Practice question
A liquidating bank has insured-deposit payout obligations and uninsured depositor claims against its estate. A claimant says the PDIC insurance cap automatically erases every excess debt and requires immediate equal cash payment to all creditors regardless of priority. Which analysis is sound?
- The cap extinguishes every excess obligation.
- Insurance payout and estate distribution are distinct; uninsured claims require the liquidation framework and applicable credit priorities.
- Every claim is paid in full regardless of assets.
- Priority rules never apply to banks.
- Only shareholders can file estate claims.
Legal references
- RA7653 Section30 as amended by RA11211: https://lawphil.net/statutes/repacts/ra2019/ra_11211_2019.html
- PDIC Charter as amended by RA11840, Sections5 and12–16: https://lawphil.net/statutes/repacts/ra2022/ra_11840_2022.html
- PDIC Charter as amended by RA10846, Sections12–16, read with RA11840: https://lawphil.net/statutes/repacts/ra2016/ra_10846_2016.html
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