Regulations Governing the Advance Payments to Depositors by the Central Deposit Insurance Corporation Article 4

When the CDIC handles advance payments in relation to the uninsured claims of the creditors on closed insured institutions, the formula for the anticipated amount of advance payments will be as follows:(The amount of the deposit-insured claims beyond the maximum coverage × Its anticipated distribution ratio of the liquidation proceeds + The amount of the non-deposit creditors × Its anticipated distribution ratio of the liquidation proceeds) × The advance payments percentageThe anticipated recovery ratio in the previous Paragraph is based on assets divided by each claim. When it exceeds 100 percent, it will then be calculated on the basis of 100 percent.The assets in the previous Paragraph are based on the anticipated net realizable value of the closed insured institutions remaining after deducting anticipated liquidation expenses, claims that have a higher priority of reimbursement, the collateralized claims of other creditors on the closed insured institutions, and other claims that shall be deducted. For each claim in the previous Paragraph, the total amount of the claims shall be calculated separately by distinguishing the sequence in which these advance payments claims are to be made.The so-called collateralized claims in the previous Paragraph refer to the amounts that creditors in respect of such collateral shall be reimbursed that lie within the scope of the value of the collateral on such claims.The percentage paid in advance by the receiver to uninsured creditors shall be limited to 30 percent of the anticipated amount of the recovery.For deposit-insured claims beyond the maximum coverage for which it is anticipated that the full amount cannot be recovered, advance payments shall not be made for other claims.When calculating the value of the assets in Paragraph 3, the evaluation basis may refer to the information and amount regarding the anticipated loss from the CDIC's cash payouts.