Agricultural Finance Act Article 28

The following matters shall be prescribed by the central authorities: permits of establishment and dissolution, business resumption and reorganization, facilities and personnel assignment of the credit department and branches, and the limitations, periods, saving ratios and management of other risk control ratios of the credit department for various objects of entrustment.The credit department shall establish mechanisms for internal control and audit, and the implementation methods for such mechanisms shall be determined by the central authorities.The business instructions, financing and re-disposition of surplus shall be determined by the central authorities after meeting and consulting with the involved institutions.The credit department shall establish internal processing and procedures mechanisms, for the evaluation of asset quality, loss reserve preparation, call on receivables for overdue loans and write-offs of bad loans; and the regulations involved herein shall be prescribed by the central authorities.The standards for the credit department in sponsoring the member and non-members, as well as the limitations on the amount shall be prescribed by the central authorities.