Title and Declaration of Policy (Sections 1 and 2):

 The act is known as the "Financial Rehabilitation and Insolvency Act (FRIA) of 2010."

 The policy of the State is to encourage debtors (both individuals and businesses) and creditors
to resolve their claims and property rights collectively and realistically.

 The State aims to ensure a timely, fair, transparent, effective, and efficient rehabilitation or
liquidation of debtors.

 The goal is to maintain certainty and predictability in commercial affairs, preserve and maximize
debtor assets, recognize creditor rights, and ensure equitable treatment of similarly situated
creditors.

SEC. 3. Nature of Proceedings.

Nature of Proceedings:

 The proceedings under the FRIA are "in rem," which means they are concerned with property
rights rather than individual liability.

Jurisdiction Acquisition:

 Jurisdiction over all individuals affected by these proceedings is established through the
publication of a notice of the commencement of proceedings in a newspaper of general
circulation in the Philippines.

 The exact process for this publication is determined by rules of procedure that will be created by
the Supreme Court.

Summary and Non-Adversarial Proceedings:

 The proceedings conducted under the FRIA are to be carried out in a "summary" and "non-
adversarial" manner.

 This means that they should be straightforward and not involve lengthy legal battles.

 The proceedings should align with the declared policies of the FRIA, which focus on encouraging
resolution and adjustment of competing claims and property rights among debtors and
creditors.

Voluntary Proceedings: Proceedings initiated by the debtor.

Involuntary Proceedings: Proceedings initiated by creditors.

SEC. 5. Exclusions. - this section clarifies that banks, insurance companies, pre-need companies, and
national and local government agencies or units are not considered debtors under the FRIA. These
exclusions help define the scope of entities to which the Act applies, focusing primarily on private sector
debtors and financial entities facing insolvency or financial rehabilitation.