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Waterfall of JCSF Funds

＊ Utilization of JCSF funds: When a securities firm defaults in its settlement obligations, for the payment of the relevant price differences and all relevant fees arising from or in connection with TWSE's handling of the default, JCSF funds will be used in the following order:

  1. Contribution to the JCSF by the defaulting securities firm and the interest thereon.
  2. TWSE’s NT$2bn First Special Settlement Fund (Article 3, paragraph 3 of the JCSF Rules).
  3. Contributions to the JCSF by the non-defaulting securities firms (Article 3, paragraph 1 of the JCSF Rules) and TWSE’s NT$1bn Second Special Settlement Fund (Article 3, paragraph 2 of the JCSF Rules), shared pro-rata to the amounts of their contributions.
  4. Additional contributions to the JCSF by the non-defaulting securities firms (Article 9, paragraph 3 of the JCSF Rules).

＊ Re-filling of JCSF funds: After the complete exhaustion of the amount designated as the second resource in the order of utilization of the JCSF funds and the commencement of utilization of the amounts designated as the third resource in that order, each securities firm and TWSE shall replenish the resources utilized, on the scale set by the JCSF Special Management Committee, within a prescribed deadline.

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