| Article 54 |
A seller securities firm borrowing securities pursuant to Article 50 shall return securities on a daily and transaction-by-transaction basis starting from the next business day. Until it has returned the securities in full, it shall reborrow securities to meet the requirement for returning of securities under the preceding paragraph [sic].
The borrowing securities firm shall complete return of securities by 10 am on a given business day. If the return of securities is not completed by that time, the TWSE will, after 11 am on that day, execute reborrowing of securities for the account of the securities firm, except where the securities firm has purchased securities on the TWSE exchange market and has submitted an application by 10 am to return securities that day and a verification has been made in this regard.
Upon notification from the central securities depository advising that the returned securities are successfully transferred by book-entry, the TWSE will, upon application by the borrowing securities firm, transfer the payment of the securities lending fee out of the securities borrowing collateral to be returned, to the lender through its securities firm, and refund to the borrowing securities firm the balance of the cash collateral remaining after deduction of the securities lending fee, or notify it to withdraw the non-cash collateral, as the case may be.
The securities firm of the lender, or the bank approved by the competent authority to operate custody business and acting as its custodian, shall advise the lender of the status of the securities lent and returned, and may charge the lender a service fee at a rate of not more than 10 percent of the securities lending fee.
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