The Banking Act of The Republic of China Article 103

An investment trust company shall deposit a trust fund reserve with the Central Bank of the Republic of China in cash or securities accepted by the Central Bank of the Republic of China. The ratio of such reserve to the total value of various trust fund agreements shall be prescribed by the Central Bank of the Republic of China within the range between fifteen percent (15%) and twenty percent (20%); provided that the total deposit amount shall not be less than twenty percent (20%) of its total paid-in capital.At the commencement of operations of the company, the trust fund reserve in the preceding paragraph shall temporarily be based on twenty percent (20%) of the company’s paid-in capital. After one (1) year from the company’s commencement of operations, such reserve shall be adjusted at the end of each month in accordance with the standard in the preceding paragraph.