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[Law Basis]
[Print]
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Chapter 1: General Principles
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1.The Central Bank of the Republic of China (Taiwan) ("the Central Bank") has
prescribed these Directions System") for the payment of central government bond
principal and interest, and for reporting lost certificates and stopping payment
thereof. Related operations shall be handled pursuant to these Directions except
where otherwise provided in the Regulations Governing Administration of Central
Government Bonds or other pertinent laws.
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2.Agencies administering the System shall handle cautiously all information
pertaining to the payment of central government bond principal and interest and
the reporting of lost certificates (with payment stopped). To ensure the accuracy
of information in the System, a reviewer shall check to make sure no error has
been made before information is transmitted.
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Chapter 2: Payment of Principal and Interest
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3.Before a bank's head office or any of its branch locations, acting on behalf of
the Central Bank, redeems bonds or interest coupons, it shall first compare the
certificates against specimen certificates and anticounterfeiting marks to verify
authenticity, and shall enter the serial numbers into the System to ensure that
the certificates in question have not been reported lost (with payment stopped)
or reported lost (with a request for assistance in finding). Once it has been
confirmed that there are no problems with respect to the above matters, the
bonds and interest coupons shall be redeemed and canceled. Where forgeries are
discovered, or a certificate has already been reported lost (with payment stopped
or with a request for assistance in finding), the police authorities shall be
notified immediately. Where there are doubts concerning authenticity of
certificates or other matters, the bank shall take possession of the certificates
on the spot, file related evidence, and report the matter through proper channels
to the Ministry of Finance.
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4.If, in the course of redeeming bonds or interest coupons, a bank branch or head
office discovers certificates with duplicate serial numbers, it shall effect
redemption only after re-examining the certificates and verifying that there has
been no error in input. In doing so, however, it must first contact the bank
branch or head office that last redeemed certificates bearing the same serial
number for assistance in thematter; the bank branch office or head office
receiving the request for assistance shall provide prompt assistance or, failing
to do so, shall be held responsible for any problems arising from the delay.
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5.After redeeming the certificates with duplicate serial numbers mentioned in the
preceding Article, a bank branch or head office shall list them in an "other
receivables" account and make a later correction after the matter has been
clarified.
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6.When certificates to be redeemed are confirmed to have duplicate serial numbers,
bank branches shall report such information through proper channels to the
Central Bank, which shall consolidate such reports and relay the information to
the Ministry of Finance for review. After the Ministry of Finance delivers a
ruling, the Central Bank's Treasury Department shall forward the ruling to the
bank head office, which shall revise the cancellation record and the appropriate
item(s) in its treasury funds account. Information in the System shall not be
revised until the Ministry of Finance issues a ruling.
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7.If a bank branch or head office loses a certificate that has already been
redeemed, it shall enter information on the certificate in question into the
System for the record. The head office shall then submit the relevant documents
to the Central Bank's Treasury Department, which shall forward them to the
Ministry of Finance's Department of National Treasury for review and action.
If a redeemed certificate that was lost as referred to in the preceding
paragraph is found again, then in accordancewith the preceding paragraph,
information entered into the System for that certificate shall be canceled and
the cancellation shall be reported through proper channels.
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8.After the close of business each day, a bank branch shall not forward or file
information on the day's redemptions and cancellations until it has taken all
certificates redeemed that day and checked them against an itemized record
(generated by the System) of the day's transactions to ensure that there are no
errors; and it shall also, within the time limit set forth, send the
certificates to its head office, which shall keep them on file. If it is
discovered that erroneous information was transmitted during the course of
business, the error shall be corrected promptly.
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9.The bank head office shall check the redeemed certificates sent to it by the
bank branch against printouts generated by the System, and shall keep all such
records properly filed. Any errors shall be corrected in the monthly report for
the following month. If the correction affects the calculation of processing
fees, the reason for the correction shall be reported to the Central Bank's
Treasury Department.
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Chapter 3: Reporting Lost Certificates and Stopping Payment
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10.When a bank branch processes an "Application to Report Loss of Bearer-Form
Certificate and Stop Payment" (attachment 1), it shall conduct an examination
to ensure that there are no errors in the application, or in the "Attestation
of Report to the Police" and any other documents submitted by the applicant as
proof of loss of the certificate. Once these documents have been confirmed
error-free, the information in the documents related to reporting a lost
rtificate (with payment stopped) shall be entered into the System. After the
information entered into the System has been saved, the bank branch shall
submit a "Stop Payment Notifice for Lost Bearer-Form Government Bond
Certificates" (attachment 2) and other related documents to the Central Bank's
Treasury Department, which shall report the information to all relevant agencies.
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11.A notice of stoppage of payment shall become invalid if the person who applies
for a "Notification of Bearer-Form Certificate Loss Report and Stoppage of
Payment" cancels the stoppage of payment or fails, within five days after
notification of stoppage of redemption, to provide proof that he or she has
already published public notice thereof. The bank handling the stoppage of
payment shall then submit a "Notice of Invalidation of Stop Payment for Lost
Bearer-Form Government Bond Certificates" (attachment 3) and other related
documents to notify the Central Bank's Treasury Department or to report to the
Central Bank's Treasury Department through its head office, after which the
Treasury Department will notify all relevant agencies.
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12.When application is made to report the loss of a registered certificate and
stop payment, the owner of the certificate shall: publicly announce
invalidation of the certificate in a newspaper published in the area where
the bank branch is located; submit to the bank branch an "Application to
Report the Loss of a Registered Certificate and Stop Payment" (attachment 4)
under the same seal that he or she used to purchase the original certificate;
and complete the procedures for reporting the loss and stopping payment. After
the bank branch has conducted an examination and confirmed that there is no
error in the documentation related to the lost certificate, it shall enter
into the System the information from the documents related to the report of
loss of certificate and stoppage of payment. After the information entered
into the Systemhas been saved, the bank branch shall submit related documents
to its head office, which shall forward them to the Central Bank's Treasury
Department, which shall in turn forward them to the Ministry of Finance for
recordation.
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13.After public announcement of the invalidation of a certificate, the applicant
may submit an "Application for Reissue of Certificate" (attachment 5), together
with the original copy of a court ruling invalidating the certificate, to the
party that originally handled the lost certificate report and stoppage of
payment. This party shall then forward these documents through proper channels
to the Ministry of Finance, which shall reissue a duplicate copy of the
certificate.
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Chapter 4: Management of Certificate Document Files
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14.The bank head office shall store information related to redeemed certificates
in the System, and once every sixmonths shall prepare a list of redeemed and
canceled bonds and interest coupons. The head office shall submit this list to
the Central Bank's Treasury Department, which shall forward it to the Ministry
of Finance for auditing and settlement. Only after this has been done may the
information be transferred to other media for storage, which shall be regularly
inspected and properly maintained.
If changes to the information mentioned in the preceding paragraph affect the
period for calculation of processing fees, the reason for the changes shall be
reported in writing to the Central Bank's Treasury Department, and shall be
used as the basis for revision of information in the System.
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15.After the close of business each day, bank branches shall update the System to
reflect information for that day's reports of lost certificates and stoppages
of payment, and shall prepare printed records to keep on file.
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Chapter 5: System Malfunctions
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16.When a bank head office is unable to operate the System normally due to
malfunctions in equipment, circuitry, or software, it shall report the matter
to the Central Bank's Information Systems Office and Treasury Department.
If it is deemed that the malfunction referred to in the preceding paragraph
cannot be repaired in a short time,manual methods shall be used to handle
redemption of bonds and interest coupons, and to report the loss of registered
certificates and stop redemption thereof. With bearer-form certificates,
however, the bank head office may explain the malfunction to certificate
holders and help them locate another local bank branch towhich they can take
their certificates for redemption. After the malfunction has been repaired,
materials processed manually shall be keyed into the System. Depending on the
circumstances of the malfunction and of bank operations, the bank head office
may apply to the Central Bank's Treasury Department for extension of the
System's operating hours.
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17.When the System cannot operate normally due to malfunctions in the Central
Bank's server, equipment, or circuitry, the Central Bank's Information Systems
Office shall immediately notify the Central Bank's Treasury Department, the
Ministry of Finance's Department of National Treasury, and all bank head
offices engaged in operation of the System. If it is deemed that the System
cannot be restored to normal operations within a short period of time, the
Department of National Treasury and all bank head offices shall fax to the
Central Bank's Treasury Department copies of the day's lost certificate
reports (with payment stopped), lost certificate reports (with request for
assistance in finding), applications for reissue of duplicate certificates,
certificates that have been lost after redemption, and other materials. The
Central Bank's Treasury Department shall then assemble the aforementioned
materials and notify the Department of National Treasury and the various bank
head offices; the latter shall relay this notification to their bank branches.
For certificates reported lost (with payment stopped), the bank branches must,
after receiving the faxed materials, dispatch a return fax acknowledging
receipt, whereupon the stoppage of redemption shall take effect.
When transactions involving the redemption of bonds and interest coupons are
processed by hand, banks are still required, before making redemption, to
verify that the certificates have not been reported lost (with payment stopped
, or with request for help in finding), that no application for reissue of a
duplicate certificate has been filed, and that the certificates have not been
previously redeemed and subsequently reported lost. When lost certificate
reports (with payment stopped) are processed by hand, banks are still required
to complete all notification procedures in connection with the lost
certificate reports (with payment stopped) within two working days.
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18.After the System is restored to normal operation, bank branches shall carefully
review all transactions processed manually while the computer system was out of
service, and shall then input the manually processed materials into the System.
Depending on how long the System was out of service and the status of
operations, the Central Bank's Treasury Department may consider extending the
normal operating hours of the System.
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19.In the event the government announces a work holiday for Taipei City residents
due to a natural disaster or other major incident while government agencies in
other areas remain in operation, bank branches in areas where government
agencies remain in operation shall continue to process redemptions pursuant to
the provisions of Article 3 above. However, they shall use information
available prior to the government shutdown when verifying that the certificates
have not been reported lost (with payment stopped, or with request for help
in finding), that no application for reissue of a duplicate certificate has
redeemed and subsequently reported lost. After the Systemis restored to normal
operation, they shall promptly complete all backlogged items requiring
processing.
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Chapter 6: Supplementary Provisions
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20.In principle, the operating hours of the System are the same as the hours
during which banks are open to the public, but the schedule for processing
of internal bank matters shall be set in accordance with the Daily Work Flow
Chart (attached Table 6).
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