Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Non-performing/Non-accrual Loans Article 9

Banks shall actively clear up non-performing loans and non-accrualloans in accordance with the following regulations:1.After an evaluation of the debtor's financial and businessconditions, if a bank determines that the business may continueto operate as a viable entity, the repayment terms of the originalloan agreement may be amended within the amount standardsauthorized by the board of directors; the amended terms shall beapproved by an authorized person.2.Banks shall actively clear up loans in accordance with the Codeof Civil Procedure, the Compulsory Execution Law, and otherrelevant laws and regulations. However, those resturctured loansshall not be subject to this restriction.3.If a bank feels that primary/subordinate debtors are unable torepay loan principal, the bank may establish a settlement with thedebtor(s) reflecting the actual circumstances, based on the amountstandards authorized by the board of directors, and approved byan authorized person; then the settlement shall be reported to theboard of executive directors for acknowledgement.4.If a bank cannot obtain timely repayment of foreign debts becausea foreign government has amended foreign exchange laws orregulations, the bank may take appropriate action after reportingthe case to the board of executive directors for approval.