Regulations Governing the Banking Activity and the Establishment and the Investment by Financial Institution Between the Taiwan Area and the Mainland Area Article 16

Banks, credit cooperatives, bills finance companies, institutions engaging in credit card business, and Chunghwa Post may engage in NTD financial activities with individuals, juristic persons, organizations, other institutions in Mainland Area or their branches in any country and area outside Mainland Area.Where the counterparty to a business transaction has obtained a residence permit or has been granted a business registration certificate or license in Taiwan Area, the business transaction shall be handled in accordance with the rules and regulations applicable to individuals, juristic persons, organizations and other institutions in Taiwan Area. Where the counterparty to a business transaction has not obtained a residence permit or has not been granted a business registration certificate or license in Taiwan Area, the business activities shall be handled in accordance with the rules and regulations applicable to individuals, juristic persons, organizations and other institutions in a third area that do not have a residence permit or a business registration certificate or license in Taiwan Area, except for the business of NTD credit extension to Mainland individuals without Taiwan residence permit by banks and credit cooperatives, which is limited to real estate secured loan and the borrower must have acquired and set real estate property rights in Taiwan Area in accordance with the Regulations on Permit for the Mainland individuals to Acquire, Set or Transfer the Property Rights of Real Estates.The eligible borrowers, limits, term, collateral, purposes for the funds, percentage of loan and other matters of attention relating to the real estate secured loan business of Taiwan banks and credit cooperatives as described in the preceding paragraph shall be prescribed separately by the Competent Authority.