Regulations Governing the Procedures for Credit Cooperatives to Evaluate Assets and Deal with Non-performing/Non-accrual Loans Article 15

When writing off non-performing loans and non-accrual loans, a credit cooperative shall investigate whether the loan was made in accordance with applicable laws and regulations, and internal rules. If such investigation determines that the loan was made in accordance with the established procedures, and, the appropriate follow up reviews were conducted and no laws were violated or responsibilities neglected, then no administrative measures need to be taken. If such investigation reveals a violation or omission with regard to applicable laws and regulations, or internal rules, the credit cooperative shall take disciplinary actions against employees based on the hierarchy of responsibility and the circumstances of the credit authorization. If such violations or omissions are criminal in nature, the credit cooperative shall report the matter to the proper prosecutorial authority for investigation.