Practice question
BSP reports that a bank has suspended payment of deposit liabilities. Directors admit the suspension but say Section 30(a) can apply only after sixty days of dormancy. They do not assert a financial-panic inability-to-pay defense. Resolve the statutory argument.
- Sixty days attaches to all listed grounds
- Suspension of deposit payments is never relevant
- Only a court can recognize the suspension ground
- Suspension of deposit liabilities is a separate alternative; the dormancy threshold need not also be shown
- The suspension automatically dissolves all debts
Legal references
- RA 11211, Section 13, amending RA 7653 Section 30: https://lawphil.net/statutes/repacts/ra2019/ra_11211_2019.html
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