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Article 50
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If a seller securities firm does not have enough securities in its book-entry custody account available for the satisfaction of a securities settlement obligation, it shall submit a securities borrowing application by 10 am on the second business day after the trade date. the securities firm fails to submit such an application and fails to complete the securities settlement, the TWSE will borrow securities for the account of the securities firm after 11 am, with a notice to that effect to the securities firm on the same day. The securities firm shall pay, and may not raise any objection as to, the securities lending fee thus incurred.
Where the borrowing securities firm is prevented during the suspension of trading of the securities borrowed from redeeming said securities, the TWSE will, in accordance with Article 109, paragraph 2 of the TWSE Operating Rules, issue a securities delivery voucher and forward the same to the securities depository for safekeeping on behalf of the securities firm representing the purchaser.
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