Conditions for payment
In case a guaranteed loan is overdue for a period longer than five months, the borrower has gone out of business, or the financial institution has taken legal proceedings for the repayment and acquired the executive titles, such as the order of payment, against the borrower and guarantor(s), the financial institution may request the Taiwan SMEG to make the prepayment. It may be noted that both the Taiwan SMEG and the financial institution share the legal fees.
Coverage of Payment
Principal: Outstanding amount covered by the guarantee. (for indirect/direct guarantee)
Interest: (for indirect guarantee)
1.Unpaid interest for the guaranteed amount before the due date.
2.Unpaid interest for the guaranteed amount after the due date for a maximum of six months.