Headlines 12/10/2022 13:47 CH

Effective period of contracts for guarantee for off-the-plan houses

Lê Ánh

The Governor of the State Bank of Vietnam has issued Circular No. 11/2022/TT-NHNN dated September 30, 2022 on bank guarantee.

According to this Circular, the effective period and contents of the contract for guarantee for off-the-plan houses (hereinafter referred to as “the Contract”) are regulated as follows:

The contract is effective from the date on which it is signed to the date of expiration of guarantee obligations of all letters of guarantee for the purchaser according to Article 23 of Circular 11/2022/TT-NHNN.

Also, all obligations of the investor to the commercial bank under the Contract must be fulfilled by that time;

In addition to the contents specified in Clause 2, Article 15 of Circular No. 11/2022/TT-NHNN (except for contents at Point h and Point i in the case of guarantee on the basis of a counter-guarantee), the Contract must have the following contents:

- The commercial bank shall issue a letter of guarantee to the purchaser when receiving the contract for purchase or lease-purchase of house sent by the investor before the deadline for transfer of the house according to the contract;

- The commercial bank and the investor specifically agree that the commercial bank or investor shall send a letter of guarantee to the purchaser after the commercial bank issues the letter of guarantee;

- Financial obligations of the investor;

- The application for guarantee sent by the purchaser to the commercial bank must be enclosed with a letter of guarantee issued by the commercial bank to the purchaser.

Circular No. 11/2022/TT-NHNN comes into force from April 01, 2023 and replaces Circular No. 07/2015/TT-NHNN dated June 25, 2015 and Circular No. 13/2017/TT-NHNN dated September 29, 2017.

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Above are the summary and notification of new documents for customers of THU VIEN PHAP LUAT. For more information, please send an email to mailto:[email protected].

 

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