Section 13Sec./Art. 13

Nature of Transfer. -All sales or transfers of NPAs to FISTC shall be ina the nature of a true sale after proper notice in accordance with the procedure as provided for in Section 12, without need for the borrower's consent:Provided,That in the transfer of the NPLs, the provisions on the right of the debtor to reimburse the assignee or transferee under Article 1634 of the New Civil Code shall not apply:Provided,further,That disposition of assets of a GFI and a GOCC shall be covered by special rules to be incorporated in the rules and regulations of this Act:Provided, finally,That after the sale, the FISTC shall assume all rights and obligations of the transferring FI.

In the transfer of NPAs, the parties shall exercise the requisite due diligence and any fraud, collusion and irregularity shall be subject to penalties in Section 24 of this Act, as well as other pertinent laws, rules and regulations.