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

(Basis)
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.

(Definitions)
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.

(Regulations on Housing Loans)
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.

(Appraisal)
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.

(Exemption)
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.

(Reporting)
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.