The Credit Cooperatives Act Of The Republic Of China Article 21

A credit cooperative shall establish internal control and auditing systems, the rules of its purpose, principal, policy, operation process, the qualification of internal auditor, the authorized scope of internal auditing to CPA, and other compliance matters made by the Central Competent Authority.A credit cooperative shall set up the credit review committees; the organizational rules for the credit review committees shall be prescribed by the Central Competent Authority.A credit cooperative shall establish internal control systems and procedures for assessing the quality of its assets, setting aside loss reserves, clearing non-performing loans and non-accrual loans, and writing off bad debt; the applicable regulations shall be prescribed by the Central Competent Authority.A credit cooperative operation entrusted to other people shall establish internal control systems and procedures for the authorized scope protection of customer rights, risk management, and principles of internal control. Furthermore, applicable regulations shall be prescribed by the Central Competent Authority.