Regulations Governing Use of Insurer's funds in Special Projects, Public Investments and Social Welfare Enterprises Article 11

An insurer handles special use of loans as follows:1. Loans guaranteed by credit guarantee institutions authorized by the banks or competent authorities;2. Loans guaranteed with the collateral of properties or real properties;3. Loans guaranteed with collateral of marketable securities in compliance with Article 146.1 of this Act;The insurer must collect 100% collateral for the loans granted to the person in charge, employees or major shareholders, or the related party of the person in charge or the responsible loan officer; also, the loan terms and conditions shall not be superior to other similar debtors, If the loan amount exceeds the threshold stipulated by the competent authorities, it must be with the consent of three fourths of the directors at the meeting and two thirds of the boards attending the meeting. The scope, quota, total loan amount, and other binding matters for the related party are guided by the “Rules Governing the Loans Granted to Related Party by Insurers”.For the insurer with the latest ratio of total adjusted net capital to risk-based capital over the regulatory standard, the special loans arranged in accordance with the government policy may be reported to the competent authorities for exemption not subject to the restrictions of the first Paragraph.