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Financial rehabilitation and insolvency act

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Reference no: EM133247353

Due to the growing financial difficulties, Onion Bank was unable to finish construction of its 21-storey building on a prime lot located in Makati City. Thus, the Bangko Sentral ordered the closure of Onion Bank and, consequently, placed it under receivership. In a bid to save the bank's property investment, the President of the Onion Bank entered into a financing agreement with a group of investors for the completion of the construction of the 21-storey building in exchange for a ten-year lease and the exclusive option to purchase the building. Is the Act of the President valid? What are the valid provisions used under Financial Rehabilitation and Insolvency Act (FRIA)?

Reference no: EM133247353

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