Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

Subject:
The following Explanations respond to your letter inquiring whether a borrower 
under the Preferential Housing Loan Program may apply for extending the maximum 
amortization period to 30 years due to adverse financial conditions. Please forward 
the same to all lending financial institutions.
Explanations:
1.This is in response to your letter dated September 28, 2007 (Ref. No. Zong-Ge-
　Zheng-Fang- Zi-0960036371) and is based on the letter from the Banking Bureau, 
　Financial Supervisory Council, Executive Yuan, dated October 29, 2007 (Ref. No. 
　Yin- Ju -(2)- Zi -09600464700) and the letter from the Construction and Planning 
　Agency, Ministry of the Interior, dated October 18, 2007 (Ref. No. Ying-Shu- Zhai-
　 Zi-0960055977).
2.The CBC concurs in principle with the issue. Please proceed in accordance with 
　the following principles:
　(1)The CBC shall concur if a lending bank approves the application of a borrower 
　　 under the Government Preferential Housing Loan Program for extension of 
　　 amortization period due to adverse financial conditions. Treasury subsidies on 
　　 related interest shall apply in accordance with monthly loan balances from the 
　　 date of approval. The maximum amortization period in this instance no more 
　　 than 30 years, and the maximum period for interest subsidy shall remain 20 
　　 years.
　(2)It is estimated that, if loan terms under the Program are extended as 
　　 prescribed above, the average interest subsidy to each borrower will be an 
　　 additional NT$ 30,000. In view of this added cost to the government, 
　　 applicants are required to submit a certificate of poverty issued by 
　　 respective village or district head, and a statement of income and expenses.  
　　 Lending institutions shall review such documents.