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Article 14
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The types of collaterals that securities firms may request from customers for lending book-entry central government bonds, and the applicable discounts on collateral values, are listed below:
- Cash.
- Book-entry central government bonds. Collateral value is determined at 90% of the face value.
The abovementioned collaterals can not be used for any purposes other than the ones described below:
- To be placed as collateral for borrowing from TPEx's lending system.
- Bank deposits.
- Purchase of short-term notes.
Only bonds that are registered in the customer's name can be placed as collaterals. For collaterals that are placed in cash, the securities firm shall pay interest to the customer at a rate agreed between two parties.
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