| Article 105 |
（Audit report by appointed professional and technical personnel）
The competent authority may at any time assign its personnel or appoint an appropriate institution, with regard to the execution of the asset trust securitization plan or the asset securitization plan and other relevant items, to inspect the business, finance or other relevant matters of the Trustee, the SPC, the Originator, the Servicer, or other related parties, or may order the aforementioned inspected parties to submit financial statements, list of property, or other relevant information and reports within a prescribed period.
If necessary, the competent authority may appoint a professional or a technician to examine the inspected matters, statements, or information prescribed in the preceding paragraph and issue a report to the competent authority. The expenses shall be borne by the inspected party.
The guidelines for appointing the professional or technician to conduct the examination set forth in the preceding paragraph shall be further prescribed by the competent authority. |
| Article 106 |
（Penalties for violations of plans by special purpose companies）
Where the Trustee violates this Act or the asset trust securitization plan, the competent authority may order the Trustee to transfer the business and the trust property to another Trustee, or apply mutatis mutandis Article 44 of the Trust Enterprise Act.
If the SPC violates this Act, its Articles of Incorporation or the asset securitization plan, or its financial condition or business has evidently deteriorated making it unable to pay its debts or damaging the interest of the holders, the competent authority may order immediate corrections or order corrections to be made within a prescribed time. In addition, the following dispositions may be imposed depending on the situation:
1. withdrawing or revoking the approval of the competent authority;
2. suspending all or partial business within a prescribed time;
3. dismissing the duties of the directors and/or supervisors;
4. transferring its business and transferred Assets to other appointed people;
5. suspending the issue of Asset-Backed Securities; or 6. other necessary dispositions.
When dismissing the directors/supervisors from their duties in accordance with subparagraph 3 in the preceding paragraph, the competent authority shall notify the competent corporate registration authority to revoke the registration of the directors/supervisors. |
| Article 107 |
（Regulations that apply mutatis mutandis to the businesses of special purpose trusts）
Article 41 of the Trust Enterprise Act shall apply mutatis mutandis under any of the following circumstances, when the Trustee engages in the SPT business:
1. the Trustee convenes a beneficiaries' meeting in accordance with this Act;
2. the Trustee fails to distribute profits timely in accordance with the asset trust securitization plan; or
3. other material events sufficient to affect the rights and interests of the beneficiaries occur.
If any of the events set forth in t Article 41 of the Trust Enterprise Act or the preceding paragraph occurs when the Trustee engages in the SPT business, the Trust Supervisor shall be notified of such event if the SPT has a Trust Supervisor.
Under any of the following circumstances, the SPC shall report to the competent authority, notify the Supervisory Institution, and make an announcement in the daily local newspapers where the principal office of the company is located or through other methods as prescribed by the competent authority within two (2) business days after the occurrence of such event:
1. bouncing of checks due to insufficient deposit, rejected account, or other situations losing creditability;
2. litigious or non-litigious matters, administrative penalty, or administrative proceedings that have a material impact on the financial condition, or business operation of the company;
3. under the circumstance of convening the meeting of the Asset-Backed Security holders in accordance with this Act;
4. where the change of the directors/supervisors happens;
5. failure to distribute or pay the profits, principal, interest and other proceeds timely in accordance with the asset securitization plan;
6. where having the events for dissolution as prescribed in this Act; or 7. under other circumstances sufficient to affect the operation of the SPC or the rights and interests of the Asset-Backed Security holders. |