1973 Public Bond Issuance Act

Link to law: http://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?PCode=G0360014

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Article 1


Issuance of the 1973 Public Bond (hereinafter, "the Bond") shall be conducted in compliance with the provisions of this Act.


Article 2


The Bond will be issued for a limited total amount of NTD 2.6 billion, and will be issued at full face value in separate issues during the fiscal year 1973. The number of issues of the Bond and the amount and date of each issue shall be prescribed by the Executive Yuan.


Article 3


The face value of the certificates of each issue of the Bond shall be respectively determined at the discretion of the Ministry of Finance.


Article 4


The term for redemption of each issue of the Bond is 6 years. The payment of the principal shall begin 3 years from the issue date. The principal shall be paid once per year, and fully paid up in four installments of one-fourth of the principal each.


Article 5


The interest rate of the certificates of each issue of the Bond shall be determined by the Executive Yuan. However, when an adjustment is made to the interest rate, the adjusted interest rate may not be lower than the one set at the time of issue.
The interest will be paid once every 6 months from the issue date.


Article 6


The issuance of the certificates of each issue of the Bond will be in bearer form. However, a purchaser at the time of purchase may apply for certificates in registered form.


Article 7


If a certificate of any issue of the Bond is lost, stolen, or destroyed, it may not be reported lost nor payment stopped, nor shall Article 720, paragraph 1 (proviso), Article 725, and Article 727 of the Civil Code apply. However, if a lost, stolen, or destroyed certificate is in registered form, the holder may follow the loss reporting procedures of the original selling institution and apply for reissuance of the certificate.


Article 8


Funds for redemption of the certificates of each issue of the Bond shall be put on allocation 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.


Article 9


The issuance and sale and the principal and interest payments of the certificates of each issue of the Bond shall be managed by the Central Bank.


Article 10


The certificates of any issue of the Bond may be freely traded, pledged, or used as guarantees in official dealings. However, in the case of a registered bond certificate, title transfer procedures must be carried out with the original selling institution before doing so.


Article 11


Unmatured principal and interest coupons of certificates of any issue of the Bond may, no more than two months prior to the date of payment of the principal, be used at full face value to offset income tax, estate tax, custom duties, commodity tax, mining concession tax, and public real estate auction purchase prices.


Article 12


Interest on the certificates of each issue of the Bond is exempt from income tax.


Article 13


This Act shall come into force from the date of promulgation.