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Article 13
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The income from a collateral custodian’s disposal of collaterals should be first used for repayment of the obligations agreed between the collateral provider and collateral receiver by transferring an amount in New Taiwan Dollar equivalent to the value of the obligations to the NTD account opened by the collateral receiver in accordance with Article 18 of the Investment Regulations by the end of the business day immediately after receipt of the income.
The NTD amount used for repayment of the obligations in foreign currency in the preceding paragraph shall be deemed as inward remittance of the collateral receiver’s investment capital and outward remittance of the collateral provider’s investment capital or profits. The Investment Custodian of the collateral provider and collateral receiver should report the outward and inward fund transfers as of the previously day to the Department of Foreign Exchange, Central Bank of the Republic of China on a daily basis in accordance with Article 22 of the Investment Regulations.
In the event there are remaining funds after the income received from the collateral custodian’s disposal of the collateral has been used for repayment of the obligations in foreign currency in the first paragraph, these funds should be returned to the NTD account opened by the collateral provider in accordance with Article 18 of the Investment Regulations by the end of the business day immediately after receipt of the income.
If the income from disposal of collaterals in accordance with the first paragraph and the preceding paragraph is subject to settlement of traded securities, the amount of settlement may be kept in NTD, with the remaining funds to be converted to a foreign currency and transferred out of the Republic of China by the end of the business day immediately after receipt of the funds.
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