Republic of the Philippines
HOUSE OF REPRESENTAT!
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

8675

HOUSE BILL NO.

Introduced by Honorable Michael L. Romero

EXPLANATORY NOTE

The Republic of the Philippines shall inspire debtors, juridical and natural
persons, and their creditors to mutually and accurately resolve opposing claims
and property rights.

In continuance, the State shall guarantee a timely, fair, transparent, effective
and efficient rehabilitation or liquidation of debtors. The rehabilitation or
liquidation shall be made with a view to ensure or maintain certainly and
probability in commercial affairs, preserve and maximize the value of the assets
of these debtors, recognize creditor rights and respect priority of claims, and
ensure equitable treatment of creditors who are similarly situated.

This House Bill seeks to foster the interest of the State to facilitate a speedy and
orderly liquidation of these debtor's assets and settlement of their obligations,
thus providing stiffer penalties and sanctions.

Thus, the early passage of this bill is earnestly requested.

MICl L (OMERO Ph.D.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

HOUSE BILL NO. gec7s

Introduced by Honorable Michael L. Romero

AN ACT

AMENDING SECTION 145 OF REPUBLIC ACT 10142,
“OTHERWISE KNOWN AS THE FINANCIAL REHABILITATION AND
INSOLVENCY ACT (FRIA) OF 2010”, PROVIDING FOR STIFFER
PENALTIES AND SANCTIONS, AND FOR OTHER PURPOSES,

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 145 of Chapter X of RA10142, is hereby amended to

read:

Section 145. Penalties.- An owner, partner, director, officer or
other employee of the debtor who commits any one of the following
acts shall, upon conviction thereof, be punished by a fine of not less
than One million pesos (Php 1, 000,000.00) and imprisonment for
not less than One (1) year nor more than Five (5) years for each
offense;

(a) if he shall, having notice of the commencement of the
proceedings, or having reason to believe that


proceedings are about to be commented, or in
contemplation of the proceedings hide or conceal, or
destroy or cause to be destroyed or hidden any property
belonging to the debtor or if he shall hide, destroy, after
mutilate or falsify, or cause to be hidden, destroyed,
altered, mutilated or falsified, any book, deed,
document or writing relating thereto; if he shall, with
intent to defraud the creditors of the debtor, make any
payment sale, assignment, transfer or conveyance of
any property belongings to the debtor

(b) if he shall, having knowledge belief of any person
having proved a false or fictitious claim against the
debtor, fail to disclose the same to the rehabilitation
receiver of liquidator within one (1) month after coming
to said knowledge or belief; or if he shall attempt to
account for any of the debtors property by fictitious

losses or expense; or

(c) if he shall knowingly violate a prohibition or
knowingly fail to undertake an obligation established by
this Act.

SECTION 2. TRANSITORY PROVISION- Existing industries,
businesses and offices affected by the implementation of this Act shall be
given six (6) months transitory period from the effectivity of the IRR or
such other period as may be determined, to comply with the requirements
of this Act.


SECTION 3. IMPLEMENTING RULES AND REGULATIONS. - The
departments and agencies charged with carrying out the provisions of this
Act shall, within sixty (60) days after the effectivity of this Act, formulate
the necessary rules and regulations for its effective implementation.

SECTION 4. REPEALING CLAUSE. - All laws, decrees, executive
orders, rules and regulations, or parts thereof inconsistent with the

provisions of this Act are hereby repealed or modified accordingly.

SECTION 5. SEPARABILITY CLAUSE. - If, for any reason, any
section or provision of this Act is held unconstitutional or invalid, the other

sections or provisions hereof shall not be affected thereby.

SECTION 6. EFFECTIVITY CLAUSE. - This Act shall take effect
after fifteen (15) days from its publication in the Official Gazette or in at
least two (2) national newspapers of general circulation whichever comes

earlier.

Approved,