Temporary Rules regarding the Eligibility Standards for Corporate Bonds and Loans on Deeds to Companies (Invalid)
|
December 2, 2008 |
| Revision: |
February 19, 2009 |
|
July 15, 2009 |
|
October 30, 2009 |
|
October 5, 2010 |
| 1. |
When assessing the eligibility of corporate bonds and loans on deeds to companies, the Bank shall not apply the eligibility standards in table 2 of the Guidelines on Eligible Collateral, but instead apply the standards set forth in the following table. |
| Collateral Category |
Eligibility Standard |
| Corporate Bonds |
Publicly-offered straight bonds that are rated BBB or higher by an eligible rating agency (including those issued by the company rated BBB or higher, those fully guaranteed by the company rated BBB or higher and those guaranteed by the company whose non-guaranteed bonds issued are rated BBB or higher) as well as those deemed eligible in light of the creditworthiness and other relevant factors. |
| Loans on Deeds to Companies |
Loans on deeds satisfying the following requirements:
(1) The debtor corporation is rated BBB or higher by an eligible rating agency (including the case bonds issued by the debtor corporation are rated BBB or higher) as well as deemed eligible in light of the creditworthiness of the debtor corporation and other relevant factors.
(2) Loans on deeds with a residual maturity of up to 10 years (including those with the maturity date falling in the same month of the 10th year). |
| 2. |
For corporate bonds that are neither rated A or higher by an eligible rating agency nor issued by the company that are rated A or higher (excluding those that are guaranteed by the company rated A or higher or by the company whose issuing bonds are rated A or higher) and loans on deeds to companies that are neither rated A or higher nor those to companies whose issuing bonds are rated A or higher, the Bank shall not apply the collateral price in table 1 of the Guidelines on Eligible Collateral, but instead apply the following collateral prices. |
Corporate Bonds
A residual maturity of:
| (1) up to 1 year |
97% of market price |
| (2) more than 1 year and up to 5 years |
97% of market price |
| (3) more than 5 years and up to 10 years |
95% of market price |
| (4) more than 10 years and up to 20 years |
95% of market price |
| (5) more than 20 years and up to 30 years |
94% of market price |
| (6) more than 30 years |
93% of market price |
Loans on Deeds to Companies
A residual maturity of:
| (1) up to 1 year |
93% of outstanding principal balance |
| (2) more than 1 year and up to 3 years |
82% of outstanding principal balance |
| (3) more than 3 years and up to 5 years |
70% of outstanding principal balance |
| (4) more than 5 years and up to 7 years |
60% of outstanding principal balance |
(5) more than 7 years and up to 10 years
(including those with the maturity date falling
in the same month of the 10th year) |
50% of outstanding principal balance |
| 3. |
Above rules shall become effective on December 9, 2008, and shall be valid through December 31, 2010. |
