| 1 |
Regulations for Offshore Banking Units (OBU), Domestic Banking Units (DBU) and Overseas Branches of Domestic Banks Extending Foreign-Currency Loans
The order ceases to apply as of now in accordance with Financial Supervisory Commission, Executive Yuan 2007/10/09 Jin- Kuan-Yin(5)-Zi-No 09650003710
From: Financial Supervisory Commission, Executive Yuan
Date: 2006/03/08
Ref. No.: Jin-Kuan-Yin-(5)-Zi-No. 09585005590
Full text: Regulations for Offshore Banking Units (OBU), Domestic Banking Units (DBU) and Overseas Branches of Domestic Banks Extending Foreign-Currency Loans
1. When in extending a foreign-currency loan where NTD collateral is furnished, an OBU shall follow the instructions of the Central Bank of the Republic of China provided in its letter dated September 23, 1998 (Ref. No. Tai-Yang-Wai-Shi-Yi-Zi-No. 0401989) and letter dated January 12, 2005 (Ref. No. Tai-Yang-Wai-Chi-Zi-No. 0940007309). However the part of the transaction that involves financial activity between Taiwan and Mainland China will be governed by the Regulations Governing Approvals of Banks to Engage in Financial Activities Between the Taiwan Area and the Mainland Area.
2. When in extending a foreign-currency loan, an OBU or an overseas branch of a domestic bank may accept foreign-currency certificate of deposit held by the borrower or others at the overseas branch or the OBU as collateral. The OBU or the overseas branch may also accept foreign-currency certificate of deposit held by the borrower or its affiliated enterprise at the DBU of the domestic bank as collateral. However foreign-currency certificate of deposit held by a non-affiliated enterprise at the DUB is not acceptable as collateral.
3. The provisions in Articles 369-1, 369-2, 369-3, and 369-9 of the Company Act shall apply to the definition of “affiliated enterprise” mentioned above.
4. In the usance letter of credit issued by an OBU or an overseas branch, Mainland China area may be designated as the country of import.
5. When in extending a foreign-currency loan, a DBU may not accept the NTD or foreign currency certificate of deposit deposited by the borrower in other’s name at another branch of the same bank or another bank within the territory of R.O.C. as collateral.
6. The order of the Financial Supervisory Commission dated March 25, 2005 (Ref. No. Jin-Guan-Yin (1)-Zi-No.0941000186 ceases to apply as of now.
7. The letter of the Financial Supervisory Commission dated March 23, 2005 (Ref. No. Jin-Guan-Yin (5)-Zi-No.0948010373 ceases to apply as of now. |