Act for the Establishment and Administration of the Financial Restructuring Fund Article 6

The Fund shall determine how to handle a distressed financial institution based on the following principles:(1) The distressed financial institution has closed businesses or has deposit runoff that may trigger systemic risk in the financial system.(2) The financial status of the distressed financial institution seriously deteriorates.(3) The distressed financial institutions will incur less disposal cost.The determination of distressed financial institutions and the priority of handling by the Fund shall first be established by the Valuation Panel and then approved by the Management Committee. In the event that the Management Committee disagrees with the decision of the Valuation Panel, it shall provide concrete reasons for disagreement in writing.