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 16

When non-performing or non-accrual credit is written off as bad debt in accordance with these Regulations, the debt to be pursued shall be entered in the balance sheet, and a detailed entry made for reference in the relevant register books. If it is discovered that the primary or secondary debtor has executable property, it shall be pursued in accordance with the law.When evaluation shows the debt to be pursued under the preceding paragraph is unrecoverable, the debt may, with the approval of the board of directors or the board of managing directors, be exempted from balance sheet listing, and a detailed entry shall be made for reference in the relevant accounting register book.