Mega Bank Annual Report 2017

108 Mega Bank 219! 13. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS (1)Information about the Mega New York Branch’s contingent liabilities on OFAC’s regulation compliance is described in Note 6(31). (2)As of December 31, 2017 and 2016, the Bank and subsidiaries had the following commitments and contingent liabilities not reflected in the above mentioned financial statements: December 31, 2017 December 31, 2016 NT$ US$ NT$ Irrevocable loan commitments $ 107,752,677 $ 3,634,400 $ 115,408,871 Securities sold under repurchase agreement 848,352 28,614 444,888 Securities purchased under resale agreement 1,698,567 57,291 4,256,613 Credit card line commitments 61,044,582 2,058,978 56,378,442 Guarantees issued 182,968,272 6,171,353 195,512,459 Contra guarantees - - 60,644 Letters of credit 60,185,575 2,030,004 61,515,435 Customers’ securities under custody 221,738,214 7,479,028 193,861,943 Properties under custody 3,228,472 108,893 3,323,676 Guarantee effects 212,814,538 7,178,040 136,273,654 Collections for customers 91,916,408 3,100,257 102,094,722 Agency loans payable 763,880 25,765 977,405 Travelers’ checks consigned -in 1,288,056 43,445 1,525,830 Gold coins consigned-in 404 14 433 Payables on consignments-in 698 24 - Goods and tickets consignments-in 2,433 82 2,459 Agent for government bonds 156,997,800 5,295,393 144,109,400 Short-dated securities under custody 64,572,117 2,177,959 89,610,128 Trust liability 492,615,177 16,615,461 522,980,128 Certified notes paid 5,775,950 194,818 6,256,579 Risk tolerance amount 9,343 315 322,060 14. SIGNIFICANT DISASTER LOSS None. 15. SIGNIFICANT SUBSEQUENT EVENT Under the amendments to the Income Tax Act which was promulgated by the President of the Republic of China in February, 2018, the Company’s applicable income tax rate will be raised from 17% to 20% effective from January 1, 2018. This will increase the Company’s de ferred tax assets and deferred tax liabilities by $913,182 and $202,228, respectively, which will be adjusted in the first quarter of 2018. 16. OTHERS (1) Information for financial assets transfers and liabilities extinguishing None. (2) Significant adjustment in the organisation and significant changes in the management system The following reorganisation plans became effective on May 3, 2017 as resolved at the 22nd of the 15th Board of Directors meeting on March 24, 2017: A. Establish the “Credit Products & Marketing Department” supervised by Vice President under the General Administration Division. B. “Offshore Banking Department” is renamed “Offshore Banking Branch” and relocated at the same level with domestic branches. The following reorganisation plan became effective on June 2, 2017 as resolved at the 23rd of the 15th Board of Directors meeting on May 5, 2017: “The Anti - Money Laundering Center” is renamed “Anti - Money Laundering & Financial Crime Compliance Department” with the same role and function. To stay current with global trends in combating money laundering and financial crimes, its roles include anti-money laundry measures against, inter alia, bribery, corruption, tax evasion, cybercrime, fraud and misconduct. (3) Significant impact arising from changes in government laws and regulations None. (4) Information fo r Company’s share held by subsidiaries None. (5) Information for private placement securities None. (6) Information for discontinued operations None. (7) Major operating assets or liabilities transferred from (or to) other financial institutions None.