"Securities lending business" conducted by a securities firm means business activities in which the securities firm borrows securities from or lends securities to a customer, another securities firm or a securities finance enterprise under an agreement stipulating return of securities of the same type and quantity within a specified period.
The "specified period" referred to in the preceding paragraph may not exceed 6 months. However, before that period expires and with the consent of the lending party, the borrowing party may apply twice only to extend that period, and may not change the lending terms and conditions.
The subject of "securities lending" referred to in paragraph 1 means securities eligible for margin purchase and short sale, and other securities approved by the competent authority.
If any of the circumstances described in the indicators listed in the Key Financials Section of the Market Observation Post System, as shown in Appendix 2, applies to any of the above subject securities in securities borrowing and lending transactions, the borrowing and lending transactions of the securities concerned will be suspended from the following business day unless the trading method trading method is altered or trading is suspended, in which case the date of implementation as announced will prevail. The TWSE will announce jointly with the TPEx an adjustment to the appendix in the event of a revision to indicators in the abov section.
Securities lending transactions of a subject security eligible for margin purchase and short sale under the paragraph 3 are not suspended during a halt to trading, provided the securities firm shall halt such transactions when the TWSE announces a halt to trading in such security pursuant to Article 14-1, paragraph 2 of its Securities Borrowing and Lending Rules.