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

IV.　　Business Rules of Clearinghouse

Article 13
A clearinghouse shall prescribe 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. A clearing entity may 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 14
A clearinghouse shall prescribe criteria for all processing fees collected for 
the provision of services.

Article 15
A clearinghouse shall prescribe procedures for handling negotiable instruments 
clearing, and other necessary operation protocols

Article 16
A clearinghouse shall adopt protocols with financial enterprises that conduct 
checking account operations to govern the handling of dishonored checks and 
other related matters.

Article 17
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.   
A clearinghouse 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.   
A clearinghouse shall make available for public inquiry dishonored check records and 
rejected transaction information of checking account holders and other relevant credit 
information.  
For the collection of personal information referred to in Paragraph 1 and Paragraph 4 
hereof and related information security matters, a clearinghouse shall develop a 
security maintenance plan to prevent the theft, alteration, destruction, loss or 
leakage of personal information.

Article 18
The business rules prescribed by a clearinghouse in accordance with the provisions 
of the preceding five articles shall be submitted to the Bank for record; the same 
shall apply to all amendments thereto.