|
THE STATE BANK OF
VIETNAM
-------
|
SOCIALIST REPUBLIC OF
VIET NAM
Independence - Freedom – Happiness
----------
|
|
No.140/1999/QD-NHNN14
|
Hanoi, April 19, 1999
|
DECISION
PROMULGATING REGULATIONS ON THE PURCHASING AND SELLING OF
DEBTS BY CREDIT ORGANISATIONS
STATE BANK GOVERNOR
Pursuant to the Law on the State Bank of
Vietnam No.01/1997/QH10 dated December 12, 1997;
Pursuant to the Law on Credit Organisations No.02/1997/QH10 dated December 12,
1997;
Pursuant to Decree No.15/CP dated March 2, 1993 by the Government concerning
the compulsories, powers and responsibilities for State management by
ministries, and ministerial ranking bodies;
According to the proposal by the head of the Department of Credit,
DECIDES
Article 1: The Decision
is issued in connection with the Regulation on the Purchasing and Selling of
Debts by Credit Organisations.
Article 2: The Decision
comes into force 15 days after the date of signing.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
P/P STATE BANK
GOVERNOR
DEPUTY GOVERNOR
Nguyen Van Giau
REGULATION
ON THE PURCHASING AND SELLING OF DEBTS BY CREDIT
ORGANISATIONS
(issued in
connection with Decision No.140/1999/QD-NHNN14, dated April 19, 1999 by the
State Bank Governor)
Chapter I
GENERAL PROVISIONS
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article 2: The
following are the definition of some terms:
1. The purchasing and selling of debts are deals
following which the seller transfers the debts that the debtor is owing the
seller (including principle debts, interests and fines) to the debt buyer and
gets paid from the buyer. The debt buyer takes responsibility for paying and
receiving all rights of the old debt owner for the bought debts in accordance
with the agreement of both parties;
2. The debt selling parties are credit
organisations owning the debts (lending parties);
3. The debt buying parties are those who
purchase the debts and become the owners of the debts;
4. Intermediaries are economic organisations and
COs who function as the middlemen between the debt selling and buying parties,
provide services for the discussion preceding the signing of debt selling and
buying contracts and receive commissions in accordance with the agreement;
5. Debtors are COs, economic and financial
organisations, and individuals who are owing the debt selling parties;
6. The value of sold debts includes principal
debts, interest, overdue interest and other related expenses.
Article 3. Objectives
involved in the purchasing and selling of debts are COs, economic organisations
and individuals, including:
1. Credit organisations:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- Banks for investment;
- Banks for development;
- Joint-stock commercial banks;
- Joint-venture banks;
- Foreign bank’s branches;
- Banks serving some State policies;
- Financial companies;
- Financial leasing companies;
- Central People’s credit funds.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article 4: The scope of
the deal:
1. Debts lent to economic and financial
organisations and individuals by COs;
2. Debts lent to COs by COs.
The regulation is not applied to the purchasing
and selling of debts such as promissory notes, State treasury bonds and other valuable
papers; nor debts treated in accordance with the Prime Minister’s decision,
such as frozen debts and debts treated in the total settled debt amount.
Article 5: Features of
debts:
1.Outstanding debts: the debt selling party and
the debtor are operating; the debts are still not due; the debt selling party
needs to return its investment capital or is meeting temporary difficulties in
terms of capital sources;
2. Over-due debts: the debtor is still operating
and will be able to pay the debts, but is meeting temporary difficulties in
terms of production and business activities and has yet to pay the principle
debt or the interest; or both principal debts and interest, when the lending
term ends.
Article 6: The
purchasing and selling of debts must obey the following principles:
1. Ensuring the operation of COs is safe, and
suited to regulations of Vietnam’s legal system. In cases when the
international agreements and treaties signed by the Socialist Republic of
Vietnam provide different regulations than the regulation, regulations of the
international agreements and treaties will be applied;
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
3. Debts are transferred in accordance with the
credit or lending contracts.
Article 7: Methods to
buy and sell debts:
1. Direct method: the debt selling and buying
parties come to an agreement to sign direct contracts. The debt selling party
can directly sign contracts with one or many debt buying parties;
2. Indirect method: the purchasing and selling
of debts needs the assistance of the intermediary.
Chapter II
DETAILED PROVISIONS
Article 8: The following
are steps to buy and sell debts:
1. The debt selling party must announce some
summarised information on the debt and the deal, including the total
outstanding debts expected to be sold, terms of the debt, interest of the debt,
and the maximum price and allotted time to complete the deal;
2. The debt buying party (the intermediary if
there is) takes responsibility for analysing the debt and the operational
conditions of the debtor;
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
4. The debt selling and buying parties must sign
a debt selling and buying contract;
5. The debt seller sends a document in writing
concerning the deal to related parties (debtor, guarantor, and re-guarantor),
including the transfer of credit contracts and other related contracts with the
following contents:
a. Listing related contracts to be transferred:
credit, mortgage or pawn, and guarantee and re-guarantee contracts;
b. Principal debts and other sums (interests and
expenses);
c. The debt seller commits to the payment of
expenses and completion of debt selling and buying procedures agreed upon by
parties;
d. The debt seller commits that the debtor won’t
pay any expenses related to the deal;
e. Parties including debtor, guarantor and
re-guarantor must sign to certify the announcement;
6. The debt buyer takes responsibility for
transferring the money to the debt seller according to the price agreed by the
two parties;
7. Rectifying other remaining problems (if there
is any).
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. In cases when the credit or lending contract
includes the possibility of selling and buying debts, the deal must be carried
out through debt selling and buying contracts. In the contract, the debt seller
must make available the following information:
a. Legal status of debt seller and buyer and
related parties;
b. Addressees of debt seller and buyer;
c. Defining the value of the sold debt;
d. The selling price and payment modes;
e. Fixing the deadline of the deal;
f. Debtor’s responsibilities before and after
the debt selling and buying contract is signed (If no other legal agreements
are made between related parties, there won’t be any changes over the debtor’s
powers and compulsories previously regulated in the original credit contract);
g. Forms to transfer papers of bought debts;
h. Other commitments.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- In cases where the credit or lending contract
signed between the debt seller (lending parties) and the debtor provides
regulations on the allowance of selling and purchasing debts, it is unnecessary
to have approvals by the debtor and related parties to carry out the deal;
- In cases when the credit or lending contract
signed between the debt seller and the debtor excludes the possibility of
selling and buying debts, it is necessary to have the approval of the debtor
and related parties in order to carry out the deal;
3. Debt selling and buying contract must be
announced to the debtor;
4. From the date that the debt selling and
buying contract is signed, all previous letters and discussions become invalid,
excluding some cases when there have been other agreements reached by the
concerned parties;
5. The notarisation of the debt selling and
buying contract is decided upon by the debt buyer and seller;
6. Measures to assure that the debt selling and
buying contract is implemented smoothly are applied in accordance with the
general provision on ensuring the implementation of contracts by Vietnam’s
legal system.
Article 10: The
following are the rights applied to the assurance of sold, bought and
transferred debts:
1. All rights and interests linked with the
assurance of debts (mortgages, pawns, guarantee and re-guarantee) are kept
unchanged and transferred to the debt buyer by the debt seller in accordance
with the debt selling and buying contract;
2. In cases where the assurance of debts needs
to be adjusted in accordance with the selling and buying parties’ agreement, it
is necessary to have approval of the debtor, guarantor and re-guarantor;
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article 11: The debt
seller and buyer, or the debt buyer are allowed to resell the debt to the third
party. In this case, another contract must be formed to carry out the deal.
Article 12: The debt
selling price must be agreed upon by parties in accordance with the percentage
or the absolute value over the value of the sold debt.
Article 13: The
currency used to sell and buy the debt is the currency of the sold debt. If the
payment is balanced in other currencies, there must be an agreement between the
seller and the buyer and it must follow all regulations on the management of
foreign currencies by the State of Vietnam.
Article 14: The debt
buyer has the following rights and responsibilities:
1.The right to request the seller to transfer
all papers related to the sold debt;
2.The right to claim debt in accordance with the
value of the sold debt and enjoying other rights and interests related to the
debt;
3. Taking responsibility for paying the debt
seller according to the selling price agreed upon by both parties in the debt
selling and buying contract.
Article 15: The
intermediary functions as the arranger of the deal and has the following rights
and responsibilities:
1. The arrangement by the intermediary must obey
regulations of the contract signed between the intermediary and related
parties, the contract includes some basic contents, such as names, addresses of
parties, major content, expenses, and duration;
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
3. The intermediary has the right to request the
debt seller and buyer to pay wages and rational expenses related to the
intermediate in accordance with the signed contract, including cases when the
intermediate does not succeed.
Article 16: Debt
seller’s powers and responsibilities
1. Powers: The debt seller has the right to be
paid by the debt buyer in accordance with the price agreed upon in the debt
selling and buying contract;
2. Responsibilities:
a. Transferring all papers and rights to the
assurances related to the debt sold and bought in accordance with the agreement
in the debt selling and buying contract to the debt buyer;
b. Announcing the deal in writing to related
parties (debtor, guarantor, and re-guarantor).
Article 17: General
directors or directors of COs are authorised to sign debt selling and buying
contracts.
Article 18: Changes
related to the portion ensuring the safety of capital of the debt buyer and
seller due to the purchasing and selling of debts must obey regulations on
limitations in order to ensure the safety of the operation of COs.
Article 19: The balance
of expenses related to the purchasing and buying of debts is implemented in
accordance with the concrete stipulations stated in the financial regulation
applied to COs.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article 21: In cases of
the purchasing and selling of foreign debts, and when the foreign party
purchases debts from Vietnamese parties in foreign currencies, COs must obey
Vietnam’s regulations on the management of foreign loans and debts, and get
approval of the State Bank of Vietnam. When paying in foreign currencies, if
there are any differential in the terms of the exchange rate, the debt seller
must clearly define who will have to bear the differential.
Chapter III
IMPLEMENTATION
Article 22: Chairmen of
the management boards, and general directors (directors) of COs take
responsibility for providing guidance on the implementation of debt selling and
buying professions suited to the content of this regulation.
Article 23: Any changes
to the regulation must be made by the State Bank Governor.
P/P STATE BANK
GOVERNOR
DEPUTY GOVERNOR
Nguyen Van Giau