Open the book-entry central government bonds account

Investors should present their postal passbook savings or postal giro savings account information and complete two copies each of the ' Book-Entry Central Government Bond Application Form' and the ' Book-Entry Central Government Bond Specimen Signature Card' for processing at the handling post office. Afterward, they should retrieve their Book-Entry Central Government Bond passbook. All subsequent transactions for buying and selling government bonds will be recorded in this passbook.

Agents for selling government bonds:

Government Bond Sales Agency at 141 Post Office Locations Nationwide:
In order to encourage small investors to participate collectively in national development and to provide a convenient avenue for them to purchase government bonds, the Ministry of Finance has, since April 1993, commissioned 141 post offices to act as sales agents for government bonds intended for small investors. The subscription procedure is outlined below:

Target Audience: Small Investors.

Limit: Subject to the limit announced by the Ministry of Finance (calculated in combination with those sold through the Taiwan Stock Exchange)

Location: 141 post offices nationwide serve as handling and sales agent offices.

Price: Based on the non-competitive bid price of each series of Book-Entry Central Government Bonds as determined by auction, or the issue price announced by the Ministry of Finance.

Settlement period: In 7 days after issued (if the last day of the settlement period falls on a Saturday, Sunday, or national holiday, it will be postponed by one day).

Procedure:

Handling post offices will accept pre-subscription registration from 9 AM, five business days prior, to 3:30 PM the day before bidding. When the total amount of pre-subscriptions received by the post offices, combined with the total amount of pre-subscriptions received by the Taiwan Stock Exchange, exceeds the allocated amount for Chunghwa Post as announced by the Ministry of Finance, Chunghwa Post reserves the right to allocate the bonds, provided that the allocated amount shall not be less than NT$100,000.

The applicant should provide the pass-book savings or postal giro savings account number, book-entry central government bonds book and personal I.D. to complete the"Application Form for Pre-Subscription and Cancellation of Book-Entry Central Government Bonds” (for both the obligation and deposit returned purpose) at the handling post office to register their pre-subscription (each person is limited to one pre-subscription per series of government bonds). A performance deposit is required: NT$500 for each NT$100,000 of pre-subscribed government bonds; NT$1,000 for NT$200,000; and so on proportionally.

Applicants who cancel their pre-subscription from the date of registration up to the government bond bidding date will have their performance deposit refunded. Cancellation is not permitted after the government bond bidding date; otherwise, it will be considered a breach of contract, and the performance deposit will be forfeited.

On the issuance date of each series of government bonds, applicants should present their identification documents, performance and refundable deposit receipt, Central Government Bond passbook (for bond registration), and the required payment to the original registering post office to complete the "Application Form for Purchasing Government Bonds" to collect the bonds or complete the bond registration procedure. The original performance deposit can be used to offset the bond payment.

Applicants who pay the price and collect the bonds or complete the bond registration after the issuance date should pay overdue interest calculated based on the number of overdue days.

Those who fail to pay and collect the bonds or complete the bond registration before the end of the settlement period will have their subscribed amount canceled, and the relevant performance deposit will be forfeited. Government bond settlement is limited to one transaction.

Sub-entrusting Sales to the Taiwan Stock Exchange:
To invigorate the bond market and enhance investors' capital utilization channels, in addition to maintaining its existing over-the-counter government bond sales operations, the post office has, since August 2000, added the operation of sub-entrusting the Taiwan Stock Exchange to sell government bonds on its behalf. The subscription procedure is as follows:

Target Audience: Small Investors

Limit: Each subscriber is limited to subscribing for 1 sales unit. The sales unit is in increments of NT$100,000 face value. The subscription limit is subject to the limit announced by the Ministry of Finance (calculated in combination with those sold through Chunghwa Post). The sales unit for each series of government bonds will be announced by the Ministry of Finance and the Taiwan Stock Exchange.

Subscribers should deposit the subscription funds by the business day before the government bond issuance date. The payment for the subscribed bonds will be deducted by the securities firm on the same day. Failure to pay the full amount by the deadline will be considered a cancellation of the subscription.

On the issuance date, the clearing bank will allocate the government bonds to the subscriber's Book-Entry Central Government Bond account held at that clearing bank.

Agent Collection for Repurchase of Government Bonds:

Target Audience: Small investors and limited to the bond series and available balance recorded in the investor's "Postal Central Government Bond Passbook."

Limit: NT$1,500,000 per person.

Procedure: Present your National Identification Card (for legal entities, a photocopy of the registration certificate) and provide your postal passbook savings or postal giro savings account information, along with the government bond passbook. This is to facilitate the transfer of the bond proceeds to your savings account and the transfer of the bonds.

Price: Based on the buy-back quotation for small-denomination government bonds set by Chunghwa Post.

Report Loss and Apply for Replacement/Duplicate of Registered Government Bond Passbook

You should bring your National Identification Card and the original registered seal (organizations and groups should also provide an official letter) and complete two copies of the "Postal Central Government Bond Passbook Loss Reporting and Payment Suspension Application Form" at the original post office where the government bond account was established. If you are unable to complete the above procedures immediately, you may first request a temporary payment suspension orally or by phone to the account-holding post office and then proceed to the post office as soon as possible to complete the formal loss reporting and replacement/duplicate application procedures.

Report Loss of Registered Government Bond Seal

You should bring your National Identification Card and government bond passbook to the original post office handling your government bond account to process the seal loss reporting procedure (organizations and groups should also provide an official letter explaining the reason). If you are unable to complete the above procedures immediately, you may first request a temporary payment suspension orally or by phone to the account-holding post office and then proceed to the post office as soon as possible to complete the formal seal replacement procedure.

Principal and Interest Repayment of book-entry central government bonds

When the principal or interest matures, Chunghwa Post will automatically transfer the funds to the investor's passbook or postal giro savings account, and the account-holding post office will mail a withholding tax statement to the government bond account (interest portion is subject to income tax withholding in accordance with tax laws).