Practice question
PDIC incurs reasonable preservation expenses using the closed bank’s available funds. Separately, it charges liquidation fees and seeks reimbursement of its unpaid advances. A creditor argues both categories always require advance court approval. Which distinction follows Section 13(b)(12)-(13)?
- Neither category is subject to court approval
- Both require prior court approval without distinction
- Only ordinary stationery can be paid
- Reasonable preservation and liquidation costs may be paid from available funds without court approval, while payment of liquidation fees and unpaid advances requires court approval
- Former directors approve both instead
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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