Section 12Sec./Art. 12

Notice and Manner of Transfer of Assets.-

(a) No transfer of NPLs to a FISTC shall take effect unless the FI concerned shall given prior notice to the borrowers of the NLPs and all persons holding prior encumbrances upon the assets mortgaged or subject to security interest. Such notice shall be in writing and made in accordance with the 2019 Rules of Civil Procedure, as amended, at their last known address or their email address registered and on file with FI. The borrower shall be given a period of at most thirty (30) days upon receipt of notice from the FI to restructure or renegotiate the loan under such terms and conditions as may be agreed upon by the borrower and the FI concerned.

(b) The transfer of NPAs from an FI to FISTC shall be subject to prior Certification of Eligibility as NPA by the appropriate regulatory authority having jurisdiction over its operations which shall issue its certification within twenty (20) working days from the date of application by the FI for eligibility:Provided,That nothing in this Act Shall be construed to prevent the transfer of NPAs under other applicable laws:Provided,further,That prior Certification of Eligibility is necessary to avail of the incentives and exemption privileges provided under Sections 15, 16, and 17 of this Act.

(c) After the sale or transfer of the NPLs, the transferring FI shall inform the borrower in writing at the last known address of the fact of the sale or transfer of the NPLs. The reacquisition of the NPA by the borrower or owner from the FISTC or subsequent transferee other than by the exercise of the right of redemption as provided for in Section 20 hereof shall be in accordance with the terms and conditions as may be agreed upon by them.