FINANCIAL REHABILITATION and INSOLVENCY ACT

1. This act shall be known as the "Financial Rehabilitation and Insolvency Act".

a. RA 10142

b. RA 9520

c. Act 10142

d. RA 9350

2. It refers to administrative expenses, except?

a. Selling Expense

b. Payment of new obligations

c. Fees of the rehabilitation receiver

d. Other expenses allowed by the court

3. It refers to demands of whatever nature or character against the debtor.

a. Claims

b. Affiliate

c. Demand

d. Liability

4. It refers to real and personal property of debtor.

a. Liability

b. Lien

c. Collateral

d. Encumbered Property

5. It refers to a natural person that becomes insolvent.

a. Debtor

b. Creditor

c. Individual Creditor
d. Individual Debtor

6. It refers to proceedings initiated by creditors

a. Voluntary

b. Invluntary

c. Liquidation Order

d. Invluntary Liquidation

7. Shall refer to a statutory or contractual claim.

a. Encumbered property

b. Collateral

c. Lien

d. a & b

8. It refers to natural person or juridical entity appointed by the court and such powers are set forth in
this Act.

a. Liquidator

b. Debtor

c. Creditor

d. a & c

9. It refers to a natural person holding a management position.

a. Officer

b. Liquidator

c. BOD

d. Debtor

10. It refers to a corporation which has control over another corporation.

a. Owner

b. Parent

c. Consolidation
d. Surviving Coop

11. It refers to monetary claims against the debtor.

a. Liabilities

b. Mortgage

c. Obligation

d. Credit

12. It refers to the financial condition of a debtor that is generally unable to pay its debts.

a. Insolvent

b. Solvent

c. Liquidated

d. Bankrupt

13. The following are parties to the proceedings, except?

a. Liquidator

b. Debtor

c. Creditor

d. Stakeholder

14. It refers to the restoration of the debtor to a condition of successful operation and solvency.

a. Liquidation

b. Recovery

c. Restoration

d. Rehabilitation

15. It refers to a claim secured by lien.

a. Secured Lien

b. Claim

c. Lien
d. Secured claim

16. It refers to a creditor with a secured claim.

a. Secured Lien

b. Secured Creditor

c. Secured Claim

d.Creditor

17. It referd to a secured creditor or agent.

a. Secured creditor

b. Secured agent

c. Secured party

d. a & b

18. It refers to proceedings initiated by the debtor.

a. Voluntary

b. Involuntary

c. Proceedings

d. Debtor Proceedings

19. It refers to a corporation more than 50% of voting stock is owned and controlled by parent
corporation.

a. Subsidiary

b. Parent

c. Non-stock

d. Major Corporation

20. The term debtor does not include the following, except?

a. Partnership registered to SEC

b. Bank

c. Insurance Company
d. Government

21. Who determines the extent of liability of the owner, partner, director or officer?

a. Court

b. Creditor

c. Debtor

d. Liquidator

22. The following are reasons for removal of rehad receiver, except?

a. Skillfulness

b. Incompetence

c. Illegal acts

d. Conflict of Interest

23. The following are components of creditors committee, except?

a. Secured Debtor

b. Secured Creditor

c. Unsecured Creditor

d. Employee of Debtor

24. The following are roles if creditors committee, except?

a. Assist rehab receiver in communicating with the creditor

b. Shall be primary liaison b/n the receiver amd creditor

c. Cannot exercise or waive any right on behalfy of any creditor

d. Not authorized by court to perform other tasks and functions

25. The following may be done by the rehab receiver to enhance its rehab, except?

a. enter into credit arrangements

b. incur other obligations

c. enter into credit arrangements, sucred by mortgages

d. allow the sale or disposition of property

26. Compensation of employees required to carry on the business shall be considered an?

a. Selling expense

b. Admin. expense

c. Other expense

d. Salary expense

27. Recission of certain pre-commencement yransactions are the following, except?

a. involves accelerated payment of claim

b. provides inadequate consoderation to debtor

c. involves creditors

d. provides security executed within 60 days

28. The following shows lack of adequate protection, except?

a. The value of claim secured by lien exceeds fair value

b. Debtor fails or refuse to take reasonabke steps to maintain the property

c. The property has depreciated

d. The debtor fails or refuse to honor a pre-existing agreement

29. The following are contents of rehab plan, except?

a. Financial Liabilities

b. Financial goals

c. Establish calsses of voting creditors

d. Compare amounts expected to be received

30. The court may confirm the rehab plan if all circumstances are present, except?

a. Complies with requirements

b. The creditors support was induced by fraud

c. Rehab receiver confirms the plan

d. Provides the objecting class of creditors

31. The following are circumstances to file objections of rehab plan.

a. Rehab plan is not supported by voting debtors

b. Creditors support was induced by fraud

c. Documents are materially false

d. Rehab plan is not supported by voting creditor

32. The following are effects of confirmation of rehab plan, except?

a. Claims arising after approval are subject to suspension order

b. Its provision binds upon debtors and all persons afftected

c. Debtor shall comply with its provisions

d. Payments shall be made to the creditors

33. The following are failure of rehabilitation, except?

a. Disclosure of payments to creditors

b. Dismissal of petition

c. No substantial likelihood tha debtor can be rehabilitated

d. Commission of fraud

34. The court upon by an affected party may do the following, except?

a. Issue order directung the cure of breach

b. Issue order converting the proceedings to a liquidation

c. Allows debtor to submit amendments to rehab plan

d. Unenforce applicable provisions

35. The following are effects of termination, except?

a. Discharge of rehab receiver

b. Lifting of stay order

c. Rehab receiver is discharged, subject to his submission of a final accounting

d. Unenforcement of a claim against the debtor

36. Petition by debtor includes the following, except?

a. Schedule of debtor's debts

b. Inventory of debtor's assets

c. Pre-negotiated rehab plan

d. Summary of disputed claims against the creditor

37. The following are contents if issued order, except?

a. Identification of debtor

b. Debtor is under rehab

c. Direct publication in a magazine

d. Summary of grounds for petition

38. The following are objections to petitionof rehab plan, except?

a. Accurately accounts claims

b. Allegations are misleading

c. Majority do not support rehab plan

d. Support of creditor waa induced by fraud

39. Minimum requirements of out of court or informal rehab plans, except?

a. The creditor must agree to informal rehab plans

b. It must be approved by 67% of secured obligations

c. It must be approved by 75% of unsecured obligations

d. It must be approved by 85% of secured and unsecured obligations

40. The following are acts of insolvency, except?

a. Such person is about to depart

b. Being absent from the Republic of the Philippines without intent to defraud

c. He conceals any of his property to avoid being attached or taken on legal process
d. That he suffered or procured his property

41. Liquidation order contains the following, except?

a. Order liquidation of creditor

b. Declare the debtor insolvent

c. Authorize payments of administrative expense

d. Order publication of petition

42. The following are effects of liquidation order, except?

a. Separate action for collection of unsecured claim

b. Juridical debtor is dissolved

c. Legal title is vested

d. All contracts are terminated

43. Rights of secured creditor

a. b, c & d

b. Waives his right

c. Prove his claim on the proceeding

d. Maintain his rights under lien

44. The court may appoint the liquidator if, except?

a. Creditors do not attend on date of election

b. Creditors fail or refuse to elect a liquidator

c. Liquidator fails to qualify

d. No vacancy occurs

45. The following are duties and responsibilities of liquidator.

a. Sue and recover all assets

b. Take possession of all property

c. Redeem mortages and pledges

d. All of the above

46.It enumerates all the assets and claims of the debtors

a. Rehab plan

b. Liquidation plan

c. Financial Statement

d. SAL'N

47. The sale of unencumbered assets of debtors, shall be made.

a. At the public market

b. By the creditor

c. By public auction

d. By the liquidator

48. The court may issue orders to the provision of the relief, except?

a. b, c & d are orders issued by the court

d. Suspending any action to enforce claims

c. Require surrender of property

d. Provide other necessary relief

49. The court shal consider the following factors in granting relief, except?

a. The just treatment of debtor

b. Protection of creditors

c. Foreign proceedings recognizes rights of creditors

d. Inconvenience in pursuing claims in foreign proceedings

50. The following are reasons for penalties, except?

a. Hide or conceal or destroy properties of debtors

b. Protects the property of debtor

c. Fail yo discloase any person having fictitious claims

d. Knowingly violate a prohibitionvor obligation

ANSWERS:

1. A

2. A

3. A

4. D

5. D

6. B

7. C

8. A

9. A

10. B

11. A

12. A

13. A

14. D

15. D

16. B

17. C

18. A

19. A

20. A

21. A

22. A

23. A
24. D

25. D

26. B

27. C

28. A

29. A

30. B

31. A

32. A

33. A

34. D

35. D

36. D

37. C

38. A

39. A

40. B

41. A

42. A

43. A

44. D

45. D

46. B

47. C

48. A
49. A

50. B