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Article 7-1
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If a securities firm conducts securities business money lending and the financing period does not exceed 30 days, new shares issued by an issuer upon its initial listing on the TWSE or TPEx or for cash capital increase after its initial listing on the TWSE or TPEx that are subscribed by customers who are employees or existing shareholders of the issuer may be used as collateral (hereinafter, "share subscription loans").<br/>The ratio between the value of the collateral under the preceding paragraph and the amount of money lent by the securities firm to that customer may not be below a certain ratio. A securities firm shall mark to market on a daily basis the ratio of collateral value to customer debt in each lending account. When that ratio is below the prescribed ratio, it shall immediately notify the customer to make up the difference by a deadline with collateral of the types prescribed in paragraph 3 of the preceding article.<br/>The ratio referred to in the preceding paragraph shall drafted by the TWSE in joint consultation with the TPEx, and submitted to the competent authority for final approval.
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