| Title： |
Operating Rules for Securities Firms Handling Non-Restricted Purpose Loan(2023.07.27) |
| Date： |
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Article 11
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A securities firm shall decide the credit limit that may be extended to its client according to the credit investigation result under Article 3. If a client already has a line of credit approved by the securities firm for other credit extension business before signing the non-restricted purpose loan contract, the credit limit and the already approved line of credit shall be calculated in the aggregate andthe proof of assets provided by the client shall reach at least 30% of the amount of the total aggregate credit line. After entering into the non-restricted purpose loan contract, any line of credit that the client applies for under any other credit extension business at the securities firm shall be calculated as part of the aggregate.Notwithstanding, no line of credit secured by claims in outstanding settlement funds receivable countstoward thecredit limit.
The proof of assetsthat shall be provided for the customer's total aggregate line of credit under the preceding paragraph means proof of income and various assets provided by the client for the past one year.
The proof of assets of the first paragraph shall consist of only the following papers and documents of the client or the client's spouse, parents, or adult children.
- Photocopy of certificate of ownership, transcript of the registration, or tax return for real property. The securities firm shall calculate the value of the real property after checking whether there are encumbrances on the real property.
- Documentary evidence of deposits at a financial institution (such as a certificate of deposit balance, bankbook, or certificate of deposit). The basis of calculation will be the average balance for the past month.
- Documentary evidence of securities holdings.
- Documentary evidence of deposit balance in a gold account issued by a financial institution (such as a gold account passbook, or a certificate of balancefor gold passbook or gold account).
- Documentary evidence of trust assets in a money trust, a securities trust, or a real estate trust issued by a trust enterprise (such as a reconciliation statement, list of trust assets, or certificate of trust assets). Both the trustor and the beneficiary of the trust must be the client, and trust assets may only consist of real estate, deposits at financial institutions, securities, and the balance in a gold account at financial institutions.
If the client provides proof of financial assets not owned by the client, the actual owner of the assets must be a joint and several guarantor of the client.
After the client signs the non-restricted purpose loan contract in accordance with paragraph 1, any value of the collaterals in itsnon-restricted purpose loan account with the same securities firm that is in excess of the client'soverall-account collateral maintenance ratio by 130% may serve as proof of assets in an application for extension, for revising the financing limit, or for renewal.
The securities firm shall devise appropriate regulatory measures for credit extension if the client provides the value of collaterals in excess of itsoverall-account collateral maintenance ratio by 130% as in the preceding paragraph as proof of assets.
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