Headlines 25/02/2019 08:26 SA

Instructions on interest and interest rates specified in asset rental agreements are now available

Kiều Nga

This is the highlight of the Resolution No. 01/2019/NQ-HDTP providing instructions on certain provisions of laws on interest, interest rates and penalties for violations.

The Resolution provides instructions on application of regulations on interest and interest rates in asset rental agreements which are other than credit contracts and are established before January 1, 2017 (the effective date of the 2015 Civil Code) as follows:

Situation 1: If a rental agreement is terminated before January 1, 2017 and any dispute arises, the 2005 Civil Code, Resolution No. 45/2005/NQ-QH11 dated June 14, 2005 and other legislative documents elaborating on and guiding implementation of the 2005 Civil Code will govern the resolution of such dispute; 

Situation 2: If a rental agreement has not yet been executed and contractual interest or interest rate is conformable to provisions of the 2015 Civil Code, the 2015 Civil Code and legislative documents providing instruction on this Code will apply;

If interest or interest rate in an agreement is not conformable to the 2015 Civil Code, application of laws will be the same as in the situation 1, unless parties agree to modify and supplement terms and conditions related to interest and interest rate in order to ensure they are conformable to the 2015 Civil Code, and to apply provisions of the 2015 Civil Code.

Situation 3: If a rental agreement is underway and contractual interest or interest rate is not conformable to provisions of the 2015 Civil Code, application of laws will be the same as in the situation 1; and so on.

In addition, if an asset rental agreement is not a credit contract and comes into existence from January 1, 2017, the 2015 Civil Code and legislative documents elaborating on and guiding the implementation of the 2015 Civil Code will apply.

The Resolution No. 01/2019/NQ-HDTP is set to take effect on March 15, 2019.

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