An institution which complies with the following conditions can apply to the governing body to be recognized as an impartial third party:
1.A limited liability company with a paid-in capital exceeding NT$1 billion;
2.Legal persons as shareholders own more than 50% of the issued capital;
3.More than one-fifth of the employees should have the following qualifications:
(1)More than ten real estate appraisers or those who have actually engaged in appraisal work for more than five years;
(2)More than one lawyer;
(3)More than one accountant;
(4)More than one architect;
(5)More than two land registration agents;
(6)More than five real estate brokers.

An institution which complies with the conditions mentioned in the above Article should fill in an application form, and submit it, together with the following documents, to the governing body for recognition:
1.Documents concerning the registration of the company or the minutes of initiators meeting;
2.The articles of incorporation should indicate, among others, that the company should have more than nine Board members and three supervisors, that more than one third of them should be experts with legal, accounting, and architectural knowledge and experience, and that the names of the Board members and supervisors should be submitted to the governing body for approval;
3.A list of shareholders or initiators;
4.A list of Board members and supervisors or their designators;
5.The identification documents of the responsible person;
6.Paid-in capital, after deducting cumulative losses, if any, still exceeds NT$1 billion as certified by a CPA, or the name and address of the bank which has been entrusted to receive the payment of shares and a document certifying that initiators have fully paid the shares in accordance with the relevant regulations;
7.Business regulations;
8.Other documents that may be required by the governing body.
An institution which has been reviewed and recognized as an impartial third party shall be issued a recognition certificate by the governing body.

The business regulations mentioned in Paragraph 1, Subparagraph 7 of the above Article should at least cover the following aspects:
1.Organizational structure and departmental responsibilities;
2.Regulations governing the appraisal of floor prices for the auction of real estates, and the processes of various auction activities;
3.The establishment of a Real Estate Auction Floor Price Appraisal Committee and its members;
4.The establishment of a real estate data bank;
5.Internal management and accounting control system;
6.Personnel allotment, management and training;
7.Business principles and directions;
8.The criteria of service charges.

A recognized impartial third party should only conduct those businesses listed below:
1.Pursuant to Article 11, Paragraph2 of the Act, it will be entrusted by financial institutions or transferees of financial institution's non-performing loan to handle the public auction of real estate which serve as collateral to financial institutions;
2.Pursuant to Article 11, Paragraph 4 of the Act, it will be entrusted and supervised by the court to handle compulsory execution cases as applied by financial institutions or transferees of financial institution's non-performing loan;
3.The appraisal of monetary assets of financial institutions;
4.Other businesses as may be approved by the governing body.

A Board member and supervisor of an impartial third party should not have any one of the following matters:
1.Any one of the matters as specified in Article 30 of the Company Act;
2.Having been a Board member, supervisor, manager, or the equivalent of a legal entity when it pronounced bankruptcy, the termination of bankruptcy has not reached three years or any compromise reached has not been carried out;
3.A record of having written false or bad checks within the last 3 years (resulting in a bad credit report);
4.Having violated the provisions in the Securities Transaction Act, Company Act, Banking Act, Insurance Act, Credit Cooperative Act, Farmers' Association Act, Fishermen's Association Act, or Foreign Exchange Management Act, and having been convicted by the court of a punishment more serious than a fine, whose execution has completed, a deferment has expired, or five years have not passed after being pardoned;
5.Having committed such a crime as internal rebellion or external interference of the state after the termination of Mobilization and Rebellion Suppression Period and having been convicted by the court as such;
6.Having been convicted of a compulsory work under security preservation punishments or a hoodlum reformatory punishment, whose execution has not been made or has not completed or five years have not passed after the completion of execution; or having been convicted of other security preservation punishments whose execution has not been made or has not completed;
7.Having committed the crime of corruption under the Criminal Code or its special Acts or any crimes under the Organized Crime Prevention Act;
8.Having committed such crimes as vote buying, accepting bribery, affecting voting or campaign, manipulating elections through bribery under the Criminal Code or its special acts, or having committed the crime of embezzlement, fraud, dishonesty, or forging documents by using opportunities or means in the positions occupied, and having been convicted by the court of a fixed-term imprisonment or above; however, those cases where a deferment has been pronounced or the imprisonment has been converted to a fine and the execution has completed are excluded.
9.Having committed crimes other than those indicated in the five Subparagraphs mentioned above, and having been convicted by the court of a fixed-term imprisonment or above and whose execution has not been done or has not yet completed; however, those cases where a deferment has been pronounced or the imprisonment is below six months and can be converted to a fine are excluded;
10.Having had facts which suggested that the person has engaged in or has been connected with other dishonest or improper activities, and these facts are sufficient enough to demonstrate that he (or she) would not be suitable to handle those businesses to be conducted by an impartial third party.
Should a Board member or supervisor be a legal entity, the above requirements are applicable to the representative of the legal entity or a person designated to perform the relevant functions.

Aside from not having those matters indicated in Article 7, Paragraph 1 above, the manager of an impartial third party should have the following qualifications:
1.Having had one of the qualifications indicated in Article 3, Subparagraph 3 above, and having engaged in related professional businesses for more than two years;
2.Having had a master's degree or above, having worked as a supervisor in finance, appraisal, construction management, brokerage or related institutions or in public or private enterprises for more than two years, or having been a lecturer in finance, appraisal, construction management, brokerage or related courses in domestic or foreign colleges or above for more than three years, and having performed outstandingly in above positions;
3.Having graduated from a college or above, having worked as a supervisor in finance, appraisal, construction management, brokerage or related institutions or in public or private enterprises for more than three years, and having performed outstandingly in above positions;
4.Having worked as a supervisor in finance, appraisal, construction management, brokerage or related institutions or in public or private enterprises for more than five years;
5.having had other facts that are sufficient to demonstrate that the person has professional knowledge or experience in auctioning and can handle public auction businesses in a sound and effective manner, and having obtained prior approval from the governing body;
The manager mentioned above includes president, executive vice president, senior vice president, manager and deputy manager.

In case any application items or documents attached thereto submitted by an institution already recognized as an impartial third party are found to be forged or untrue, the governing body can withdraw the recognition.

Should a recognized impartial third party have the following matters, the governing body could terminate the recognition:
1.Not having conducted its businesses in accordance with the provisions set out in Article 2 of the Regulations;
2.Having conducted those businesses that are recognized but not having followed the relevant regulations and the matter is considered serious, or having been indicted by a prosecutor because of the violation of Acts;
3.Not having complied with the conditions or requirements set out in Acticle 3 or Article 4, Paragraph 1, Subparagraph 2, and having made no improvement before the deadline;
4.Having conducted businesses other than those listed in Article 6 without prior approval, and having made no improvement before the deadline;
5.Having violated the provisions set out in Articles 7 and 8, and having made no improvement before the deadline.