1.Where an earthquake victim's original home loan was through a financial
institution other than the 105 financial institutions specified in the original
directions, such as life insurance companies (including the Postal Remittances
& Savings Banks' Department of Basic Life Insurance) , investment trust
companies, or certain other banks and grassroots financial institutions, and
where, following the implementation of the Temporary Statute for 921 Earthquake
Post-Disaster Reconstruction, such financial institutions arrange for assumption
of the balance of the loan or subsidization of the interest, or handle loans for
home purchase, home reconstruction, or home repair, disbursement of funds by the
Central Bank referred to as the "Bank") shall be exclusively in the form of
interest payment subsidies, and not disbursements of principal.
Explanation:
(1) According to the provisions of the Bank's circular on March 8, 2000 related
"Frequently Asked Question " , application may be made to the original
lending financial institution to assume the outstanding balance of an
original home loan for a house damaged in the earthquake, or to arrange
interest payment subsidies from the Bank on the outstanding balance of the
loan. If a balance still remains, further application may be made for a
home purchase or home reconstruction loan from the NT$100 billion
Earthquake Reconstruction Loan Fund; such applications may be filed only
with the original lending financial institution. The 105 financial
institutions originally announced by the Bank (44 banks, 14 credit
ooperatives and 47 farmers associations) do not comprise the entirety of
the financial institutions through which the preexisting loans on damaged
homes were obtained.
(2) Following the inclusion of life insurance companies, investment trust
companies and other lending financial institutions that were not included
in the scope of the Bank's original announcement, where such financial
institutions assume the balance of the original loan or arrange interest
subsidies, the Bank will remit the interest subsidies or interest relief
disbursements into the financial institution's account with the Bank or
other designated account based upon an itemized monthly report filed with
the Bank via mail by the financial institution. Where such financial
institutions handle home purchase or home reconstruction loans for
earthquake victims, the Bank will not make disbursements for the principal
amount, which shall be paid instead by the financial institutions from
their own funds. The terms and conditions of such loans shall be in
accordance with directions concerning preferential home loans for 921
earthquake victims, and the Bank shall disburse only subsidies on the
interest rate differential.
(3) The Bank agrees that earthquake victims whose homes are partially collapsed
but not demolished, or show cracking damage, may also apply for a home
repair loan with the newly included original lending financial institutions.
The method of fund disbursement shall be the same as that set forth in the
preceding paragraph:the Bank shall not make disbursements of principal, and
shall disburse only subsidies on the interest rate differential.
