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Article NO. Content

Title:

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

Amended Date: 2019.09.06 
Categories: Securities Exchange Market > Borrowing of Money
Article 6     The clients of non-restricted purpose loan of a securities firm are limited to the following:
  1. An R.O.C. national who has reached their 20th year of age with full capacity to make juridical acts.
  2. Domestic juristic person organized and registered under the R.O.C. law.
  3. Onshore overseas Chinese and foreign nationals.
    Before applying for non-restricted purpose loan, a client shall already open a securities trading account with the securities firm and shall open a securities depository account with TDCC (hereinafter as Centrally Deposited Account) or open a central government securities account with central government securities settlement bank to proceed with book-entry transfer of the collaterals.
    In case that the client in the first paragraph is a director, supervisor, manager of a TWSE or TPEx listed company, or a shareholder holding more than 10% of the total outstanding shares of the company (hereinafter as Insider) and the client intends to use the shares of the company he/she belongs to as financing collateral or provide these shares as additional collateral, pledge shall be created over these share for the above purpose.
    Shares held by the Insider shall include such shares held by his/her spouse, minor child/children or those held in another's name.
    In case where a client becomes an Insider after he/she has signed the non-restricted purpose loan contract, the provisions of paragraph 3 shall apply to all transactions that take place subsequently as well as the collateral he/she has provided.
    Matters relating to creation of pledge, removal of pledge, and exercise of pledge under paragraph 3 shall all be processed in accordance with the Operating Rules of the Taiwan Depository & Clearing Corporation (TDCC) and the TDCC Instructions on Participant's Pledge and Delivery of Securities for Book-Entry Transfer.

Interpretation: