A clearinghouse shall prescribea “Participation Agreement for Clearing Negotiable Instruments”which shall clearly state the following particulars:
1.The qualifications required for application to be a clearing entity;
2.Criteria for determining the amount of clearing margin a clearing entity must post, depositrestrictions and conditions for its return;
3.Aclearing entity mayact as a clearing agent for other financial institutions that are non-clearing participants;
4.Negotiable instruments collected by a clearing entity from another clearing entity shall be presented to the local clearinghouse to carry out clearing; if a negotiable instrument presented for payment is dishonored, the payer clearing entity shall return the dishonored negotiable instrument to the local clearinghouse for exchange;
5.Branches of clearing entities shall, without exception, participate in local clearing of negotiable instruments and the [parent] clearing entity shall submit for clearing all negotiable instruments from other clearing entities accepted by its branches and assume full liability associated with their clearing;
6.A clearing entity shall open a deposit account with the Bank or a correspondent bank of the Bank; settlement of all payable and receivable clearing balances and dishonored negotiable instrument clearing balances shall be conducted in accordance with the Directions for the Central Bank of the Republic of China (Taiwan) to Govern Electronic Interbank Funds Transfer and Settlement and other relevant regulations; and
7.Other protocols to be observed by clearing entities.

A clearinghouseshall prescribecriteria for all processing fees collected for the provision of services.

A clearinghouseshall prescribeprocedures for handling negotiable instruments clearing, and other necessary operation protocols.

A clearinghouseshall adopt protocols with financial enterprises that conduct checking account operations to govern the handling of dishonored checks and other related matters.

For the purpose of conducting negotiable instruments exchange, clearinghouses and financialinstitutions that conduct checking account operations shall collect the credit information of checking account holders, and the financial institutions shall provide clearinghouses with credit information in theirpossession.
Clearinghouses shall duly note changes to credit information mentioned in the preceding paragraph, and periodically provide financial institutions that conduct checking account operations with the following information of account holders with significantlyimpaired credit records:
1.In case of a personal account, the name and identification card number of holder.
2.In case of an account held by a business or group that is a non-juristic-person, the account name and the name and identification card number of its responsible person; and
3.In case of an account held by a juristic person, the account name and the uniform business number of the company or business or the withholding uniform invoice number.
Credit information referred to in Paragraph 1 hereof includes basic account opening information, information on loss reporting and stop payment, cancellation of pay order,dishonored check record (including alert accounts and frozen accounts), rejected accounts,investigation results and court decisionson committed crime associated with use of negotiable instruments, presenters, negotiable instruments exchanged, and other relevant credit information.Notwithstanding the foregoing, credit information that shall be collected by financial institutions that conduct checking account operations exclude investigation results or court decisions on committed crime associated with use of negotiable instruments.
A clearinghouseshall, to the extent necessary for matching the accuracy of basic data files of nationwide checking account holders, collect household registration data pertaining to changes to the name or identification card number of personal account holders and the responsible person registration data of juristic person accounts.
A clearinghouseshall make available for public inquiry dishonored check recordsand rejected transaction information of checking account holders and otherrelevantcredit information.
For the collection of personal information referred to in Paragraph 1 and Paragraph 4 hereof and related information security matters, a clearinghouseshall develop a security maintenance plan to prevent the theft, alteration, destruction, loss or leakage of personal information.

The business rules prescribedby a clearinghouse in accordance with the provisions of the preceding five articles shall be submitted to the Bank for record; the same shall apply to all amendments thereto.