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Article 7
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A securities finance enterprise handling securities trading margin purchases and short sales shall sign margin purchase and short sale contracts with its principals and open respective margin accounts.
The content of the contracts of the preceding paragraph shall be prescribed by the securities finance enterprise and reported to the competent authority for approval.
The following items shall be recorded in the margin purchase and short sale contracts:
- The ratio, and the time limit for replenishment, pursuant to the provisions of Article 11.
- Disposition of the collateral pursuant to the provisions of Article 13.
- Utilization of securities and funds, the obligation to deliver the same kind of securities as those utilized, and the interest rate that shall be paid on the proceeds from short sales and the margins for short sales, pursuant to the provisions of Article 15.
- The interest rates for margin purchases and the handling fees for short sales pursuant to the provisions of Article 16.
- Other items the competent authority requires be recorded therein.
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