Law Information | Laws & Regulations Database of Taipei City

Article 1 The Taipei City Government (hereinafter referred to as the "City Government") formulates this Ordinance to manage the operating deposits under land development and operation contracts for the Taipei metropolitan area mass rapid transit systems.
Article 2 The City Government is the competent authority of this Ordinance; the executive agency is the mass rapid transit construction sector or the operating sector under the City Government.
Article 3 This Ordinance applies to land development for the routes, depots, stations and neighboring areas adjacent to the Taipei metropolitan area mass rapid transit systems which are under the management of the City Government.
Article 4 When a completely developed building is transferred to the investors for unified operation after having been rectified by the City Government, the investors shall submit the relevant qualification documents for operational management of the operators to the executive agency for review before applying for a building usage permit. Before the ownership of the building is registered, investors, along with the operator, shall sign an operation contract with the executive agency and submit the operating deposits simultaneously. The operating deposits shall be paid in the name of the investor or the operator, and such obligation shall be borne jointly and severally by them. In the case of a building which is not under unified operation, the obligation to pay operating deposits is exempted. The City Government is empowered to prescribe the qualification documents for operational management as set forth in Paragraph 1 of this Article.
Article 5 The investors may change the operator only after the executive agency has reviewed and approved the successive operator's qualification documents for operational management. The successive operator shall, before operation, sign the operating contract with the executive agency and submit the operating deposits simultaneously.
Article 6 The amount for operating deposits will be the product of the total value of the real estates in land development and the operating deposits factor. The total value of the real estates in land development in the preceding paragraph means, when the investor approved to invest in the land development signs the operation contract, the sum of the assessed present value of the land where the building is situated and the aggregate development expenses; the operating deposits factor means the sum of the products of (i) the ratio equal to the floor area of the developed building classified according to its use divided by the total floor area in the land development and (ii) the factor assigned to each type of use. The factor assigned to each type of use for developed buildings in the preceding paragraph is specified as below: 1.Residences, parking lots: 0.6%. 2.Offices: 1%. 3.Shops, shopping malls: 2%.
Article 7 The operating deposits shall be paid in cash to the financial institutions designated by the executive agency or to be paid with any of the following instruments: 1.Promissory notes or checks issued by a financial institution. 2.Certified checks issued by a financial institution. 3.Bearer's government bonds. 4.Pledged time certificates of deposit issued by a financial institution. 5.Written joint guarantees issued by a bank. 6.Insurance policy with joint guarantee issued by an insurance company. Investors or operators may pay the operating deposits utilizing two or more ways specified in the preceding paragraph.
Article 8 The executive agency may directly deduct from or be indemnified by the operating deposits for each debt, damages and penalty payable by the investor or the operator under the operation contract. In the event that the operating deposits are insufficient, the executive agency may request the investor or the operator to make them up or otherwise claim for the deficiency.
Article 9 If the operator is changed or the operation contract is rescinded or terminated during the existing term of the operation contract for reasons attributable to the investor or the operator, the executive agency shall take 30% of the operating deposits as penalties. However, if the executive agency can prove that the damages are greater than such amount, the amount of penalties shall not be limited. Pursuant to the preceding article or paragraph, if there is surplus after deduction, indemnification and penalty deduction, the surplus of deposits shall be returned without interests after the successor signs the operation contract with the executive agency and makes up the operating deposits.
Article 10 Should the investor or the operator have any of the following situations, the executive agency shall send notice asking for improvements to be completed within a given time. If the improvements are not duly completed, the executive agency may terminate the contract after an approval is granted by the City Government: 1.The occurrence of any circumstance set forth in Paragraph 1 of Article 25 of the Mass Rapid Transit Land Development Act. 2.Other breach of the operation contract.
Article 11 According to this Ordinance or the operation contract, the non-refundable operating deposits or penalties paid by the investor or the operator will be submitted to the special funds account of the land development funds for the Taipei metropolitan area mass rapid transit systems before the end of each year.
Article 12 The collection, storage, refund and confiscation of the operating deposits will be implemented by the executive agency; and the income and expenses and other relevant information of the operating deposits should be compiled at the end of each year, and then the relevant reports shall be submitted to the land development fund management committee of the mass rapid transit system in the Taipei metropolitan area for future reference.
Article 13 This Ordinance shall be effective from the date of its promulgation.