Regulations Governing the Central Bank of the Republic of China (Taiwan)Administration of Accommodations Extended by Banks to Securities Finance Companies or Securities Firms Article 3

The term "net worth" as used in these Regulations with respect to securities finance companies and securities firms, refers to net worth at the end of the previous fiscal year after closing of the books. A capital increase through cash infusion during the fiscal year may be included in calculations of net worth for that year,whereas a capital decrease shall be excluded. The date on which the Financial Supervisory Commission （hereafter referred to as "the FSC"）issues a certificate verifying the capital increase/decrease shall be deemed the date of record. Where a securities firmis operated by a financial institution, the term "net worth" refers to the working capital allocated to the firm by the financial institution.The term "securities" as used in these Regulations,except where otherwise provided in Article 6 and Article 7, refers to firms that have been publicly announced by the FSC according to Article 61 of the Securities and Exchange Law for the securities industry as being authorized to engage in margin purchases and short-sale transactions.The term "outstanding balance of financing" as used in these Regulations refers to funds borrowed from banks by securities finance companies and securities firms for the purpose of providing margin trading services to clients.