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[Law Basis]
[Print]
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Chapter 4 Intrabank Trade Registrations
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23.
Transfer registrations between accounts at the same clearing bank shall be carried out in
accordance with the following provisions:
(1) Delivery-versus-payment transfer: The transferor and transferee shall fill out an
“Outward Transfer Registration (and Request for Collection) Form” (Form 9) and an
“Inward Transfer Registration (and Request for Payment) Form” (Form 10) respectively
for processing by the clearing bank. Following the confirmation of a match between the
transferee’s and the transferor’s trading information, the clearing bank shall effect
the transfers of securities and corresponding funds, and record the same in passbooks for
the transferor and transferee. Confirmation of trade match may be omitted where a customer
has made prior arrangements with the clearing bank.
(2) Free-of-payment transfer: The clearing bank may directly proceed with the transfer of
securities in accordance with the “Outward Transfer Registration (and Request for Funds
Collection) Form” filled out by the transferor except in cases of donations, successions
or trusts, which require the attachment of relevant documents. The transferee may update
the passbook at the clearing bank.
The application for transfer registration mentioned in the preceding paragraph may be
transmitted by secured electronic means, provided it has been so agreed between the customer
and the clearing bank.
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24.
Intrabank Lodgment Registration shall be carried out in accordance with the
following provisions:
(1) The depositor shall submit documents for lodgment request (lodgment statements,
court decrees, etc.) and fill out an "Application for Treasury Custody " (Form
11) for processing by the clearing bank. After having certified the relevant
documents, the clearing bank shall process Lodge-out Registration for the
lodger and Lodge-in Registration for the Court. The clearing bank shall print
the passbook and give it to the lodger together with a "Lodgment Certificate of
Treasury Custody " (Form 11-1), and shall print relevant slips of the " Deposit
Certificate of Treasury Custody " (hereinafter referred to as a " Deposit
Certificate") (Forms 12, 12-1, 12-2, and 12-3).
(2) If several persons (including several persons with joint ownership) apply for
joint lodgement, they shall submit Lodgement Registration request as prescribed
in the preceding Paragraph. The lodgers may use the name of one person in the
group and his/her ID Card number (or profit-seeking enterprise uniform number)
as a representative. The clearing bank shall record the representative’s name
and ID Card number (or profit-seeking enterprise uniform number) of the joint
lodgement and the total number of lodgers in the account name columns of the
relevant slips of the Deposit Certificate. The clearing bank shall print the
Deposit Certificate number on the joint lodgers lists which shall be affixed to
the relevant slips of the Deposit Certificate for filing.
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25.
Intrabank Return Registration and the conversion or sale of the lodged securities
shall be carried out in the following manners:
(1) Full return or recipience:
i. The recipient shall submit the Deposit Certificate with the authorized
signature of the Court to the clearing bank for return or recipience. After
having certified the authorized signature, the clearing bank shall process the
Return-Out Registration for the Court and the Return-In Registration for the
recipient based on the Deposit Certificate, print the passbook and give it to
the recipient. The Court may have its passbook entry updated at the clearing
bank.
ii. If several persons (including several persons with joint ownership) jointly
return or receive the lodged securities, they shall apply in accordance with
the procedures set out in subparagraph 2, Direction 24.
(2) Partial return or recipience:
i. After having certified the authorized signature of the Court, the clearing bank
shall divide the Deposit Certificate into two new Deposit Certificates pursuant
to the Court Letter stating the proportions of the lodged securities to be
reserved and to be received, and print the relevant slips for each new
certificate. Apart from the slip for clearing bank, other slips shall be handed
over to the governing Court.
ii. Recipience procedures shall be processed in accordance with the full return or
recipience procedures.
(3) Conversion of lodged securities:To convert lodged securities by law, the lodger
shall attach the documents for lodgement request (lodgment statements, court
decrees, or certificates of confirmation), and shall apply for Lodgement
Registration with the newly-provided securities as security lodgement in
accordance with Direction 24, and shall apply for Return Registration with the
originally-lodged securities in accordance with this Direction.
(4) Sale of lodged securities:
i. After having certified the authorized signature of the Court, the clearing bank
shall sell outstanding securities recorded on the Deposit Certificate in
accordance with the Court’s compulsory enforcement order.
ii. The clearing bank shall transfer the securities into the security account
assigned by the transferee, total the sum of money remained after sale together
with the principal, interest, and yield of the matured securities, fill out
（copies of）Receipt of Treasury Deposit, and transfer the sum to the custody
account of court enforcement case monies for allocation.
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26.
Intrabank restricted transfer registration shall be carried out in accordance
with the following:
(1) The pledgor (guarantee provider) shall fill out an “Application for Pledge
Registration” (Form 13) ( “Application for Public Guarantee
Registration ” (Form 14)) and submit to the clearing bank for
registration. The clearing bank shall perform outward restricted transfer
registration for the pledgor (guarantee provider) and inward restricted
transfer registration for the pledgee (guarantee recipient) in accordance
with the application, print a passbook together with a “Certificate of
Pledge Registration” (Form 13-1) (Certificate of Public Guarantee
Registration” (Form 14-1)) and provide them to the pledgor (guarantee
provider); the pledgee （guarantee recipient） may update his passbook at
the clearing bank.
(2) To register a pledge default agreement on the pledged securities, the
pledgor shall fill out an “Application for Registration of Pledge Default
Agreement” (Form 13-2) together with the contract of pledge default
agreement and submit to the clearing bank for processing. The clearing bank
shall register the pledge default agreement in accordance with the
application, print a “Certificate of Book-Entry CGS Pledge Default
Agreement” (Form 13-3), and provide it to the pledgor; the pledgee may
update his passbook at the clearing bank or obtain a pledge default
agreement certificate from the clearing bank.
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27.
Intrabank revocation of restricted transfer registration, exercise of pledge, and
revocation of public guarantee registration with ownership transfer under court
order for compulsory execution shall be carried out in accordance with the following:
(1)Revocation of restricted transfer registration:
i. The pledgor (guarantee provider) shall fill out an “Application for
Revocation of Pledge Registration or Public Guarantee Registration” (Form 15),
with the pledgee’s (guarantee recipient’s) seal affixed as proof of consent
for processing by the clearing bank.
ii. According to the documents prescribed in the preceding item, the clearing
bank shall revoke the restricted transfer registration for the pledgor
(guarantee provider) and the pledgee (guarantee recipient), print a passbook
together with a “Certificate of Revocation of Pledge Registration or Public
Guarantee Registration” (Form 15-1), and provide them to the pledgor
(guarantee provider); the pledgee (guarantee recipient) may update his
passbook at the clearing bank.
(2) Exercise of pledge:
i. Based on the actual result of thepledgee’s exercise of pledge, the transferee
shall fill out a “Notice of Exercise of Pledge of Book-Entry CGS" (Form 16)
with the pledgee’s seal affixed as proof of consent for processing by the
clearing bank. The following documents shall be also attached depending on
the circumstances:
(i)Petition for court auction: Documents related to court auction shall be attached.
(ii)Realization by the pledgee: Certificates which conform to Article 19 of the
Enforcement Act of the Part of Rights In Rem of the Civil Code (certified by
a notary public or commercial groups, showing sale at market price) shall be
attached.
(iii)Agreement with the pledgor that the pledgee shall obtain the pledge: The
contract between the pledgor and pledgee shall be attached.
(iv) Other forms of disposal: The contract between the pledgor and pledgee shall
be attached. Where a third party is involved, the relevant contract shall
be attached.
ii. Unless not being requested to deduct funds from the transferee’s cash account
to settle the transaction, the clearing bank shall, in accordance with the
documents prescribed in the preceding item, carry out a simultaneous revocation
of the pledgor and pledgee’s restricted transfer registration and a transfer
of securities between the pledgor and the transferee, print a passbook together
with a “Certificate of Exercise of Pledge” (Form 16-1), and provide them to
the transferee; the pledgor and pledgee may update their passbooks at the
clearing bank.
iii. If requested to deduct funds from the transferee’ s cash account to settle
the transaction, the clearing bank shall carry out securities transfers as
set forth in the preceding item, as well as carry out funds transfers between
the transferee and the pledgor.
iv. The provisions in item ii hereof apply mutatis mutandis to the exercise of
pledge that does not involve the transfer of funds.
(3) Revocation of public guarantee registration with ownership transfer under
court order for compulsory execution shall be carried out in accordance
with the following:
i. The transferee shall fill out a “Notice of Revocation of Public Guarantee
Registration With Ownership Transfer” (Form 17) with the guarantee
recipient’s seal affixed as proof of consent for processing by the clearing bank.
ii. The clearing bank shall, based on the information in the preceding item,
carry out a simultaneous revocation of the guarantee provider’s and the
recipient’s restricted transfer registrations and a transfer of securities
between the guarantee provider and transferee, print a passbook together
with a “Certificate of Revocation of Public Guarantee Registration With
Ownership Transfer” (Form 17-1), and provide them to the transferee.
The guarantee provider and the recipient may update their passbooks at the
clearing bank.
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28.
Qualified central government bond traders or securities dealers may apply to strip strippable
bonds (hereinafter referred to as “bond stripping”) or to reconstitute stripped bonds
(hereinafter referred to as “bond reconstitution”).
Clearing bank bond stripping or bond reconstitution shall be performed as follows:
(1) Bond stripping: The applicant shall fill out an “Application for Stripping Form”
(Form 18) and submit it to the clearing bank. The clearing bank shall strip, in
accordance with the application form, the interest-bearing government bonds into
coupon STRIPS and principal STRIPS and transmit the message to TDCC, which shall
transfer coupon STRIPS and principal STRIPS into the applicant’s centralized
depository securities account. The clearing bank shall print the passbook and issue
a“Certificate of Stripping”(Form 18-1) to the applicant.
(2) Bond reconstitution: The Applicant applying for reconstitution of principal STRIPS
and coupon STRIPS into interest-bearing government bonds shall comply with the relevant
regulations of TDCC, through which messages are transmitted to the TDCC correspondent
clearing bank and reconstituted bonds are transferred to the securities account of
the applicant. The applicant may update the passbook at the clearing bank.
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29.
When carrying out issuance, cancellations or cancellations with ownership transfer of repo
certificates, a clearing bank shall proceed in accordance with the following provisions:
(1) Issuance of repo certificates:
The applicant shall fill out an “Application for Issuance of Repo Certificates” (Form 19)
and submit it to the clearing bank. The clearing bank shall print the passbook and issue a
certificate to the applicant.
(2) Cancellations of repo certificates:
When a repo certificate comes due or for early annulment of contract, the applicant shall
apply for the cancellation at the clearing bank by submitting the original certificate
issued by the clearing bank, relevant application form and proof of payment with the
applicant’s registered seal affixed. The clearing bank shall print the passbook for the
applicant.
(3) Cancellations of repo certificates with ownership transfers:
When a repo comes due but the repo seller has not presented proof of payment prior to the
prescribed time on the maturity date, the applicant (repo buyer) may apply to the clearing
bank for cancellations of certificates, and transfers of securities by submitting the
original certificate issued by the clearing bank, identity document, and an “Application
for Cancellations of Repo Certificates with Ownership Transfers” (Form 19-1). The clearing
bank shall print the passbook for the applicant, and the transferor (repo seller) may
update the passbook at the clearing bank.
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30.
When exchangeable bonds are redeemed at holders’option, the applicant shall fill
out an “Application for Exchange of Central Government Exchangeable Bonds for
Government-held Stocks/Redemption at Holders’ Option of Central Government
Exchangeable Bonds” (Form 20) for processing by the clearing bank. The clearing
bank shall print the passbook to the applicant.
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31.
A clearing bank, when performing the registrations, stripping, reconstitution of book-entry
CGS, and issuance, cancellations, cancellations with ownership transfers of repo certificates
and redemption at holders’ option of exchangeable bonds, shall proceed in accordance with the
following provisions:
(1) Verifying that the seal on the application form matches the registered seal of the
applicant.
(2) Verifying that the information in the application form matches that originally filed with
the clearing bank.
(3) Verifying that the disposable balance of the applicant’s securities account or the balance
of cash account is greater than or equal to the amount of the outward transfers applied for
or the repo certificate to be issued.
(4) Verifying whether the par value of the reconstituted or stripped coupon STRIPS is
consistent with the minimum registration unit or its integral multiples; whether the par
value of the principal STRIPS corresponds with that of the coupon STRIPS.
(5) Performing transfer registration:
i.Delivery-versus-payment transfer: debiting the amount from the transferor’s securities
account and crediting the amount to the transferee’s securities account; at the same
time, crediting the amount to the transferor’s cash account and debiting the amount to
the transferee’s cash account.
ii.Free-of-payment transfer: debiting the amount from the transferor’s securities account
and crediting the amount to the transferee’s securities account.
(6) Performing lodgement registration: debiting the amount from the depositor's securities
account and crediting the amount to the Court’s securities account.
(7) Performing return registration: debiting the Court’s securities account and crediting the
recipient 's securities account by the same amount.
(8) Performing restricted transfer registration: crediting the amount of restricted outward
transfers to the pledgor’s (guarantee provider’s) securities account and debiting the
disposable balance from the pledgor’s (guarantee provider’s) securities account by the
same amount, and crediting the amount of restricted inward transfers to the pledgee’s
(recipient’s) securities account.
(9) Performing revocations of pledge registrations (general revocations of public guarantee
registrations): debiting the amount of restricted outward transfers from the pledgor’s
(guarantee provider’s) securities account and crediting the disposable balance to the
pledgor’s securities account by the same amount, and debiting the amount of restricted
inward transfers to the pledgee’s (recipient’s) securities account.
(10) Performing exercise of pledge (revocations of public guarantees registration with
ownership transfers): debiting the amount of restricted outward transfers from the
pledgor’s (guarantee provider’s) securities account while crediting the disposable
balance to the pledgor’s securities account by the same amount, and debiting the amount
of restricted inward transfers from the pledgee’s (recipient’s) securities account and
debiting the amount and the disposable balance from the pledgor’s (guarantee provider’s)
securities account while adding up the amounts to the transferee’s securities account.
(11) Performing bond stripping: debiting the interest-bearing government bonds from the
applicant’s securities account for the amount to be stripped and crediting STRIPS to the
TDCC’s securities account by the same amount.
(12) Performing bond reconstitution: debiting STRIPS for the amount to be reconstituted from
the TDCC’s securities account and crediting interest-bearing government bonds to the
applicant’s securities account by the same amount.
(13) Issuing repo certificates: crediting the amount of repo certificates issued to the
applicant’s securities account and debiting the disposable balance from the applicant’s
securities account by the same amount.
(14) Cancellations of repo certificates: debiting the amount of repo certificates from the
applicant’s securities account and crediting the disposable balance to the applicant’s
securities account by the same amount.
(15) Cancellations of repo certificates with ownership transfers: debiting the amount of repo
certificates issued from the transferor’s securities account while crediting the
disposable balance to the transferor’s securities account by the same amount; in
addition, debiting the amount and the disposable balance from the transferor’s securities
account while crediting the amount to the applicant’s securities account.
(16) Processing of application(s) for redemption at holders’ option of exchangeable bonds:
crediting the amount of application for redemption at holders’option to the applicant’s
securities account and debiting the disposable balance from the applicant’s securities
account by the same amount.
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