Financial Rehabilitation and Insolvency Act (FRIA) of 2010

Section 137

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.

Section 138

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.

Section 139

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.

Section 140

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.

Section 141

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.

Section 142

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.