The Ministry of Finance or the competent authorities referred to in Paragraph 1, Article 5 shall appropriate, the business day prior to the payment date for each series of government bond, the principal and interest due and payable to the specific account of funds with the Central Bank of China for payment.

Upon receipt of the principal and interest fund for government bonds and subject to the title, type, and series of each bond, the Central Bank of China shall open separate specific accounts under the sub-account of funds for government bonds, which is under the account of special deposit for National Treasury.
The funds shall be completely settled when the principal and interest for each series are matured, provided that the payment period is not subject to the closure of fiscal years.

Subject to the sale of the bonds or by reference to the previous payment of principal and interest, the Central Bank of China shall appropriate, as soon as possible, the funds referred to in the preceding article to each bank branch for the payment.

When appropriating the funds, the Central Bank of China shall book the amount into the specific account for special funds and shall prepare a statement in compliance with the Accounting System for Central Government Bonds.
When appropriating the funds, the Central Bank of China shall set up another account in the name of the bank head office, and a statement referred to in the preceding paragraph shall be prepared.

Upon receipt of the funds for payment of principal and interest, a bank branch shall open a special account, in the name of "Specific Account for Payment of Principal and Interest for ○○ Bonds", under the account of savings deposit, and shall register and prepare a statement in compliance with the Accounting System for Central Government Bonds. (If a bank branch also acts on behalf of the National Treasury, Article 22 hereof shall apply, and it shall open an account under the sub-account of funds for government bonds, which is under the account of special deposit for National Treasury.) For a flexible utilization and a prevention of dilution of the funds, no further appropriation shall be made.

The Central Bank of China is entitled to recall the balance of the funds deposited in a bank branch for payment of principal and interest; provided, however, that if the funds are insufficient, a bank branch shall make the advancement and inform the Central Bank of China to appropriate the funds as soon as possible.

The principal and interest of bonds due to maturity shall be paid, as long as they are compared against specimen certificates and anti-counterfeiting marks to verify authenticity, and no suspension of payment has been made. Should there be any inquires, a receipt for the bonds shall be issued and the bonds received shall be submitted to the Ministry of Finance for review.

The holder of certificate wishing to redeem bonds principal or interest coupons shall fill out "List of Bonds Principal and Interest Redeemed" and submit the certificate for payment to a bank branch.
Where the owner of the certificate has deposited the certificate to securities central depository for its custody and has authorized the depository to collect the principal and interest, the depository shall prepare a "List of Principal and Interest Collected on Behalf of Owners" and a "List of Serial Numbers of Certificates" prior to the payment date, which shall be attached to the certificate for payment of principal and interest and delivered to a bank branch. The payment shall be wired by bank's head office directly to the account of the certificate owner.
The bank's head office shall book the title, type, and par value of the bonds and interest coupons which have been paid into "Records of Paid Bonds and Interest Coupons for ○○ Bonds" or "List of Paid Bonds and Interest Coupons for ○○ Bonds" on the basis of the redeemed bonds and interest coupons and the lists referred to in the preceding two paragraphs.

The payment of principal and interest made by a head office shall be dealt with as "short-term advancement" or "accounts receivables". If a head office is also acting as a branch bank, the payment shall be treated as the account of "Savings Deposit - Specific Account for the Funds for the Payment of Principal and Interest for ○○ Bonds."If a bank's head office also acts on behalf of the National Treasury, the payment shall be treated as an account for "Funds for Bonds - Deposit for Special Funds".

Subject to the payment made for the certificate of principal and interest and the title, type, series, and quantity of each bond, a bank head office shall fill out "the List of Payment Made for the Certificate of Principal" and "the List of Payment Made for the Certificate of Interest", and shall register and prepare a statement in compliance with the Accounting System for Central Government Bonds.

After a verification of "the Report for the Payment Made for the Certificate of Principal and Interest for ○○ Bonds" submitted by each branch bank with the certificates of principal and interest, a bank's head office shall appropriate the payment of principal and interest made from the specific account opened in the form of "Savings Deposit" with the National Treasury, and the Central Bank of China shall appropriate the payment made from the specific account opened in the form of "Deposits for Special Funds" with the National Treasury. Where a bank's head office also acts on behalf of the National Treasury, the foregoing provision shall apply and shall register and prepare a statement in compliance with the Accounting System for Central Government Bonds.

The Central Bank of China shall register and prepare a monthly statement base on monthly statement submitted by bank head offices, and compliance with the Accounting System for Central Government Bonds.

Upon expiry of the payment of principal and interest for each series of bonds, each bank's head office shall deliver the balance of the funds to the Central Bank of China within half of a month thereof. The Central Bank of China shall, within one month thereof, deliver such balance to the National Treasury or the special funds of its subordinating agency budget; in addition, submit the calculation sheet to finalize the accounting.