Title:
Date:April 21, 2000
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.