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

1.Scope of Use:
　Enterprises established under Republic of China law, operating within the
　territory of the Republic of China, and engaged in the following investments or
　mergers/acquisitions that have a close connection to domestic economic
　development need authorized banks to accommodate them with foreign currency
　funds:
　i.Foreign investment or merger/acquisition cases：
　　(i) Those involving development of natural resources.
　　(ii) Those involving acquisition of high technology, industrial technology,
　　　　 and management knowledge of assistance in upgrading domestic industry.
　　(iii) Those facilitating deployment of international production and sales
　　　　　networks.
　　(iv) Those facilitating upstream, midstream, and downstream vertical
　　　　 integration of industry or expansion of horizontal linkage.
　　(v) Those involving acquisition of technology related to environmental
　　　　protection, ecological balance and public hazards prevention, etc.
　　(vi) Others facilitating domestic economic and financial development.
　ii.Domestic investment:
　　 (i) Public construction investment.
　　 (ii) Investment in the ten major emerging industries and eight major key
　　　　　technologies.
　　 (iii) Major investment projects that have received government approval.
　Enterprises organized under foreign law, operating in foreign countries, engaged
　in directly assisting investment projects for domestic acquisition of natural
　resources or agricultural or industrial materials, and that have domestic
　authorized banks handling their international syndicated loans.

2.Total Amount of Funds：
　Temporarily fixed at US$10 billion.

3.Authorized Banks：
　Banks and other financial institutions authorized by the Central Bank of the 
　Republic of China（Taiwan）.

4.Accommodation Method:
　(1)Taking individual investment project as the base (project-base), authorized 
　banks are responsible for estimating the feasibility of the individual investment
　project and bear the credit risk on their own.
　(2)After a authorized bank has made a foreign currency credit extension, if
　necessary, the Bank may apply to the Central Bank of the Republic of China
 （Taiwan） for foreign currency funds reaccommodation.
　(3)Foreign currency funds that the Central Bank of the Republic of China 
 （Taiwan） has agreed to reaccommodatemay be appropriated in periodic installments
　as necessary. The funds can not be converted into New Taiwan Dollar for use.

5.Reaccommodation Limits:
　Individual investment project reaccommodation limits should be set with
　consideration to the level of risk of the individual investment project, the
　level of connection of the domestic economy, and the amount of the investment,
　provided that the reaccommodation limits should not exceed 80% of the authorized
　bank's foreign currency credit extension amount for investment project..
　The maximum reaccommodation limits for each authorized bank and actual
　reaccommodation amount may be set based on reference to the authorized bank's
　operational condition, operational risk, and its rating assessments by domestic
　or foreign credit rating institutions.

6.Accommodation Conditions:
　Currency: Temporarily fixed at U.S. Dollars..
　Interest Rate: Interest calculated quarterly or semiannually based on the same
　term U.S. Dollars offered rate of then-current domestic or foreign interbank
　foreign currency offered rate market.
　Time Limit: Not more than five years. However, if there are special requirements
　, the period may be extended by an appropriate amount of time.
　Borrowers that are domestic private enterprises shall have their base of
　operations within the territory of the Republic of China.

7.Follow-up and Evaluation:
　Authorized banks shall be responsible for investigating borrowing enterprises' 
　fund flow and developments to prevent borrowing enterprises form improperly
　 using accommodated funds.