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Article 4
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For non-restricted purpose loan conducted by securities firms, the financing period applied by clients shall be limited within 6 months. Prior to the expiration of the financing period, the client may apply for extension, and a securities firm may grant an extension for 6 months depending on each client's credit status. Prior to the expiration of 1 year, a securities firm may grant another extension of 6 months upon reviewing such client's credit status, provided the financing period is limited to two business days if claims in outstanding settlement funds receivable are lodged as security.
Save the claims in outstanding settlement funds receivable which are lodged as security, the collaterals provided by the clients of the preceding paragraph may be replaced during the financing period, the application method shall be stipulated by both parties.
If a client makes partial repayment for the loan before the expiration of the financing period, save the claims in outstanding settlement funds receivable which are lodged as security, a securities firm may return to the client the collateral it originally provided on a proportional basis, the returning method shall be stipulated by both parties. However, where it is less than one trading unit, the collateral shall not be returned. Notwithstanding, a securities firm and its client may also agree that after the repayment of the loan, a securities firm may be exempted from returning part of or all the collaterals, and the client may apply for non-restricted purpose loan again in respect of such collaterals not returned.
For the non-restricted purpose loan prescribed under Paragraph 1, a securities firm shall notify its client in writing or through communication, electronic methods agreed by its clients 10 business days prior to the expiration of the financing period, the notification methods shall be clearly stated in the non-restricted purpose loan contract.
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