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

1. These Directions are prescribed by the Central Bank of the Republic of China (Taiwan) ("Central Bank") in order to establish an Electronic Bidding System ("EBS") for central government bonds and treasury bills.

2. Electronic online bidding for central government bonds and treasury bills shall be handled in accordance with these Directions. Matters not prescribed in these Directions shall be handled in accordance with the Directions for the Sales and Buybacks of Central Government Bonds, the Directions for the Sales and Buybacks of Treasury Bills, the Government Certification Authority Certification Practice Statement, Ministry of Economic Affairs Certification Authority Certification Practice Statement and other relevant laws and regulations.

3. A digital signature mechanism shall be used for the transmission of information over the EBS, with authentication and certificate issuance services performed by the Government Certification Authority, the National Development Council (“the NDC”) and Certification Authority, Ministry of Economic Affairs. The NDC and the authority for company registration shall undertake head-end registration management on behalf of the Certification Authority, handling the verification of system participant identities and certificate applications and revocation.

4. Government bond dealers and parties bidding for treasury bills who apply to use the EBS ("System Participants") shall do so by filling out an "Application For Use of the EBS For Central Government Bonds and Treasury Bills" (Form 1) for submission to the Department of the Treasury, Central Bank of the Republic of China (Taiwan)("the Department of the Treasury"), and accordingly, the Department of the Treasury will issue an identification code and initial entry key.

When making an application according to the preceding paragraph, the central government bond dealer shall submit an "Authorization Seal Specimen Exclusively Used for Bidding for Government Bonds".

5. After the completion of the online connection, application for certification and card activation, the System Participant shall fill out a "Certification Information Sheet of the System Participant of the Electronic Bidding System for Central Government Bonds and Treasury Bills" (Form 2) and submit such form to the Department of the Treasury. The Department of the Treasury shall notify the System Participant after the completion of the online connection test has been confirmed.

6. When the System Participant submits the application to revoke, suspend (re- activate) the certification or report the loss of certification, or the Certification Authority revokes or suspends the certification at its own discretion, the System Participant shall submit a new "Certification Information Sheet of the System Participant of the Electronic Bidding System for Central Government Bonds and Treasury Bills" to the Department of the Treasury to update the certification information.

7. When there is a change in authorized supervisors or contact persons of a System Participant, the System Participant shall submit a "List of Changes of the Authorized Supervisors/ Contact Persons of the System Participant for Electronic Online Bidding for Central Government Bonds and Treasury Bills" (Form 3) for filing by the Department of the Treasury, and the System Participant shall by itself transfer the identification code and entrance key issued by the Department of the Treasury.

8. All System Participants shall establish rigorous security procedures, keeping proper custody of the certificate and using them in accordance with the relevant regulations; System Participants themselves shall be responsible for any loss resulting from negligence in custodial or operational procedures.

9. A System Participant shall pay attention to valid date of the certificate, and prior to the auction date, shall ascertain the status of the certificate, and test EBS connections in order to ensure the validity of their bid.

10. When government bonds are issued, a System Participant may submit no more than ten bids in competitive bidding, and only one bid through non-competitive bidding.

The minimum amount of competitive bids shall be NT$100 million, and the minimum amount in non-competitive bidding shall be NT$50 million; bids in excess of these amounts shall increase in increments of NT$50 million. Neither the maximum total amount of competitive bids nor the maximum amount of non- competitive bids may exceed the amounts publicly announced by the Ministry of Finance.

When treasury bills are issued, a System Participant may submit no more than ten bids; the minimum bid amount shall be NT$5 million. Bids in excess of that amount shall increase in increments of NT$1 million. The maximum bid amount may not exceed the amount publicly announced by the Ministry of Finance.

When government bonds or treasury bills are bought back, a System Participant may submit no more than ten bids; the minimum bid amount shall be NT$1 million; bids in excess of that amount shall increase in increments of NT$1 million.

11. A System Participant's bid-related information shall be encoded with a digital signature by the System Participant's operations manager and sent in a single batch in a digital envelope produced through automatic encryption by the EBS using the Central Bank's public key.

When the EBS has sent the bidding information referred to in the preceding paragraph in a return message, bidding procedures are complete, and a System Participant may not thereafter withdraw or alter a bid. Where no return transmission is received, the System Participant shall immediately ascertain the reason and re-transmit its bid.

12. With respect to bids submitted in accordance with the preceding direction, a System Participant may not protest on the pretext that a bid was submitted by unauthorized personnel, that there was a change in personnel, or that the private key was compromised or used fraudulently, or for any other reason.

13. Online bidding through the EBS will take place at the times publicly announced by the Ministry of Finance. The Central Bank computer will be the reference standard for determining the closing time for the transmission of bids; bids submitted after the close of bidding will not be accepted and the bidder will be deemed to have not participated in the bid.

14. Where the restoration of connections cannot be accomplished immediately after the Bank's EBS failure or service interruption, the Department of the Treasury will notify System Participants to switch to written forms for submitting bids.

When a System Participant experiences an Abnormal online connection, it shall immediately notify the Department of the Treasury, and depending on the severity of the problem, apply to the Department of the Treasury to submit bids in written form instead.

15. A System Participant who switches to written forms for submitting bids in accordance with the preceding direction, prior to the closing time of bidding, shall fax the tender forms (Forms 4-9) via the designated fax number for processing by the Department of the Treasury, and submit the original tender form, identical to the faxed copy before 3:30 p.m. on the auction date.

All tender forms submitted by fax or in a supplementary submission as per the preceding paragraph shall bear the seal that appears on "the seal impression card exclusively used for central government bond tender forms".

16. When a central government bond dealer submitts the statements required under regulations, the information shall be encoded with a digital signature by the dealer's operations manager and sent in a digital envelope produced through automatic encryption by the EBS using the Central Bank's public key.

17. A System Participant may use the EBS for inquiries or printing out information on wining and losing bids for government bonds and treasury bills, as well as the following information:

(1)Ministry of Finance announcements pertaining to the issuance or buyback of government bonds or treasury bills.

(2)Information on current auction results of government bonds or treasury bills.

(3)Historical information on auctions or buybacks of government bonds and treasury bills.