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

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.

2.The terms used in the Regulation 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 insurance companies.
　(2) "Housing loan" shall mean a mortgage extended by a financial institution to a 
　　　 borrower for purchasing a non-high-priced house (land included) where the title 
　　　 deed of the house contains the wording "residential."
　(3) "High-priced housing loan” shall mean a mortgage extended by a financial 
　　　 institution to a borrower for purchasing any of the following types of house (land 
　　　 included) where the title deed of the house contains the wording “residential”: 
　　a. The house is located in Taipei City with an appraised value or purchase price of 
　　　 NT$70 million or more; 
　　b. The house is located in New Taipei City with an appraised value or purchase price 
　　　 of NT$60 million or more; or
　　c. The house is located in an area within Taiwan other than Taipei City and New 
　　　 Taipei City with an appraised value or purchase price of NT$40 million or more.
　(4) "Specific areas" shall include the following administrative districts:
　　a. All districts in Taipei City;
　　b. Seventeen districts in New Taipei City covering Banciao District, Sanchong 
　　　 District, Jhonghe District, Yonghe District, Sinjhuang District, Xindian District, 
　　　 Tucheng District, Lujhou District, Shulin District, Sijhih District, Sansia 
　　　 District, Linkou District, Danshuei District, Wugu District, Taishan District, 
　　　 Bali District, and Yingge District.
　　c. Four districts in Taoyuan County covering Taoyuan City, Luzhou City, Zhongli City,
　　　 and Guishan Township.
　(5)"Home mortgage loan” shall mean housing loan and high-priced housing loan.
　(6)"Land loan" shall mean a loan extended by a financial institution to a borrower and 
　　　secured by land in a residential district or a commercial district designated under 
　　　urban planning.
　(7)"Borrower" shall mean an individual and a corporate body. 

3.Home mortgage loan extended by a financial institution to a corporate body shall be 
　subject to the following restrictions:
　(1) No grace period is allowed;
　(2) The maximum amount of the home mortgage loan shall not exceed 50 percent of the 
　　　house’s appraised value (land included) or its purchase price, whichever is lower; 
　　　and
　(3) The loan amount mentioned in the preceding subparagraph shall not be increased for 
　　　reasons of home renovation, working fund or other purposes.

4.Home mortgage loan extended by a financial institution to an individual shall be 
　subject to the following provisions:
　(1) High-priced housing loan: Restrictions set forth in the subparagraphs of preceding
　　　article   shall apply.
　(2) Housing loan: The financial institution shall make inquiry with the Joint Credit 
　　　Information Center on individual applicant’s borrowing status; If the loan 
　　　applicant already has one mortgage loan secured by a house (land included) and the 
　　　purpose of the loan has a classification code of "1" (real estate purchase)
　　　(hereinafter "home mortgage"), the terms of the housing loan shall be as follows:
　 a. For an applicant who already has two or more home mortgages, provisions set forth 
　　　in the subparagraphs of the preceding article  shall apply.
　 b. For an applicant who already has one home mortgage and is now applying a housing 
　　　loan for purchase of a house located in a specific area, the terms of the housing 
　　　loan shall comply with Subparagraph 1 and Subparagraph 3 of the preceding
　　　article. , and the maximum amount of the loan shall not exceed 60 percent of the 
　　　house’s appraised value (land included) or its purchase price, whichever is lower. 

5. The conditions for land loan extended by a financial institution shall be subject
　 to the following restrictions:
　 (1) The financial institution may not accept land as security for a land loan if 
　　　 the borrower has not submitted a concrete construction plan for the land.
　 (2) The maximum amount of loan shall not exceed 65 percent of the land acquisition
　　　 cost or its appraised value, whichever is lower and 10 percent of the extended
　　　 loan shall not be disbursed until the borrower has commenced construction. 
　 (3) The loan amount mentioned in the preceding subparagraph may not be increased 
　　　 for reasons of working fund or other purposes.

　 The provision of holding 10 percent of the loan until the borrower has commenced
　 construction mentioned in Subparagraph 2 of the preceding Paragraph does not apply
　 to the following circumstances:
　 (1) The land is associated with an urban renewal project approved by the competent
　　　 authorities; or 
　 (2) The land is associated with a government or self-initiated land consolidation
　　　 project already approved by the competent authorities but not yet completed.

　 If the borrower who is not involved in investing or purchasing real estate or house 
　 construction applies for a land loan as working fund for regular business operation, such 
　 loan is not subject to the restrictions set out in Paragraph 1 hereof, provided the 
　 borrower  has submitted a concrete operational plan.

6.A financial institution shall conduct the appraisal for home mortgage loans and land 
　loans in accordance with its internal lending rules and the provisions set forth by the 
　competent authority.
　When a financial institution accepts the transfers of or renewals of loans stated in 
　the preceding paragraph, the loan amount shall not be increased through reappraising. 

7.Home mortgage loans and land loans that have already been approved by a financial 
　institution but not yet disbursed on or before June 26, 2014 may be processed according 
　to the originally approved loan terms, provided the loan terms comply with applicable 
　regulations at the time of approval.  

8.A financial institution shall file reports on its home mortgage loans and land loans 
　periodically in accordance with the form set forth by the Central Bank of the Republic 
　of China (Taiwan). 
　A financial institution shall   set out internal risk control, operating procedures and
　other necessary internal rules for its home mortgage loan and land loan businesses. If 
　the lending criteria of a financial institution’s internal rules are stricter than the 
　Regulation, the   financial institution shall extend loans in accordance with its 
　internal rules.

9.The provisions in the preceding four articles  shall apply mutatis mutandis to 
　short-term bills guaranteed by bills houses where the guarantee of issuedshort-term 
　bills is secured by land located in the residential district or the commercial district
　designated in urban planning.