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

1. The Central Bank of the Republic of China (Taiwan) ("the Bank") promulgates these Directions to handle the bidding for certificates of deposit issued by the Bank (certificates of deposit).

2. The bidding for the certificates of deposit shall be conducted through the Online Network Operation System of Open Market Operations of the Bank (the "Online Operation System").

Before bidding, the Bank shall release in the press the issuing date, the total bidding amount, the maximum bid, the bidding method, the bidding date and other relevant matters of the certificates of deposit.

Bidders may inquire about matters related to the bidding through the Online Operation System and the Taipei Interbank Money Center.

3. Only banks, Credit Cooperatives, investment trust companies, bills finance companies, postal companies that conduct saving-deposit business, and other financial institutions approved by the Bank may enter the bidding for the certificates of deposit.

4. 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.

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

(1) The interest rate on the 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.

(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.

6. Each winning bidder for the 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. The winning bidder 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 the other financial institution to transfer funds to the Bank's Interbank Funds System for payment.

7. 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.

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