If the client is in any of the following situations, the securities firm shall terminate the non-restricted purpose loan contract:
When any of the circumstances in paragraph 1 of the preceding Article applies to a client, in addition to taking the measures set out in that paragraph, the securities firm may collect a default penalty equal to 10% of the stipulated financing interest rate from the day repayment is overdue until the date of repayment.
- Where a shortfall still exists after the securities firm has disposed of collateral pursuant to paragraph 2 of the preceding article, the securities firm shall notify the customer to make repayment within a time limit. Customer's failure to make repayment constitutes a violation, and the securities firm shall file a report with the TWSE or TPEx. The TWSE or TPEx shall promptly forward notice to all securities finance enterprises and securities firms
- There is other breach or violation to the other contract between the client and the securities firm.
If a client's non-restricted purpose loan contract is terminated by the securities firm due to a violation specified in paragraph 1, the securities firm may not enter into any new financing contract with that client until the obligation has been settled in full.