(Causes for Termination of the Securities Investment Trust Contract After Approval by the Competent Authority)
In any of the following events, a securities investment trust contract shall be terminated after approval has been given by the Competent Authority:
1. The securities investment trust enterprise or fund custodian institution is dissolved, bankrupted, or its approval is voided or revoked, or its management or custodianship of the securities investment trust fund is obviously unsound, and the Competent Authority has ordered that it be replaced, such that it is unable to continue executing its duties, and there is no other suitable securities investment trust enterprise or fund custodian institution to assume the rights and obligations of the original enterprise or institution.
2. A beneficiaries meeting resolves to replace the securities investment trust enterprise or fund custodian institution, and there is no other suitable securities investment trust enterprise or fund custodian institution to assume the rights and obligations of the original enterprise or institution.
3. The net asset value of the fund is lower than the standard set by the Competent Authority.
4. The securities investment trust fund is unable to continue operating because of market conditions, the characteristics or scale of the fund, or other legal or factual reasons.
5. A beneficiaries meeting resolves to terminate the contract.
6. The securities investment trust enterprise or fund custodian institution is unable to accept a resolution of a beneficiaries meeting, and there is no other suitable securities investment trust enterprise or fund custodian institution to assume the rights and obligations of the original enterprise or institution.
7. Another other reason for termination as set forth in the securities investment trust contract.
Where it is desirable to terminate the securities investment trust contract to protect the public interest or the rights and interests of beneficiaries, the Competent Authority may order its termination.
Where a securities investment trust contract is terminated because of expiration of the duration thereof, a report shall be filed with the Competent Authority for recordation within two days from expiration.
A securities investment trust enterprise shall publicly announce the termination of a securities investment trust contract within two days from the date of filing for recordation or of approval.

(Merger of Funds)
Securities investment trust enterprises may conduct mergers of securities investment trust funds; regulations governing the conditions, procedures, or other applicable matters for mergers thereof shall be prescribed by the Competent Authority.

(Fund Liquidation Procedures and Period)
When a securities investment trust contract is terminated, the liquidator shall complete the liquidation of the securities investment trust fund within three months from the date the Competent Authority approves liquidation, and shall distribute the balance after liquidation to the beneficiaries pro rata to the number of beneficiary units. Provided that where for some legitimate reason the liquidation cannot be completed within three months, the liquidator may apply to the Competent Authority before expiration of the time limit for one extension, which shall be limited to three months.
The liquidator shall report to the Competent Authority and publicly announce, and notify the beneficiaries of, the methods for liquidation and distribution under the preceding paragraph. Within two months from conclusion of the liquidation procedures, he shall report the results thereof to the Competent Authority for recordation and notify the beneficiaries of the same.

(Order of Priority for Appointment of Liquidator and Rights and Obligations of Liquidator)
The securities investment trust enterprise shall serve as the liquidator of the fund. Where an event specified in subparagraphs 1 or 2 of paragraph 1 of Article 45 exists with respect to the securities investment trust enterprise, the fund custodian institution shall serve as the liquidator. Where an event specified in subparagraphs 1 or 2 of paragraph 1 of Article 45 also exists with respect to the fund custodian institution, a beneficiaries meeting shall select by a resolution a securities investment trust enterprise or fund custodian institution that complies with the provisions of the Competent Authority to be the liquidator.
When the fund contract is terminated because an event specified in subparagraphs 1 or 2 of paragraph 1 of Article 45 exists with respect to the fund custodian institution, the liquidator may select a suitable fund custodian institution to assume, after approval is obtained from the Competent Authority, the fund custody duties during the liquidation period.
Unless otherwise provided by law or contract, the rights and obligations of the liquidator and the fund custodian institution during the duration of the fund shall be the same as those of the original securities investment trust enterprise and fund custodian institution.

(Period for Retention of Liquidation Account Books and Statements)
From the date the conclusion of the liquidation is reported to the Competent Authority, the liquidator shall keep all account books and statements for not less than 10 years.