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

1. Financial institutions that hold reserve accounts or other financial institutions’ deposit accounts with the Department of Banking (hereafter referred to as “the Department”) of the Central Bank of the Republic of China (Taiwan) (hereafter referred to as “the Bank”) may jointly open a No. 87 “Interbank Funds Transfer Guarantee Special Account” at the Department. This enables funds to be transferred from financial institutions' deposit accounts to the Special Account during the day and used as guarantee to the Bank’s authorized clearing institutions (hereafter referred to as “Clearing Institutions ”) for clearing individual interbank payments.

The provisions set out in the preceding paragraph shall apply mutatis mutandis to each department of the Bank holding an inter-department account with the Department.

2. When opening a joint Interbank Funds Transfer Guarantee Special Account, a financial institution shall fill out and submit to the Department an "Application Form for Financial Institutions to Open and Use an Interbank Funds Transfer Guarantee Special Account" (Form 1). The procedure for opening the "Interbank Funds Transfer Guarantee Special Account" shall be deemed completed when the Department has reviewed and approved the application and issued a letter of consent to the applying institution.

3. A financial institution shall keep sufficient funds in the "Interbank Funds Transfer Guarantee Special Account" to facilitate the execution of interbank transactions.

Financial institutions transferring funds from deposit accounts to the Interbank Funds Transfer Guarantee Special Account shall comply with the Directions for the Central Bank of the Republic of China (Taiwan) to Govern Electronic Interbank Funds Transfer and Settlement.

4. At the time of settlement on each day, each financial institution shall ask the clearing institution to notify the Department of the results of the clearing in order for the clearing institution to re-transfer the funds from the "Interbank Funds Transfer Guarantee Special Account" [back to the Deposit Accounts] so that the Department may handle the settlement at the end of each day.

5. If a financial institution disputes the notice of re-transfer of funds issued by the clearing institution to the Department, such dispute shall be resolved by the financial institution involved and the clearing institution through negotiation in accordance with relevant agreements.

6. When the funds of a financial institution in the Interbank Funds Transfer Guarantee Special Account are insufficient to cover its interbank cash withdrawals or funds transfers on a non-banking day, the financial institution may apply to the Clearing Institution for manual deposit of funds on non-banking days.

When the application in the preceding paragraph has been approved by the Bank through the Clearing Institution, the applying financial institution shall promptly draw a check from its deposit account with the Department and submit the check together with a filled “Application Form for Depositing Funds into the Interbank Funds Transfer Guarantee Special Account on Non-banking Days by Financial Institutions” (Form 2) affixed with the signature or seal of an officer at or above the rank of vice president at the financial institution to the Department.

7. A financial institution that applies for depositing funds into the Interbank Funds Transfer Guarantee Special Account on a non-banking day shall pay a processing fee at NTD20,000 each time. However if a financial institution applies for deposit of funds more than once in a year, the fee shall be NTD20,000 multiplied by the cumulative number of times for the year.

The fees under the preceding paragraph shall be paid with a check from the deposit account of the financial institution with the Department and delivered to the Department together with the check for the funds deposit under the preceding direction.

8. The records of a financial institution’s application for depositing funds into the Special Account on non-banking days reflect the institution’s funds management capability, which will be used as reference in the Bank’s decision as to whether to approve or deny the institution’s future applications for related businesses with the Bank.