Regulations Governing the Procedures for Bills Finance Companies to Evaluate Assets, Set Aside Loss Reserves, and Handle Non-Performing Credit, Non-Accrual Loans, and Bad Debt Article 12

The write-off of non-performing or non-accrual credit shall be authorized by a resolution passed by the board of directors, with notification to the supervisors. Credit must be written off immediately, however, when the Competent Authority so requests, and reported at the subsequent board meeting, with notification to the supervisors for recordation. When the board of directors is in recess, the board of managing directors may exercise authority on its behalf, and shall notify the supervisors and report the matter to the board of directors for recordation.The provisions of the preceding paragraph shall require the concurrence of three-fourths of the directors present at a meeting of the board with a two-thirds quorum if the amount of the credit, either when credit was extended or when written off as bad debt, was at or above the amount prescribed by the mutatis mutandis application of Article 33 of the Banking Act under Article 49 of the Act Governing Bills Finance Business.