Regulations Governing Securities Investment Trust Funds Article 10-1
A SITE that utilizes a fund for payment of redemption prices or for settlement of securities may instruct the fund's custodian institution to arrange a short-term loan with a financial institution, in the name of the fund's exclusive account, in accordance with the provisions below; the use of such a loan shall be disclosed in the securities investment trust agreement and the public prospectus:1. The provider of the loan must be a domestic or foreign bank duly authorized to engage in lending business.2. The term of a loan taken out in order to pay redemption prices may not exceed 30 business days; the term of a loan taken out for settlement of securities may not exceed 14 business days.3. Payment of interest and fees related to the loan will be made using fund assets.4. The total amount of the loan may not exceed 10 percent of the net asset value of the fund.5. When the provider of the loan is the fund's custodian institution or is an interested party with respect to the SITE, the terms of the loan transaction may not be less favorable than those offered by any other financial institution.The provisions of Article 11 apply mutatis mutandis with respect to the definition of "interested party" in subparagraph 5 above.When taking out a loan will require the fund to establish rights over fund assets, or when the provider of the loan is the fund's custodian institution, the SITE must disclose those facts in the securities investment trust agreement and the prospectus.The liability for repayment of the loan that is borne by the fund and the fund custodian institution of paragraph 1 is limited to the amount of the fund's assets. The amount of liability borne by a beneficiary is limited to the beneficiary's respective amount of investment in the fund's beneficial certificates.A template contract for borrowing by funds shall be adopted by the SITCA in consultation with the Trust Association. The template shall be submitted to the FSC for recordation upon its adoption and at the time of any amendment. The content of the template shall include the parties of the loan, loan amount, loan duration, method of repayment, and parties liable for payment of damages.When a SITE uses fund assets for borrowing purposes, measures for control and management of the SITE's borrowing shall be incorporated into its internal control system. The measures shall be submitted to the board of directors for approval.The control and management measures of the preceding paragraph shall include, at a minimum, assessment of the loan efficacy, loan providers, and loan transaction terms and conditions, and management of the loan amounts and their repayment.Assessments of borrowing by the fund and loan-related operations shall be documented in a written record, which shall be retained for a period of not less than 5 years.
中文原文 證券投資信託基金管理辦法（931030訂定）第10-1條
證券投資信託事業運用基金為給付買回價金或辦理有價證券交割，得依下列規定指示基金保管機構以基金專戶名義向金融機構辦理短期借款，並應揭露於證券投資信託契約及公開說明書：
一、借款對象以依法得經營辦理放款業務之國內外金融機構為限。
二、為給付買回價金之借款期限以三十個營業日為限；為辦理有價證券交割之借款期限以十四個營業日為限。
三、借款產生之利息及相關費用由基金資產負擔。
四、借款總金額不得超過本基金淨資產價值之百分之十。
五、基金借款對象為基金保管機構或與證券投資信託事業有利害關係者，其借款交易條件不得劣於其他金融機構。
前項第五款所稱利害關係者，準用第十一條規定。
基金因辦理借款而需於基金財產上設定權利或借款對象為基金保管機構者，證券投資信託事業應載明於證券投資信託契約及公開說明書。
第一項基金及基金保管機構之清償責任以基金資產為限，受益人應負擔責任以其投資於該基金受益憑證之金額為限。
基金借款契約範本由同業公會洽商信託業公會訂定，其內容應包括基金借款借貸主體、借款金額、借款期限、借款之償還方式及損害賠償責任歸屬，並報經本會備查；其修正時，亦同。
證券投資信託事業運用基金資產辦理借款，應於內部控制制度中訂定基金借款之監控管理措施，並提經董事會通過。
前項監控管理措施應至少包括借款效益、借款對象、交易條件之評估及借款金額、借款償還之管理。
辦理基金借款之評估及借款相關作業，應作成書面紀錄並建檔保存，保存期限不得少於五年。
一、借款對象以依法得經營辦理放款業務之國內外金融機構為限。
二、為給付買回價金之借款期限以三十個營業日為限；為辦理有價證券交割之借款期限以十四個營業日為限。
三、借款產生之利息及相關費用由基金資產負擔。
四、借款總金額不得超過本基金淨資產價值之百分之十。
五、基金借款對象為基金保管機構或與證券投資信託事業有利害關係者，其借款交易條件不得劣於其他金融機構。
前項第五款所稱利害關係者，準用第十一條規定。
基金因辦理借款而需於基金財產上設定權利或借款對象為基金保管機構者，證券投資信託事業應載明於證券投資信託契約及公開說明書。
第一項基金及基金保管機構之清償責任以基金資產為限，受益人應負擔責任以其投資於該基金受益憑證之金額為限。
基金借款契約範本由同業公會洽商信託業公會訂定，其內容應包括基金借款借貸主體、借款金額、借款期限、借款之償還方式及損害賠償責任歸屬，並報經本會備查；其修正時，亦同。
證券投資信託事業運用基金資產辦理借款，應於內部控制制度中訂定基金借款之監控管理措施，並提經董事會通過。
前項監控管理措施應至少包括借款效益、借款對象、交易條件之評估及借款金額、借款償還之管理。
辦理基金借款之評估及借款相關作業，應作成書面紀錄並建檔保存，保存期限不得少於五年。