The Banking Act of The Republic of China Article 62

When there is a likelihood that a bank is unable to repay its debts or causes detriments to depositors' interests due to obvious deterioration in its business or financial conditions, the competent authority shall assign officials to take conservatorship over the bank, order the bank to suspend businesses and receive it or take other necessary measures. If deemed necessary, the competent authority may notify relevant authorities or institutions to prohibit the bank's responsible persons from transferring, delivering or creating other rights in their properties, and request the immigration authorities to prohibit them from departing the country.Where a bank's capital is graded as seriously inadequate, the competent authority shall assign officials to take conservatorship over the bank within ninety (90) days from the date the bank is enlisted. Notwithstanding the foregoing, for banks ordered by the competent authority to complete capital restructuring or merger within a prescribed period but failing to complete it accordingly, the competent authority shall assign officials to take conservatorship over the bank within ninety (90) days from the next day following the expiration of the prescribed period.The regulations governing the procedure for conservatorship in the preceding two paragraphs, the duties and powers of the conservator, assumption of related expenses and other matters to be complied with shall be prescribed by the competent authority.For a bank ordered to suspend business under Paragraph 1, its receiving procedure shall be deemed as liquidation under the Company Act.A court that receives a bank's petition for bankruptcy shall promptly forward a copy of the petition to the competent authority and consult the specific opinions of the competent authority on whether to declare bankruptcy.