• Font Size:
  • S
  • M
  • L
友善列印
WORD

Article NO. Content

Title:

Operating Rules for Securities Firms Handling Non-Restricted Purpose Loan  CH

Amended Date: 2017.11.27
Article 18     When a client repays the loan by cash or by selling the collateral, it shall fill out a Non-Restricted Purpose Loan Repayment Application Form.
    When repaying the loan by cash, the client shall deposit (transfer) the repayment amount into the designated financial institute account, or authorize the securities firm in the non-restricted purpose loan contract to deduct the financing amount from the financial institute account. A securities firm or custodian institute shall transfer the collateral and supplementary collateral to the client's designated account from the collateral account opened according to paragraph 1 Article 17 on the next business day. If the collateral and supplementary collateral is not owned by the client, the security firm shall transfer to the owner's depository account or central government securities account. For the collateral on which pledge is created under Article 6, paragraph 3, the securities firm may remove the pledge on the collateral before transferring it to the account designated by the client.
    When repaying the loan by selling the collateral, the client shall agree in writing that the securities firm sells the collateral in the designated account opened with the securities firm, and related handling fee and tax shall be born by the client. After the transaction is completed, the securities firm shall calculate the financing principal and interest amount payable by the client, if the selling price is higher than such amount, a security firm shall return the surplus to the client. If the selling price is not sufficient to repay the loan, a securities firm may deduct the shortfall from any returned amount from other financing transaction. If it is still not sufficient to repay the loan, within the scope of debt repayment, the securities firm may dispose the account balance in the client warranted finance account or other credit account, and any surplus shall be returned to the client. If it is still not sufficient to repay the loan, the securities firm may collect the debt according to the laws and regulations. The handling fee for transferring the surplus amount shall be born by the client. In case of creation of pledge under Article 6, paragraph 3, the securities firm shall proceed to exercise the pledge.
    A securities firm shall engage a securities firm to place a sell order on the TWSE or the TPEx for the sale prescribed in the preceding paragraph in accordance with the amount and price prescribed by the client. Nevertheless, the sale of central book-entry bonds, municipal bonds, common corporate bonds or financial bonds may be handled through price negotiation at the business place of the securities firm.
    When repaying the financing amount by selling the collateral under Paragraph 3, both parties may agree in the non-restricted purpose loan contract that the client may repay the financing amount with the proceeds from placing an order to sell the securities in the securities trading account opened with the securities firm in writing, correspondence, or electronic methods. In case of creation of pledge under Article 6, paragraph 3, the securities firm shall proceed to remove the pledge.
    If the collateral sold by the client for repayment is beneficial certificates of open-end securities investment trust funds or beneficial certificates of futures trust funds, the repayment shall be made after the securities firm's redemption.
    Where a client repaying the financing amount according to paragraph 1 has agreed with the securities firm that part of or all of the collaterals need not to be returned according to paragraph 3 of Article 4, the securities firm may follow such agreement.