| Article 50 |
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| Article 51 |
A securities firm, when applying for securities borrowing, shall deposit into this Corporation a security sum equivalent to 120% of the closing price of the object securities on the date on which the transaction is concluded multiplied by the volume of securities applied for, and shall act in accordance with "Particulars to be Noted by Securities Firms for Provision of Security Sum to Cure Defective Securities When Handling Relevant Settlement Operation".
When a securities firm fails to complete the settlement of securities and further fails to complete the reporting or application procedures in accordance with the time prescribed in Article 104 of Operation Rules, and if such securities firm is not required to otherwise provide checks pursuant to the provisions of the "Particulars to be Noted" referred to in the preceding paragraph, this Corporation may borrow securities on behalf of the securities firm, and notify such securities firm on the following date, and the securities firm shall not raise any objection to the securities borrowing charge incurred thereby. |
| Article 52 |
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| Article 53 |
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| Article 54 |
The borrowed securities shall be retuned on a daily basis from the business day following each lending date.
A borrowing securities firm, after competing the securities borrowing, shall redeliver or make up the securities by the prescribed or committed deadline. Before the redelivery or make-up of securities is completed, it shall continue to borrow the securities on each business day so as to use the same for the redelivery pursuant to the preceding paragraph.
The securities redelivered or made-up by a borrowing securities firm by the prescribed or committed deadline shall be redelivered through the Securities Central Depository Enterprise. Upon notice of such redelivery and completion of transfer by the Securities Central Depository Enterprise, this Corporation will pay the securities lending charge, by deducting from the refundable security sum, to the lender through the securities firm of the lender or through the bank approved by the competent authority to operate the custodial business and serving as a custodial institution for the lender. Thereafter, this Corporation will redeliver to the securities firm the balance of the security sum after deducting the securities lending charge.
A securities firm of a lender or a bank approved by the competent authority to operate the custodial business and serving as a custodial institution for a lender shall inform the lender of the status of securities lending and redelivery of securities, and may therefore charge the lender a service fee; however, such service fee shall not exceed 10% of the securities lending charge. |
| Article 55 |
If the security sum for the portion of unredelivered securities of a borrowing securities firm, after deducting the accrued securities lending charge, is less than 107% multiplied by the closing price of the object securities of the then current day and further multiplied by the volume of unredelivered securities, such borrowing securities firm shall make it up to 120% on the following business day.
Where a borrowing securities firm fails to pay the security sum in accordance with regulations or is unable to redeliver the borrowed securities for reasons attributable to itself, this Corporation will purchase the securities from the market and redeliver them to the lender. The prices and all expenses incurred therefrom will be paid from the security sum; in case of any shortfall, this Corporation will recover it from the borrowing securities firm, whereas, in case of any remaining balance, such balance will be redelivered to the borrowing securities firm.
In the event that a securities firm is in violation of the settlement obligation, this Corporation will forthwith suspend its participation in securities lending and borrowing transactions. |