Atty.

Macmod, CPA

Banking Laws and Other Commercial Laws

1. The law that created the BSP is a) ____________which became effective in the year b)
___________ but the general law governing all banks is c) _____________ known as
d)____________ which became effective in the year e)_____________.

2. The primary objectives of the BSP is a) ______________________ and b)

______________________.

3. The governing body of BSP is a) ___________________, composed of b) ___________________

and c) ________________ shall come from private sector. The d)_______ shall act as chairman
of the MB.

4. a)________________ are entities engaged in the lending of funds obtained in the form of
b)______________. They must be c) ___________________ and their funds must be from the
public, or deposits of d)___________________.

5. a) ________________ the only bank that can exercise the powers of an investment house. They
have the highest capitalization, whereas b) _________________ have lower capitalization but
higher than thrift banks.

6. a) _________________ are savings and mortgage banks, private development banks, etc.

7. Banks primarily operating for rural developments are a) _________________ whereas banks
primarily created under the Cooperative Code are b) ________________.

8. The bank for central banks is a) ________________ an international organization based in

b) ________________ and its stockholders are c) _______________ and not d)
_______________.

9. Only a) ______________ and b) _______________ are the banks that can accept or create
demand deposits without the approval of BSP.

10. The SBL rule means a) ________________ which is currently limited to b) ______________;
whereas the DOSRI rule means c) __________________ and its purpose is to limit the credit
accommodation granted by the bank to its officers/directors, etc.

11. The term a) ________________ means the grant of small loans to poor or b) ______________
for their c) ________________.

12. Minors under our banking laws can open a a) ______________ provided they are b)
_____________, c) ______________ and it should only be d) __________________

13. The Law that created PDIC is a)___________ with primary purpose of b) __________________
that shall c) _________________ up to d)_______________ per depositor which can be claimed
by the depositor within e) ______________ from the takeover of the f) ________________ after
the bank is closed due to g) _____________ as ordered by the h) ________________.

14. The law protecting bank deposits from unlawful inquiry is a)____________ otherwise known as
b)______________ and its purpose is to discourage c) ______________ and prohibits the inquiry
 into all deposits of any banks without d) ___________________ or e) _______________ or in
certain cases as f) _________________ and g) _________________ even without court order.

15. Under the unclaimed balances law a) __________________ that have become b)
_______________ for a period of c) __________________ may be d) ________________ by the
government after proper e) ________________.

16. In a) _______________ the purpose is b) _________________ and the amount of indebtedness

is c) ____________________, whereas in d) _________________, the purpose is e)
_______________ and some creditors may f) ___________________.

17. In Voluntary Insolvency a) ________________ whereas in Involuntary insolvency b)

______________. The former is filed by the c) __________________ whereas the latter is filed
by d) ______________.

18. Filing of Bond is required in a) ___________________________, b) __________________ no

bond is required.

19. _________________ refers to inability to pay one’s debts as they fall due whereas
________________ pertains to the process of recovery and reorganization and is especially
applicable to a ______________ such as ________________ and ________________.

20. Corporate rehabilitations are now under the jurisdiction of _________________ but originally
under ___________________.

21. The 3 types of rehabilitation proceedings are _________________, ________________, and

__________________.

22. The creditor/s referred to above must be holding at least ___________ of the debtor’s total
liabilities.

23. The five important parties in a rehabilitation proceeding are _______________,

________________, ________________, ________________, and _________________.

24. ___________________ is the person appointed by the court to oversee the operations of the
debtor but the real management and control of debtor’s operation normally belongs to
________________.

25. The petition for rehabilitation shall be dismissed by the court if ___________________ is not
submitted within _________________ days from the initial hearing.