Statute for the Establishment and Administration of the National Financial Stabilization Fund
1. Borrowings from financial institutions, collateralized by stock held by the National Treasury in public and private enterprises; the ceiling on such borrowings shall be NT$200 billion;
2. Borrowings from the Postal Deposit system, Postal Life Insurance Fund, Labor Insurance Fund, Labor Pension Fund, and Civil Servant Pension Fund of funds that are available for investment in securities but have not yet been invested; the ceiling on such borrowings shall be NT$300 billion.
3. Other funding sources approved by the competent authority.
The types and quantities of stocks that may be furnished as collateral as provided in subparagraph 1 of the preceding article shall be proposed by the Ministry of Finance for approval by the competent authorities. The collateralization of such stocks shall not be subject to the restrictions in Article 7, paragraph 1, and Article 28 of the National Property Law.
Borrowings made by the fund pursuant to paragraph 1 shall not be subject to the restrictions in the Public Debts Law.
1. Deliberation of Fund utilization matters;
2. Determination of Fund operational strategy and plans;
3. Deliberation of procurement and deployment matters for Fund funds;
4. Deliberation of Fund financial reports and profit and loss appropriation and reimbursement;
5. Determination of other matters relating to Fund utilization and administration or matters as publicly announced.
The Committee shall have 11 to 13 members, including 1 chairman, in which post the vice president of the Executive Yuan shall concurrently serve. Also concurrently serving as Committee members shall be the Governor of the Central Bank of China, Minister of Finance, Minister of Transportation and Communications, Director General of Budget, Accounting & Statistics, Minister of Labor, and Minister of Civil Service. The remaining members shall be selected by the Competent Authority from scholars and experts recommended by the party caucuses of the Legislative Yuan.
The number of the selected Committee members in the preceding paragraph shall be not less than one-third of the total number of Committee members. Selected members shall be appointed for a two-year term, and may be reappointed upon expiry of the term. If a member is replaced for some reason before his term has expired, the term of the replacement shall subsist only until the date of expiry of the term of the original member that he replaced.
1. Trade in securities on the stock exchange market or over-the-counter market;
2. Trade in futures on the futures market;
3. Other matters approved by the competent authority.
A qualified institution may be engaged to administer operational planning in connection with fund deployment referred to in the preceding paragraph. Matters related to such engagement shall be prescribed by the Committee.
Following the committee's resolution as described in Paragraph 1, the report on the resolution should be sent to the Legislative Yuan within 3 months.
Compensation under the preceding paragraph shall be limited to compensation for losses incurred as of the time of borrowing. Proceeds shall be calculated at a rate equal to the Bank of Taiwan's two-year time deposit interest rate plus 0.625 percentage points.
2. Deposit in financial institutions with good credit;
3. Purchase of government bonds, financial bonds, and short-term notes issued by financial institutions;
4. Other means prescribed by the competent authority.
The Fund shall, within 3 months after the completion of the mission, send the funds quota and relevant assessment report to the Legislative Yuan.
The "cost of investment" in the preceding paragraph shall include compensation and proceeds paid to the various funds pursuant to paragraph 1 of Article 9.
Income, expenditures, and utilization of the Fund shall be publicly announced on a quarterly basis.
Any profit of the Fund after annual closing of the books shall, in appropriate measure, be retained or delivered into the National Treasury. Any losses, including realized or unrealized losses, shall be covered by the competent authority when compiling the budget for the following fiscal year. Losses covered by the National Treasury shall subject to the restrictions in Article 4 of the Public Debts Law.
The proportion or amount of the "appropriate measure" of retained profits in the preceding paragraph shall be determined by the Committee.
The restrictions in Article 4 of the Public Debts Law shall not apply to the assumption of Fund assets by the National Treasury pursuant to the preceding paragraph.
1. The Management Committee members in paragraph 2 of Article 5.
2. The executive secretary and staff in Article 7.
3. Employees of a qualified institution engaged by the Committee as provided in Article 8.
4. Persons who obtain information from any of the persons enumerated in the preceding three subparagraphs.
Violations of the provisions of the preceding paragraph shall be punished by imprisonment for a period not exceeding seven years, and, in addition thereto, a fine not exceeding NT$10 million.