Regulations for the Handling of Overdue US Economic Aid Loans Article 11

If, after the success of litigation pursued in accordance with the provisions of Articles 4, 7 and 9 above and its compulsory execution against the property of the borrower and its guarantors, the debt due from the borrower cannot be fully cleared, or if the proceeds of sale of recovered materiel by open tender in accordance with the provisions of Article 10 are lower than the assessed value of the materiel upon recovery, the shortfall should be reported to the Management Committee of the Sino-American Fund and, after being considered and passed by the Committee, reported with supporting documentation to the Ministry of Audit for approval and cancellation.