Page 26 - CDIC Company Profile Ebook

Upon founding in 1985 Subsequent reforms

Recipient and (1) The CDIC may provide an insured institution with loans,
method of deposits, or other financial assistance when all the
financial following conditions are met: the institution is critically
assistance under-capitalized; the central competent authority has
determined there is a need to either suspend and wind
up the institution's business or handle its withdrawal
from the market by various resolution methods; and prior
to doing so, the competent authority has duly appointed
an agency to act as conservator or to take over the
authorities of the company's board of directors and
supervisors.
(2) When the CDIC provides the aforesaid financial
assistance, it should request for the full amount of
collateral from the financial holding company of the
said institution, or any other insured institution that such
financial holding company has dominant shares, or from
any farmers' or fishermen's association possessing the
said credit department.
(3) The CDIC may 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 the insured institution that has been
ordered to placed under conservatorship, or taken over
the authorities of its board of directors and supervisors.

Borrowing of None Addition in January 1999.
funds from other
financial
institutions

Provision of Full amount of collateral must be 1. Amendments adopted in January 1999:
collateral when provided (1) That part for which the CDIC is unable to provide
applying to the collateral is to be guaranteed by the National Treasury.
Central Bank of (2) When the secured portion exceeds the CDIC's net worth,
the R.O.C. the competent authority and the Central Bank of the R.O.C.
(Taiwan) for (Taiwan) must apply to the Executive Yuan for approval.
accommodation 2. Amendments adopted in January 2007:
Through a joint request by the competent authority with
the MOF and the Central Bank of the R.O.C. (Taiwan) and
approval by the Executive Yuan, the part for which
collateral cannot be provided may be guaranteed by the
National Treasury.

Penalty for None 1. Amendments adopted in January 1999:
refusal to apply A fine of double the amount of the deposit insurance
to participate premium for penalty is to be imposed.
in deposit 2. Amendments adopted in January 2007:
insurance Depending on whether the institution is a general fi-
nancial institution or agricultural financial institution, the
CDIC shall report to the competent authority to order the
financial institution to replace its persons in charge or to
revoke its business license.

Method of As stipulated in the Company Act 1. Amendments adopted in July 2001:
allocation of The entire amount of the surplus remaining after the
the CDIC's accounts are closed is placed into the Deposit Insurance
surplus Payout Special Reserves.
2. Amendments adopted in January 2007:
The entire amount of the surplus remaining from annual
income after deducting costs, expenses and losses shall
be deposited into the Deposit Insurance Payout Special
Reserves.

26 <<<< Central Deposit Insurance Corporation