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Laws & Regulations Database of The Republic of China (Taiwan)

Print Time:2024/11/24 21:18
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Chapter Law Content

PART I GENERAL PRINCIPLES
CHAPTER III VALUE OF CLAIM & LITIGATION EXPENSES
Section 4 Security for Litigation Expenses
Article 96
Where a plaintiff has no domicile, office, or place of business in the R.O.C., the court shall, by a ruling on motion by the defendant, order the plaintiff to provide a security for the litigation expenses. The court shall do the same when such security is found to be inadequate or not correctly provided during the process of the proceedings.
The provision of the preceding paragraph is not applicable in the case where either the portion of the plaintiff's claim is not disputed by defendant or the plaintiff's assets in the R.O.C. are sufficient to compensate the litigation expenses.
Article 97
A defendant who has proceeded orally on the merits may not move the court to order the plaintiff to provide a security except in the case where the cause of action requiring the provision of a security becomes known after proceeding on the merits.
Article 98
Where a defendant has moved the court to order a plaintiff to provide a security, the defendant may refuse to present argument on the merits either before the motion is dismissed or the plaintiff has provided the security as ordered.
Article 99
The court, in ordering a plaintiff to provide a security, shall specify in its ruling the amount of security to be provided and the period of time within which such security shall be provided.
The requisite security amount shall be determined based on the total amount of fees that a defendant is to pay through all court instances.
Article 100
An interlocutory appeal may be taken from a ruling made on a motion for provision of security.
Article 101
Except in cases where the security has been provided before such ruling is made, when a plaintiff fails to provide the security within the period of time designated in the ruling, the court shall, by a ruling, dismiss the action.
Article 102
Unless agreed upon by the parties, the security shall be lodged in cash or in the form of comparable negotiable securities acceptable to the court.
The security provided in the preceding paragraph may be provided in the form of a promissory note issued by an insurer or a bank authorized to provide surety services.
Where the plaintiff is unable to provide the required security in accordance with the provisions of the two preceding paragraphs, instead, the court may allow the provision of a promissory note issued by a person who owns assets within the jurisdictional boundaries of the court.
Article 103
A defendant will have the same rights in the lodged security provided in the preceding article as those held by a pledgee of the same.
Where the plaintiff fails to perform the obligation, the issuer of the promissory note provided in the preceding article will be required to perform the obligation up to the promised amount. In such case, the court may, on motion by the defendant, forthwith start the proceeding of compulsory execution against the issuer.
Article 104
The court shall rule on a motion by the provider of the security to order the return of the lodgment or the promissory note in the following circumstances:
1.The cause requiring the provision of a security has terminated:
2.The security provider proves that the beneficiary of the security has consented to the return;
3.The security provider proves that he/she has, after the conclusion of the action, requested an answer from the beneficiary of the security to exercise its rights within a given period of twenty days or more, and the beneficiary has failed to do so; or the court has, after the action is concluded, served a notice to the beneficiary of the security to exercise its rights within a designated period of time and produce to the court the evidence of its exercise of rights thereafter, and the beneficiary has failed to produce such evidence.
An interlocutory appeal may be taken from a ruling on the motion provided in the preceding paragraph; the execution shall be stayed pending such appeal.
Article 105
The lodgment or promissory note provided as security may be changed by an agreement of the parties or the court may rule, on motion by the security provider, to allow such a change.
An interlocutory appeal may be taken from a ruling on the motion provided in the preceding paragraph; the execution shall be stayed pending such appeal.
Article 106
The provisions of the first and second paragraphs of Article 102 and Article 103 to the preceding article inclusive, shall apply mutatis mutandis to other securities duly provided for purposes of litigation pursuant to applicable laws. The provisions of Article 98, the first paragraph of Article 99, Articles 100 and 101 shall also apply mutatis mutandis to the case where a security is required for initiating an action.
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