FRIA Notes

1

Unde Underr FRIA FRIA,, the the Stay Stay Orde Orderr has has the the effe effect ct of susp suspen endi ding ng all all acti action ons s or  proceeding proceeding in court or otherwise, otherwise, for the enforcement enforcement of claims and all actions to enforce enforce any judgment judgment,, attachme attachment nt or other other provisio provisional nal remedies remedies against the debtor . Section !. Comm Commen ence ceme ment nt of Proc Procee eedi ding ngs s and and Issu Issuan ance ce of a Commencement Order . " #he reha$ilitation proceedings shall commence upon the issuance of the %ommencement Order, which shall& '(( )*+ includes Stay or Suspension Order which shall& (1) suspend all actions or proceedings, in court or otherwise, for  the enforcement of claims against the debtor; (2) suspend all actions to enforce any judgment, attachment or  other provisional remedies against the debtor;

)+ proh prohi$i i$itt the the de$t de$tor or from from selli selling ng,, encu encum$e m$erin ring, g, transf transferr erring ing or  disposing in any manner any of its properties e(cept in the ordinary course of $usiness- and )+ prohi$ prohi$it it the the de$t de$tor or from from ma/ing ma/ing any paymen paymentt of its lia$il lia$iliti ities es outs outsta tand ndin ing g as of the the comm commen ence ceme ment nt date date e(ce e(cept pt as may may $e provided herein. Unli/e the previous rules, FRIA deleted the phrase 0its guarantors and persons not solidarily lia$le with the de$tor1. 2  #he de$tor2s protection under the Stay Order e(cludes the 0enforcement of claims against sureties and other persons solidarily liable with the debtor , and third party or accommodati accommodation on mortgagors mortgagors as well as issuers of letters of credit , unless the property subject of the third party or accommodation mortgage is necessary for the rehabilitation of the debtor as determined by the court upon recommendation by the rehabilitation rehab ilitation receiver.”  3

#he Stay Order was $roadened to include third"party or accommodation mortgages, in which the 3mortgage is necessary for the reha$ilitation of the de$tor as determined $y the court court upon upon recommen recommendati dation on $y the reha$il reha$ilitat itation ion receiver receiver.) .)Situ Situs s 4ev. 4ev. %orp v.  Asia#rust  Asia#rust 5an/, 5an/, 6R 7o. 899!, 899!, :an !, ;9+. ;9+.