|
14-1
|
Where the financing period of Subscription Lending for which a customer applies in securities business money lending conducted by a securities firm does not exceed 30 days, the customer shall file its application between the fourth and the second business day prior to the last day for share payment.
After filing an application, a customer shall, before the business day immediately before the last day for payment for its new subscription, transfer the margin for its Subscription Lending to the customer ledger of the settlement account opened by a securities firm, for the securities firm to pay for the shares to the share payment account of the issuer.
A securities firm shall prepare and deliver to the TDCC particulars of the Subscription Lending on the last day for share payment, to be delivered by the TDCC to the issuer on the following business day.
The securities acquired by a customer upon subscription shall all serve as collateral to be delivered by the TDCC by book-entry transfer from the customer’s account with a centralized securities depository enterprise to the loan collateral account of the securities firm. The relevant book-entry transfer procedures are governed by TDCC regulations.
Collateral financing with regard to securities subscribed for in Subscription Lending is 60 percent of the subscription price, and is 40 percent of the subscription price if said securities are not eligible for margin purchases and short sales.
Article 13, paragraphs 2 and 3 apply mutatis mutandis if a customer as in paragraph 1 applies for money lending not in person.
|