1981 BANKING LAW. COPYRIGHT RODERICK H. SEEMAN

Article 16-3. Transactions, etc. with Subsidiaries.

Banks must not make any of the transactions or actions listed in any of the Items listed hereunder, with a subsidiary, etc. (meaning as the securities companies or banks engaged in the trust business, provided for in Paragraph 1 of the previous Article, for which the said bank acquired or holds the shares thereof, with the approval of the Minister of Finance of Paragraph 1 of the previous Article, or such other parties in a special relationship as provided by Cabinet Order, with the said bank)or client. However, these restrictions shall not apply where the authorization of the Minister of Finance has been received, in those situations where the said transaction or action is necessary for the public interest.

(1) Transactions with subsidiaries, etc. where the conditions thereto, in view of the conditions of ordinary transactions with bank, are deemed not to be beneficial to the bank;

(2) From among the transactions or actions with subsidiaries, etc. or with customers related to the subsidiaries, etc. those transactions or actions which correspond with those of the previous item and which are transactions or actions determined by Ministry of Finance Ordinance to be cause concern that they will obstruct the healthy and suitable performance of the business of the said bank