Issuance of the 1967 Patriot Bond (hereinafter, "the Bond") shall be conducted in compliance with the provisions of this Act.
The Bond will be issued for a total amount of NTD 600 million, and will be issued at full face value in the fiscal year 1968. The issue date shall be prescribed by the Executive Yuan.
The certificates of the Bond will have five face value denominations: NTD 500, NTD 1,000, NTD 5,000, NTD 10,000, and NTD 50,000. All certificates will be in bearer form.
The interest rate of the Bond is 4 percent per annum.
The term for redemption of the Bond shall be 12 years. In the first 2 years, there will be only interest payments once every 6 months from the issue date, and in the subsequent 10 years, principal and interest payments will be made in equal installments once every 6 months, until the Bond has been redeemed in full in 20 installments.
If a certificate of the Bond is lost, stolen, or destroyed, it may not be reported lost nor payments stopped, nor shall Article 720, paragraph 1 (proviso), Article 725, and Article 727 of the Civil Code apply.
Funds for redemption and interest payments of the Bond shall be put on alloation on an annual basis in the national general budget, and shall be appropriated to the managing bank in advance to be held on deposit in preparation for payment.
The offering and sale and the principal and interest payments of the Bond shall be managed by the Central Bank.
The Bond may be freely traded, pledged, or used as guarantee in official dealings, and may serve as guarantee reserve of financial enterprises.
Interest on the Bond is exempt from income tax.
Regulations governing the offering of the Bond shall be separately prescribed.
This Act shall come into force from the date of promulgation.