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

Subject:
To standardize the procedures relating to applications by borrowers for the 
extension of principal repayments under the NT$ 150 billion Home Owner Loan Program 
(“the Program”), made available to the public through banks using postal savings 
system redeposits allocated by the Central Bank of the Republic of China (Taiwan), 
the CBC hereby set out the operational procedures in the Explanations below, and 
directs all banks to act accordingly.

Explanations:
Lending banks under the Program have recently made inquiries relating to borrowers'
requests for principal deferral. To simplify the working process, the CBC, after 
having studied the current status of the Preferential Housing Loan Program of the 
Executive Yuan, hereby directs your good bank (i.e. the managing bank under the 
Program) to inform each lending bank to adopt the principles set out below:
1.Lending banks may negotiate with borrowers on a case-by-case basis taking 
　consideration of individual lending relationship and risk factors without the 
　CBC's approval.
2.Borrowers are allowed to apply for principal deferral only once, and the term of 
　deferral is limited to one year.
3.The maximum amortization period may not exceed 20 years.
4.The deferred principal amount shall be amortised over the remaining loan period.
5.Given that part of the lending interest under the Program is subsidized by the 
　Treasury, and that a deferral is simply a delay of repayment which shall add to 
　borrowers’ future burden, lending banks should require such borrowers to warrant 
　not to defer the principal repayment again.
6.Lending banks shall report the information regarding approved repayment deferrals 
　to the managing bank under the Program (i.e. the bank) for records, and the 
　reporting form is to be established by the managing bank.