Title：Interpretations of the adjustment period for land loan renewal cases to become compliant with the loan-to-value ratio provided in Subparagraph 2, Paragraph 1, Article 5 of the “Regulations Governing the Extension of Housing loans in Specific Areas and Land Loans by Financial Institutions” (referred to as the Regulations hereunder)
Date：February 15, 2012
1. If an individual borrower who is not involved in investing or purchasing real estate or house construction renews a land loan after December 31, 2010 for personal expenses or financial management and the loan-to-value ratio exceeds 65 percent of the original appraised value, such loan may be given an adjustment period up to one year (to become compliant with the 65 percent requirement) starting from the date of loan renewal. However, if the borrower is unable to repay the loan to meet the 65 percent requirement when the adjustment period expires, the lender may negotiate with the borrower on the repayment of the excess portion in installment over a period of not longer than three years and shall include the agreement in the renewal loan contract.
2. For land loan cases other than those mentioned in the preceding Article, that is renewed after December 31, 2010 and the loan-to-value ratio is higher than that stipulated in the Regulations, the loan-to-value ratio upon renewal may be granted an adjustment period up to one year, but can only be applied once.
3. The provisions set out in the proviso in Article 6 of the “Interpretations for the Regulations Governing the Extension of Housing Loans in Specific Areas and Land Loans by Financial Institutions” promulgated by the Central Bank of the Republic of China (Taiwan) by Decree Tai-Yang-Ye-Zi-100009326 dated January 20, 2011 and in Paragraph 2, Article 2 of the “Interpretations of the terms and conditions that individuals’ land loans can be exempted from providing concrete construction plan in pursuant to ‘Regulations Governing the Extension of Housing Loans in Specific Areas and Land Loans by Financial Institutions’” promulgated by the Central Bank of the Republic of China (Taiwan) by Decree Tai-Yang-Ye-Zi-100036373 dated August 2, 2011 shall cease to apply immediately.