Regulation for the International Cooperation and Development Fund in Providing Guarantee for Credit Facilities extended to Private Enterprises who Invest in Countries with Formal Diplomatic Relationships Article 7

(1) In principle, the combined amount of the guarantee provided by the Fund to the same person or the same connected person, whether in one case or in several cases, shall not exceed one million US Dollars. However, if the private enterprise or the business invested by it is able to provide security and the value of the security is over 60% of the amount of the guarantee, then the amount of the guarantee may be increased but, in any event, may not exceed three million US Dollars. The standard of appraisal of the security and the value thereof shall be conducted by the relevant financial institutions in accordance with the Banking Law and the relevant regulations.(2) The duration of the guarantee provided by the Fund pursuant to this Regulation shall be the same as the term of the loan approved by the relevant financial institutions. If the principal of the credit facility is less than one million US Dollars, then not more than 85% of the principal may be eligible for the guarantee, and further that not more than 75% of the principal may be eligible for the guarantee on any part of the principal in excess of one million US Dollars.(3) If whether or not to implement the investment plan of a private enterprise in an application for a guarantee of the Fund may materially affect the diplomatic relationships, then for cases which the Executive Yuan has made an approval on a special case by case basis as submitted by the agency in charge upon a request made by the Fund following an approval of the Board of Directors, the security and the percentage of guarantee in respect thereof shall not be subject to the limitations as required in the foregoing two paragraphs.