This Act was devised to provide sound management of agricultural finance institutes, ensure the rights of depositors, promote the economic development of agriculture and fishery villages.

The agricultural finance institutes mentioned in this Act refers to include credit departments of agriculture associations, credit departments of fishery associations (hereinafter referred to as the credit departments) and the Agricultural Bank of Taiwan. Credits departments refer to departments for handling credit services according to Agriculture Association Act, Fishery Association Act and this Act. The Agricultural Bank of Taiwan is the regulatory organization of the credit departments.

With a common goal to create an agricultural finance system, the Agricultural Bank of Taiwan and all levels of agriculture and fishery associations cooperated in establishing this Act.
The central authorities would decide the procedures, conditions, attachments for inspection, approval, void approvals and other rules to follow that the Agricultural Bank of Taiwan applied for its establishment.

Credit departments are responsible for providing financing and consumption loans for agriculture, forestry, fishery and livestock industries. The Agricultural Bank of Taiwan is responsible for guiding credit departments in developing services that provide financing in agriculture, forestry, fishery and livestock industries, and stabilizing agricultural finance.

The authorities in-charge of this regulation: COA of the Executive Yuan and the competent authority under the municipal or county (city) government.

The Central Authorities shall plan and promote Policy Oriented Special Agricultural Loans. The regulations governing the qualification, maturity, interest rate and the commission of the loans shall be as prescribed by the Central Authorities.
The Agricultural Bank of Taiwan and Credit Departments shall be progressive in promoting and processing the loans prescribed in the preceding paragraph.
The expenses incurred from the Policy Oriented Special Agricultural Loan prescribed in paragraph 1 shall be budgeted preferentially by the Central Authorities in the Agricultural Development Fund.
The Central Authorities may commission the Agricultural Bank of Taiwan with the Policy-Oriented Special Agricultural Loans, including the promotion, accomplishment, accounting treatment, revenue and expenditure, statistics, as well as coaching and audit towards management institutions.

The central authorities should empower financial regulatory institutions or financial inspection organizations for the supervision of agricultural finance institutions.
The central authorities would have to dispatch personnel to inspect the operations, finance and other related responsibilities of the Agricultural Bank of Taiwan, credit departments and other related personnel randomly. The central authorities can also order the bank, credit department, or other related personnel to provide accurate financial reports, balance sheets or other related reports in a period.
The central authorities would authorize specialist and technical personnel (if necessary) to inspect the required items, reports or information mentioned in the previous paragraph and then report them to the central authorities. The bank or credit department should be responsible for these costs.

In order to protect the rights of depositors, agricultural finance institutions should participate in the deposit insurance program held by Central Deposit Insurance Corporation in accordance with Article 3 of Deposit Insurance Act.

Agricultural finance institutions should give priority to loans that are used for agricultural purposes. Agricultural finance institutions should also assist farmers or agriculture enterprises that lack the ability to provide guarantees in applying guarantees from agricultural credit guarantee organizations.

If the management of agricultural finance institutions is not regulated in this Act, they would be regulated according to Agriculture Association Act, Fishery Association Act and other related laws.