This regulation and National Defense Industrial Development Fund (NDIDF) is enacted and established for promoting the national defense relevant industry to accelerate the whole development.

The revenues of EDIDF includes:
Subparagraph 1 Self-struggle and patriotic donation and the donation of domestic, foreign, public or private organization.
Subparagraph 2 Government funding.
Subparagraph 3 Other revenues.

The Expenditures of EDIDF includes:
Subparagraph 1
Expenditure concerning the expenditure of national defense scientific and technical research and development.
Subparagraph 2
Expenditure concerning know-how of innovating national defense and heavy and precision-made industry.
Subparagraph 3
Expenditure concerning the equipment investment, loan or subsidy that match with the national defense demand is to establish or extend the production of national defense weapon ability.
Subparagraph 4
Expenditure Concerning the high-grade technology expenditure of education and recruitment of manpower that national defense needs.
Subparagraph 5
Bounty expenditure concerning design or invention of individual and organization.

EDIDF, a financial group juridical person, appoints the board of directors, be responsible for the preservation, review and usages of the fund. The organization is based on the provision of this regulation, or authorized by relevant laws.

Premier of Executive Yuan employs the board of directors of EDIDF composed of 9 to 15 directors and one the directors is designated to chairman.
Board director's candidate, in addition to the minister of Ministry of National Defense and Ministry of Economic Affairs are destined for board director, should include Cabinet minister, domestic and international expert, scholar and social personage of good reputation in science technique research field.
The tenure of directors is three years and the same directors can be reemployed if tenure expired.

Premier of Executive Yuan employs the committee of supervisors composed of 3 supervisors, one of which is designated to chairman, with the same tenure of board directors. Secretary of Comptroller Bureau is a destined supervisor, and the chairman of the committee of supervisors should attend board director's meeting.

This fund is supervised and controlled by Executive Yuan.

The board of directors of EDIDF can hire several staffs if business need. The employment and arrangement of organization should be passed through by the board of directors and ratified by Executive Yuan.

The contribution memorandum, based on this regulation and related law, is prescribed by the board of directors and ratified by Executive Yuan.

The fiscal year of NDIDF is consistent with government fiscal year. The procedure of formation and review of budgeting and closing account is regulated below:
Subparagraph 1
The operation policy and the receipt and expenditure budget should be proposed previous to the beginning of fiscal year, passed through the board of directors, and then submitted to Executive Yuan.
Subparagraph2
The operation accomplishment and closing account should be ratified by board of directors at the end of fiscal year and then reported to Executive Yuan.
Executive Yuan should transfer the operation policy, receipt and expenditure budget, closing account, and reports to Legislative Yuan.
In order to execute the secrets of national defense industry, the financial and auditing process rule of this fund should be submitted to Executive Yuan by board of directors.

When the circumstance has changed or the purpose of this regulation is achieved, EDIDF can be dismissed by board of directors and committee of supervisors. After liquidated lawfully, the property, rights, and interests of EDIDF belong to central government.

This regulation is enforced when declared.