Article 21
In the event settlement of the Central Bonds deliverable is not completed within the time prescribed in Article 19, a security bond in the amount equivalent to 120% of the closing price of the bonds on the previous business day in the form of a demand bill issued by the bank appointed by the TWSE or in cash shall be deposited in the account designated by the TWSE. In the absence of a closing price on the previous day, the last available closing price shall be used.
In the event settlement of the Central Bonds deliverable is not completed by 11 am, the TWSE may use the security bond in the preceding paragraph to acquire the Central Bonds in the market and return the remaining balance of the security bond to the security firm upon completing the settlement on said firm’s behalf.
Failure to complete settlement of deliverable Central Bonds by 11 am to furnish a security bond according to the first paragraph is deemed violation of the settlement obligation.