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General Provisions 741. Purpose 742. Scope of Equity Capital 743. [Deleted] II. Guidance For Sound Management 744. Management Guidance Ratios 745. Asset Soundness Classification 745-2. Assets Subject To Classification 745-3. Loan Loss Provisioning Standards 746. Risk Management 747. Accounting Principles 748. Monthly and Annual Reports 749. Management Improvement Measures 7410. Public Disclosure of Management Performance III. Protection of the Rights and Interests of Investors 7411. [Deleted] 7412. Disclosing the Terms and Conditions of MBS Transactions 7413. [Deleted] 7414. Prohibition against Unsound Business Practices IV. Supplementary Provisions 7415. Approval of Holding Position or Occupation Concurrently by Directors and Employees 7416. [Deleted] Addenda Enacted on August 6, 1999 Amended on January 29, 2001 FSC 2001-4 Amended on July 19, 2001 FSC 2001-47 CHAPTER I. GENERAL PROVISIONS 741. Purpose The purpose of this Regulation is to prescribe details necessary for the enforcement of matters pertinent to the supervision of mortgage-backed securitization companies (hereinafter, "MBS companies") by the Financial Supervisory Commission (hereinafter, "the FSC"), stipulated under the Mortgage-backed Securitization Company Act (hereinafter, "the Act") and its enforcement decree (hereinafter, "the Decree"), the Act concerning the Establishment of the Financial Supervisory Organizations and its enforcement decree, and any other relevant statutes thereof. 742. Scope of Equity Capital (1) Equity capital pursuant to provisions under Article 2 paragraph (2) of the Act and Article 2 of the Decree is produced by subtracting the items of deduction from core capital and supplementary capital, on the basis of an individual financial statement of an MBS company. (2) The scopes of core capital, supplementary capital and deductions under paragraph (1) are set forth in Appendix Table 1, and the limit of supplementary capital being recognized as equity capital follows the calculation method of equity capital as stipulated in Article 4 paragraph (2). €4O