A stamp bearing the characters of "Redeemed by ○○Bank on Month/Date/Year" shall be affixed to and a hole shall be punched on the bonds or interest coupons. In addition, the certificates shall be classified subject to its name, type, series, face value and bundled into a wrapper (a small wrapper shall consists of 100 certificates and a large wrapper shall consists of 10 small wrappers, the odd certificates shall be bundled in another wrapper) by the end of each month, and the serial numbers of certificates shall be kept intact. The wrappers and the "Cancellation Report for Redeemed Bonds or Interest Coupons for ○○ Bonds" shall be submitted to the bank's head office for Cancellation.

The bonds or interest coupons redeemed by a bank's head office shall be processed in accordance with the provision of the preceding article. A bank's head office shall affix its seal to the receipt slip after it receives redeemed bonds or interest certificates and the cancellation report forwarded by its branches and verifies their quantity. The bank's head office shall collect and arrange the redeemed coupons in the end of each month, collect and arrange the coupons to be cancelled at the end of every six months, affix its seal to each packet of coupons (with the name, series, face value, quantity, and amount of the coupons on the cover), prepare the "List of Redeemed Bonds or Interest Coupons for Cancellation (List of Cancellation)", and send to the Central Bank of China after they are verified by the auditors, with a copy to the Ministry of Finance.

Upon receipt of the List of Cancellation from the head office of each bank, the Central Bank of China shall verify with the monthly statement for payment of principal and interest forwarded by the head office of each bank. After the verification is made, the Central Bank of China shall prepare the List for Consolidated Cancellation of Redeemed Bonds or Interest Coupons and forward the same to the Ministry of Finance for auditing and settlement. In addition, a random inspection shall be performed by the personnel assigned by the Ministry of Finance at the head office of each bank on a routine or non-routine basis.

After the verification and cancellation is performed by the Ministry of Finance, the head office of each bank shall seal up and keep the redeemed bonds or interest coupons; in addition, specify the reference number for the cancellation and destroy such coupons upon expiration of custody period.
The procedure for canceling the bonds or interest coupons redeemed by the Central Bank of China shall be the same as those redeemed by the head office of each bank.

The cancellation for the redeemed bonds or interest coupons shall be classified into registered certificate and bear-form certificate. The list of serial number for registered certificates shall be made and kept by the Ministry of Finance.

Upon expiration date for redemption and after the auditing and settlement is concluded, the bonds or interest coupons, kept by the head office of each bank, shall be destroyed by the Ministry of Finance and the Ministry of Audit on a routine basis. The original certificate of destruction shall keep recorded by the Ministry of Finance and the Ministry of Audit.