Regulations Governing the Business of Negotiable Instruments Exchange and Clearance of Accounts among Banks Article 8

All financial institutions that have been approved to conduct checking deposit business may apply to a clearinghouse to participate in the clearing of negotiable instruments as a clearing entity. Branches of clearing entities shall without exception participate in their localclearinghouse [operations], provided that negotiable instruments received by credit cooperatives, farmers' associations or fishermen's associations shall, as instructed by the Bank, be cleared through the Taiwan Cooperative Bank, Ltd. or other clearing entities.Any financial institution that has not applied to participate in the clearing of negotiable instruments in accordance with the preceding paragraph may engage a clearing entity as its agent for the clearing of negotiable instruments. The engaged financial institution is required to apply to the clearinghouse for its consent before providing the aforementioned service.