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Article 7
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An issuer or master agent shall post an operating bond according to the rules below with a bank that is permitted to provide custodian services and meets the conditions set by the FSC:<br/>1. For the issuer or master agent of one offshore structured product issuing institution, an operating bond of NT$50,000,000 shall be posted;<br/>2. For the issuer or master agent of two offshore structured product issuing institutions, an operating bond of NT$80,000,000 shall be posted; and<br/>3. For the issuer or master agent of three or more offshore structured product issuing institutions, an operating bond of NT$100,000,000 shall be posted.<br/>The operating bond under the preceding paragraph shall be posted in the form of cash, government bonds, bank deposits, or bank debentures, shall be free of any pledge or any form of encumbrance, and shall be placed with only one bank. The change of custodian institution or withdrawal of an operating bond may proceed only after it has been approved by the FSC; the preceding provision also applies to change of issuer or master agent.<br/>The procedures for deposit, withdrawal, and substitution of operating bond shall be prescribed by the FSC.
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