Article 41
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If trading on the exchange market or the GTSM is suspended across the board, or any subject securities are the subject of an announcement of suspension of trading, and the time for resumption of trading is not specified, of if any subject securities are delisted, thereby rendering it impossible for a borrower to return securities in satisfaction of a securities loan, the TWSE will, if the loan arises from a fixed-price or competitive bid transaction, have a securities firm to submit an application on its behalf to buy in subject securities through a reverse auction to return the loan, in which case Article 39, paragraph 1 shall apply mutatis mutandis with respect to the disposal of collateral for the full satisfaction of the price and fees and expenses required for the buy-in of securities. However, if the loan arises from an outstanding negotiated transaction, then the lender and the borrower may agree between themselves that the loan be repaid by cash, or either of them may submit an application through its authorized securities firm to the TWSE for purchase of subject securities through reverse auction.
Any fees and expenses arising from a reverse auction under the preceding paragraph shall be borne, on a pro rata basis, by all borrowers who have any outstanding positions of fixed-price or competitive bid transactions on that security, and all borrowers in negotiated transactions on that security who are involved in the application to purchase through reverse auction.
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