Article 64 |
Short-term bills registered or in custody with the TDCC shall be presented for redemption by the TDCC on behalf of the bearer or holder at the stated maturity date, in accordance with the following procedures:
- Procedures for deposit (or remittance) of redemption funds into the redemption account ("redemption account") established by the TDCC at the physical securities deposit bank:
- Commercial Paper II (CP II), foreign currency denominated commercial paper, municipal notes, and foreign currency denominated NCDs: The issuer shall deposit (remit) the redemption funds into the redemption account on the stated maturity date.
- Commercial Paper I (CP I) and banker's acceptances: On the second business day prior to the stated maturity date, the TDCC will notify the physical securities deposit bank to present the Commercial Paper I (CPI) or banker's acceptances for exchange, obtain the redemption funds, and remit the funds into the redemption account.
- NTD denominated NCDs: On the NCD's stated date of maturity, the issuing bank, by means of a scheduled account transfer through the Central Bank Department of Banking, will deposit the redemption funds in the deposit account opened by the physical securities deposit bank at the Department of Banking. The physical securities deposit bank will then deposit the redemption funds in the TDCC's redemption account. When the issuing bank is also the physical securities deposit bank, it shall directly deposit the redemption funds into the TDCC's redemption account on the NCD's stated date of maturity.
- Beneficial securities and asset-backed securities: The trustee or the special-purpose company shall deliver the redemption funds distribution statement to the TDCC on the stated maturity date of the security, and shall deposit (remit) the redemption funds into the TDCC redemption account. The TDCC will distribute the redemptions in accordance with the redemption funds distribution statement.
- On the stated maturity date of the physical certificates, the TDCC will notify the physical securities deposit bank of the number, redemption amount, tax amount, and additional insurance premium amount due on the bearer or holder's short-term bills to be redeemed on that date and other related information, and after completing redemption, will remit the redemption amount, after deduction of taxes and additional insurance premiums, from the TDCC redemption account into the deposit account of the bills dealer, investor custodian bank, or agent clearing bank, and will deduct from the bearer or holder's proprietary position the number of certificates redeemed.
- After completing the procedures of the preceding subparagraph, the TDCC will notify the bills dealer, investor custodian bank, or agent clearing bank redemptions have been completed.
The physical securities deposit bank shall remit the tax amounts and additional insurance premiums deducted pursuant to the preceding paragraph, along with the tax amounts and additional insurance premiums collected pursuant to Articles 18, 33, and 67, to the National Tax Administration and Bureau of National Health Insurance by the 10th day of the following month and the end of the following month respectively.
The provisions of paragraph 1, subparagraphs 2 and 3 apply mutatis mutandis to TDCC handling of redemptions of short-term bills in Central Bank open market operations, and handling of redemptions of foreign currency denominated NCDs purchased and sold by foreign depository or clearing institutions .
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Article 65 |
(deleted)
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Article 66 |
An issuer may engage the underwriting bills dealer to apply to the TDCC for presentment of short-term bills issued by it for redemption prior to their stated maturity date. The procedures are as follows:
- If the issuer applies electronically, it shall transmit the application content to the underwriting bills dealer through the TDCC Short-Term Bills Registration System on its issuance platform, and the underwriting bills dealer shall notify the TDCC after confirmation of the content through the BCSS. If the issuer applies in writing, it shall fill out a Consent to Early Redemption of Short-Term Bills and instruct the underwriting bills dealer to send the consent form to the TDCC.
- After completing the procedure under the preceding subparagraph, the bills dealer shall give the TDCC a notification of early redemption.
- When the TDCC receives the notification by a bills dealer of early redemption under the preceding subparagraph, it will immediately amend the redemption date of the given short-term bills, and will present the bills for redemption on the amended redemption date. If payment is not received, it will not dishonor the bills, but will instead automatically reinstate the original stated maturity date of the bills as their redemption date.
The short-term bills of the preceding paragraph are restricted to Commercial Paper II (CPII) and foreign currency denominated commercial paper. The provisions of Article 64 will apply mutatis mutandis to their presentment and redemption.
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Article 67 |
Procedures for the reissuance and net settlement of Commercial Paper II (CP II) and foreign currency denominated commercial paper at their stated maturity dates are as follows:
- When the TDCC receives a bills dealer's notification of reissuance, it will immediately transfer the quantity of commercial paper that has matured from the proprietary position of the bills bearer into its pending settlement position, and after carrying out settlement of funds according to the principles listed below, will notify the physical securities deposit bank of the quantity of the commercial paper, the amount payable by the issuer, and related information. If the bearer of the bills is not a bills dealer, the TDCC will also notify the bearer of the bills or its investor custodian bank:
- If there is a net amount payable by the issuer which exceeds the tax payable on the commercial paper at maturity plus the additional insurance premiums and underwriting fee, then the issuer is the net payer, and the net dollar amount payable will be the net of the redemption amount of the commercial paper at maturity and the underwriting amount of the reissued commercial paper (not including related processing fees).
- If there is a net amount payable by the bearer of the bills which exceeds the tax payable on the commercial paper at maturity plus the additional insurance premiums and underwriting fee, then the bearer of the bills is the net payer, and the net dollar amount payable will be the net of the underwriting amount of the reissued commercial paper (not including related processing fees) and the redemption amount of the commercial paper at maturity after deduction of the taxes and additional insurance premiums payable.
- If there are net amounts payable by both the issuer and the bearer of the bills, the formulas set out in the preceding two items will apply mutatis mutandis to calculation of the net dollar amounts payable by each.
- The TDCC will use the following procedures for payment and receipt of funds between the deposit accounts of the bills dealer, investor custodian bank, or agent clearing bank and the physical securities deposit bank at the Central Bank's Department of Banking or the foreign currency clearing bank:
- If the issuer is the net payer, then when the TDCC has received confirmation of reissuance from the physical securities deposit bank, it will immediately notify the Central Bank's Department of Banking or the FISC to deduct the tax amount payable on the commercial paper at maturity plus the additional insurance premiums payable and underwriting fees from the issuer's net funds payment and transfer that amount from the deposit account of the physical securities deposit bank into the deposit account of the bills dealer, investor custodian bank, or agent clearing bank.
- If the bearer of the bills is the net payer, the TDCC will immediate notify the Central Bank's Department of Banking or the FISC to transfer the bearer's net funds payment from the deposit account of the bills dealer, investor custodian bank, or agent clearing bank into the deposit account of the physical securities deposit bank.
- If the issuer and the bearer of the bills are both required to make payments, then after receiving confirmation of reissuance from the physical securities deposit bank, the TDCC will immediately notify the Central Bank's Department of Banking or the FISC to transfer the amount payable by the bearer of the bills from the deposit account of the bills dealer, investor custodian bank, or agent clearing bank into the deposit account of the physical securities deposit bank.
- After payment and receipt of funds is completed, the TDCC will deduct the quantity of the commercial paper that has matured from the bills bearer's positions pending settlement and transfer the quantity of reissued commercial paper into the bills bearer's proprietary position.
- After the procedures of the preceding subparagraph have been completed, the TDCC will immediately notify the bills dealer and the bills bearer or its investor custodian bank.
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Article 68 |
When short-term bills are not presented for redemption, the TDCC will transfer the number of bills not presented for redemption from the bearer or holder's proprietary position into their restricted (not presented for payment) position in accordance with the notification of the bills dealer or the investor custodian bank, and issue notification to the bills dealer or the investor custodian bank when the procedure has been completed.
An investor not presenting short-term bills for redemption as under the preceding paragraph shall engage its investor custodian bank to carry out the procedure with the TDCC.
The notice of non-presentment of the preceding paragraph, for Commercial Paper II (CP II) and foreign currency denominated commercial paper, may be made on the stated maturity date; for beneficial securities and asset-backed securities, 1 business day prior to the stated maturity date; and for other short-term bills, notification shall be made, at the latest, 3 business days prior to the stated maturity date.
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Article 69 |
When an issuer makes a deposit (or remittance) of redemption funds on the stated maturity date in accordance with Article 64, the TDCC shall notify the physical securities deposit bank. If the short-term bills are commercial paper or acceptances, the physical securities bank shall carry out the matters in connection with the dishonor of the given batch of short-term bills in accordance with the applicable regulations of the Taiwan Clearing House.
In the case of Commercial Paper II (CPII) and foreign currency denominated commercial paper in physical form, when there is a shortfall in the amount of redemption funds paid by the issuer, the TDCC shall choose at random which short-term bills from among the given batch will be dishonored by it, and will notify the physical securities deposit bank to carry out the matters in connection with the dishonor of those short-term bills in accordance with the applicable regulations of the Taiwan Clearing House.
In the case of dematerialized short-term bills , when there is a shortfall in the amount of redemption funds paid by the issuer, the TDCC will, from the amount of redemption funds paid, calculate to the New Taiwan Dollar, pro-rata based on the monetary amounts of the bills held by the bearers or holders, the monetary amounts redeemable by them, and shall notify the physical securities deposit bank. If the short-term bills are commercial papers, the TDCC, with respect to the monetary amount for which each bearer did not receive redemption, shall notify the physical securities deposit bank to carry out the matters in connection with the dishonor of those commercial papers in accordance with the applicable regulations of the Taiwan Clearing House.
The provisions of this article are not applicable with respect to beneficial securities and asset-backed securities.
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Article 70 |
When a dishonor of short-term bills occurs to a particular issuer, the issuer may carry out procedures for recordation of the credit status of the bills with the physical securities deposit bank in accordance with the applicable regulations of the Taiwan Clearing House.
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Article 71 |
When insufficient payments are made for beneficial securities and asset-backed securities at maturity, the TDCC will deduct from the holder's proprietary position the number of securities reaching maturity, transferring that number of matured securities into the holder's restricted position and then issuing notifications.
When short-term bills other than those under the preceding paragraph are not paid at maturity, the TDCC shall deduct from the bearer or holder's proprietary position the number of bills not redeemed, and transfer that number into their restricted (dishonored bills) position, after which it shall issue notifications.
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Article 72 |
When the short-term bills of an investor or a bills dealer on which a pledge has been established reach the stated maturity date but the pledge has not been cancelled, the TDCC, on the stated maturity date, will itself undertake cancellation of the pledge on the given short-term bills, and carry out redemption on its own authority.
The provisions of Article 57 will apply mutatis mutandis to the cancellation of pledge of the preceding paragraph.
The provisions of Article 64 will apply mutatis mutandis to the redemption procedures of paragraph 1. The TDCC will notify the investor's investor custodian bank or physical securities deposit bank to establish an account in which the redemption funds shall be listed for oversight as restricted funds, and the terms of the original pledged shall be recorded. In the event of non-payment or insufficient payment, the provisions of Article 71 will apply mutatis mutandis.
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Article 73 |
When the short-term bills of a bearer or holder that are subject to restricted settlement reach the stated maturity date and the restriction has not yet been lifted, the TDCC, on the stated maturity date, will itself initiate lifting of the settlement restrictions on the short-term bills and carry out redemption on its own authority. In the event of non-payment or insufficient payment, the provisions of Article 71 will apply mutatis mutandis.
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Article 74 |
When the short-term bills of a bills dealer, investor custodian bank, investor, or foreign depository or clearing institution that are subject to a settlement prohibition reach the stated maturity date and the prohibition has not yet been lifted, the TDCC will carry out redemption of the bills on its on authority on the stated maturity date, and will carry out subsequent payments of funds and related matters in accordance with the instructions of the enforcing authority or competent authority.
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Article 75 |
When a bearer or holder of bills, after the stated maturity date of the bills, carries out deferred presentment and redemption for holdings of short-term bills not yet presented for redemption, then the TDCC, in accordance with the bearer or holder's notification, will make a notation of the number of bills for deferred redemption in the bearer or holder's restricted (not presented for payment) position, and notify the bearer or holder of the bills that the procedure has been completed.
The notice of deferred redemption of the preceding paragraph, for short-term bills, shall at the latest be made 3 business days prior to the deferred redemption date, and for Commercial Paper II (CP II) and foreign currency denominated commercial paper, shall at the latest be made 1 business day prior to the deferred redemption date.
The provisions of Article 64 will apply mutatis mutandis to the TDCC procedures for presentment and redemption carried out by it on the deferred redemption date, provided that after completion of the redemptions, the number of bills redeemed shall be deducted from the bearer or holder's restricted (not presented for redemption) position.
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Article 76 |
An issuer may engage the underwriting bills dealer to apply to the TDCC to withdraw the redemption funds for short-term bills issued by it.
If the issuer applies electronically, it shall transmit the application content and related fund deposit or remittance or other evidentiary information to the underwriting bills dealer through the TDCC Short-Term Bills Registration System on its issuance platform, and the underwriting bills dealer shall notify the TDCC after confirmation of the content through the BCSS. If the issuer applies in writing, it shall fill out an Issuer's Letter of Authorization to Apply for Withdrawal of Funds from the Redemption Account and instruct the underwriting bills dear to send the letter of authorization and photocopies of related documentation to the TDCC.
The TDCC, after reviewing and verifying that the application of the preceding paragraph is correct, will notify the physical securities deposit bank to deposit (or remit) the redemption funds of the issuer, after deducting the relevant processing fees, into the issuer's designated account.
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Article 77 |
A financial institution that serves as a guarantor, when applying to withdraw the funds for redemption at maturity that it advanced on behalf of the issuer, shall issue an official letter to the TDCC with photocopies of documentation of the relevant deposit or remittance of funds, or photocopies of other documentation.
The TDCC, after reviewing and verifying that the application of the preceding paragraph is correct, will notify the physical securities deposit bank to deposit (or remit) the redemption funds disbursed by the guarantor, after deducting the relevant processing fees, into the guarantor's designated account.
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