 &CRA 117 (7//6)).

. %ruth in /endin Act

Q: A loan agreeent #hich provi!es that the !ebtor shall pay interest at the rate

!eterine! by the bank:s branch anager violates the !isclosure re4uireent of the ruth

in @en!ing Act.

!"##$!%$& A'!$): rue. his contrary to the !uty of the cre!itor to !isclose in

!etail the interests% charges an! other figures in!icating in !etail the cost of the cre!itgrante! to the !ebtor (-nite! Coconut Planters Bank v. Beluso% 3*/ &CRA 321 (7//1)).

. Bulk !ales /a; 3overed %ransactions

Q: Corporation () an! its sister copany% ,,, Corporation (,,,)% are both

un!er <u!icial receivership. he receiver has the option to sell or substantially all of the

properties of ,,, to % or siply erges the t#o Corporations. -n!er either option%the re4uireents un!er the Corporation Co!e have to be coplie! #ith.

he receiver seeks your a!vice on #hether the Bulk &ales la# #ill apply to either% or both% options. hat #ill your a!vice be E'plain (+)

!"##$!%$& A'!$): $ #ill a!vice the receiver that the Bulk &ales la# !oes not

apply to both options. &ect. 8 of the Bulk &ales @a# e'pressly provi!es that it #ill not



apply e'ecutors% a!inistrators% receivers% an! assignees in insolvency% or public officers%

acting un!er <u!icial process. $n this case% the receiver is acting un!er <u!icial process.

4. Bulk !ales /a; 5alidity

Q: Even if the seller an! the buyer in a sale in bulk violate the Bulk &ales @a#% the sale#oul! still be vali!.

!"##$!%$& A'!$): =alse. hen the Bulk &ales @a# is violate!% the sale is nullan! voi!. hen the provisions of the sai! la# have not been coplie! #ith% the sale is

consi!ere! as being Dfrau!ulent an! voi! an! even #hen couple! #ith !elivery% the title

over the goo!s !oes not transfer to the buyer. Fo#ever% the civil liabilities arising fro

the transaction reain enforceable bet#een the parties thereto.

6. arehouse )ecei*t: !urrenderin of +ossession; /ien

Q: -n!er the arehouse loses his lien upon the goo!s #hen he surren!ers possessionthereof.

!"##$!%$& A'!$): rue. A lien is !epen!ent on possession. hen a

#arehousean surren!ers possession% he thereby loses his lien on the goo!s over #hich

hi no longer has possession (&ec.79 (a)% arehouse Receipts @a#).

2009 bar questions

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