Regulations Governing Issuance of NTD Bank Debentures by Foreign Bank Branches Article 5

A Foreign Bank Branch may not apply to issue NTD bank debentures if any of the following circumstances exist:1. Provisions for bad loans are insufficient and such an insufficiency has not been improved;2. A Foreign Bank Branch's average non-performing loan ratio for the past three months reaches three percent or up when the Foreign Bank Branch applies to issue NTD bank debentures and the ratio has not been improved;3. Within one year preceding the year when the Foreign Bank Branch applies for issuance of NTD bank debentures, the number of penalty imposed on the Foreign Bank Branch by the competent authority reaches three or up or the cumulative penalty amount imposed on the Foreign Bank Branch by such an authority reaches NT$ 10 million (NT$10,000,000) or up because of the Foreign Bank Branch's violation of laws and orders; provided that the bank has not corrected its act; or4. The negative value received by the Foreign Bank Branch after deducting the unamortized loss on the disposal of non-performing loans from the latest accumulated profit or loss which was reviewed and then certified by an accountant or has been inspected by the competent authority. This section does not apply to a new Foreign Bank Branch that has been established for less than three years.