CHAPTER Ⅴ SUPERVISION AND MANAGEMENT OF A BILLS HOUSE |
| Article 43 |
（Establishment of internal control and audit system）A Bills House shall establish an internal control and audit system. Applicable regulations with respect to such systems shall be as prescribed by the Competent Authority. |
| Article 44 |
（Obligation for providing information）A Bills House shall submit statements, reports and other documents related to its business to the Competent Authority within the period(s) of time prescribed by the Competent Authority or the CBC.
When necessary, the Competent Authority may order related parties of a Bills House to submit financial statements, property inventories and other relevant documents within a prescribed period of time. |
| Article 45 |
（Implementation of inspections）The Competent Authority may, at any time, appoint a designee or entrust an appropriate institution to examine the business, financial affairs and other activities of a Bills House or its related parties.
When necessary, the Competent Authority may appoint a specialist or technical person to verify, and report to the Competent Authority on the matters set out in the preceding paragraph. Any fees arising there from shall be borne by the relevant Bills House. |
| Article 46 |
（Reporting and follow up for deficiencies or improvement status）A Bill House shall immediately evaluate and implement reform measures when so ordered by the Competent Authority. Measures which have been or are about to be implemented shall be reported to a directors meeting.
At the meeting referred to in the preceding paragraph the supervisors should be informed of the measures so ordered to be implemented.
The preceding two articles and the preceding two paragraphs [of this article] shall apply to the institutions referred to in Article 7, Paragraph 1, of this Act. |
| Article 47 |
（Financial statements and reporting of losses）If the accumulated losses of a Bills Finance Company exceed one-fifth (1/5) of its paid-in capital, it shall immediately report its financial situation and the causes of its losses to the Competent Authority and the CBC.
In the above-described circumstances, the Competent Authority may require the Bills Company to correct such capital deficit within a prescribed period of time or restrict its business. If the Bills Finance Company fails to correct such capital deficit within such prescribed period of time, it shall be ordered to suspend its business. |
| Article 48 |
（Capital reduction and restricted subscription）With the approval of the Competent Authority, a Bills Finance Company may, during a fiscal year, reduce its capital and outstanding shares to the extent of its losses including losses during such by current fiscal year.
If a Bills Finance Company will issue new shares during a period when it is under supervision, taken over by officials appointed by the Competent Authority or had its business suspended by the Competent Authority, the Competent Authority may restrict the percentage of the new shares which may be subscribed to by current shareholders. |
| Article 49 |
（Regulations that apply mutatis mutandis to credit extensions）Articles 32 through 33-2, and Articles 33-4 through 33-5 of the Banking Act shall apply to a Bills Finance Company which conducts a credit extension business by guaranteeing and endorsing Short-Term Bills. |
| Article 50 |
（Regulations that apply mutatis mutandis to the disposal deadline）Unless the conditions of Article 40 [of this Act] applies, Article 76 of the Banking Act shall apply to the period of time within which a Bills Finance Company must dispose of shares or real estate acquired by foreclosure on a pledge or mortgage. |
| Article 51 |
（Regulations that apply mutatis mutandis to violations of laws and the Articles of Incorporation）Article 61-1 of the Banking Act shall apply to where there is a suspicion that a Bills Finance Company has violated laws and regulations or its Articles of Incorporation or has hindered its sound operation. |
| Article 52 |
（Regulations that apply mutatis mutandis to inability to repay debts or damage to customer interests）Articles 62 through 62-9 of the Banking Act shall apply to a Bills Finance Company which due to obvious adverse changes in its business or financial status, fails to pay its debts when due or risks damage to its customers' interests. |
| Article 53 |
（Regulations that apply mutatis mutandis to closure and dissolution）Article 61 and Articles 65 through 69 of the Banking Act shall apply to a Bills Finance Company which is suspended or to be dissolved. |