Practice question
A secured lender argues that preservation of its lien under Section114 authorizes immediate foreclosure on the day a Liquidation Order issues, despite Section113(e). No independent legal exception is established. Which is correct?
- Preserved security eliminates every procedural limit
- The lien remains, but the statutory180day foreclosure prohibition must also be applied
- Every lien is automatically canceled instead
- The lender becomes liquidator by demand
- All property must be given to the debtor's shareholders
Legal references
- RA 10142, Sections 113(e) and114: https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html
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