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

Subject:
Authorized Banks that accept certificates of foreign currency time deposits from 
customers as pledges for New Taiwan Dollar credit extension shall comply with 
Explanations 1 and 2.  Please take note.
Explanations:	
1.The certificates of foreign currency time deposits held by customers are limited 
　to:
(1)certificates of foreign currency time deposits solely ownedby the 
　 borrower; and
(2)certificates of foreign currency time deposits issued by the offshore banking 
　 unit of the same Bank to the domestic corporate customer’s overseas 
　 subsidiary.
2.If the borrower defaults, the settlement of the proceeds from the disposal of the 
　certificates of foreign currency time deposits shall be handled in accordance 
　with the “Regulations Governing the Declaration of Foreign Exchange Receipts and
　Disbursements or Transactions”.
3.The CBC letter, dated August 26, 1995 (Ref. No. 84-Tai-Yang-Wai-(7)-Zi-Tzu-1672) 
　shall be revoked from the issuance date of this letter.