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

Subject: 
The maximum amortization period under the NT$ 150 billion Government Preferrential 
Home Owner Loan Program (the “Program”), available to the public since 1999 
through the allocation of postal savings redeposits by the Central Bank of the 
Republic of China (Taiwan), is hereby extended to thirty years due to current 
adverse financial conditions. Please forward this Letter to all lending banks under 
the Program.

Explanations: 
1. This Letter refers to the letter from the Construction and Planning Agency, 
　 Ministry of the Interior Ref. No. Ying-Shu-Zhai-Zi-No.0970077588 dated December 
　 17, 2008.
2. In case a bank approves a borrower’s application for extending the maximum 
　 amortization period due to financial predicament, the Bank shall concur and the  
　 treasury subsidies shall apply based on the monthly loan balance from the date 
　 of approval. While the maximum amortization period may be extended up to 30 
　 years, the maximum subsidised period remains 20 years. Upon the expiration of 
　 the maximum 20-year subsidised period, the funding of the borrower’s 
　 outstanding balance shall be financed by the lending bank, and the interest on 
　 the balance shall be calculated in accordance with the lending rate (i.e. the 
　 floating rate on one-year time deposits of the Chunghwa Post Co. plus 1%) 
　 prescribed in these Financing Directions under the Program. Lending banks are 
　 advised to clearly explain the relevant provisions to borrowers under the 
　 Program.
3. It is estimated that, if amortization period under the Program are extended as 
　 prescribed above, the average interest subsidy to each borrower for the 
　 remaining 12 years will be an additional NT$ 50,000.  In view of this additional 
　 cost to the government, applicants are required to submit a certificate of 
　 poverty issued by respective village head, or other governmental document 
　 sufficient to prove their financial predicament (e.g. certificates of low-income 
　 or received subsidies for low and middle income). Lending banks shall review 
　 such documents.