Documente Academic
Documente Profesional
Documente Cultură
Landicho
Credit Transactions
Under Section 32 (b) of the same code, assets in the trust fund shall at all times
remain for the sole benefit of the planholders. At no time shall any part of the trust fund
be used for or diverted to any purpose other than for the exclusive benefit of the
planholders. In no case shall the trust fund assets be used to satisfy claims of other
creditors of the pre-need company. The provision of any law contrary notwithstanding,
in case of insolvency of the pre-need company, the general creditors shall not be
entitled to the trust fund.
In the case at bar, the planholders may sue the officials of XYZ Corporation for
Syndicated Estafa and Violation of the Pre-Need Law. They have the right against the
trust fund of XYZ Corporation since it is exclusively for the sole benefit of the
planholders and not for the other creditors of the corporation.
With respect to the freeze order filed by the AMLC, the planholders may file a
petition with the Supreme Court for temporary restraining order and writ of preliminary
injunction to prevent the freeze order suit and have their claims. The freeze order
prevents the disposal of the assets of the XYZ Corporation.