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Article 51
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A securities finance enterprise that engages in securities borrowing and lending shall establish operating rules for such business and submit them to the competent authority for approval.
The operating rules referred to in the preceding paragraph shall expressly state the following matters:
- Opening of securities borrowing and lending transaction accounts.
- Applications for loans of securities and their redelivery.
- Types of eligible collateral and its substitution.
- Calculation, replenishment, and disposition of collateral.
- Method of obtaining shortfalls in loaned securities.
- Transfer of title to securities collateral.
- Deposit of the performance bond.
- Other matters that shall be included pursuant to the regulations of the competent authority.
The securities finance enterprise shall carry out securities borrowing and lending transactions in accordance with the operating rules of the first paragraph.
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