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

1. These Directions are prescribed by the Central Bank of the Republic of China
　 (Taiwan) (hereinafter referred to as "the Bank") to clearly stipulate the 
　 reserves set aside against re-deposits made by community financial institutions 
　 at agricultural banks and other relevant matters to be complied with.

2. The terms used in these Directions shall be defined as follows:
(1) "Community financial institutions" shall mean credit cooperatives and credit
　　 departments of farmers' and fishermen's associations.
(2) "Trustee institutions" shall mean institutions entrusted by the Bank to 
　　 receive and keep reserves of community financial institutions, i.e., Taiwan
　　 Cooperative Bank or designated branches of the aforesaid bank.
(3) "Agricultural banks" shall mean Taiwan Cooperative Bank, Land Bank of Taiwan,
　　 and Agricultural Bank of Taiwan.
(4) "Re-deposits" shall mean fixed-term deposits accepted by community financial
　　 institutions that are re-deposited at banks in the form of fixed-term
　　 deposits.

3. The reserves against re-deposits of credit cooperatives shall be set aside in
　 the following manner:
(1) For re-deposits made by credit cooperatives at Taiwan Cooperative Bank 
　　pursuant to Article 3 of the Regulations for Funds to be Re-Deposited by and
　　Accommodated to the Credit Cooperatives, the credit cooperatives are exempted
　　from reserve requirements, and the required reserves shall be set aside by
　　Taiwan Cooperative Bank instead.
(2) For re-deposits other than those referred to in the preceding subparagraph,
　　the credit cooperatives shall set aside reserves themselves.

4. The reserves against re-deposits of credit departments of farmers' and 
　 fishermen's associations shall be set aside in the following manner:
(1) For re-deposits that meet the following conditions, the reserves shall be 
　　set aside by the agricultural banks that accept the re-deposits, whereas the
　　credit departments of farmers' and fishermen's associations are exempted from
　　reserve requirements:
i. Term of deposit: One year or less.
ii. Interest rate: The posted interest rates of the agricultural banks that 
　　accept the re-deposits.
iii. Amount limit: The amounts of re-deposits from time deposits and time savings
　　deposits shall not exceed the amounts of the underlying time deposits and 
　　time savings deposits, respectively.
(2) For re-deposits other than those referred to in the preceding subparagraph, 
　　credit departments of farmers' and fishermen's associations shall set aside
　　reserves themselves.

5. Community financial institutions shall, during the reserve adjustment period,
　 submit a "Report for Re-deposits Exempt from Reserve Requirements" (Form 1), 
　 together with the "Reserve Adjustment Form – Current Period," to the relevant
　 trustee institutions for audit. Community financial institutions that fail to
　 submit the aforementioned reports in a timely manner shall be deemed to have 
　 not made any re-deposit and shall be required to set aside reserves based on 
　 the total amount of each type of deposits they have accepted.

6. Agricultural banks that accept re-deposits shall, by type of community 
　 financial institution, submit the "Monthly Report for Re-deposits of
　 Community Financial Institutions" (Form 2-1 and Form 2-2) to the relevant 
　 trustee institutions for verification within four business days after the end 
　 of each month.

7. If the data on re-deposits reported by a community financial institution are
　 inconsistent with those reported by agricultural banks, the trustee 
　 institution may first make adjustments based on the data reported by the 
　 community financial institution.
　 The trustee institution shall find out the causes of discrepancy mentioned in 
　 the preceding paragraph. If it is found that the discrepancy results from 
　 data-reporting error(s) of the community financial institution, and the 
　 error(s) cannot be corrected within the current period, which cause(s) the 
　 shortfall of reserves, the trustee institution shall charge the community 
　 financial institution penalty interest on the shortfall at 1.5 times the 
　 short-term accommodation interest rate of the Bank.

8. Trustee institutions shall, on a monthly basis, submit a "Summary Report for 
　 Re-Deposits of Community Financial Institutions Exempt from Reserve 
　 Requirements" (Form 3), together with the "Reserve Adjustment Form – Current
　 Period," to the Bank's Department of Banking within the reserve adjustment 
　 period.