Regulations Governing the Advance Payments to Depositors by the Central Deposit Insurance Corporation Article 3

The CDIC shall after careful deliberation make advance payments in regard to the uninsured claims of creditors of closed insured institutions that comply with the following conditions:1. The net realizable value of the assets of the closed insured institutions can be reasonably estimated, and it is likely to be converted into cash.2. The estimated amount of the advance payments and the interest on them can be fully reimbursed by the estimate of the net realizable value of the assets in the previous Paragraph.3. The closed insured institutions have no severe embezzlements or other significant cases whose losses are difficult to determine.The estimated period for which the interest referred to in Subparagraph 2 of the previous Paragraph is five years.The amount of the advance payments to be handled by the CDIC is limited to 30 percent of the amount on the deposit insurance special payout reserve. The funds that CDIC needs for its handling shall be obtained pursuant to Paragraphs 1 to 3 of Article 31 of the Act.The funds that the CDIC needs pursuant to the Act in the fulfillment of its insurance responsibilities towards closed insured institutions shall be deducted from the outstanding amount on the deposit insurance special payout reserve in the preceding Paragraph. Furthermore, the deduction also includes funds that it is likely to need should there be other insured institutions to the extent that, because they are critically undercapitalized or significantly undercapitalized and the period of their capital restoration is limited by the competent authority or for other measures, it is uncertain that the CDIC may fulfill its insurance responsibilities.