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

1. The Central Bank of the Republic of China (Taiwan)(hereafter referred to as "the Bank"), pursuant to the provisions of Article 31 of the Deposit Insurance Act, has prescribed these Directions for the processing of special financial accommodation (hereafter referred to as "accommodation") to the Central Deposit Insurance Corporation ("the CDIC").

2. In any action taken by the CDIC pursuant to Article 28 to Article 30, and Paragraph 2 Article 41 of the Deposit Insurance Act, the CDIC may ask the Financial Supervisory Commission (the FSC) to negotiate with the Bank so as to receive its approval and obtain accommodation.

3. The CDIC shall weigh and consider its own funding situation and the actual funding requirements of individual cases when submitting requests to the FSC to arrange for approval of the amount of accommodation from the Bank.

4. The CDIC shall submit requests to the FSC to arrange for the Bank’s approval of the term of accommodation based on the progress of each individual case.

5. The financing interest rate shall be charged at a floating rate based on the weighted average interest rate on new loans set by five leading banks as announced by the Bank at the time the accommodation is allocated.

6. The FDIC may provide government bonds, Certificates of Deposit of the Bank and other eligible collaterals to apply for accommodation from the Bank.

If the aforesaid accommodation exceeds the amount of collateral provided by the CDIC, the FSC shall, together with the Ministry of Finance and the Bank, submit to the Executive Yuan for National Treasury guarantee. After its approval, the accommodation shall be guaranteed by the National Treasury.

7. Upon the Bank’s approval of accommodation, the CDIC shall execute an agreement with the Bank and stipulate that the Bank shall allocate the funds to the CDIC account at the Department of Banking of the Bank, or into an account designated by the CDIC.

The Bank shall deduct repayments from the CDIC account at the Department of Banking of the Bank on maturity date.In the event that the CDIC recovers the aforesaid funds prior to the maturity date, the CDIC shall promptly repay the Bank.