Section 5Sec./Art. 5

Power of a FISTC. -A FISTC shall have the following powers:

(a) Invest in, or acquire NPAs of FIs;

(b) Engage third parties to manage, operate, collect and dispose of NPAs acquired from an FI;

(c) Rent, lease, hire, subject to security interest, mortgage, transfer, sell, exchange, usufruct, secure, securitize, collect rents and profits, and other similar acts concerning its NPAs acquired from an FI;

(d) In case of NPLs, to restructure debt, condone debt and undertake other restructuring related activities. In restructuring debt, the FISTC may reduce the principal amount, interest earned, interest rates, and the period for calculating the interest, extend the time for debt repayment or relax the condition for dept repayment, agree to the conversion of the borrower's debt to equity in the borrower's business, agree to a transfer of assets or claims from the borrower to repay the debt or dispose of some of the borrower's property or claims to third persons;

(e) Buy or transfer shares issued by the borrower for the purpose of business reorganization or rehabilitation of the borrower, subject to the provisions of the Revised Corporation Code of the Philippines in respect to the rights of the shareholders of the borrower company, and apply other measures or restructuring techniques with the approval of the Commission;

(f) Enter into dation in payment arrangements. foreclose judicially or extrajudicially and other forms of debt settlement involving NLPs;

(g) Spend funds to renovate, improve, complete or alter its NPAs acquired from an FI;

(h) Issue equity or participation certificates or other forms of IUIs for the purpose of acquiring, managing, improving and disposing of its NPAs acquired from an FI;

(i) Borrow money and issue other instruments of indebtedness for the purpose of paying operational and administrative costs;

(j) Guarantee credit, and accept, intervene or honor the bills of borrowers;

(k) Require from selling FIs a data package which should contain, among others, scans of all pertinent documents and particulars of each property or loan account being sold;

(l) Advance funds to borrowers as may be required for an acquired asset or any debt restructuring agreement pursuant thereto, or under any court or rehabilitation plan; and

(m) Engage the services of a third-party asset servicing company for the collection and receipt of the debt payments for debts under debt restructuring or business reorganization, management and disposition of assets of the FISTC in accordance with the rules, procedures and conditions prescribed by the Commission, or by the courts. Except in the case of ROPAs whose redemption periods have already expired, the FISTC shall notify the borrower and all persons holding prior encumbrances upon the properties, or a part thereof, or are actually holding the same adversely against the borrower, of the appointment of such third-party asset servicing company within fifteen (15) days from the date of tje appointment.1aшphi1