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

Subject：
This is in response to your inquiry whether the pledged re-deposits with less than 
1-year maturity in accounts with designated banks should be deducted from liquid 
reserves of credit departments of farmers' associations, credit departments of 
fishermen's associations and credit cooperatives. Please refer to Explanation 2 
below.

Explanations:
1.This is to respond to your letter, dated June 2, 1999 (Ref. No. (88)-He-Jin-Zong-
　He-11422).
2.When credit departments of farmers' associations, credit departments of 
　fishermen's associations or credit cooperatives pledge their less than 1-year 
　redeposits at your bank for the purposes of mutual support in the availability of 
　emergency funds, or for establishing lines of credit with yor bank in order to 
　shorten the time for contingenency funding. If  your bank has not extended the 
　credit to such an institution under any of these credit arrangements, then 
　according to the reverse interpretation of Article 903 of the Civil Code, the 
　respective redeposits shall be considered liquid if your bank, as plegee, so 
　consent.  The CBC agrees that the portion from which your bank has not extended 
　the credit, need not be deducted from the liquid reserves.