Public Debt Act Article 9

When any of the circumstances listed below applies to the central government, a special municipality, a county (or county-level city), or a township (or township-level city), with the exception of the central government, which is to be supervised by the Control Yuan as required by law, the supervisory authority for public debt shall order correction or repayment within a certain period of time. If correction or repayment is not made within the prescribed time period, the supervisory authority for public debt may, in addition to reducing or suspending distribution of the centrally-funded tax revenues to the violating government, refer the Minister of Finance, or the mayor of the special municipality, county (or county-level city), or township (or township-level city), as the case may be, for disciplinary proceedings:1. Engagement in over-borrowing in violation of Subparagraph 1 of Paragraph 1 of Article 5, or Paragraph 3, 4, 7, 8, 9, or 10 of the same article.2. Continuation of the taking on of debt in violation of an order of restriction on or suspension of borrowing under the preceding article.3. Failure to allocate funds in its budget for debt repayment pursuant to the debt service coverage ratio set out in Paragraph 1, Article 12.After the June 27, 2013 amendment to this Act enters into force, a violator of Subparagraph 1 of Paragraph 1 of Article 5, or Paragraph 3, 4, 7, 8, 9, or 10 of the same article will be exempted from the restrictions and dispositions under the preceding paragraph, provided that there is no increase in the accumulated outstanding public debt.