Due to 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 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? Why or why not? (Please explain thoroughly and cite related and appropriate articles)

Due to 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 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? Why or why not? (Please explain thoroughly and cite related and appropriate articles)

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter6: Corporations: Redemptions And Liquidations

Section: Chapter Questions

Problem 56P

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