| Article 1 |
These Procedures are promulgated pursuant to Article 49 paragraph 2 of the Futures Trading Act, Article 24 of the Regulations Governing Futures Clearing Houses, and Article 109 of the Operating Rules of the Taiwan Futures Exchange Corporation (the "Operating Rules").
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| Article 2 |
If the outstanding obligation of a defaulting clearing member cannot be satisfied by the appropriations set forth and in the order provided for in Article 105, paragraph 1, subparagraphs 1 to 3 of the Operating Rules, then when appropriations are made from other clearing members' contributions as set out in subparagraphs 4 and 5 of the same paragraph, the amount of such appropriations apportioned to each other clearing member shall be set based on the ratio of the amount of the clearing member's required contribution to the clearing and settlement fund to the total amount of all other clearing members' required contributions to the clearing and settlement fund on the business day immediately preceding the first day of the cooling-off period set out in paragraph 3 of the same article.
The cap on apportioned appropriations from clearing members under Article 105, paragraph 1, subparagraph 5 of the TAIFEX Operating Rules shall be as set out in paragraph 2 of the same article.
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| Article 3 |
A clearing member shall pay its apportioned share of appropriations in accordance with the apportionment and payment procedure indicated in the TAIFEX's written notification within the prescribed period.
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| Article 4 |
If a clearing member refuses to pay its apportioned share of appropriations or does not comply with the payment procedure, the TAIFEX may halt the member's clearing and settlement operations or terminate its clearing and settlement contract with the member.
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| Article 5 |
The amount recovered by the TAIFEX from the defaulting clearing member shall be used to repay the following amounts in the following order, after deducting all expenses:
- Amount paid by the TAIFEX in accordance with Article 105, paragraph 1, subparagraph 6 of the Operating Rules.
- Apportioned amounts paid by the non-defaulting clearing members in accordance with Article 105, paragraph 1, subparagraph 5 of the Operating Rules.
- Amount paid from the non-defaulting clearing members' contributions to the clearing and settlement fund in accordance with Article 105, paragraph 1, subparagraph 4 of the Operating Rules.
- Amount paid from the TAIFEX's compensation reserve fund in accordance with Article 105, paragraph 1, subparagraph 3 of the Operating Rules.
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| Article 6 |
These Procedures and any amendments to them shall take force after they have been submitted to the competent authority for ratification.
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