Page 67 - E-BOOK

Furthermore, the asset management companies can raise funds by (A) loan from domestic and foreign sources,
(2) issuing shares and debentures according to the securities and exchange laws or other bonds as permitted by BOT.

Business of the asset management Company
The businesses of the asset management companies are as follows.
(A) Purchasing or accepting transfer of NPLs of the financial institutions or assets of the
financial institutions, that are suspended for operation, canceled, or withdrawn a license for operation of
a commercial bank, capital business, credit foncier business, as well as collaterals of such assets for
management and distribution.
(B) Providing NPLs management services to financial institutions or assets of the financial institutions
that are suspended for operation, canceled or withdrawn a license for operating the business
of a commercial bank, capital business or credit foncier business as well as collaterals of that asset.
(C) Purchasing or accepting transfer of NPLs of the financial business operators, as well as
collaterals of such asset for further management or distribution.
(D) Providing NPLs management services to financial business operators and collaterals of such assets.
(E) Giving advice to debtors, financial institutions or financial business operators in debt restructuring and
operations related to such counseling.
(F) Other businesses related to or involved with the similar businesses to (A), (B), (C), (D) or (E), in accordance
with the notification of the Minister of Finance approved by the cabinet. 65

According to the notice of BOT, the asset management companies may operate any necessary works for
managing NPLs to restore the debtors purchasing or accepting transfer from the financial institutions such as debt
restructuring, a compromise agreement or debt composition agreement making, or shareholding in a Company from
the debtors settling debts.

Limitation of charged interest rate
The asset management companies may charge interest from the debtors according to the existing agreement,
not exceeding the interest rate as of the date of transfer acceptance (under a condition that if the existing agreement
determines interest at floating rate, with no basis for calculation of the existing financial institution, such rate shall
not exceed the interest rate specified by BOT). However, in case the asset management Company allows the debtors
according to the existing agreement to borrow additional money for adding values to the transferred property, the
asset management Company can charge interest at rate agreed with the debtor, such rate is not subject to maximum
interest rate at 15.0% per annum, and it shall not exceed the rate specified by BOT.

Tax effect
Exemption of fee and tax from NPLs transfer acceptance from the financial institution
The emergency decree on asset management Company defines the asset management companies to be
exempted for fees and taxes arising from asset transfer acceptance from the financial institutions as announced by
the cabinet in the government gazette, and it may be general or specific.