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2021.12.17 Regulations Regarding Paragraph 2 of Article 31 of the Act Governing Bills Finance Business [Chinese]
1. This order is adopted in accordance with Paragraph 2, Article 31 of the Act Governing Bills Finance Business.
2. Bills finance companies shall comply with the following regulations when they implement credit limit control for guarantees extended through commercial papers issued by real estate business companies:
(1) The classification and monitoring of real estate business company customers in guarantee business of Bills finance companies shall be processed in accordance with the real estate classification and monitoring standards established by the R.O.C. Bills Finance Association. Bills finance companies must also incorporate guarantees for non-real estate business companies whose funds are used to finance the group's affiliates that engage in real estate business into the standards.
(2) According to the aforementioned classification and monitoring standards, the ratio of guarantees extended by bills finance companies to real estate business companies must not exceed 30% of the total balance of guarantees.
(3) To effectively monitor the aforementioned ratio, bills finance companies must rigorously implement know your customer (KYC) procedures in the credit review stage to correctly classify real estate business company customers in guarantee business, and include related operations as focal points for internal audits and self-inspections.
3. This Order shall become effective on the date of promulgation. If a bills finance company does not meet the requirement for the credit limit in the preceding point, it shall complete adjustments to meet the requirements within six months of the promulgation of the Order.