This Act is specifically enacted to govern the issuance of a central government development bond (hereinafter, "the Bond") to raise private sector funds for the purpose of carrying out a national freeway construction project in Taiwan in coordination with national economic development.
The Bond shall be issued for a total amount of NTD 1.9 billion under the special budget for the first phase national freeway construction project in Taiwan. The number of issues of the Bond and the amount and date of each issue shall be submitted, in accordance with the schedule and requirements of the construction project, by the Ministry of Finance to the Executive Yuan for approval.
The face value of the certificates of each issue of the Bond shall be respectively determined at the discretion of the Ministry of Finance.
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.
The term for redemption of each issue of the Bond is 7 years. Beginning from the sixth periodic interest payment, principal repayments will be made in equal installments once every year, until the Bond has been redeemed in full over a period of 5 years.
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.
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.
Funds for principal and interest payments of the certificates of each issue of the Bond shall be put on allocation in the national general budget, and shall be appropriated to the managing bank in advance to be held on deposit in preparation for payment.
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.
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.
Interest on the certificates of each issue of the Bond is exempt from income tax.
This Act shall come into force from the date of promulgation.