36.
Interest payments and principal redemption for book-entry CGS shall be processed in
accordance with the following provisions:
(1) Maturity of the book-entry CGS (STRIPS excluded):
i. Department of the Treasury shall calculate the amount of principal and interest
payable, based on the records of the securities accounts of registration
institutions, as of the close of business day prior to the date of principal
and interest payment. These payments shall be transferred to the bank reserve
account of the registration institutions prior to 10：00 a.m. on the date of
principal and interest payment.
ii. Based on the book balances in its own securities accounts and customers’
securities accounts on the record date as described in the preceding
subparagraph, registration institutions shall calculate the amount of principal
and interest payable, and following the transfer of principal and interest by
Department of the Treasury, transfer the net amount, after the deduction of
withholding taxes, to its own cash accounts and customers' cash accounts prior
to 12:00 p.m. on the date of principal and interest payment.
iii. Where it is agreed that interest payment shall be received by the transferors
who provide the securities as a guarantee or margin deposit, the clearing bank
and the transferee may enter an agreement, that the clearing bank shall
transfer, in accordance with the list of transferors list provided by the
transferee, the net amount after the deduction of withholding tax to the cash
accounts of the transferors on the date of principal and interest payment; if
the transferor is an interbank customer, the amount shall be remitted to the
cash account of the interbank customer.
(2) Maturity of STRIPS:
i. Department of the Treasury shall calculate the amount of principal payable
based on the book balances in the securities accounts at the TDCC correspondent
clearing bank as of the close of the business day before maturity date of the
coupon STRIPS and the principal STRIPS, and shall transfer the principal to the
bank reserve account of TDCC correspondent clearing bank prior to 10：00 a.m.
on the maturity date.
ii.TDCC correspondent clearing bank will transfer, in accordance with the STRIPS
holders list provided by TDCC, the net amount after withholding tax to the cash
accounts of the STRIPS holders prior to 12:00 p.m. on maturity date; if the
holder is an interbank customer, the amount shall be remitted to the deposit
account of the interbank customer.
(3) Exchangeable Bonds Redeemed at Holders’ (Issuer’s) Option:
i. Department of the Treasury shall calculate the amount of principal and interest
payable based on the book record accumulated amount to be redeemed at holders’
option (the records of balances in securities accounts) at the clearing banks
at the end of the announced record date. These payments shall be transferred to
the bank reserve accounts of the registration institutions prior to 10：00 a.m.
on the fifth business day after the date.
ii. Based on the accumulated amount to be redeemed at holders’ option (final
balances in own accounts and customers’ accounts) on the same record date as
in the preceding subparagraph, registration institutions shall calculate the
amount of principal and interest payable, and following the transfer of
principal and interest by Department of the Treasury, will transfer the net
amount after withholding taxes to the various cash accounts for own accounts
and customers’ accounts prior to 12:00 noon on the fifth business day after
the record date of redemption at holders’(Issuer's) option.
When securities mature or if exchangeable bonds are redeemed at holders’
(Issuer's) option, after Department of the Treasury has transferred the principal
and interest in accordance with subparagraph 1, item 1, subparagraph 2, item 1, or
subparagraph 3, item 1 of the preceding paragraph registered information shall be
closed in whole or in part. The exchange of exchangeable bonds for government-held
stocks shall be handled in the same way.
