Regulations Governing the Business of Negotiable Instruments Exchange and Clearance of Accounts among Banks Article 13

A clearinghouse shall prescribea “Participation Agreement for Clearing Negotiable Instruments”which shall clearly state the following particulars:1.The qualifications required for application to be a clearing entity;2.Criteria for determining the amount of clearing margin a clearing entity must post, depositrestrictions and conditions for its return;3.Aclearing entity mayact as a clearing agent for other financial institutions that are non-clearing participants;4.Negotiable instruments collected by a clearing entity from another clearing entity shall be presented to the local clearinghouse to carry out clearing; if a negotiable instrument presented for payment is dishonored, the payer clearing entity shall return the dishonored negotiable instrument to the local clearinghouse for exchange;5.Branches of clearing entities shall, without exception, participate in local clearing of negotiable instruments and the [parent] clearing entity shall submit for clearing all negotiable instruments from other clearing entities accepted by its branches and assume full liability associated with their clearing;6.A clearing entity shall open a deposit account with the Bank or a correspondent bank of the Bank; settlement of all payable and receivable clearing balances and dishonored negotiable instrument clearing balances shall be conducted in accordance with the Directions for the Central Bank of the Republic of China (Taiwan) to Govern Electronic Interbank Funds Transfer and Settlement and other relevant regulations; and7.Other protocols to be observed by clearing entities.