The operation of an overseas fundraising enterprise shall be subject to the following requirements:1. The enterprise is 100% owned by the insurer.2. Except loans mentioned in Paragraph 3 hereof, the enterprise may not borrow funds from an outside party, act as guarantor for others, or provide its assets as collateral for the debt of others.3. The capital of the enterprise shall be used for purposes under the following items only:(1) For the payment of relevant costs and expenses incurred in connection with the business operations of the enterprise; or(2) For deposits with financial institutions.Insurers shall respectively disclose information on bonds with capital characteristics already issued by their overseas fundraising enterprises in the explanatory documents posted on their information disclosure website (see Table 3 for format).When an insurer provides the working capital needed by its overseas fundraising enterprises by way of a loan, any such decisions shall comply with the following provisions and obtain the approval of at least three-fourths of its directors present at a board meeting at which at least two-thirds of all directors are present; the insurer shall also file the information with the competent authority for reference within seven (7) days afterwards:1. The terms and conditions of the loan, such as interest rate, loan period, requirements for or provision of collateral or guarantor, and method of principal and interest payment adopted by the insurer shall not be more favorable than those of similar type of loans provided in the area where the overseas fundraising enterprise is located during the fundraising period, and shall conform with the local rules and regulations.2. The purpose of loan shall be the same as the use of enterprise’s capital.The gross balance of loans made by an insurer to the same overseas fundraising enterprise shall not exceed 10% of its owners’ equity, and the gross balance of loans made by an insurer to overseas fundraising enterprises shall conform to the provisions of Paragraph 2, Article 11-2 herein.The use of proceeds raised by an overseas fundraising enterprise from the issuance of bonds with capital characteristic shall comply with the following provisions:1. Comply with the provisions of these Regulations relating to use of funds; however its foreign investment limit shall be combined into the insurer’s foreign investment limit.2. The proceeds shall be used in accordance with the issuance and raised funds utilization plan provided in the application documents; any change to the fund utilization plan must be approved by the insurer’s board of directors and the competent authority.3. The proceeds shall be used for fund utilization items in the same currency as the foreign currency to be received and paid by the enterprise.4. The funds shall be earmarked and used for designated purposes and managed separately. The enterprise shall establish internal operating rules for the use of funds. The insurer should assist the enterprise in planning and implementing the fund utilization plan, and follow up on the enterprise’s investment status on a monthly basis.5. The enterprise’s foreign investment assets shall be placed under the custody of a custodian institution that meets the requirements set out in Paragraph 1 of Article 16 herein.The review and approval of all important financial matters, internal audit, risk management, hiring and dismissal of important personnel and other important matters of the overseas fundraising enterprise may be reported to or discussed by a designated unit authorized by insurer’s board of directors. In the event the insurer is a subsidiary of a financial holding company, such matters shall also be submitted to the board of directors of such financial holding company, or reported or discussed at a meeting organized by a designated unit authorized by the financial holding company’s board of directors, to which Subparagraph 3 of the preceding article does not apply.Subparagraph 2 of the preceding article does not apply to overseas fundraising enterprises.