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Article 27
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A borrower in a negotiated transaction shall return the subject securities within the following timeframe, and in the following manner, as the case may be:
- Return of securities on due date: the TWSE will, 10 business days prior to the agreed return date, give notice to the borrower's authorized securities firm, to be forwarded to the borrower, advising it to return the securities.
- Return of securities before due date: the borrower and the lender may between themselves agree that the return of securities be made at any time before the due date, and the two parties shall instruct their authorized securities firms to submit a regulatory filing to the TWSE reporting the change of return date.
- Compulsory early return of securities: upon occurrence of any of the circumstances under subparagraph 4, paragraph 1 of the preceding article, the borrower shall return the securities within the relevant period of time specified in that subparagraph.
Upon receipt of a regulatory report on securities return from the borrower, as entered by its authorized securities firm on its behalf into the TWSE securities lending system, the TWSE will notify the central securities depository to effect a book-entry transfer of the subject securities to be returned, from the CSD account of the borrower to that of the lender, with a notice to the borrower and the lender respectively through their securities firms.
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