Enforcement Rules of the Banking Act

Link to law: http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=G0380067

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Article 1


The Enforcement Rules are enacted in accordance with Article 139-1 of the Banking Law (the "Law").


Article 2


"Notes" as referred to in Article 12, Item 3, of the Law shall mean "Commercial Negotiable Instrument" as defined in Article 15, Section 1, of the Law.
"Bank Guarantees" as referred to in Article 12, Item 4 of the Law shall mean any guarantee extended by, any local bank, investment and trust company, branch of a foreign bank within the territory of the Republic of China, or any other local or foreign financial institution which is approved by the Ministry of Finance other than the bank extending [the relevant] credit facilities.
"Government Authorized Credit Agencies" as referred to in Article 12, Item 4, of the Law shall mean the Small and MediumBusiness Guarantee Foundation, Agriculture Guarantee Foundation, Overseas Chinese Loan Guarantee Foundation or any other credit guarantee institution approved for establishment or permitted by the Ministry of Finance.


Article 3


Any bank and other financial institution which is not organized as a corporation shall describe the scope of its representatives in its articles of incorporation.
The scope of representatives as referred to in the preceding section shall, in the case of a bank, include directors, supervisors, general manager (chief of an office), deputy general manager (deputy chief of an office or assistant vice president), manager and assistant manager; and in the case of a credit department of a farmers' association or fishermen's association, shall include the general secretary and the head of the credit department (division); and when directors and supervisors are involved in the operations of credit department, such directors and supervisors.


Article 4


"Enterprises" as referred to in Articles 32 and 33 of the Law shall not include foreign financial institutions invested by a bank with the approval of the Ministry of Finance and which are wholly owned by such bank or in which such bank owns more than fifty percent (50%) of the shares.


Article 5


A bank shall set out the standards for valuation of security in order to accurately value security in accordance with Article 37, Section 1.


Article 6


The balance sheets published by a bank in accordance with Article 49 of the Law shall be prepared in the format provided by the Ministry of Finance.


Article 7


Except that "Capital" as used in Article 24 of the Law shall not be limited to paid-in capital, "Capital", "Aggregate Capital" and "Total Capital" as used in the Law shall mean paid-in capital.
Once the Total Capital of a bank organized in the form of a company limited by shares as prescribed in Article 54, Paragraph 1, of the Law has been fully paid-in, Article 156, Paragraph 2, of the Company Law shall apply to such bank.


Article 8


The foreign language name, of any local bank or investment and trust company and of any foreign financial institution which is invested in by such local bank and investment and trust company with the approval of the Ministry of Finance and which is wholly owned by such bank or investment and trust company or in which such bank or investment and trust company owns fifty percent (50%) or more of the shares, shall be subject to the approval of the Ministry of Finance. This Article shall also apply to any change of such foreign language name.


Article 9


"Net Worth" as used in the Law shall mean the net worth after final calculation for the preceding fiscal year. Any cash capital injection of a bank occurring during a year will be permitted to be calculated into the net worth effective from the date of issuance of the certificate of capital inspection by the Central Bank of China.


Article 10


All working capital exclusively for business operations within the territory of the Republic of China appropriated by a foreign bank shall be booked in the branch established at the time when such foreign bank applied for recognition or in a branch designated by the Ministry of Finance.
When submitting by letter and publishing relevant financial statements in accordance with Article 49 of the Law, such branch, as the centralized booking branch, shall include therein the consolidated financial statements of each branch within the territory of the Republic of China and the financial statements of its head office.


Article 11


These rules shall be effective from the date of promulgation.