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[Law Basis]
[Print]
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II. Issuance of CDs
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〈Counterparties of CDs issuance and holding institutions〉
4. Eligible CDs holders are banks, credit cooperatives, bills finance
companies, Agricultural Bank of Taiwan Co., Ltd. (hereafter referred
to as “Agricultural Bank”), Chunghwa Post Co., Ltd. (hereafter
referred as “Chunghwa Post”), and other financial institutions as
approved by the Bank.Credit cooperatives shall entrust Taiwan
Cooperative Bank Co., Ltd. with subscribing CDs or submitting bids at
CDs auctions.
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〈Forms of CDs and transferring〉
5. The CDs shall be registered, and issued in book-entry form.The
maximum tenor of CDs shall be three years.
The CDs issued in non-negotiable form shall not be transferred
without the prior consent of the Bank.CDs shall not be transferred
until account transfer procedures have been completed at the
Department of Banking of the Bank (hereafter referred to as
“Department of Banking”).
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〈Means of issuance of CDs〉
6. CDs shall be issued in the following manners:
(1) By Subscription: The Bank shall set the CDs issue date,
tenors, interest rates and other relevant conditions with
reference to the funding situation of the banking system
and interest rate level in the financial market, and announce
the information through the Online Operation System or by
other means.
(2) By auction: The Bank shall announce the issue date, tenors,
total offer amount, maximum allocation for each bidder and
other relevant terms via press release before the Bank conducts
the auction. Between the announcement of issuance and the
notification of subscription or auction results, the Bank
reserves the right to cancel or modify the terms and conditions
of CDs issuance.
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〈Subscription of CDs〉
7. In consideration of the funding situation in the financial markets
and the monetary policy issues, the Bank shall decide the amount
of CDs that each financial institution can purchase of subscriptions.
The number and amount of each subscription for each financial
institution are as follows:
(1) For each tenor of CDs, each financial institution shall submit
only one subscription.
(2) The amount of each subscription shall be in multiples of NT$5 million.
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〈CDs Auction〉
8. The CDs auction shall be made on a multiple rate basis. The
allocation of CDs shall depend on the bidding rates submitted
by individual financial institutions. The determination of auction
is based on the following rules:
(1) For bids lower than the maximum rate set by the Bank, rates
are ranked in ascending order from low to high.
(2) If the remaining amount offered by the Bank is insufficient to
cover bids of the same rate, the allocation will be pro rata
based on the sizes of the bids submitted. NT$5 million is the
smallest allocation unit.
The number of bids, amount and rate for each bid submitted by each
financial institution shall comply with the following rules:
(1) A maximum of five bids for each tenor of CDs.
(2) The total value of all bids submitted for each tenor of CDs shall
not exceed the total issue amount and shall be in multiples of
NT$5 million.
(3) The bidding rate shall be limited three digits after the decimal
point.
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〈Notification of CD issuance results〉
9. With regard to the results of CD subscription or auction, the Bank
shall notify each subscriber or bidder the approved purchase amount
and the allocation information through the Online Operation System
or by other means.
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〈Fund delivery of CDs〉
10. Payments related to CD purchases, repayment of principal and
interest upon maturity, and early termination will be handled
as follows:
(1) The settlement for subscription or successful bids, will
be deducted directly from the account of the financial
institution at the Department of Banking at a designated
time on the CD issue date.
(2) When a CD matures or is terminated early, the Bank shall
transfer the amount payable into the account of the holding
financial institution at the Department of Banking.
(3) For a financial institution which does not have an account
at the Department of Banking, it shall submit a document
issued by another financial institution which agrees to make
or collect payment on its behalf, and with the consent of
the Bank, make or receive CD-related payments through the
account of the agent opened at the Department of Banking.
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〈Letters of confirmation of CDs〉
11. After a financial institution has completed payment for CDs,
the Department of Banking shall issue letters of confirmation
of CDs through the Online Operation System or in written form.
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〈Early termination of CDs〉
12. The principal and interest of the CDs will be repaid in one lump
sum upon maturity. Early termination of CDs is not allowed
unless with the Bank's consent.
The calculation of accrued interest on early terminated CDs
will be based on the actual number of days held and the lower
value of the coupon rate or the offer rate of a CD with the
nearest but shorter tenor as announced by the Bank at the time
the early terminated CD was issued.No interest will be accrued
for a holding periods less than 28 days.
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〈Deadline for canceling the pledge of CDs〉
13. For pledged CDs, pledgers must cancel the pledge no later than
12:00 noon one business day before the maturity date.
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