A securities firm may notify a customer of a recall of loaned securities as agreed by the two parties, and shall return the collateral, or utilize said securities as the collateral of another borrowing transaction as agreed between the parties, on the day the customer returns the securities or the next business day.
During the loan period, a customer may apply to return early all, or a portion of, the borrowed securities, and at the time of such application stipulate with the securities firm the method and deadline for transfer of the securities and the collateral, or or utilize said securities as the collateral of another borrowing transaction as agreed between the parties. Where the return of the collateral is agreed on, the securities firm shall return the collateral, at the latest, by the second business day after it receives the securities returned by the customer.
Where public notice is given of either a suspension of trading of a subject security without prescribing the time for resumption or the termination of its TWSE or GTSM listing, or in the event of a merger, capital reduction or other circumstances prejudicing the lending party's exercise of its shareholder's rights that occur to an issuer, the borrowing party shall return the security and close out the transaction before the date of such suspension.
Where the lending party is prevented by the overall trading condition in the market or of the subject security in question as a result of the aforementioned circumstances from buying up the security either at the maximum price limit or through placing brokerage trading orders at market price, the borrowing party may apply for return with third-person securities during the suspension period of the subject security.