Practice question
A receiver finds that a loan compromise will improve recoveries for creditors compared with an expensive unsuccessful collection case. A former officer says every loan must be collected strictly on its original terms. What power addresses this?
- No loan may ever be compromised
- PDIC may modify, compromise or restructure claims when advantageous to creditors
- Borrowers may cancel loans unilaterally
- Only former officers can compromise
- The loan is automatically forgiven at closure
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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