Philippine Bar review · Question

Practice question: Prohibited Transactions by Bank Directors, Officers, and Employees

Multiple Choice Hard

Practice question

A loan officer receives a payment from the successful borrower after approval, expressly as a reward for obtaining that approval. The officer says timing after approval makes the payment categorically unrelated and lawful. Which Section 55.1(c) analysis is sound?
  1. Every postapproval payment is automatically exempt.
  2. The proved connection with approval matters; later timing alone does not remove the stated prohibition.
  3. Only payments made before a written application count.
  4. A borrower can legalize it merely by calling it a souvenir.
  5. The officer's job title prevents application.

Legal references

  • RA8791, General Banking Law, Sections2 and55: https://lawphil.net/statutes/repacts/ra2000/ra_8791_2000.html

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