Practice question
A receiver chooses a negotiated sale of a closed bank’s real property after valuation and a cost-benefit analysis. A creditor claims public bidding is the only legally possible disposition under Section 16(c)(4). Which is correct?
- Only public bidding is possible in every case
- All negotiated sales are automatically fraudulent
- No sale can occur during liquidation
- Only a gift to shareholders is permitted
- The charter permits bidding, negotiated sale and other stated modes, subject to reasonable statutory considerations
Legal references
- RA 10846, Sections 26-29, PDIC Charter Sections 13-16, read with RA 11840: https://lawphil.net/statutes/repacts/ra2016/ra_10846_2016.html
- RA 11840, Sections 4 and 11, amended PDIC Charter Sections 5 and 13: https://lawphil.net/statutes/repacts/ra2022/ra_11840_2022.html
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