Completion backup capped at 30% of construction costs and NT$300 million per project
Taiwan Financial Asset Service Corporation and Hua Nan Bank have signed a letter of intent to build completion funding commitments into the construction financing and trust supervision process.
- Taiwan Financial Asset Service Corporation said the completion backup under its cooperation with Hua Nan Bank is capped at 30% of construction costs and NT$300 million per project.
- When applying for construction financing from a bank, developers can also apply to Taiwan Financial Asset Service Corporation for a completion funding commitment.
- If a funding gap appears during construction, developers can apply for disbursement within the committed amount, without waiting for work to be suspended for 3 months.
On October 29, 2026, Taiwan Financial Asset Service Corporation signed a letter of intent with Hua Nan Bank to promote completion funding commitment services. Taiwan Financial Asset Service Corporation Chairperson Kung Wen-ping and Hua Nan Bank President Huang Chun-chih signed on behalf of the two sides. Taiwan Financial Asset Service Corporation said this is the first time a completion funding commitment has been placed within the framework of bank construction financing and trust supervision.
Under this approach, a developer applying to a bank for construction financing only needs to submit an application to Taiwan Financial Asset Service Corporation at the same time. If a project runs into a funding gap, the developer can request disbursement within the approved amount, without waiting until work has been suspended for 3 months. The backup amount is capped at 30% of construction costs, and at NT$300 million for a single project.
Kung Wen-ping said the completion mechanisms originally agreed between developers and construction management companies have often been hard to carry out, because funding difficulties and long work stoppages affect construction quality and safety. She said such situations hurt not only developers but also landowners, presale home buyers, and the security of lending banks' claims.
Kung Wen-ping said the focus of this service is "preventive intervention" and to "keep developers' funding chain from breaking," and that the aim is to fill funding gaps for small and medium-sized developers during construction. Taiwan Financial Asset Service Corporation said it hopes to stop, at the source, the risk of unfinished buildings and urban renewal orphan projects that can follow a funding chain break at small and medium-sized developers.
Taiwan Cooperative Bank began working with Taiwan Financial Asset Service Corporation earlier, and Hua Nan Bank is the second state-owned bank to adopt this mechanism. Taiwan Financial Asset Service Corporation has also previously worked with the eight major state-owned banks to promote master leasing and property management and elder care trusts.
People who want to buy presale homes can ask developers whether a project has applied for a completion funding commitment. Taiwan Financial Asset Service Corporation said this mechanism can protect presale home buyers, landowners, and bank creditors' claims.
Quick quiz
2 questions; pick an answer to see the explanation
- According to Taiwan Financial Asset Service Corporation, what is the cap on a completion funding commitment per project?
- When a developer faces a funding gap during construction, how long a work suspension does it not have to wait for before applying for disbursement?
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Original：聯合新聞網 · We only post summaries and key points. Read the original for the full story.
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