Common carrier is converted

to a private carrier.
Inc. v. Sulpicio Lines, Inc., et al., G.R

AND SHIPPING AGENTS

agent?
Q: Why are payments made by the PDIC for insured deposits in closed banks
considered as preferred credit?
ANS: All payments by the corporation of insured deposits in closed banks partake of the
nature of public funds, and as such, must be considered a preferred credit in the order of
preference under Article 2244(9) of the New Civil Code (PDIC Law, Sec. 20)

Q: What is the effect of the failure of the PDIC to settle the claims of the insured
Q: What action may be taken by the court when the debtor is insolvent or is not likely
to be successfully rehabilitated?
ANS: In such case, the court may convert the proceedings into one for the liquidation of the
debtor (R.A. No. 10142, Sec. 25 (c))

LIQUIDATION
Q: What are the types of liquidation?