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Article 7
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If a securities firm conducts securities business money lending and the customer's financing period is from the second business day to the fifth business day after the trade date, the securities that the customer has purchased shall be used as collateral.<br/>The value of the collateral referred to in the preceding paragraph shall be limited to a certain percentage of the amount of money loaned by the securities firm to the customer. The percentage shall be drafted by the TWSE in joint consultation with the TPEx, and submitted to the competent authority for final approval.<br/>Up to the second business day after the trade date, a securities firm may notify a customer of any additional requirement to provide the following as collateral:<br/>1. TWSE or TPEx listed securities.<br/>2. Beneficial certificates of securities investment trust funds or futures trust funds that are domestically offered and that invest domestically.<br/>3. Central government bonds.<br/>4. Physical gold that is registered for trading over the counter.<br/>5. Other collateral approved by the competent authority.<br/>The securities firm and customer shall agree that prior to the expiration of the financing period, the customer may use its securities trading funds balance to repay money lending.
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