1. The Central Bank of China (hereafter referred to as “the Bank”) may, pursuant to Article 27 of the Central Bank of China Act, issue savings bonds when necessary and may purchase and sell them in the open market for the purpose of monetary regulation.

2. The issue amount and number of issues shall be determined in the light of financial conditions.

3. Savings bonds shall be issued in five denominations: NT$50,000, NT$100,000, NT$500,000, NT$1 million and NT$10 million. All denominations shall be fully issued in accordance with face value.

4. Savings bonds shall be issued in four maturity periods: six months, one year, two years and three years. The principal and interest on six-month savings bonds shall be paid in full at maturity. Interest on one-year, two-year and three-year savings bonds shall be compounded once semiannually [every six months] and the principal and compounded interest shall be paid in full at maturity.

5. The Bank shall determine the interest rates paid on savings bonds.

6. Any financial institution, individual, foundation, public or private enterprise or other group may be a buyer or holder of savings bonds.

7. Where a savings bond has been purchased on the day following the issue date or thereafter, the supplementary interest to be paid by the buyer shall be calculated based upon the number of days between the issue date and the purchase date.

8. Savings bonds may be issued in registered or bearer forms.

9. Where a registered savings bond is lost, stolen or destroyed, the loss may be reported to the original selling institution and application for reissue may be made.

10. Registered savings bonds with maturity periods of two or three years may be negotiated. Registered savings bonds with a maturity period of one year or less may not be negotiated except where pledged to any agency or selling institution. Pledge or negotiability of savings bonds shall require carrying out the relevant administrative procedures with the original selling institution.

11. Buyers of bearer-form savings bond issues may apply for registration at the time of their issue.

12. Where a bearer-form savings bond is lost, stolen or destroyed, it shall be handled in accordance with the provisions of the Civil Code. Where application for registration has been made, however, the loss may be reported to the original selling institution and application for reissue may be made.

13. Bearer-form savings bonds may be negotiated, pledged or serve as guarantees in public undertakings. Where application has been made for registration, however, the relevant administrative procedures must first be carried out with the original selling institution.

14. The Bank may engage financial institutions to sell savings bonds and undertake matters related to the repayment of interest and principal.

15. Taxation of income from savings bonds shall be in accordance with the provisions of the Income Tax Code and the Statute for Prizes, Awards and Investments.

﹝Remarks：These Directions are made in Chinese which shall prevail in case of any discrepancy between the English translation and the Chinese original.﹞