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

These regulations are promulgated in accordance with article 9 of the Credit Cooperatives Act.

Except as otherwise prescribed by law, the redeposit and accommodation of credit cooperatives' funds shall be handled in accordance with these regulations . Other relevant regulations shall apply to matters not included herein.

The balance of surplus funds of each credit cooperative re-deposited with the Taiwan Cooperative Bank (hereafter referred to as "the Cooperative Bank") prior to February 28, 1995 shall remain deposited with the Cooperative Bank and may be rolled over upon maturity.

The terms of the rollovers described in the preceding paragraph shall not exceed one year, and the interest rates shall be calculated in accordance with the interest rates posted by the Cooperative Bank. Amount not rolled over shall not be re- deposited.

Except as described in the preceding article, fifty percent of the increased surplus funds of each credit cooperative may be re-deposited with the Cooperative Bank, and the remaining fifty percent shall be compiled and calculated by the Cooperative Bank and deposited, in the name of the relevant credit cooperative, respectively with the Bank of Taiwan, Taipei Fubon Bank or Bank of Kaohsiung depending on the administrative region to which the relevant credit cooperative belongs. The terms of re-deposit and deposit referred in the preceding paragraph shall not be longer than one year and may be rolled over upon maturity. The interest rates thereon shall be calculated in accordance with posted interest rates of each depository bank. The amount not re-deposited or rolled over shall not be kept in those redeposit accounts of abovementioned banks and may be re-deposited with the other banks or credit cooperatives.

The terms of re-deposit and deposit referred in the preceding paragraph shall not be longer than one year and may be rolled over upon maturity. The interest rates thereon shall be calculated in accordance with posted interest rates of each depository bank. The amount not re-deposited or rolled over shall not be kept in those redeposit accounts of abovementioned banks and may be re-deposited with the other banks or credit cooperatives.

The maximum amount of the increased surplus funds as described in paragraph 1 herein shall be limited to the amount increased compared with the average balance of time deposits and time savings deposits of each credit cooperative two months prior to making the redeposit.

Credit cooperatives having a short-term need for funds may apply for accommodations from the Cooperative Bank or other depository banks, and the maximum accommodations amount shall not exceed the limits set by the Banking Act.

Relevant rules regarding accommodation to credit cooperatives by the Cooperative Bank, other redeposit taking banks and credit cooperatives shall be established seperately and shall be reported to the Central Bank of the Republic of China (Taiwan) (hereafter referred to as "the Bank") and the Financial Supervisory Commission,Executive Yuan (hereafter referred to as "the FSC") for record.

When a credit cooperative applies for an emergency funding, the Cooperative Bank shall file a written report to the Bank for approval. The Bank shall make a decision upon the consultation with the FSC. The maximum amount of the accommodations shall be subject to external loan limit set by the resolution of the credit cooperative's members meeting.

The Cooperative Bank shall notify the competent local authority of the accommodated credit cooperative when handling the emergency accommodations described in the preceding paragraph.

For short-term emergency funding needs among credit cooperatives, the National Federation of Credit Cooperatives R.O.C. may consult with the Cooperative Bank and each credit cooperative, establishing a mechanism for mutual support of emergency funds among credit cooperatives. An individual credit cooperative may use its time re-deposits with the Cooperative Bank as collateral for emergency accommdation. Such mechanisms shall be filed with the FSC and the Bank for record.

If a need for funds arises out of extending funding accommodations to credit cooperatives, the Cooperative Bank may apply to the Bank for special accommodations, in accordance with the Directions for the Central Bank of the Republic of China (Taiwan)Accommodations to Banks.

The credit cooperatives' operations shall be guided by the Cooperative Bank or other appropriate institutions mandated by the Competent Authority. The relevant guidelines shall be promulgated by the FSC in consultation with the Bank.

These Regulations shall be effective on the date of promulgation.