Principal and Interest Payment Agent Services
Interest and Redemption Payment services
A.Production and Provision of Bond Holders List
The review of holders’ information and the creation of list of holders for interest and redemption payment for bonds on central deposit according to the following procedures:
a. TDCC creates a list of holders’ basic information from Day T-4 to T-2 on the day of interest and redemption payment, so as to enable participants to check their clients’ book-entry account numbers and registered addresses.
b. The participants shall prepare a document containing holders’ information on Day T-1 of the day of interest and redemption payment, and submit it to TDCC on the day.
B.Payment of Interest and Redemption
a. When the issuer deals with the payment of interest and redemption, TDCC will create a list of holders on behalf of the issuer by taking the following steps:
TDCC compiles a list of bond holders on Day T-1 of the day of interest and redemption payment.
On the payment day, TDCC notifies the paying agents of the list via e-mail. For the delivery of the bonds principal payments, TDCC will debit the balance in the holder’s depository account and send the statement of change in balance to the issuers for verification. For the delivery of the bonds of interest and redemption payments to the paying agents in the last term of such payments, TDCC also notifies the issuers of the statement of change in balance for verification.
3.The paying agents calculate the principal/interest payment according to the list of bond holders provided by TDCC.
4.The paying agents shall transfer the principal/interest payment, deducting the tax and transfer charges, into the holders’ payment accounts on the day of interest and redemption.
b.For issuers entrusting TDCC as their paying agent to deal with principal/interest redemption, the operation procedures are stated as following:
- The issuers remit payments for principal/interest redemption into the virtual accounts of the management banks.
TDCC notifies the banks of the holders’ information on Day T-1 of the day of interest and redemption payment.
When the remitted payment is adequate, the bank will notify TDCC, which will send a message of fund transfer to the Central Bank of China (Taiwan) Interbank Funds Transfer System. Once the transfer is completed, TDCC will notify dealers and clearing banks to process the principal/interest redemption and book-entry transfer. At the same time the management banks transfer principal / interest to the holders according to the aforesaid list.
When the remitted payment is inadequate, TDCC shall debit holders’ depository accounts according to the amount of payment without principal and notify the dealers and the clearing banks of the issue.
(Chinese version only)