Proceedings Ancillary to Other Insolvency or Rehabilitation Proceedings (Chapter VIII): Republic Act No. 10142 (Financial Rehabilitation and Insolvency Act of 2010)

[Republic Act No. 10142; Chapter I; Chapter II; Chapter III; Chapter IV; Chapter V; Chapter VI; Chapter VII; Chapter VIII; Chapter IX; Chapter X; See also Introduction to Insolvency in the Philippines]


CHAPTER VIII

PROCEEDINGS ANCILLARY TO OTHER INSOLVENCY
OR REHABILITATION PROCEEDINGS

(A) Banks and Other Financial Institutions Under Rehabilitation Receivership Pursuant to a State-funded or State-mandated Insurance System.

SEC. 137. Provision of Assistance. — The court shall issue orders, adjudicate claims and provide for other relief necessary to assist in the liquidation of a financial institution under rehabilitation receivership established by a state-funded or state-mandated insurance system.

SEC. 138. Application of Relevant Legislation. — The liquidation of banks,  financial institutions,  insurance companies  and pre-need companies  shall be determined by relevant legislation. The provisions in this Act shall apply in a suppletory manner.

(B) Cross-Border Insolvency Proceedings.

SEC. 139. Adoption of Uncitral Model Law on Cross-Border Insolvency. — Subject to the provision of Section 136 hereof and the rules of procedure that may be adopted by the Supreme Court, the Model Law on Cross-Border Insolvency of the United Nations Center for International Trade and Development is hereby adopted as part of this Act.

SEC. 140. Initiation of Proceedings. — The court shall set a hearing in connection with an insolvency or rehabilitation proceeding taking place in a foreign jurisdiction, upon the submission of a petition by the representative of the foreign entity that is the subject of the foreign proceeding.

SEC. 141. Provision of Relief. — The court may issue orders:

(a) suspending any action to enforce claims against the entity or otherwise seize or foreclose on property of the foreign entity located in the Philippines;

(b) requiring the surrender of property of the foreign entity to the foreign representative; or

(c) providing other necessary relief.

SEC. 142. Factors in Granting Relief. — In determining whether to grant relief under this subchapter, the court shall consider:

(a) the protection of creditors in the Philippines and the inconvenience in pursuing their claims in a foreign proceeding;

(b) the just treatment of all creditors through resort to a unified insolvency or rehabilitation proceeding;

(c) whether other jurisdictions have given recognition to the foreign proceeding;

(d) the extent that the foreign proceeding recognizes the rights of creditors and other interested parties in a manner substantially in accordance with the manner prescribed in this Act; and

(e) the extent that the foreign proceeding has recognized and shown deference to proceedings under this Act and previous legislation.

P&L Law

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