| Title： |
Operating Rules of the Taiwan Stock Exchange Corporation(2007.07.05) |
| Date： |
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Article 109
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If the securities firm representing the seller is unable to perform settlement obligations because the securities submitted for settlement fall under any of the circumstances listed below, it may apply to borrow securities pursuant to this Corporation's Securities Lending and Borrowing Regulations
1. The securities are damaged and incomplete or illegible.
2. The securities are not certified by an entity authorized for certification of securities.
3. The securities are issued by the same listed company but contain different rights.
4. The face value does not conform to the trading unit.
5. The securities are not accompanied by the form "Application for Transfer."
6. The chop of the transferor is not affixed, or the chop is illegible on the securities or on the form "Application for Transfer".
7. The chop of transferor as affixed on the securities is not identical with that affixed on the form "Application for Transfer."
8. the listed company has not affixed its chop for registration of transfer.
If the securities firm representing the seller is unable to perform settlement obligations because of default by the seller, out-trade, or other legitimate reason, it likewise may apply to borrow securities. If the securities firm representing the seller fails to redeliver securities after borrowing them to perform settlement obligations, this Corporation will continue the borrowing on its behalf.
If the amount of securities borrowed is insufficient, this Corporation will fill out and forward a "Securities Delivery Voucher" to the securities central depository enterprise for the portion falling short for safekeeping on behalf of the securities firm representing the purchaser. The securities firm representing the seller shall, within the committed time limit, deliver the securities in exchange for the return of the aforesaid "Securities Delivery Voucher" and the refund of the collateral.
When the securities firm representing the seller applies to borrow securities or to continue borrowing of securities, it shall by means of electronic account transfer within the time limit provided by this Corporation's Securities Lending and Borrowing Regulations, pay the collateral for the securities borrowing or the amount of any shortfall in the collateral for continued securities borrowing. After the close of banking hours, it may be paid over the counter at this Corporation by a check payable at sight issued by a bank designated by this Corporation or in cash (for an amount not more than NT$100,000).
The collateral or shortfall in the collateral for securities borrowing referred to in the preceding paragraph may be offset by a bank guarantee or a pledged central book-entry bond. Where the offset is made by a central book-entry bond, the offset value will be 90 percent of the face value of the bond.
If the securities firm representing the seller fails to deposit securities borrowing collateral funds or provide offsetting collateral within the time limit provided in this Corporation's Securities Lending and Borrowing Regulations, or to make up a shortfall in the amount of collateral, or its check for the collateral funds cannot be cashed, it is in default of its settlement obligations; this Corporation may tentatively retain a portion of the proceeds and securities equivalent in value to the settlement price payable for that settlement period.
Lending auctions, negotiated lending, and tender offers carried out to cover stock loan shortfalls of securities finance enterprises shall be conducted in compliance with this Corporation’s Securities Lending and Borrowing Regulations.
The Securities Lending and Borrowing Regulations will be separately adopted by this Corporation and submitted to the Competent Authority for approval and shall take effect after they are publicly announced.
The Securities Lending and Borrowing Regulations will be separately adopted by this Corporation and submitted to the Competent Authority for approval and shall take effect after they are publicly announced.
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