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

1.An application for land loan by an individual that is secured by land in an urban planning 
　residential or commercial district and meets all of the following conditions (as verified by 
　the lender) may be exempted from the requirement of providing concrete construction plan as 
　stipulated in Subparagraph 1, Paragraph 1,  Article 5 of the “Regulations Governing the 
　Extension of Housing Loans in Specific Areas and Land Loans by Financial Institutions”:   
　(1) The borrower is not involved in   investing or purchasing real estate or house 
　　　construction. 
　(2)The borrower provides a statement to the lender that the loan proceeds will be used for  
　　 personal expenses or financial management.(3)The borrower provides an undertaking to the 
　　 lender that he/she agrees to be subject to the terms for a breach of contract as provided 
　　 in the loan agreement if he/she has provided an untruthful statement or the lender finds 
　　 out later that he/she fails to use the loan proceeds as stated. 

2.The maximum amount of individuals’ land loan mentioned above shall not exceed 65 percent of 
　the amount determined according to the following methods :
　(1)For loan applications made on or after December 31, 2010: The amount shall be the land 
　　 acquisition cost or its appraised value from the lender, whichever is lower. However if 
　　 the land is acquired by the borrower through inheritance, gift or  reasons other than 
　　 transaction, or if the registration of land title transfer occurred prior to December 31, 
　　 2009 and no documents to prove the cost of transaction are available, the amount may be 
　　 the appraised value of the land.
　(2) Applications made on or after December 31, 2010 for extension of existing land loans: 
　　　The amount shall be the original appraised value of the land. 
　Existing land loans mentioned in subparagraph (2) of the preceding paragraph with 
　loan-to-value ratio exceeding 65 percent are given at maximum a one-year adjustment period 
　from the date of loan extension to make the loan-to-value ratio not exceed 65 percent of the 
　land’s original appraised value at the end of the adjustment period..

3. Financial institutions should implement the following supporting measures of individuals’
　 land loans:
　 (1)The financial institutions should step up the pre-loan credit check (to verify the 
　　　borrower’s identity and purpose of loan) and post-loan credit management (including 
　　　following up  whether the use of loan proceeds is consistent with that undertaken by 
　　　the borrower and enforce the breach of contract provisions) of those loan cases. 
　 (2)The internal audit unit of financial institutions should include the credit check and 
　　　management of such cases in the focus of internal audit.