Article 5
A written contract shall be entered into for a personal property secured transaction. Unless registered, a personal property secured transaction shall not be effective against a bona fide third party.
When a creditor takes possession of or retrieves the subject property of a personal property secured transaction in accordance with this Act, a bona fide lienholder’s expenditures for repair or addition of work to the subject property of the personal property secured transaction, when the value of the personal property is increased thereby, shall be given precedence of satisfaction, to the extent of the increase in value, over any personal property secured rights that were previously established in accordance with this Act.
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Article 6
The registration authority for personal property secured transactions shall be designated by the Executive Yuan.
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Article 8
The registration authority shall publish on a website or shall in another appropriate manner publicly announce the names of the individuals or entities that are parties to the contract, a description of the subject property, the amount of the secured claim, the date of contract formation, the date of termination, and any other necessary information.
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Article 9
The effective period of registration of a personal property secured transaction shall be as stipulated by the contract; if not stipulated by the contract, the effective period shall be one year from the date of registration. Within 30 days prior to the end of that period, the creditor may apply for an extension of the registration period, which shall be effecttive from the day following the end of the original registration period.
The effective period of an extension of the registration period as stipulated in the preceding paragraph may not exceed one year. The registration authority shall handle the extension of the registration period in accordance with Articles 7 and 8, and notify the debtor. If the subject property is owned by a third party, the third party shall also be notified.
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Article 10
After the secured claim has been satisfied, the creditor, at the written request of the debtor or an interested party, shall immediately issue evidentiary documentation. The debtor or the interested party may use the evidentiary documentation as the basis for cancellation of the registration with the registration authority.
A creditor that does not deliver the evidentiary documentation within 10 days from receiving a request under the preceding paragraph shall bear liability for damages.
When a creditor refuses to deliver the evidentiary documentation of paragraph 1, the debtor or interested party may use other means sufficient to demonstrate that the debt has been satisfied to cancel the registration with the registration authority.
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Article 11
The registration authority shall collect an administrative fee for any registration, checking, copying, or issuance of certificates in relation to personal property secured transactions; the fee standards shall be set by the Executive Yuan.
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Article 16
A personal property mortgage contract shall specify the following matters:
1. The names of the individuals or entities who are parties to the contract and their domiciles, residences, or places of business.
2. The amount of the claim being secured and the interest rate.
3. The name and quantity of the mortgaged property; the description of the specific serial number, identifying mark, or specification of the property, if there is any.
4. The manner of the debtor’s or third party’s possession of the mortgaged property and its location.
5. The means of exercise of mortgage rights and creditor’s rights by the mortgagee in the event of the debtor’s non-performance of his obligations under the contract.
6. A statement that the beneficiary of the insurance shall be the mortgagee if there is insurance,.
7. The date of entering into the mortgage contract.
When the claim that is secured by a personal property mortgage contract is a claim or claims incurred during a specific period of time, the mortgage contract shall specify the maximum amount of the claim secured.
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Article 21
The sale or auction of mortgaged property by a mortgagee pursuant to Articles 15, 18, or 19 shall be carried out under, in addition to the procedures set out in this Act,, Article 28 of the Enforcement Act of the Part of Obligations of the Civil Code.
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Article 27
A conditional sale contract shall specify the following matters:
1. The names of the individuals or entities who are parties to the contract and their domiciles, residences, or places of business.
2. The name, quantity, and price of the subject property; the description of the specific serial number, identifying mark, or specification of the property, if there is any.
3. A statement that the seller retains ownership of and makes use of the subject property in his possession.
4. The method of payment for the subject property of the sale.
5. The conditions under which the buyer obtains ownership of the subject property.
6. The method whereby the seller exercises rights in rem and creditor’s rights if the buyer fails to perform the contract.
7. If there is insurance, a statement that the beneficiary of the insurance shall be the seller.
8. The date of entering into the conditional sale contract.
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Article 28
If, before the transfer of ownership of the subject property to the buyer, the buyer has any of the following doings, to the detriment of the rights and interests of the seller, the seller may retrieve and take possession of the subject property:
1. Fails to pay the price of the property as stipulated.
2. Fails to fulfill the specific conditions as stipulated.
3. Sells, pledges, or otherwise disposes of the subject property.
If, when the seller retrieves and takes possession of the subject property of the preceding paragraph, there is significant depreciation in the value of the subject property, the seller may claim damages from the buyer.
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Article 33
A trust receipt shall specify the following matters:
1. The names of the individuals or entities who are parties to the trust receipt and their residences, domiciles, or places of business.
2. The amount of funds or credit that the trustor agrees to provide to the trustee.
3. The name, quantity, and price of the subject property, and the place where it is stored; the description of the specific serial number, identifying mark, or specification of the property, if there is any.
4. A statement that the trustor retains ownership of the subject property, and the manner in which the trustee takes possession of and disposes the subject property.
5. The method for repayment of the funds or credit provided, and a statement that if the trustee sells the subject property, the buyer shall deliver to the trustor a portion of the sale price equivalent to the amount listed under subparagraph 2.
6. The method by which the trustor will exercise rights in rem and creditor’s rights if the trustee fails to perform the contract.
7. If there is insurance, a statement that the beneficiary of the insurance shall be the trustor.
8. The date of entering into the trust receipt.
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Article 34
If the trustee has any of the following doings, the trustor may retrieve and take possession of the subject property:
1. Fails to satisfy the debt as stipulated.
2. Relocates the subject property without the trustor’s consent.
3. Creates a pledge or a mortgage on the subject property.
4. Fails to dispose the subject property by the stipulated method.
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Article 43
The date on which this Act shall come into force will be set by order.
Amendments to this Act shall come into force from the date of their promulgation.
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