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Article NO. Content


Operating Rules for Securities Firms Handling Non-Restricted Purpose Loan  CH

Amended Date: 2022.01.14 (Articles 1, 2, 4, 9, 11, 16, 17, 18, 20 amended,English version coming soon)
Current English version amended on 2021.04.01 
Categories: Securities Exchange Market > Borrowing of Money
Article 26     If the client is in any of the following situations, the securities firm shall terminate the non-restricted purpose loan contract:
  1. Where a shortfall still exists after the securities firm has disposed of collateral pursuant to paragraph 2 of the preceding article, the securities firm shall notify the customer to make repayment within a time limit. Customer's failure to make repayment constitutes a violation, and the securities firm shall file a report with the TWSE or TPEx. The TWSE or TPEx shall promptly forward notice to all securities finance enterprises and securities firms
  2. There is other breach or violation to the other contract between the client and the securities firm.
    When any of the circumstances in paragraph 1 of the preceding Article applies to a client, in addition to taking the measures set out in that paragraph, the securities firm may collect a default penalty equal to 10% of the stipulated financing interest rate from the day repayment is overdue until the date of repayment.
    If a client's non-restricted purpose loan contract is terminated by the securities firm due to a violation specified in paragraph 1, the securities firm may not enter into any new financing contract with that client until the obligation has been settled in full.