FINANCIAL REHABILITATION and INSOLVENCY ACT 1. This act shall be knon as the !Financial Rehabilita"on and Insol#enc$ Act!. a. RA 1%1&' b. RA ()'% c. Act 1%1&' d. RA (*)% '. It +e,e+s to ad-inist+a"#e ad-inist+a"#e e/enses0 ece/t a. Sellin2 E/ense b. 3a$-ent o, ne obli2a"ons c. Fees o, the +ehabilita"on +ehabilita"on +ecei#e+ d. Othe+ e/enses alloed b$ the co4+t *. It +e,e+s to de-ands o, hate#e+ nat4+e o+ cha+acte+ a2ainst the debto+. a. Clai-s b. A5liate c. 6e-and d. Liabilit$ &. It +e,e+s to +eal and /e+sonal /+o/e+t$ o, debto+. a. Liabilit$ b. Lien c. Collate+al d. Enc4-be+ed 3+o/e+t$ ). It +e,e+s to a nat4+al /e+son that beco-es insol#ent. a. 6ebto+ b. C+edito+ c. Indi#id4al C+edito+
d. Indi#id4al 6ebto+ 7. It +e,e+s to /+oceedin2s ini"ated b$ c+edito+s a. Vol4nta+$ b. In#l4nta+$ c. Li84ida"on O+de+ d. In#l4nta+$ Li84ida"on 9. Shall +e,e+ to a stat4to+$ o+ cont+act4al clai-. a. Enc4-be+ed /+o/e+t$ b. Collate+al c. Lien d. a : b ;. It +e,e+s to nat4+al /e+son o+ <4+idical en"t$ a//ointed b$ the co4+t and s4ch /oe+s a+e set ,o+th in this Act. a. Li84idato+ b. 6ebto+ c. C+edito+ d. a : c (. It +e,e+s to a nat4+al /e+son holdin2 a -ana2e-ent /osi"on. a. O5ce+ b. Li84idato+ c. BO6 d. 6ebto+ 1%. It +e,e+s to a co+/o+a"on hich has cont+ol o#e+ anothe+ co+/o+a"on. a. One+ b. 3a+ent c. Consolida"on
d. S4+#i#in2 Coo/ 11. It +e,e+s to -oneta+$ clai-s a2ainst the debto+. a. Liabili"es b. =o+t2a2e c. Obli2a"on d. C+edit 1'. It +e,e+s to the >nancial condi"on o, a debto+ that is 2ene+all$ 4nable to /a$ its debts. a. Insol#ent b. Sol#ent c. Li84idated d. Bank+4/t 1*. The ,olloin2 a+e /a+"es to the /+oceedin2s0 ece/t a. Li84idato+ b. 6ebto+ c. C+edito+ d. Stakeholde+ 1&. It +e,e+s to the +esto+a"on o, the debto+ to a condi"on o, s4ccess,4l o/e+a"on and sol#enc$. a. Li84ida"on b. Reco#e+$ c. Resto+a"on d. Rehabilita"on 1). It +e,e+s to a clai- sec4+ed b$ lien. a. Sec4+ed Lien b. Claic. Lien
d. Sec4+ed clai17. It +e,e+s to a c+edito+ ith a sec4+ed clai-. a. Sec4+ed Lien b. Sec4+ed C+edito+ c. Sec4+ed Claid.C+edito+ 19. It +e,e+d to a sec4+ed c+edito+ o+ a2ent. a. Sec4+ed c+edito+ b. Sec4+ed a2ent c. Sec4+ed /a+t$ d. a : b 1;. It +e,e+s to /+oceedin2s ini"ated b$ the debto+. a. Vol4nta+$ b. In#ol4nta+$ c. 3+oceedin2s d. 6ebto+ 3+oceedin2s 1(. It +e,e+s to a co+/o+a"on -o+e than )%? o, #o"n2 stock is oned and cont+olled b$ /a+ent co+/o+a"on. a. S4bsidia+$ b. 3a+ent c. Non@stock d. =a
d. o#e+n-ent '1. ho dete+-ines the etent o, liabilit$ o, the one+0 /a+tne+0 di+ecto+ o+ o5ce+ a. Co4+t b. C+edito+ c. 6ebto+ d. Li84idato+ ''. The ,olloin2 a+e +easons ,o+ +e-o#al o, +ehad +ecei#e+0 ece/t a. Skill,4lness b. Inco-/etence c. Ille2al acts d. Conict o, Inte+est '*. The ,olloin2 a+e co-/onents o, c+edito+s co--iDee0 ece/t a. Sec4+ed 6ebto+ b. Sec4+ed C+edito+ c. nsec4+ed C+edito+ d. E-/lo$ee o, 6ebto+ '&. The ,olloin2 a+e +oles i, c+edito+s co--iDee0 ece/t a. Assist +ehab +ecei#e+ in co--4nica"n2 ith the c +edito+ b. Shall be /+i-a+$ liaison bn the +ecei#e+ a-d c+edito+ c. Cannot ee+cise o+ ai#e an$ +i2ht on behal,$ o, an$ c+edito+ d. Not a4tho+iGed b$ co4+t to /e+,o+- othe+ tasks and ,4nc"ons '). The ,olloin2 -a$ be done b$ the +ehab +ecei#e+ to enhance its +ehab0 ece/t a. ente+ into c+edit a++an2e-ents b. inc4+ othe+ obli2a"ons c. ente+ into c+edit a++an2e-ents0 s4c+ed b$ -o+t2a2es
d. allo the sale o+ dis/osi"on o, /+o/e+t$ '7. Co-/ensa"on o, e-/lo$ees +e84i+ed to ca++$ on the b4siness shall be conside+ed an a. Sellin2 e/ense b. Ad-in. e/ense c. Othe+ e/ense d. Sala+$ e/ense '9. Recission o, ce+tain /+e@co--ence-ent $+ansac"ons a+e the ,olloin20 ece/t a. in#ol#es accele+ated /a$-ent o, claib. /+o#ides inade84ate consode+a"on to debto+ c. in#ol#es c+edito+s d. /+o#ides sec4+it$ eec4ted ithin 7% da$s ';. The ,olloin2 shos lack o, ade84ate /+otec"on0 ece/t a. The #al4e o, clai- sec4+ed b$ lien eceeds ,ai+ #al4e b. 6ebto+ ,ails o+ +e,4se to take +easonabke ste/s to -aintain the /+o/e+t$ c. The /+o/e+t$ has de/+eciated d. The debto+ ,ails o+ +e,4se to hono+ a /+e@eis"n2 a2+ee-ent '(. The ,olloin2 a+e contents o, +ehab /lan0 ece/t a. Financial Liabili"es b. Financial 2oals c. Establish calsses o, #o"n2 c+edito+s d. Co-/a+e a-o4nts e/ected to be +ecei#ed *%. The co4+t -a$ con>+- the +ehab /lan i, all ci+c4-stances a+e /+esent0 ece/t a. Co-/lies ith +e84i+e-ents b. The c+edito+s s4//o+t as ind4ced b$ ,+a4d c. Rehab +ecei#e+ con>+-s the /lan
d. 3+o#ides the oble ob+-a"on o, +ehab /lan0 ece/t a. Clai-s a+isin2 ae+ a//+o#al a+e s4bnal acco4n"n2
d. nen,o+ce-ent o, a clai- a2ainst the debto+ *7. 3e""on b$ debto+ incl4des the ,olloin20 ece/t a. Sched4le o, debto+Ks debts b. In#ento+$ o, debto+Ks assets c. 3+e@ne2o"ated +ehab /lan d. S4--a+$ o, dis/4ted clai-s a2ainst the c+edito+ *9. The ,olloin2 a+e contents i, iss4ed o+de+0 ece/t a. Iden">ca"on o, debto+ b. 6ebto+ is 4nde+ +ehab c. 6i+ect /4blica"on in a -a2aGine d. S4--a+$ o, 2+o4nds ,o+ /e""on *;. The ,olloin2 a+e ob
d. That he s4e+ed o+ /+oc4+ed his /+o/e+t$ &1. Li84ida"on o+de+ contains the ,olloin20 ece/t a. O+de+ li84ida"on o, c+edito+ b. 6ecla+e the debto+ insol#ent c. A4tho+iGe /a$-ents o, ad-inist+a"#e e/ense d. O+de+ /4blica"on o, /e""on &'. The ,olloin2 a+e eects o, li84ida"on o+de+0 ece/t a. Se/a+ate ac"on ,o+ collec"on o, 4nsec4+ed claib. 4+idical debto+ is dissol#ed c. Le2al "tle is #ested d. All cont+acts a+e te+-inated &*. Ri2hts o, sec4+ed c+edito+ a. b0 c : d b. ai#es his +i2ht c. 3+o#e his clai- on the /+oceedin2 d. =aintain his +i2hts 4nde+ lien &&. The co4+t -a$ a//oint the li84idato+ i,0 ece/t a. C+edito+s do not aDend on date o, elec"on b. C+edito+s ,ail o+ +e,4se to elect a li84idato+ c. Li84idato+ ,ails to 84ali,$ d. No #acanc$ occ4+s &). The ,olloin2 a+e d4"es and +es/onsibili"es o, li84idato+. a. S4e and +eco#e+ all assets b. Take /ossession o, all /+o/e+t$ c. Redee- -o+ta2es and /led2es
d. All o, the abo#e &7.It en4-e+ates all the assets and clai-s o, the debto+s a. Rehab /lan b. Li84ida"on /lan c. Financial State-ent d. SALKN &9. The sale o, 4nenc4-be+ed assets o, debto+s0 shall be -ade. a. At the /4blic -a+ket b. B$ the c+edito+ c. B$ /4blic a4c"on d. B$ the li84idato+ &;. The co4+t -a$ iss4e o+de+s to the /+o#ision o, the +elie,0 ece/t a. b0 c : d a+e o+de+s iss4ed b$ the co4+t d. S4s/endin2 an$ ac"on to en,o+ce clai-s c. Re84i+e s4++ende+ o, /+o/e+t$ d. 3+o#ide othe+ necessa+$ +elie, &(. The co4+t shal conside+ the ,olloin2 ,acto+s in 2+an"n2 +elie,0 ece/t a. The <4st t+eat-ent o, debto+ b. 3+otec"on o, c+edito+s c. Fo+ei2n /+oceedin2s +eco2niGes +i2hts o, c+edito+s d. Incon#enience in /4+s4in2 clai-s in ,o+ei2n /+oceedin2s )%. The ,olloin2 a+e +easons ,o+ /enal"es0 ece/t a. Hide o+ conceal o+ dest+o$ /+o/e+"es o, debto+s b. 3+otects the /+o/e+t$ o, debto+ c. Fail $o discloase an$ /e+son ha#in2 >c""o4s clai-s
d. Mnoin2l$ #iolate a /+ohibi"on#o+ obli2a"on ANSERS 1. A '. A *. A &. 6 ). 6 7. B 9. C ;. A (. A 1%. B 11. A 1'. A 1*. A 1&. 6 1). 6 17. B 19. C 1;. A 1(. A '%. A '1. A ''. A '*. A
'&. 6 '). 6 '7. B '9. C ';. A '(. A *%. B *1. A *'. A **. A *&. 6 *). 6 *7. 6 *9. C *;. A *(. A &%. B &1. A &'. A &*. A &&. 6 &). 6 &7. B &9. C &;. A
&(. A )%. B
