Regulations Governing the Scope of Business, Restrictions on Transfer of Beneficiary Rights, Risk Disclosure, Marketing, and Conclusion of Contract by Trust Enterprises Article 5

With exception of situations stipulated in Article 7 herein, a bank that conducts concurrently trust business and meets the following requirements may, at its own discretion, proceed to add to the scope of investment for trust assets and the types of business under Articles 6 to 8 of the Enforcement Rules of the Act for trust businesses already approved by the competent authority:1.The bank's non-performing loan ratio is below 2 percent;2.The bank's regulatory capital to risk-weighted assets shall not be less than the ratios stipulated in Article 5 of the Regulations Governing the Capital Adequacy and Capital Category of Banks and its capital adequacy ratio shall be the minimum requirement stipulated in the aforementioned article plus 2 percent or higher;3.The bank has set aside sufficient loss reserve, loan loss provision, and guarantee reserve in accordance with the Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non-performing /Non-accrual Loans; and4.The bank is free of the incidents of violating the Act, the Banking Act, or the self-regulatory rules of the Trust Association of the R.O.C. (referred to as the "Trust Association" hereunder) in a serious nature and failing to take remedial actions after being disciplined by the competent authority or the Trust Association in the past six months.