Act for the Establishment and Administration of the Financial Restructuring Fund Article 4
The term "distressed financial institutions" depicted in the Act herein shall mean a financial institution having one of the following situations:(1) The adjusted net worth is negative after an examination by the competent authority or the central competent authority for agriculture finance or an audit by an accountant.(2) Unable to repay its debts.(3) Significant deterioration in businesses or financial status as stipulated in Paragraph 1, Article 62 of the Banking Act that the financial institution becomes unable to repay its debts when due or the depositors' interests might be damaged, or sustaining losses exceeding one-third of its capital and failing to improve within a prescribed time period as provided in Article 64 of the Banking Act, determined by the competent authority and the Management Committee of the Fund to be incapable of continuing operations.The Fund will give precedence to handling distressed community financial institutions while maintaining the principle of equal treatment, whether in form or in substance. The Fund shall set aside 20% of increased funds generated subsequent to the promulgation of the amended Act on June 22, 2005, for pay-offs of farmers' and fishermen's associations without being subjected to the operating period of the Fund. The aforesaid fund shall be deposited in a special account; regulations governing the utilization and administration of said account shall be set forth by the Executive Yuan.The benefits of members of the distressed credit cooperatives that have been placed under superintendence or conservatorship by the competent authority pursuant to the Credit Cooperatives Act and are included under the Fund prior to the promulgation of the amended Act on June 22, 2005, shall be safeguarded by blank guarantee in accordance with the principle of equal treatment in the preceding paragraph. Their claims shall be paid off in full by financial institutions that assume the assets of the aforesaid credit cooperatives. In the event that the assuming financial institution defaults on pay-off, the Fund will pay the claims of the members in full.CDIC may apply for utilization of the Fund when acting pursuant to Paragraph 1, Article 15 and Paragraph 2, Article 17 of the Deposit Insurance Act to pay off in full the deposits and non-deposit debts of a distressed financial institution. The Fund shall assume the assets of such financial institutions without being restricted by the maximum coverage as stipulated in Article 9 of the Deposit Insurance Act and the provision of the cost being less than the loss arising from cash pay-offs as stipulated in Paragraph 2, Article 15 and Paragraph 2, Article 17 of the same Act.Subsequent to the promulgation of the amended Act on June 22, 2005, when the competent authority or the central competent authority for agriculture finance handles a distressed financial institution, non-deposit debts of the said institution will not be paid off. Notwithstanding the foregoing, non-deposit debts of such institutions that had been incurred before the promulgation of the amended Act on June 22, 2005, or bank debentures of such institutions that had been approved by the competent authority and their offering period spanned across the date of promulgation of the amended Act will be covered.The claims of the shareholders or members of a distressed financial institution that has been placed under superintendence or conservatorship by the competent authority pursuant to the Banking Act or the Credit Cooperatives Act and has been included under the Fund subsequent to the promulgation of the amended Act on June 22, 2005, shall be forfeited except for entitlement to the distribution of remaining properties. The competent authority shall notify such shareholders or members of the same by means of public announcement.The Fund shall draw up regulations governing the disposal of distressed financial institutions and submit them to the competent authority for approval and promulgation.
中文原文 行政院金融重建基金設置及管理條例第4條
本條例所稱經營不善之金融機構，指有下列情形之一者：
一、經主管機關或農業金融中央主管機關檢查調整後之淨值或會計師查核簽證之淨值為負數。
二、無能力支付其債務。
三、有銀行法第六十二條第一項所定業務或財務狀況顯著惡化，不能支付其債務，有損及存款人權益之虞或第六十四條虧損逾資本三分之一，經限期改善而屆期未改善，並經主管機關及本基金管理會認定無法繼續經營。
本基金以處理基層金融機構為優先，處理時應保持形式上或實質上的同等待遇為原則。
本條例中華民國九十四年六月二十二日修正施行後所增加財源之百分之二十應專款作為賠付農、漁會信用部使用，不受本基金設置期間之限制，該項專款應專戶儲存；其運用及管理辦法，由行政院定之。
在本條例中華民國九十四年六月二十二日修正施行前，經營不善之信用合作社經主管機關依信用合作社法規定派員監管或接管，並經本基金列入處理者，其社員之權利應受前項同等待遇原則之全額保障，且該社員之權利應由承受該信用合作社資產之金融機構全額賠付。
若該承受之金融機構未能賠付，則由本基金全額賠付。
存保公司依存款保險條例第十五條第一項、第十七條第二項前段規定辦理時，得申請運用本基金，全額賠付經營不善金融機構之存款及非存款債務，並由本基金承受該機構之資產，不受該條例第九條有關最高保額及第十五條第二項、第十七條第二項但書有關成本應小於現金賠付之損失之限制。
本條例中華民國九十四年六月二十二日修正施行後，主管機關或農業金融中央主管機關處理經營不善金融機構時，該金融機構非存款債務不予賠付。
但該經營不善金融機構在本條例於九十四年六月二十二日修正施行前，已發生之非存款債務或經主管機關核定且其募集期間跨越該修正施行日之金融債券，仍受保障。
本條例中華民國九十四年六月二十二日修正施行後，經營不善金融機構經主管機關依銀行法或信用合作社法規定派員監管或接管，並經本基金列入處理者，其股東或社員之權利，除分配賸餘財產外，應予喪失，並由主管機關以公告方式通知各該股東或社員。
本基金應研擬處理經營不善金融機構之作業辦法，報主管機關核定發布。
一、經主管機關或農業金融中央主管機關檢查調整後之淨值或會計師查核簽證之淨值為負數。
二、無能力支付其債務。
三、有銀行法第六十二條第一項所定業務或財務狀況顯著惡化，不能支付其債務，有損及存款人權益之虞或第六十四條虧損逾資本三分之一，經限期改善而屆期未改善，並經主管機關及本基金管理會認定無法繼續經營。
本基金以處理基層金融機構為優先，處理時應保持形式上或實質上的同等待遇為原則。
本條例中華民國九十四年六月二十二日修正施行後所增加財源之百分之二十應專款作為賠付農、漁會信用部使用，不受本基金設置期間之限制，該項專款應專戶儲存；其運用及管理辦法，由行政院定之。
在本條例中華民國九十四年六月二十二日修正施行前，經營不善之信用合作社經主管機關依信用合作社法規定派員監管或接管，並經本基金列入處理者，其社員之權利應受前項同等待遇原則之全額保障，且該社員之權利應由承受該信用合作社資產之金融機構全額賠付。
若該承受之金融機構未能賠付，則由本基金全額賠付。
存保公司依存款保險條例第十五條第一項、第十七條第二項前段規定辦理時，得申請運用本基金，全額賠付經營不善金融機構之存款及非存款債務，並由本基金承受該機構之資產，不受該條例第九條有關最高保額及第十五條第二項、第十七條第二項但書有關成本應小於現金賠付之損失之限制。
本條例中華民國九十四年六月二十二日修正施行後，主管機關或農業金融中央主管機關處理經營不善金融機構時，該金融機構非存款債務不予賠付。
但該經營不善金融機構在本條例於九十四年六月二十二日修正施行前，已發生之非存款債務或經主管機關核定且其募集期間跨越該修正施行日之金融債券，仍受保障。
本條例中華民國九十四年六月二十二日修正施行後，經營不善金融機構經主管機關依銀行法或信用合作社法規定派員監管或接管，並經本基金列入處理者，其股東或社員之權利，除分配賸餘財產外，應予喪失，並由主管機關以公告方式通知各該股東或社員。
本基金應研擬處理經營不善金融機構之作業辦法，報主管機關核定發布。