Chapter IV

Auction Procedures

Section 1

Authorization of Auction

Article 41 When a client authorizes auction of articles or goods or property rights, he shall provide his identity certificate and, as required by the auctioneer, the ownership certificate for the objects of auction , or certificates and any other materials testifying that he may dispose of the objects of auction according to law.

Article 42 The auctioneer shall verify the relevant certificates and materials provided by the client. When an auctioneer accepts authorization, he shall sign a contract for authorization of auction with the client.

Article 43 The auctioneer may have the objects of auction evaluated, if he deems it necessary.

Where the conclusion of the expert evaluation does not conform to the descriptions of the objects of auction as specified in the contract for authorization of auction, the auctioneer shall have the right to demand modification or cancellation of the contract.

Article 44 In a contract for authorization of auction, the following particulars shall be specified:

(1) name or title and address of the client and auctioneer;

(2) title, specifications, quantity and quality of the object of auction;

(3) reservation price offered by the client;

(4) time and place of the auction;

(5) time and manner of delivery or transference of the object of auction;

(6) commission, manner and time limit for its payment;

(7) manner and time limit for payment of the purchase;

(8) liabilities for default; and

(9) other matters as agreed upon between both parties.

Section 2

Announcement of Auction and Display of Objects of Auction

Article 45 The auctioneer shall announce the opening of an auction seven days prior to the date of auction.

Article 46 In the announcement of auction, the following particulars shall be specified:

(1) time and place of auction;

(2) objects of auction;

(3) time and place for display of the objects of auction;

(4) formalities to go through for participating in bidding; and

(5) other matters that need be announced.

Article 47 Announcement of an auction shall be released through newspapers or other media.

Article 48 The auctioneer shall display the objects of auction prior to the auction sale and provide relevant information and conditions for bidders to check the objects of auction.

The duration of display shall be not less than two days.