6. An action was instituted b peso savings and foreign cu a. No, it is not the subject m b. No, it does not fall under o c. Yes, the peso deposit may I: ined upon order of the court since it is the subject of litigation. But the foreign currency may not quired into without the written consent of the depositor. d. Yes, both deposits may be inquired into since they the subject matter of litigation. pany against it erring ofcial who stole funds which were deposited in his . Can the court compel the bank to disclose the deposits? f litigation. e statutory limitations. 7. Pedro is jobless but reputed to be a jueteng operator. He has never been charged or convicted of any crime. He maintains several bank accounts and has purchased 5 houses and lots for his children from the Villar Realty, Inc. Since he does not have any visible job, the bank reported his purchases to the AMLC. Is the action of the bank valid and tenable? a. No, since the deposits are covered by the Secrecy of Bank Deposits Law In. No, since there was no written waiver for the disclosure c. Yes, it is a covered transaction transaction cl. Yes, it is a suspicious transaction 8. 51 A person cannot be charged of both the offense of money laundering and the unlawful activity. False 52 Failure to report a covered transaction or suspicious transaction is one of the instances when money laundering is committed. a. All statements are correct b. All statements are false c. Only 51 is incorrect d. Only 52 is incorrect 9. 51 Foreign individuals and nonbank corporations may own or control up to forty percent (40%) of the voting stock of a domestic bank. RFBT by Atty. Amado R. Villegas, Jr. Page 1 FINAL FIRE-BOARD: Regulatory Framework for Business Transactions 52 Foreign banks are not subject to the 40% limitation prescribed under Section 11 of the GBL. Foreign banks may acquire 100% of the voting stocks of an existing bank or invest in up to 100% of the voting stocks of a new subsidiary. a. All statements are correct b. All statements are incorrect c. (lnly 51 Is correct d. Only 52 is correct 10. The number of Board of Directors of a bank, including the independent directors are a. 5 15, two of whom are independent directors b. 5 15, three ofwhon-i are independent directors c. 5 15r four of whom are independent directors d. 5 15r ve of whom are independent directors 11. The percentage of foreign-owned voting stocks in a bank shall be determined by the citizenship of the individual stockholders in that bank. The citizenship of a corporation which is a stockholder in a bank shall follow the citizenship of the controlling stockholders of the corporation, irrespective of the place of incorporation. a. Incorporation Test b. Control Test C. Business Domicile Test d. Center of Management Rule Grandfather Rule 12. Are banks which can exercise the powers of an investment house and invest in non-allied enterprise. They have highest capitalization requirement. a. Thrift Banks b. Rural Banks C. Universal Banks d. Commercial Banks e. Cooperative Banks 13. The following are restrictions imposed for DOSRI accounts, except: a. Business Judgment Rule b. Waiver of Secrecy Deposits C. Arms Length Rule d. Aggregate Ceilings Rule e. Individual Ceilings Rule 14. The BSP may help banks having liquidity problems by, except: a. Ordering the immediate dissolution thereof b. Granting emergency loans in an amount not exceeding 50% of its total deposits and deposit substitutes C. Appointing a conservator d. Appointing a receiver and order the liquidation of the Bank 15. S1 - The bank has the right to compensation. It can set off deposits with the indebtedness of the depositor that are due and demandable. S2 - S2 - Generally, only a universal bank or commercial bank can accept or create demand deposits. a. All statements are correct b. All statements are incorrect C. Only S1 is correct d. Only $2 is correct 16. The vote required so that the maximum deposit insurance cover may be adjusted in such amount, for such period, and/or for such deposit products - a. the adjustments is approved by a majority vote of the Board of Directors of PDIC in a meeting called for the purpose and chaired by the Secretary of Finance; b. the adjustments is approved by a 2/3 vote of the Board of Directors of PDIC in a meeting called for the purpose and chaired by the Secretary of Finance; C. the adjustments is approved by a unanimous vote of the Board of Directors of PDIC in a meeting called for the purpose and chaired by the Secretary of Finance; d. the adjustments is approved by a mere majority of the quorum of the Board of Directors of PDIC in a meeting called for the purpose and chaired by the Secretary of Finance;1?. 18. 19. 51 The liability of the FDIC for insured deposits rests upon the existence of deposits with the insured bank and on the negotiability or nonnegotiability of the certicates evidencing these deposits. 52 The claim under PDIC must be led within 2 years from actual takeover by the receiver. a. All statements are correct b. All statements are incorrect c. Only 51 is correct d. Only 52 is correct x Bank was closed by the Monetary Board on account of insolvency. At the time it was closed, A has three accounts with X Bank and each account has an outstanding balance of P250,IJOD or a total amount of P7SO,GDO. How much can A recover from the FDIC? a. The amount recoverable is P750,000, each of the account shall be taken into consideration b. The amount recoverable is only PSDU,ODU for only one account c. The amount recoverable is only PSDU,ODU for all the three accounts d. The amount recoverable is only P500,00U for the two accounts 51 Notice of dishonor under BP 22 may be oral or in writing. 52 Violation of BP 22 is categorized as a transitory or continuing crime. RFBT by Atty. Amado R. Villegas, Jr. Page 2 FINAL DRE-BOARD: Regulatory Framework for Business Transactions 20. 21. a. All statements are correct b. All statements are incorrect c. Only 51 is correct d Only 52 is correct The accused was convicted under BP 22 for having sevelal checks which were dishonored by the drawee bank on their due date because the accused closed her account after the issuance of the checks. On appealr she argued that she could not be convicted under BP 22 by reason of the closing of her account because said law applies solely to checks dishonored by reason of insufficiency of funds and that at the time she issued the checks concerned, she had adequate funds in the bank. Is her contention correct? a. Yes, the application thereof would be tantamount to an ex post facto law b. Yes, the application thereof would be a violation of the right against double jeopardy. c. No, the law punishes two acts and d1e act in case at bar falls under the second way of violating it d. No, the proof beyond reasonable doubt was not established The period of prescription under BP 22 is 4 years counted from Knowledge of Insufficiency of funds Presentment of the check for payment from the drawee bank Dishonor of the check by the drawee bank Date of the giving of the notice of dishonor to the drawer Lapse of the 5 banking days from the notice of dishonor within which to make good the check 4.. were? 22. In case of involuntary rehabilitation of a sole proprietorship, partnership or corporation in Section 13 of FRIA, the persons who will file the petition are the: a. creditor or group of creditors with a claim of or the aggregate of whose claims is, at least P1,000,000.00 or at least 25% of the subscribed capital stock or partners' contributions, whichever is higher. D. creditor or group of creditors with a claim of or the aggregate of whose claims is, at least P2,000,000.00 or at least 25% of the subscribed capital stock or partners' contributions, whichever is higher. C. creditor or group of creditors with a claim of or the aggregate of whose claims is, at least P1,000,000.00 or at least 15% of the subscribed capital stock or partners' contributions, whichever is higher. d. creditor or group of creditors with a claim of or the aggregate of whose claims is, at least P1,000,000.00 or at least 20% of the subscribed capital stock or partners' contributions, whichever is higher e. creditor or group of creditors with a claim of or the aggregate of whose claims is, at least P5,000,000.00 or at least 25% of the subscribed capital stock or partners' contributions, whichever is higher. 23. In case of Involuntary Liquidation under Section 91 of FRIA: a. Three or more creditors and the aggregate of whose claims is at least either P1,000,000.00 or at least 25% of the subscribed capital stock or partner's contributions of the debtor, whichever is higher. b. Five or more creditors and the aggregate of whose claims is at least either P1,000,000.00 or at least 25% of the subscribed capital stock or partner's contributions of the debtor, whichever is higher. C. Three or more creditors and the aggregate of whose claims is at least either P500,000.00 or at least 25% of the subscribed capital stock or partner's contributions of the debtor, whichever is higher. d. Three or more creditors and the aggregate of whose claims is at least either P1,000,000.00 or at least 50% of the subscribed capital stock or partner's contributions of the debtor, whichever is higher. e. Five or more creditors and the aggregate of whose claims is at least either P1,000,000.00 or at least 50% of the subscribed capital stock or partner's contributions of the debtor, whichever is higher. 24. The following are excluded from the operation of FRIA, except: a. Banks b. Pre-need companies C. Insurance companies National and local government units e. Sole proprietorship 25. It shall refer to restoration of the debtor to a condition of successful operation and solvency, it is shown that its continuance of operation is economically feasible and its creditors can recover by way of present value of payments projected in the plan, more if the debtor continues as a going concern than if it is immediately liquidated. a. Receivership b. Voluntary Liquidation C. Involuntary liquidation Pre-Negotiated Restoration e. Rehabilitation 26. The Court may dismiss the petition for rehabilitation under the following instances, except: a. There is a substantial likelihood for the debtor to be successfully rehabilitated D. The debtor is not insolvent C. The petition is a sham filing intended only to delay the enforcement of the rights of the creditor/s or any group of creditors d. The petition, the Rehabilitation Plan and the attachments thereto contain any material false or misleading statements The debtor has committed acts of misrepresentation or in fraud of creditor/s or group of creditors27. The following are requisites of Suspension of payment, except: a. Debtor is insolvent b. The obligations are discharged Applies only to individual debtor May be filed by the debtor e. There is no minimum amount of liabilities prescribed 28. The following are the requisites for involuntary liquidation of individual debtor, except: a. Debtor is insolvent RFBT by Atty. Amado R. Villegas, Jr. Page 3 FINAL PRE-BOARD: Regulatory Framework for Business Transactions b. Creditors must prove the acts of insolvency C. The individual debtor files the petition d. Posting of bond of creditors is required . Liquidation order is issued after trial 29. Involuntary liquidation of individual debtor is distinguished from involuntary dissolution of business organizations a. There can be one or more creditors b. The debt or aggregate of debts must be at least P1,000,000 or equivalent to 25% of the subscribed capital or partner's contribution whichever is higher C. The business organization will be dissolved d. There must be an act of insolvency 30. This is a legal document signed by each of the organizers and includes the name of the cooperative, its purposes, scope of business, etc. a. Economic survey b. Treasurer's certification C. Articles of Cooperation d. Bylaws 31. Who makes important decisions for the cooperative? a. General Assembly b. Documentation Committee C. Election Committee d. Finance Committee Board of Directors30. This is a legal document signed by each of the organizers and includes the name of the cooperative, its purposes, scope of business, etc. a. Economic survey b. Treasurer's certification C. Articles of Cooperation d. Bylaws 31. Who makes important decisions for the cooperative? a. General Assembly b. Documentation Committee C. Election Committee d. Finance Committee e. Board of Directors 32. The paid-up-share capital in a Cooperative should not be less than what amount? a. P 2,000 b. P10,000 C. P 5,000 d. P12,000 e. P15,000 99. An Associate member in Cooperative is: S1 - One who has no right to vote nor be voted upon and shall be entitled only to such rights and privileges as the bylaws may provide. S2 - One who meets the minimum requirements of regular membership, continues to patronize the cooperative for three (3) years, and signifies his/her intention to remain a member shall be considered a regular member a. Both are correct b. Both are incorrect C. S1 is correct, S2 is incorrect d. S1 is incorrect, S1 is correct 99. The directors and officers of a cooperative shall not be entitled to any per diem when, in the preceding calendar year, the cooperative reported a net loss or had a dividend rate less than the official inflation rate for the same year. S2 - Any compensation other than per diems may be granted to directors by a 2/3 vote of the members with voting rights at a regular or special general assembly meeting specifically called for the purpose. a. Both are correct b. Both are incorrect C. S1 is correct, S2 is incorrect d. S1 is incorrect, S1 is correct