Act Governing Issuance of Electronic Stored Value Cards Article 18

(Payments Received by Non-Bank issuers)Non-bank issuers shall deposit a sufficient amount of reserve when the funds they receive from the electronic stored value cards issued reach a certain amount. Regulations governing the certain amount, percentage for the reserve, method of deposit, adjustment, audit and other matters to be complied with shall be prescribed by the Central Bank of the ROC in compliance with the Competent Authority.Non-bank issuers shall declare trust in full or obtain full guarantee from a bank for the funds received as mentioned in the preceding paragraph less the required reserve on the next business day of receipt.A certain percentage of the interest or other income earned from the utilization of funds received in Paragraph 1 hereof shall be set aside and deposited in a dedicated account opened with a bank to pay back to the cardholders or use it for other purposes prescribed by the Competent Authority.The certain percentage referred to in the preceding paragraph shall be prescribed by the Competent Authority.