Directions on the Opening and Use of Interbank Funds Transfer Guarantee Special Accounts by Financial Institutions

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Title：

Directions on the Opening and Use of Interbank Funds Transfer Guarantee Special Accounts at the Department of Banking of the Central Bank of the Republic of China (Taiwan) by Financial institutions

Inactive Regulations

Amended Date： February 19, 2001

[Print]

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(Criteria and Purpose of Account Opening)

1.

1. Financial institutions that have opened reserve accounts and/or account of other financialinstitutions with the Department of Banking of the Central Bank of the Republic of China (Taiwan)(hereafter referred to as "the Department")shall open jointly a No. 87 "Interbank Funds Transfer Guarantee Special Account" at the Department. This enables funds to be transferred from financial institutions' deposit accounts to the Special Accounts during the day and used as guarantee to the Central Bank of the Republic of China (Taiwan)'s (hereafter referred to as "the Bank") authorized clearing institutions(hereafter referred to as "Clearing Institutions")for clearing individual interbank payments.

These Directions set out in the preceding Paragraph shall apply mutatis mutandis to each department of the Bank holding an internal correspondent account with the Department.

(Account Opening Procedure)

2.

2. When opening a joint Guarantee Special Account, a financial institution shall fill out and submit to the Department an "Application for Financial Institutions to Open and Use an Interbank Funds Transfer Guarantee Special Account" (as per attached format). The procedure for opening the "Interbank Funds Transfer Guarantee Special Account" shall be deemed completed when the Department has reviewed and approved the application and issued a letter of consent to the applying institution.

(Fund Transfer Procedures)

3.

3. The procedure for transferring funds from Deposit Accounts to Interbank Fund Transfer Guarantee Special Accounts shall comply with the" Directions for the Central Bank of the Republic of China (Taiwan) to Govern Electronic Interbank Funds Transfer and Settlement".

(Fund Re-Transfer Procedure)

4.

4. At the time of settlement on each day, each financial institution shall ask the clearing institution to notify the Department of the results of the clearing in order for the clearing institution to re-transfer the funds from the "Interbank Funds Transfer Guarantee Special Account" [back to the Deposit Accounts] so that the Department may handle the settlement at the end of each day.

(Dispute Resolution)

5.

5. If a financial institution disputes the notice of re-transfer of funds issued by the clearing institution to the Department, such dispute shall be resolved by the financial institution involved and the clearing institution through negotiation in accordance with relevant agreements.