Newsletter
REGULATIONS FOR ESTABLISHMENT OF URBAN RESTRUCTURING INVESTMENT TRUST COMPANIES
On 14 May 1999, the Securities and Futures Commission (SFC) announced the Regulations for Supervision and Administration of Urban Restructuring Investment Trust Companies as a first step for asset securitization.
Under the regulations, the urban restructuring investment trust company (URITC) should be a company limited by shares and have a minimum paid-in capital of NT$300 million. After being approved by the SFC, a URITC may conduct the following businesses:
Issuing urban restructuring investment trust beneficiary certificate in order to raise the urban restructuring investment trust fund;
Instructing the fund trustee, within the urban restructuring plan, to use the fund to invest in land, buildings, the securities issued by the enforcer of the urban restructuring and other related products; and
Other related businesses approved by the SFC.
When issuing the beneficiary certificate, the URITC should as the client enter into a urban restructuring invest trust contract with the trustee. All the transactions contemplated therein should be made in accordance with the regulations governing the usage and administration of the fund.