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Issues related to banks’ investment in beneficial securities or asset-backed securities issued under the Financial Asset Securitization Act or Real Estate Securitization Act when engaging in “designated money trust investment in domestic securities”
From: Financial Supervisory Committee, Executive Yuan
Date: 11/23/2005
Ref. No.: Jin-Kuan-Yin-(4)-Zi-No.0948011495
Subject:I Issues related to bank’s investment in beneficial securities or asset-backed securities issued under the Financial Asset Securitization Act or Real Estate Securitization Act when engaging in “designated money trust investment in domestic securities”.
Explanations:
1. This is in reply to the letter Ref. No. Tai-Gong-Ying-940527700 dated October 12 forwarded to the Commission by the Banking Bureau, Financial Supervisory Commission.
2. If a trustor, be it a legal institution or an individual, plans to invest in privately placed beneficial securities or asset-backed securities issued under the Financial Asset Securitization Act or Real Estate Securitization Act through a designated money trust with a bank, the money trust shall conform to the provisions in subparagraph 2, paragraph 1 of Point 2 in the order of the Ministry of Finance dated September 24, 2002 (Ref. No. Tai-Tsai-Rong (4)-Zi-0914000834). If the trust property provided in the trust agreement exceeds NT$50 million, it is not required to examine whether the trustor meets the conditions set out in subparagraph 2, paragraph 1 of Point 2 in the same order.
3. If the trust property is to be invested in privately placed beneficial securities or asset-backed securities, the application process shall conform to the provisions on “broaden the scope of trust property” provided in Explanation 3 in the letter of the Ministry of Finance dated March 2, 2004 (Ref. No. Tai-Tsai-Rong (4)-Zi-0934000190) in addition to the trust agreement. |