In order to energetically develop new towns to promote the balance between regions and the healthy development of cities, induce the reasonable distribution of population and industrial activities, and improve the citizens inhabitance and living environment, the New town Development Foundation (hereinafter referred to as “the Foundation”) is established pursuant to Paragraph 2, Article 26 of the New Town Development Act, and this Regulation is enacted to Paragraph3 of the same article.

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As a special foundation defined in Subparagraph 2, Paragraph 1, Article 4 of the Budget Act, the foundation is affiliated to the item of construction and planning foundations, and takes the responsibility to work out the sub-budgets of the affiliated units. The Ministry of the Interior (hereinafter referred to as “the Ministry”) is the authority of the Foundation, and the Construction and Planning Agency Ministry of the Interior is the administrative department.

The sources of the Foundation are as follows:
Funds allocated by the government following the budget procedure.
Incomes of developing new towns.
Rent incomes of lands, dwelling houses, and industrial, commercial and other urban service facilities.
Interest incomes of collected funds.
Interest incomes of the Foundation.
Other related incomes.

The purposes of the Foundation are as follows:
Payment of compensation for purchase of lands and land ameliorants in new towns.
Expenditure on construction of dwelling houses, commercial, industrial, and other urban service facilities.
Allocation or loan for entrusted development institutions or companies to offer compensation for requisition of lands and removal of facilities on the lands within the new towns.
Allocation or loan for entrusted development institutions or companies to handle engineering plan & design, development, and construction of new towns.
Expenditure on management and general affairs.
Other related expenditures.

During storage and utilization of the Foundation, attention shall be paid to the profitability and safety, and the storage shall be handled in accordance with the Government Treasury Act and other related laws and regulations.

The Foundation may purchase government bonds, treasury bills, or other short-term finance bills to meet the requirements for operation.

Preparation and implementation of budgets as well as compiling of final settlement of the Foundation shall be handled in accordance with the Budget Act, Accounting Act, Final Settlement Act, Auditing Act and other related laws.

Accounting system shall be worked out according to relevant provisions to dispose the accounting affairs of the Foundation.

Should there be surplus resulting from the execution of the yearly budget of the Fund after the final accounting, the surplus shall be distributed in accordance with the related regulations.

Upon termination of this Foundation, settlement shall be made, and the residual rights and benefits shall be handed in to the public treasury.

This Regulation will take effect since it is promulgated.