COMMERCIAL LAW

Banking Law

Friends Bank was placed under statutory receipt and subsequently ordered by the Central
Bank (CB) to be liquidated because of fraud and irregularities in its lending activities that
made it bankrupt. Judicial liquidation procedures before the RTC were then initiated by the
CB. Friends Bank objected to the request. Shortly afterwards, Friends Bank filed a separate
civil case against CB in the same Court to appeal and reject the settlement procedure on
account of the CB's serious discretionary abuse. The court ready for:

1) restrain the CB from closing Friends Bank; and

2) authorize Friends Bank to withdraw money from its deposits during the pendency of the
case.Would you make such orders if you were the Judge? Why?

ANSWER: