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Principal Operations
Deposit insurance Financial stability
4. Resolution of troubled insured institutions
(1) Acting as a conservator or receiver
When the competent authority orders suspension of an insured institution's
business, or appoints an agency to act as a conservator or to take over the
authorities of the company's board of directors and supervisors, the CDIC
shall act as a conservator or receiver if so instructed by the competent
authority, and shall conduct conservatorship proceedings, promote a purchase
and assumption deal, act as receiver, and fulfill insurance responsibilities
in accordance with the provisions of the Banking Act, the Deposit Insurance
Act, and other applicable financial laws and regulations.
(2) Fulfillment of insurance responsibilities
The CDIC may fulfill its insurance responsibilities in various ways,
including the following:
A. Make payouts by cash, remittance, deposit transfer, or an alternate payment
method, in amounts based on the books and records of the failed insured
institution, and on deposit balance certificates provided by depositors.
This method shall be referred to hereinafter as "cash payouts."
B. Consult with other insured institutions to make the same amount of
deposits as the amount of payout for the depositors of the failed insured
institution and make payment on behalf of the CDIC.
C. Provide other insured institutions or financial holding companies with
funds, loans, deposits, and guarantees, or purchase the subordinated debts
issued by the said insured institutions or financial holding companies,
in order to facilitate the acquisition or assumption of all or part of businesses,
assets, and liabilities of the insured institution that has been ordered to
suspend business, placed under conservatorship, or taken over the
authorities of its board of directors and supervisors.
(3) Handling of systemic crises
During the process of resolution of a troubled insured institution, if there is
a likelihood that the process might threaten financial stability and credit order,
once the CDIC has obtained the consent of the competent authority in
consultation with the MOF and the Central Bank of the R.O.C. (Taiwan), and
with the final approval of the Executive Yuan:
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