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

IV.　　Business Rules of Clearinghouse

Article 19

A clearinghouse shall draft a " Participation Agreement for Clearing Negotiable 
Instruments" which shall clearly state the following particulars:

1.The qualifications required for application to be a clearing entity;

2.Criteria for determining the amount of clearing margin a clearing entity must 
　post, deposit restrictions and conditions for its return;

3[Provisions permitting] a clearing entity to act as a clearing agent for other financial 
　institutions that are non-clearing participants;

4.Negotiable instruments collected by a clearing entity from another clearing entity 
　shall be presented to the local clearinghouse to carry  out clearing; if a negotiable 
　instrument presented for payment is dishonored, the payer clearing entity shall 
　return the dishonored negotiable instrument to the local clearinghouse for exchange;

5.Branches of clearing entities shall, without exception, participate in local clearing 
　of negotiable instruments and the [parent] clearing entity shall submit for clearing 
　all negotiable instruments from other clearing entities accepted by its branches and 
　assume full liability associated with their clearing;

6.A clearing entity shall open a deposit account with the Bank or a correspondent bank 
　of the Bank; settlement of all payable and receivable clearing balances and dishonored 
　negotiable instrument clearing balances shall be conducted in accordance with the 
　Directions for the Central Bank of the Republic of China (Taiwan) to Govern  Electronic 
　Interbank Funds Transfer and Settlement and other relevant regulations; and

7.Other protocols to be observed by clearing entities.

Article 20
Clearinghouses shall draft criteria for all processing fees collected for the provision 
of services.

Article 21
Clearinghouses shall draft procedures for handing negotiable instruments clearing, 
systems for accounting and auditing, and other necessary operation protocols.

Article 22
Clearinghouses shall adopt protocols with financial enterprises that conduct checking 
account operations to govern the handling of dishonored checks and other related matters.

Article 23

For the purpose of conducting negotiable instruments exchange, clearinghouses and 
financial institutions that conduct checking account operations shall collect the 
credit information of checking account holders, and the financial institutions shall 
provide clearinghouses with credit information in their possession.

Clearinghouses shall duly note changes to credit information mentioned in the preceding 
paragraph, and periodically provide financial institutions that conduct checking account 
operations with the following information of account holders with significantly impaired 
credit records:  
1.In case of a personal account, the name and identification card number of holder.  
2.In case of an account held by a business or group that is a non-juristic-person, the 
　account name and the name and identification card number of its responsible person; 
　and  
3.In case of an account held by a juristic person, the account name and the uniform 
　business number of the company or business or the withholding uniform invoice number.

Credit information referred to in Paragraph 1 hereof includes basic account opening 
information, information on loss reporting and stop payment, cancellation of pay order, 
dishonored check record (including alert accounts and frozen accounts), rejected accounts, 
investigation results and court decisions on committed crime associated with use of 
negotiable instruments, presenters, negotiable instruments exchanged, and other relevant 
credit information. Notwithstanding the foregoing, credit information that shall be 
collected by financial institutions that conduct checking account operations exclude 
investigation results or court decisions on committed crime associated with use of 
negotiable instruments. 

Clearinghouses shall, to the extent necessary for matching the accuracy of basic data 
files of nationwide checking account holders, collect household registration data 
pertaining to changes to the name or identification card number of personal account 
holders and the responsible person registration data of juristic person accounts. 

Clearinghouses shall make available for public inquiry of dishonored check record and 
rejected transaction information of checking account holders and other revelent credit 
information.

For the collection of personal information referred to in Paragraph 1 and 
Paragraph 4 hereof and related information security matters, clearinghouses 
shall develop a security maintenance plan to prevent the theft, alteration, 
destruction, loss or leakage of personal information.

Article 24
The business rules and accounting and auditing systems drafted by a clearinghouse in 
accordance with the provisions of the preceding five Articles shall be submitted to 
the Bank for recordation; the same shall apply to all amendments thereto.