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Article NO. Content


Operating Rules for Securities Business Money Lending by Securities Firms  CH

Amended Date: 2022.01.07 (Articles 20 amended,English version coming soon)
Current English version amended on 2021.04.01 
Categories: Securities Exchange Market > Borrowing of Money
9-1      The securities firm shall approve the financing limit that may be extended to a customer based on the results of the credit investigation under Article 4. If any customer, prior to entering into a loan contract, has had an application for a line of credit approved under any other credit extension business conducted by the securities firm, the financing limit and the already approved line of credit shall be calculated in the aggregate, and the proof of assets provided by the customer shall be at least 30 percent of the amount of the total aggregate credit line. Any line of credit that the customer applies for under any other credit extension business at the securities firm after entering into the loan contract shall be calculated as part of the aggregate.
     The proof of assets that shall be provided for the customer's total aggregate line of credit under the preceding paragraph shall mean documentary proof of income and all types of assets within the preceding year provided by the customer.
     The proof of income and assets under paragraph 1 shall be limited to the following paper or document of the customer or his or her spouse, parent or adult child:
  1. Photocopy of a certificate of ownership, registration records, or a tax return for real property. The securities firm shall also perform a check of whether there are other encumbrances on the real property and calculate its value.
  2. Documentation of deposits with a financial institution (e.g. certificate of deposit balance, passbook, certificate of deposit). The basis of calculation shall be the average balance within the past month.
  3. Proof of holdings in securities.
  4. Documentation of deposit balance in a gold account issued by a financial institution (e.g. a gold passbook or the certificate of balance for the gold passbook or gold account).
  5. Documentary proof of trust property for money trust, securities trust, or real property trust issued by a trust enterprise (e.g., a reconciliation statement, list of trust assets, or certificate of trust property). Both the trustor and the beneficiary of the trust must be the customer, and the trust property may consist only of real property, deposits at financial institutions, securities, and the balance of a gold account at a financial institution.
    When the customer is not the owner of assets shown on the provided proof of assets, the owner of the assets shall be a joint and several guarantor.