Chapter V Termination and Liquidation

● Article 58 Where an operational foreign-funded bank decides to terminate its business activities, it shall apply in writing to the banking regulatory agency of the State Council 30 days prior to the date of termination and, upon examination and approval, effect its dissolution or closure and proceed to liquidation.

● Article 59 Where an operational foreign-funded bank falls into insolvency, the banking regulatory agency of the State Council shall have the power to issue an order to suspend its business and clear its liability within a specified period of time. Where, within the specified period of time, such a bank recovers its solvency and intends to resume its business, it shall apply in writing to the banking regulatory agency of the State Council for the resumption of its business; where it fails to recover its solvency when the specified time limit is due, it shall effect its liquidation.

● Article 60 Where an operational foreign-funded bank is terminated because of dissolution, closure, abolished according to law or declaration of bankruptcy, the liquidation shall be proceeded in accordance with the relevant laws and regulations of the People's Republic of China.

● Article 61 Upon completion of its liquidation, an operational foreign-funded bank shall go through procedures for cancellation of registration with the original registration organ within the statutory time limit.

● Article 68 Where an operational foreign-funded bank violates these regulations, the banking regulatory agency of the State Council shall, in addition to the penalties provided for in articles 63 to 67 of these regulations, take the following actionsby taking into account the specific circumstances:

(1) ordering the replacement of the director, senior executive or any other person directly responsible for the violation;

(2) giving a warning, where the violation does not constitute acrime, to the director, senior executive or any other person directly responsible for the violation, and imposing a fine of notless than 50,000 yuan and not more than 500,000 yuan; or

(3) disqualifying the director or senior executive directly responsible for the violation from holding any management positionwithin the territory of the People's Republic of China for a specified time limit or for life; or prohibiting the director, senior executive or any other person directly responsible for the violation from engaging in banking business within the territory of the People's Republic of China for a specified time limit or for life.

● Article 69 Where a representative office of a foreign bank, in violation of these regulations, engages in operational business activities, the banking regulatory agency of the State Council shall order it to make corrections, give a warning, confiscate itsillegal income, and impose a fine of one to five times the amount of its illegal income where the illegal income is more than 500,000 yuan; or impose a fine of not less than 500,000 yuan and not more than 2 million yuan where there is no illegal income or the illegal income is less than 500,000 yuan; where the circumstances are extremely serious, such representative office shall be closed by the banking regulatory agency of the State Council; where a crime is constituted, criminal liability shall beinvestigated for in accordance with law.

● Article 70 Where a representative office of a foreign bank commits any of the following acts, the banking regulatory agency of the State Council shall order it to make corrections and give awarning, and impose a fine of not less than 100,000 yuan and not more than 300,000 yuan; where the circumstances are serious, its chief representative shall be disqualified from holding the position within the territory of the People's Republic of China for a prescribed time limit, or the bank the office represents shall be required to replace the chief representative; where the circumstances are extremely serious, such representative office shall be closed by the banking regulatory agency of the State Council:

(1) changing the office premises without approval;

(2) failing to submit the required documents to the banking regulatory agency of the State Council; or

(3) violating these Regulations or other requirements prescribed by the banking regulatory agency of the State Council.

● Article 71 Where a foreign-funded bank violates other laws and regulations of the People's Republic of China, the case shall be dealt with by the relevant competent organs according to law.

Chapter VII Supplementary Provisions

● Article 72 These regulations apply mutatis mutandis to the banking institutions established in the Chinese mainland by financial institutions from the Hong Kong Special Administrative Region, the Macao Special Administrative Region, or Taiwan region.However, if otherwise specially provided by the State Council, those provisions shall prevail.

● Article 73 These regulations shall be effective as of December 11, 2006. The Regulations of the People's Republic of China on Administration of Foreign-funded Financial Institutions promulgated by the State Council on December 12, 2001 shall be repealed simultaneously.