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

1. This Regulations are promulgated pursuant to Articles 28, 29 and 31 of The Central Bank of the Republic of China(Taiwan)Act and Paragraph 2, Article 37 and Article 40 of the Banking Act of the Republic of China.

2. The terms used in these Regulations shall have the following meanings:

(1)“Financial institutions” shall include domestic banks, branches of foreign banks in Taiwan, credit cooperatives, Agricultural Bank of Taiwan, credit departments of farmers’ associations, credit departments of fishermen’s associations, Chunghwa Post Co., Ltd., and life insurance companies.

(2)“Specific areas” shall include Taipei City and 10 other cities in Taipei County covering Banciao, Sanchong, Jhonghe, Yonghe, Sinjhuang, Xindian, Tucheng, Lujhou, Shulin, and Sijhih.

(3)“Housing loan” shall mean a mortgage extended by a financial institution to individuals for purchasing a house (land including) located in specific areas.

3. Before extending a housing loan to an individual, the financial institutions should make inquiry with the Joint Credit Information Center (hereinafter the “JCIC”) on the loan applicant. If the loan applicant already has one or more loans secured on his/her house (land including) and the secured loan has a classification code of “1” (real estate purchase), the terms of the loan for the applicant shall be subject to the following restrictions:

(1)No grace period is allowed;

(2)The maximum loan-to-appraised value ratio shall not exceed 70 percent.

(3)The loan amount mentioned in the preceding subparagraph may not be increased for reasons of home renovation obtaining, working fund or for any other purposes.

4. Financial institutions shall conduct the appraisal for housing loans in accordance with its internal lending rules and the provisions set forth by the competent authority.

5. Housing loans that have already been approved by the financial institutions but not yet disbursed prior to June 25, 2010 may be processed according to the original loan terms, without being subject to the restrictions under the Regulations.

6. After the effective date of the Regulations, financial institutions shall file reports on their housing loans books periodically in accordance with the form set forth by the Bank. For credit departments of the farmers’ associations and fishermen’s associations, only those departments located in Taipei City and Taipei County need to file the report.