Institutions that engage in the business of negotiable instruments exchange and clearance of accounts among banks shall be called clearinghouses. A clearing house shall be a foundation and established with the approval of the Central Bank of the Republic of China (Taiwan)(hereafter referred to as “the Bank”).

The establishment, supervision and administration of foundations establishedin accordance with the preceding article shall be governed by the Foundations Act, the Regulations Regarding Authorization Provisions of the Foundations Act by the Central Bank of the Republic of China (Taiwan), and the Regulations Governing the Accounting Treatment and Preparation of Financial Reports for Foundations Overseen by the Central Bank of the Republic of China (Taiwan).

The board of directors of a clearinghouse shall meet at least once every three months, and minutes of each meeting shall be reported to the Bank for recordwithin one month after the conclusion of the meeting.

The chairman of the board, president, vice president or persons holding comparable positions of a clearinghouse shall in principle be fulltime positions. Notwithstanding the foregoing, such principle may be waived under special circumstances subject to the approval of the Bank.

A clearinghouse may establish an advisory committee. The committee shall be composed of representatives appointed or recommended by the financial institutions participating in the clearing operations, and shall be responsible for studying and giving advice on matters related to clearing operations, business development, regulatory affairs or other important matters.