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

1. These Directions are prescribed pursuant to Direction 7, Paragraph 2 of the Directions for Issuance of Certificates of Deposit by the Central Bank of the Republic of China (Taiwan)("the Bank").

2. The amount and term of the certificates of deposit and the deadline for bidding shall be announced by the Bank at its website for the online network operation system of open market operations (the "Online Operation System") and through the Taipei Interbank Money Center.

3. The bidding for the Bank's certificates of deposit shall be conducted through online bidding using the Online Operation System.

4. The Bank's certificates of deposit shall be in denominations of NT$5 million, NT$10 million, and NT$100 million.

5. The eligible bidders include banks, Credit Cooperatives,investment trust companies ,bills finance companies, Chunghwa Post Co., Ltd., and other financial institutions approved by the Bank.

6. The Principal and interest on the Bank's certificates of deposit shall be paid upon maturity in one single payment and shall not be paid during the term thereof.

7. The total value of bids submitted by each bidder for certificates of deposit in any issue shall not exceed the total amount of certificates of deposit offered and the total number of bids submitted by each bidder shall not be more than five. The amount of each bid shall be in multiples of NT$5 million.

8. The open tendering procedure and bid award shall be as the following:

(1) The interest rate on the Bank's certificates of deposit sold by open bidding shall not exceed the maximum acceptable rate and bids are accepted in the order of the bid rates from low to high. Where the bid rates are identical and the remaining amount to be allotted is insufficient for full allocation, the remaining amount shall be allocated pro rata according to bid amount with the minimum allocation unit being NT$ 5 million. However, the total amount awarded to each bidder in each issue shall not exceed 20% of the total amount of certificates of deposit available .

(2) The Bank will announce the bid results. In addition, the Bank will notify each bidder of the results through the Online Operation System.

(3) The Online Operation System will not accept a bid if any of the following occurs:

(a)The interest rates are not filled in from low to high in ascending order;

(b)The bid amount is not in a multiple of NT$5 million;

(c)The total bid amount entered by the bidder exceeds the available amount; or

(d)Bid rates are stated in more than three decimal places.

9. Each winning bidder for the Bank's certificates of deposit shall transfer funds into the 201 Account of the Department of Banking of the Bank ("Department of Banking ") through the Bank's Interbank Funds Transfers and Settlements System ("Interbank Funds System") prior to the designated time on the issue date. The Department of Banking will issue an encoded confirmation of purchase to the bidder through the Online Operation System. Financial institutions that do not have an account with the Bank's Interbank Funds System may as an alternative submit documents indicating that another financial institution has agreed to make payment on its behalf and, upon the Bank's consent, cause that financial institution to transfer funds to the Bank's Interbank Funds System for payment.

10. The Bank will credit the all proceeds for the certificates of deposit on maturity date directly to the Reserve Account A or an account of other financial institutions opened by the certificates of deposit holder, or an account of a designated institution kept with the Department of Banking.

11. Claims on the deposit by certificates of deposit holders shall be subject to the Civil Code.

12. The certificates of deposit may be used as collateral in applying for the Bank's short-term accommodations or intraday overdrafts; the pledge should be canceled no later than 12:00 noon one business day before the maturity date.

13 A transfer of the negotiable certificates of deposit is not complete unless and until it is registered by the Department of Banking.

14. The Bank reserves the right to cancel an issuance or modify the amount of issuance,up to and prior to the bid awarding stage.

15. Interest income of the certificates of deposit holders shall be subject to interest income tax in accordance with the law. Capital gains shall be treated in accordance with relevant regulations of the Ministry of Finance.