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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
48/2001/ND-CP
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Hanoi,
August 13, 2001
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DECREE
ON ORGANIZATION AND OPERATION OF THE PEOPLE’S CREDIT FUNDS
THE GOVERNMENT
Pursuant to the September 30, 1992 Law on
Organization of the Government;
Pursuant to the December 12, 1997 Law No. 02/1997/QH10 on Credit Institutions;
Pursuant to the April 3, 1996 Law No. 47/L/CTN on Cooperatives;
At the proposal of the Vietnam State Bank Governor,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Regulation
scope
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Article 2.- The
characters and objectives of the operation of the People’s Credit Funds
The People’s Credit Fund is a form of
cooperative credit organization operating according to the principle of
voluntariness, autonomy and self-responsibility for its operation results,
attaining the main objective of mutual assistance among members in order to
bring into full play the strength of the collective and each member in
effectively carrying out production, business and service activities and raising
the living standards. The operation of the People’s Credit Fund must ensure
self-financing and accumulation for development.
Article 3.- Local
People’s Credit Funds
The local People’s Credit Funds are cooperative
credit organizations established by members in the localities voluntarily and
operating according to the provisions of this Decree with the principal aim of
mutual assistance among members.
Article 4.- The central
People’s Credit Fund
The central People’s Credit Fund is a
cooperative credit organization jointly set up by the local People’s Credit
Funds with a view to supporting and raising the efficiency of the operation of
the entire system of the People’s Credit Funds.
To support the system of the People’s Credit
Funds, credit institutions and other subjects may participate in contributing
capital to the central People’s Credit Fund under the guidance of Vietnam State
Bank (hereinafter called the State Bank).
Article 5.- The
principles for organization and operation of the People’s Credit Fund
1. To voluntarily join and leave the People’s
Credit Funds: All Vietnamese citizens, family households and other subjects,
that meet all conditions as provided for in Article 21 of this Decree may
become members of People’s Credit Funds; the members may leave the People’s
Credit Funds as provided for in the Charters of the People’s Credit Funds.
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3. Self-responsibility and mutual benefit: The
People’s Credit Funds take self-responsibility for their operation results;
decide by themselves the distribution of income, ensuring that the People’s
Credit Funds and their members have mutual benefits.
4. Profit- sharing ensures the combination
between the members’ interests and the People’s Credit Funds’ development:
After fulfilling the tax obligations, a part of the remaining profit shall be
deducted for various funds of the People’s Credit Funds, another part shall be
divided to members according to their capital contribution percentages and the
remainder shall be divided to members according to the extent of using services
of the People’s Credit Funds decided by the members’ congresses.
5. Community cooperation and development:
Members must promote the collective spirit, raise the sense of cooperation in
the People’s Credit Funds and the social community, cooperation among People’s
Credit Funds at home and abroad according to the provisions of law.
Article 6.- Minimum
number of members
The number of a People’s Credit Fund’s members
is not limited but the minimum number must be 30.
Article 7.- Rights of
the People’s Credit Funds
1. To mobilize capital, lend capital and provide
other banking services according to their operation licenses; to be autonomous
in business and self-responsible for their operation results.
2. To receive support capital from the State,
organizations and individuals at home and abroad.
3. To request borrowers to supply documents on
finance, production and/or business activities related to the borrowed sums.
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5. To admit new members, settle members’
application to leave the People’s Credit Funds, to expel members according to
the provisions of the Charters of the People’s Credit Funds.
6. To decide the income distribution and handle losses
according to law provisions and the Charters of the People’s Credit Funds.
7. To decide the rewarding and sanctioning of
members.
8. To reject organizations’ and/or individuals’
requests which are contrary to the provisions of law.
9. To exercise other relevant rights as provided
for by law.
Article 8.- The
obligations of the People’s Credit Funds
1. To conduct business activities according to
granted licenses; to abide by the State’s regulations on money, credit and
banking services.
2. To observe the Ordinance on Accountancy and
Statistics and the regime of inspection and auditing according to the
provisions in Articles 58 and 59 of this Decree.
3. To preserve and develop working capital of
the People’s Credit Funds; to effectively manage and use the assigned property.
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5. To pay taxes as prescribed by law.
6. To join in associated organizations for
development of the system with a view to achieving the objective of building
the People’s Credit Funds and the entire system of People’s Credit Funds in a
safe, effective and sustainable manner.
7. To care for education, training and training
to raise professional skills, to supply information so that all members
actively participate in building and managing the People’s Credit Funds.
8. To protect the members’ interests and fulfill
all economic commitments to members.
9. To effect labor contracts, to respect the
honor and dignity of laborers.
Article 9.- Association
among People’s Credit Funds
1. The People’s Credit Funds are associated with
one another to:
a) Unify and coordinate activities for the
objective of cooperation and assistance among members;
b) Ensure the safety and development of each
People’s Credit Fund and the entire system through the following works: capital
regulation; building of safety fund for the People’s Credit Fund system;
personnel training; organization of auditing; mutual exchange of information,
experiences and consultancy on professional administration, organization and
management.
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Article 10.- The
State’s policies towards People’s Credit Funds
The State protects the ownership, legitimate
rights and interests of the People’s Credit Funds, ensures the People’s Credit
Funds’ right to equality in activities; promulgates legal documents and adopts
policies to encourage the development of People’s Credit Funds; implements through
the People’s Credit Funds policies of assisting and supporting members in
hunger eradication and poverty alleviation, achieve equality, social justice
and progress. The State respects the People’s Credit Funds’ autonomy and
self-responsibility in their activities, without interfering with their
management and lawful operations.
Chapter II
ESTABLISHMENT AND
BUSINESS REGISTRATION
Article 11.- Founding
members
1. Founding members are those who initiate the
establishment of People’s Credit Funds and join the local People’s Credit
Funds.
2. Founding members of the local People’s Credit
Funds must report in writing to the competent People’s Committees prescribed in
Articles 67 and 68 of this Decree on their intention to set up local People’s
Credit Funds as well as orientations, programs and plans for their operations.
3. After getting the written approval of the
People’s Committees, the founding members shall proceed with:
a) The drafting of Charters;
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c) The organization of propagation and
mobilization;
d) Preparation of other work for organizing the
founding conference;
4. For the central People’s Credit Fund, there
shall be separate regulations.
Article 12.- Founding
conference
1. The conference on founding of a People’s
Credit Fund shall be organized by its founding members. It shall be
participated by the founding members and individuals as well as organizations
that wish to become members of the People’s Credit Fund.
2. The conference shall discuss and vote by
majority on the following issues:
a) The adoption of the list of members;
b) The adoption of the name and symbol of the
People’s Credit Fund;
c) The adoption of the draft Charter and
operation regulations of the People’s Credit Fund;
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e) The adoption of operation plan;
f) The election of the Managing Board, the
Control Board;
g) The adoption of the minutes of the founding
conference of the People’s Credit Fund.
Article 13.- Charters
of the People’s Credit Funds
1. Each People’s Credit Fund has its own
charter. The charters of the People’s Credit Funds must conform to the
provisions of the Law on Credit Institutions, the Law on Cooperatives and other
provisions of law.
2. A charter of a People’s Credit Fund must
contain the following major contents:
a) The People’s Credit Fund’s name and
head-office location;
b) Its operation contents and scope;
c) Its operation duration;
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e) Its organizational structure; tasks and
powers of its Managing Board, general director (director) and Control Board;
f) Procedures for organizing the members’
congress and adopting the decisions of the members’ congress;
g) Rights and obligations of members;
h) The financial, accounting, inspecting and
internal-auditing principles;
i) Cases of and procedures for division,
separation, consolidation, merger, repurchase, dissolution, bankruptcy;
j) Procedures for charter amendment.
3. The charters of the People’s Credit Funds may
be materialized only after they are approved by the State Bank.
Article 14.- Conditions
for being granted establishment and operation licenses
1. Having demand for banking operations in localities
where the operation is being applied for; having got the local administration’s
approval of the establishment of People’s Credit Fund.
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3. Founding members being organizations and/or
individuals have prestige and financial capability.
4. The administrators and managers have full
civil act capacity and meet all criteria on morality, educational level,
professional capability under the regulations of the State Bank.
5. Having organization and operation charters in
accordance with the provisions in Article 13 of this Decree.
6. Having feasible operation plans.
Article 15.- Granting
of establishment and operation licenses
1. A dossier of application for an establishment
and operation license shall include:
a) The application for an establishment and
operation license;
b) The minutes of the conference on founding of
the People’s Credit Fund;
c) The draft charter of the People’s Credit
Fund, which has been adopted at the founding conference;
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e) The lists and curricula vitae of the founding
members, Managing Board members, Control Board members and the general director
(director) as well as diplomas proving their professional capability and
skills;
f) The contributed capital level, capital
contribution plan and list of capital-contributing members;
g) The written proposal of the commune, ward or
district capital People’s Committee, which has been approved by the district,
provincial capital or town People’s Committee on the founding and
headquartering of the People’s Credit Fund (for local People’s Credit Funds);
the provincial/ municipal People’s Committee’s written approval of the location
for the headquarter of the central People’s Credit Fund (for the central
People’s Credit Fund).
2. The stipulations on competence to grant
establishment and operation licenses; the licensing time limits, the licensing
fees, the use of license; the operation conditions, the withdrawal of licenses
of People’s Credit Funds shall comply with the provisions of the Law on Credit
Institutions and of the State Bank.
Article 16.- Business
registration
After being granted establishment and operation
licenses, the People’s Credit Funds must proceed with business registration at the
provincial/municipal business registration offices.
Article 17.- Changes
which must be approved
1. A People’s Credit Fund must obtain the State
Bank’s approval before changing one of the following points:
a) The name of the People’s Credit Fund;
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c) The locations of its head-office, transaction
bureau(s), branch(es), representative office(s);
d) Operation contents and scope;
e) The Managing Board members, the Control Board
members and the general director (director).
2. After getting the State Bank’s approval, the
People’s Credit Funds must register with the business registration certificate-
granting bodies the changes prescribed in Clause 1 of this Article.
Article 18.- The legal
person status of the People’s Credit Funds
The People’s Credit Funds have the legal person
status, their own charter capital and seals; conduct independent economic
accounting and take responsibility before their members and law for their
operations.
The People’s Credit Funds shall have their legal
person status as from the date of being granted the business registration
certificates.
Article 19.- Opening of
transaction bureaus, branches and/or representative offices
1. The central People’s Credit Fund may open its
transaction bureaus, branches and/or representative offices in necessary
localities where exist operation demands after getting the State Bank’s written
approval.
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Article 20.- Division,
separation, consolidation, merger, repurchase, dissolution
The division, separation, consolidation, merger,
repurchase and dissolution of People’s Credit Funds must be approved in writing
by the State Bank and comply with the provisions of law.
Chapter III
MEMBERS
Article 21.- Membership
conditions
1. Members of the local People’s Credit Funds
may include:
a) Vietnamese citizens aged 18 or older, having
full civil act capacity and lawfully residing in geographical areas of
operation of local People’s Credit Funds;
b) Family household representatives who have all
conditions and criteria to be members of local People’s Credit Funds;
c) Other subjects prescribed by the State Bank
Governor.
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a) The local People’s Credit Funds;
b) The credit institutions;
c) Other subjects prescribed by the State Bank
Governor.
3. The subjects prescribed in Clauses 1 and 2 of
this Article, who voluntarily join People’s Credit Funds, approve their
charters, fully contribute capital may become members of the People’s Credit
Funds.
Article 22.- Rights of
members
1. To attend the members’ congresses or elect
delegates to the members congresses, to attend the members’ meetings to discuss
and vote on affairs of the People’s Credit Funds.
2. To stand for the election and be elected to
the Managing Boards, the Control Boards and other elective positions of the
People’s Credit Funds.
3. To deposit money, borrow capital, enjoy
profit division according to their contributed capital proportion.
4. To enjoy the common social welfare of the
People’s Credit Funds under the provisions of law.
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6. To be provided with necessary information
related to activities of the People’s Credit Funds.
7. To make proposals, reports and/or
recommendations on matters related to activities of the People’s Credit Funds
and to request the answers therefor; to request the Managing Boards, the
Control Boards to convene extraordinary members’ congresses to settle urgent
issues.
8. To transfer their own contributed capital and
interests as well as obligations to other persons according to the provisions
of law and the Charters of the People’s Credit Funds.
9. To leave the People’s Credit Funds according
to the provisions of the Charters of the People’s Credit Funds.
10. To be refunded with their contributed
capital and other interests when leaving the People’s Credit Funds according to
the provisions in Article 24 of this Decree. In cases where members die, their
contributed capital and other interests as well as obligations shall be settled
according to the law provisions on inheritance.
Article 23.- Obligations
of members
1. To abide by the charters of their People’s Credit
Funds and resolutions of the members’ congresses.
2. To contribute capital according to the
charters; the maximum level of contributed capital of each member including
capital transferred from others in each period shall be stipulated by the State
Bank Governor, but must not exceed 30% (thirty percent) of the total charter
capital of the People’s Credit Funds at the time of capital contribution and
receipt of transferred capital.
3. To cooperate with and assist one another,
contributing to building and further development of the People’s Credit Funds.
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5. To return the borrowed capital, both the
principal and the interest, to the People’s Credit Funds as committed.
6. To compensate for damage caused by themselves
to the People’s Credit Funds according to the provisions of the Charters and
the decisions of the members’ congresses.
Article 24.- Membership
termination
1. The People’s Credit Fund membership shall
terminate in the following cases where:
a) Members being individuals die or lose their
civil act capacity;
b) Members are permitted to leave the People’s
Credit Funds according to the provisions of the Charters;
c) Members being organizations dissolve or go
bankrupt;
d) Members are expelled by the members’
congresses;
e) Members have fully transferred their capital
and other interests as well as obligations to other persons;
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2. When having their membership terminated,
members may assign their contributed capital and other interests as well as
obligations to other persons. In cases prescribed at Points a, c and d of
Clause 1 of this Article where their contributed capital cannot be transferred
to other persons, members shall be refunded with their contributed capital. The
return of contributed capital must be based on the following factors:
a) The present financial status of the People’s
Credit Fund;
b) The members’ financial obligations towards
the People’s Credit Funds have been completely handled.
Chapter IV
ORGANIZATION AND
MANAGEMENT OF PEOPLE�S CREDIT
FUNDS
Article 25.- Members
congresses
The provisions on members congresses, the number
of delegates and voting at the congresses, the notices on convening the
congresses shall comply with the provisions of the Law on Cooperatives and
other law provisions.
Article 26.- The agenda
of members congresses
The members congresses shall discuss and decide
on the following matters:
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2. The public financial and accounting reports,
the planned distribution of profits and handling of losses (if any).
3. The business operation orientation for the
coming year.
4. Charter capital increase or reduction;
members capital contribution levels.
5. The election, supplementary election or dismissal
of chairmen and/or members of the Managing Board, members of the Control
Boards, of the People’s Credit Funds.
6. The adoption of plans elaborated by the
Managing Boards on the levels of allowances for members of the Managing Boards
and the Control Boards, the wage levels for the general directors (directors)
and personnel working at the People’s Credit Funds.
7. The adoption of the lists of members to be
newly admitted and members to leave the People’s Credit Funds, reported by the
Managing Boards; the decisions on expulsion of members.
8. The division, separation, consolidation,
merger, repurchase and/or dissolution of the People’s Credit Funds.
9. The amendment of the Charters of the People’s
Credit Funds.
10. Other matters proposed by the Managing
Boards, the Control Boards or at least 1/3 (one third) of the total members.
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The chairmen and other members of the Managing
Boards, the heads and other members of the Control Boards, the directors of the
local People’s Credit Funds, the general director of the central People’s
Credit Fund (hereafter referred collectively to as the directors) must be
approved by the State Bank Governor or under his/her authorization.
Article 28.- The
Managing Board
1. A Managing Board has the function of
administering the People’s Credit Fund according to the provisions of law.
2. The number of the Managing Board members
shall be decided by the members’ congress, but must be at least three. The
chairman and other members of the Managing Board shall be elected directly by
the founding conference or the members’ congress by mode of secret ballots.
3. The Managing Board members must be the
People’s Credit Fund members who have good morality, prestige, managerial
capacity and knowledge about banking operation. The Managing Board members must
not concurrently be the Control Board members, chief accountant, cashier of the
People’s Credit Fund and such persons must not be their father, mother, spouse,
offspring or siblings.
4. The Managing Board’s term shall be stipulated
by the members’ congress, which, however, must be at least 2 years and not
exceed 5 years.
5. The Managing Board shall take responsibility
for its decisions before the members’ congress and before law.
6. The chairman and other members of the
Managing Board must not authorize persons who are not members of the Managing
Board to perform their tasks and/or exercise their powers.
Article 29.- Tasks and
powers of the Managing Board
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2. To decide on issues regarding the
organization and operation of the People’s Credit Fund (except for matters
falling under the jurisdiction of the members’ congress).
3. To appoint, dismiss the director, deputy
director, chief accountant; to decide on the number of laborers, organizational
structure and professional sections of the People’s Credit Fund.
4. To prepare agenda of the members’ congresses
and convene the members’ congresses.
5. To draw up plans on the levels of
remuneration for members of the Managing Board and the Control Board, the wage
levels for the director and employees working at the People’s Credit Fund and
submit them to the members’ congresses.
6. To consider the admission of new members, to
settle members’ application for the exit from the People’s Credit Fund (except
cases of expulsion of members) and report them to the members’ congresses for
adoption.
7. To handle irrecoverable loans and other
losses according to the State’s regulations.
8. To perform other tasks and powers as
prescribed by law and the Charter of the People’s Credit Fund.
Article 30.- Managing
Board chairman
1. The Managing Board chairman is the People’s
Credit Fund’s representative at law.
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3. The Managing Board chairman must not
concurrently participate in the Managing Board or join in the administration of
another credit institution; particularly the chairmen of the Managing Boards of
the local People’s Credit Funds can join the Managing Board of the central
People’s Credit Fund.
4. The Managing Board chairman is the person who
organizes the performance of the tasks of the Managing Board as provided for in
Article 29 of this Decree; convenes and presides over the Managing Board’s
meetings; assigns the Managing Board members to implement the resolutions of
the members’ congresses and decisions of the Managing Board and oversees the
implementation thereof; urges and supervises the administration of the People’s
Credit Fund by its director.
Article 31.- The
Control Board
1. The Control Board is responsible for
supervising and inspecting all activities of the People’s Credit Fund according
to law and the Charter of the People’s Credit Fund.
2. The Control Board is elected directly by the
members’ congress. In principle, the Control Board has at least 3 persons, at
least one of them must be the full-time controller. The Control Board elects
its head to administer its activities. For small-sized local People’s Credit
Funds, they may elect only one full-time controller under the guidance of the
State Bank. The Control Board’s term shall be same as the term of the Managing
Board.
3. The Control Board members must satisfy all
requirements on professional qualifications and ethics set by the State Bank.
4. The Control Board members must not
concurrently be Managing Board members, chief accountant, cashier of the
People’s Credit Fund and must not be their parents, mother, spouse, offspring
or siblings.
Article 32.- Tasks and
powers of the Control Board
1. To inspect and supervise the People’s Credit
Fund’s operation according to law.
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3. To inspect financial and accounting matters,
income distribution, handling of loss amounts, the use of funds of the People’s
Credit Fund, the use of property and other supports of the State.
4. To receive and settle complaints and
denunciations related to activities of the People’s Credit Fund, which fall
under its jurisdiction.
5. Its head or his/her representative may attend
the Managing Board’s meetings but shall not participate in voting.
6. To request concerned persons in the People’s
Credit Fund to supply documents, books, vouchers and other necessary
information in service of the inspection, but not to use such documents and
information for other purposes.
7. To use the system of inspection and internal
audit (if any) of the People’s Credit Fund for the performance of its tasks.
8. To prepare the agenda of and convene members’
extraordinary congresses in the following cases where:
a) The Managing Board fails to redress or has
fruitlessly redressed the violations of law, Charter and resolutions of the
members’ congress as requested by the Control Board;
b) The Managing Board fails to convene the
members’ extraordinary congress at the request of members prescribed in Clause
4, Article 26 of the Law on Cooperatives.
9. To notify the Managing Board of, and report
before the members’ congress as well as the State Bank on, the control results;
to propose to the Managing Board and/or director the remedies of weaknesses,
shortcomings as well as violations in the operation of the People’s Credit
Fund.
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1. The director of a People’s Credit Fund shall
be appointed by its Managing Board.
2. The director of a People’s Credit Fund is the
person held accountable before the Managing Board for administering the daily
activities according to his/her assigned tasks and powers.
3. The director of a People’s Credit Fund must
have good morality, professional qualifications and managerial capacity as
provided for by the State Bank.
4. When absent, the director may authorize his
deputy or a Managing Board member to run affairs of the People’s Credit Fund;
the authorized person must not re-authorize another person.
Article 34.- Tasks and
powers of directors
1. To administer all activities of the People’s
Credit Fund strictly according to law, Charter and resolutions of the members’
congresses, resolutions of the Managing Board.
2. To select and propose the Managing Board to
appoint or dismiss deputy director (if any), chief accountant.
3. To recruit, discipline and dismiss employees
working at the People’s Credit Fund.
4. To sign reports, documents, contracts and
vouchers; to submit to the Managing Board the reports on the situation and
results of operations of the People’s Credit Fund.
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6. To prepare operation reports, final
settlement reports, the projected profit distribution, loss-handling plans,
plans on handling risks (if any) and draw up operation orientation for the
coming year for consideration by the Managing Board and submission to the
members’ congresses.
7. To decline to execute decisions of the
chairman or members of the Managing Board if deeming that such decisions are contrary
to law, to the Charter and/or resolutions of the members� congresses; and immediately report them to the
State Bank for handling measures.
Article 35.- Persons
who must not be members of the Managing Board or Control Board, executives
1. The following persons must not be elected to
the Managing Board or the Control Board or appointed to the post of director,
deputy director (if any):
a) Persons who are being examined for penal
liability;
b) Persons who have been sentenced for serious
offenses of infringing upon the national security, the socialist ownership and
citizens’ property; serious economic crimes;
c) Persons who have been sentenced for other
crimes and the judgments have not yet been written off;
d) Persons who were once the Managing Board
members or directors of organizations which have gone bankrupt, except cases
prescribed in Clause 2, Article 50 of the Law on Enterprise Bankruptcy;
e) Persons who were once representatives at law
of organizations which have been suspended from operation due to their serious
law violations.
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Article 36.-
Inspection, internal audit
The inspection and internal audit of the
People’s Credit Fund shall comply with the provisions in Section 4, Chapter II
of the Law on Credit Institutions and other law provisions.
Chapter V
OPERATION OF LOCAL
PEOPLE�S CREDIT FUNDS
Section 1. OPERATION OF LOCAL
PEOPLE’S CREDIT FUNDS
Article 37.- Capital
mobilization
1. The local People’s Credit Funds may take
demand and time deposits of their members and non-members.
2. The local People’s Credit Funds may borrow
capital from the central People’s Credit Fund and credit institutions other
than the People’s Credit Funds according to the regulations of the State Bank.
Article 38.- Credit
activities
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2. The compilation of dossiers and procedures
for loan provision, loan consideration and approval, the examination of loan
use, the loan termination, debt handling, adjustment of interest rates and the
keeping of dossiers by the local People's Credit Funds must comply with the
regulations of the State Bank.
3. The local People’s Credit Funds shall conduct
other credit activities according to the regulations of the State Bank.
Article 39.- Payment
and treasury services
1. The local People’s Credit Funds may open
deposit accounts at the State Bank, the central People’s Credit Fund and other
credit institutions (except other local People’s Credit Funds).
2. The local People’s Credit Funds may provide
payment and treasury services, mainly for their members.
Article 40.- Other
activities
1. The local People’s Credit Funds may use their
charter capital and reserve funds for capital contribution to the central
People’s Credit Fund and the associated organizations for system development.
2. The local People’s Credit Funds may undertake
the entrustment and act as agents in the field of monetary activities under the
guidance of the State Bank.
3. The local People’s Credit Funds may carry out
other activities when so permitted by the State Bank.
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Article 41.- Capital
mobilization
1. The central People’s Credit Fund may take
deposits of its members and other organizations as well as individuals in forms
of demand deposit, time deposit and other types of deposit.
2. The central People’s Credit Fund can issue
deposit certificates, bonds and other valuable papers to mobilize capital when
so permitted by the State Bank Governor.
3. The central People’s Credit Fund may borrow
capital on the domestic monetary markets and borrow capital from foreign credit
institutions according to the regulations of the State Bank.
4. The central People’s Credit Fund may borrow
capital from the State Bank according to the current regulations.
5. The central People’s Credit Fund may apply
other forms of capital mobilization when so permitted by the State Bank
Governor.
Article 42.- Credit
activities
1. The central People’s Credit Fund provides
loans mainly for its members; the provision of loans for subjects being
non-members shall comply with the Charter of the central People's Credit Fund
and the loan amounts must not exceed the maximum percentage prescribed by the
State Bank Governor.
2. The central People’s Credit Fund may carry
out operations of discount, rediscount, pledge of commercial bills and other
short-term valuable papers; provide bank guarantee and other credit forms
according to the regulations of the State Bank, mainly in the relations with
its members.
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Article 43.- Payment
and treasury services
1. The central People’s Credit Fund may open
accounts at the State Bank and other credit institutions.
2. The central People’s Credit Fund may provide
the following payment services, mainly for its members:
a) Supply of payment instruments;
b) Domestic payment services for customers;
c) Undertaking entrusted collection and
entrusted spending;
d) Other payment services stipulated by the
State Bank.
3. The central People’s Credit Fund may provide
cash collection and payment services for customers.
Article 44.- Other
activities
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2. The central People’s Credit Fund may
participate in the monetary markets organized by the State Bank, including the
treasury bond auction market, the inter-bank domestic and foreign currency
market, the market for other short-term valuable papers; may deal in foreign
exchange when so permitted by the State Bank; may entrust and take entrustment,
act as agents in fields related to banking operation.
3. The central People’s Credit Fund may provide
consultancy service and other services related to banking operation under the
regulations of the State Bank.
Section 3. RESTRICTIONS TO
ENSURE SAFETY FOR OPERATION OF THE PEOPLE�S CREDIT FUNDS
Article 45.- Cases
where loans must not be provided
The local People’s Credit Funds must not
directly provide loans to, and deposit capital for, each other; must not
provide loans to subjects other than those prescribed in Clause 1, Article 38
of this Decree.
Article 46.- Credit
restrictions
1. The local People’s Credit Funds must not
provide preferential loans to members of the Managing Board or the Control
Board, the director, deputy director and personnel working at the local
People’s Credit Funds as well as members being their parents, spouses and
offspring.
2. The central People’s Credit Fund must not
provide non-guaranteed loans, preferential loans to the following subjects:
a) Auditing organizations, auditors, that are conducting
auditing at the Fund, and inspectors;
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Article 47.- Lending
limits
1. The total debit balance of loans provided to
customers must not exceed 15% of a People�s
Credit Fund’s own capital; this limit does not apply to loans from entrusted
capital sources of other organizations and individuals and loans pledged from
the deposit books issued by such People’s Credit Fund itself.
2. Particularly for the central People’s Credit
Fund, if the customers’ demand for loan capital exceeds the prescribed 15% of
its own capital, the central People’s Credit Fund may provide loans according
to the regulations of the State Bank.
Article 48.- Capital
contribution limits
The capital contribution levels of the local
People’s Credit Funds and the central People’s Credit Fund in Clause 1 of
Article 40 and Clause 1 of Article 44 of this Decree shall be stipulated by the
State Bank.
Article 49.- Safety
guarantee and risk reserve percentages
The percentages of safety guarantee and risk
reserve of the People’s Credit Funds shall comply with the Law on Credit
Institutions and the guidance of the State Bank
Article 50.- Deposit
security and system organization
1. The People’s Credit Funds have the
responsibility to participate in the deposit insurance according to the current
regulations.
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3. The deposit insurance premium levels shall
comply with the regulations of the Government. The fee levels for participation
in the Safety Fund of the entire People’s Credit Fund system shall be
stipulated by the State Bank Governor after obtaining the opinions of the
Finance Minister. The People’s Credit Funds may account such fee amounts into
their operation expenditure.
Chapter VI
FINANCE, ACCOUNTING,
REPORTING AND INFORMATION AND CONFIDENTIALITY
Article 51.- Charter
capital
1. The charter capital of a local People’s
Credit Fund is the total capital amount contributed by its members and recorded
in its Charter, at least being equal to the legal capital level set by the
Government. The minimum and maximum capital level for a member shall be decided
by the members’ congress according to the regulations of the State Bank.
2. The charter capital of the central People’s
Credit Fund is the total capital amount contributed by its members and recorded
in its Charter, at least being equal to the legal capital level set by the
Government.
The Government’s support capital for the
People’s Credit Fund system shall be accounted into the charter capital of the
central People’s Credit Fund; the Government assigns the State Bank to manage
this capital amount.
Article 52.- Financial
revenue and expenditure and various funds
1. The People’s Credit Funds observe the regime
of financial revenue and expenditure prescribed by law. The Finance Minister shall
guide the application of the financial regime to the People’s Credit Funds to
suit the form of cooperative economy.
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Article 53.- Fiscal
year
The fiscal year of the People’s Credit Funds
commences on January 1 and ends on December 31 of the calendar year.
Article 54.- Accounting
The People’s Credit Funds must conduct
accounting according to the book-keeping account system and voucher regime as
provided for by the legislation on accounting, statistics and the guidance of
the State Bank.
Article 55.- Purchase
of, investment in, fixed assets
The People’s Credit Funds may purchase and/or
invest in fixed assets used directly for professional activities at the rates
prescribed by the State Bank Government, which, however, must not exceed 50% of
their own capital.
Article 56.- Reporting
1. The People’s Credit Funds must observe the regime
of financial reporting according to the law provisions on accounting,
statistics and periodically reporting on their professional activities
according to the regulations of the State Bank Governor.
2. Apart from the periodical reports, the
People’s Credit Funds have the responsibility to immediately report to the
State Bank on the following cases where:
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b) Members withdraw their capitals which
represent more than 30% of the charter capital or the capital withdrawal by
members makes the charter capital of the People’s Credit Fund lower than the
legal capital;
c) Customers withdraw their deposits which
represent more than 30% of the total deposit balance, making the People’s
Credit Fund in the danger of losing its solvency;
d) Other abnormal developments in organization
and/or operation, which may seriously affect the operation situation of the
People’s Credit Fund.
3. Within 90 days as from the end of the fiscal
year, the People’s Credit Funds must send to the State Bank their annual
reports as provided for by law.
Article 57.-
Information and confidentiality
The People’s Credit Funds must strictly observe
the regime of information for account holders, information exchange between
credit institutions, information exchange between the State Bank and credit
institutions, and banking information confidentiality according to the
regulations of the State Bank and other provisions of law.
Chapter VII
BANK INSPECTORATE,
AUDITING, SPECIAL CONTROL, BANKRUPTCY, DISSOLUTION, LIQUIDATION
Article 58.- Bank
inspectorate
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Article 59.- Auditing
The auditing of People’s Credit Funds shall be
carried out under the regulations of the State Bank.
Article 60.- Special
control
The special control of the People’s Credit Funds
shall be effected according to the provisions in Section 1, Chapter V of the
Law on Credit Institutions, and the regulations of the State Bank.
Article 61.- Bankruptcy
of People’s Credit Funds
After the State Bank has issued documents on
non-application or termination of application of measures to restore the
solvency of a People’s Credit Fund and the People’s Credit Fund system has
applied all support measures but that People’s Credit Fund still loses its
capacity to pay overdue debts, they may be declared bankrupt through procedures
carried out by courts to settle the request for bankruptcy declaration
according to the provisions of the legislation on enterprise bankruptcy.
Article 62.- Dissolution
of People’s Credit Funds
A People’s Credit Fund shall dissolve in the
following cases:
1. It voluntarily dissolves under the resolution
of the members’ congress if having capability to pay all its debts and getting
the approval of the State Bank.
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3. It is forced to dissolve by competent State
bodies; its establishment and operation license is revoked by the State Bank.
Article 63.- Liquidation
of People’s Credit Funds
1. In cases where People’s Credit Funds are
declared bankrupt, the liquidation shall be effected according to law
provisions.
2. Upon their dissolution, the People’s Credit
Funds shall conduct the liquidation according to law provisions and under the
State Bank’s supervision.
3. All liquidation-related expenses shall be
borne by the liquidated People’s Credit Funds.
Chapter VIII
STATE MANAGEMENT OVER
THE PEOPLE�S CREDIT FUNDS
Article 64.- Responsibility
of the State Bank
The State Bank shall perform the State
management over the People’s Credit Funds with the following principal
contents:
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2. Promulgating legal documents on organization
and operation of the People’s Credit Funds and guiding the implementation
thereof.
3. Granting and withdrawing establishment and
operation licenses of People’s Credit Funds.
4. Studying, elaborating and reviewing the
realization of, the Party’s and the State’s policies towards the People’s
Credit Funds; submitting to the Government the amendments and supplements to
the policies, aiming to promote the development of the People’s Credit Fund
system.
5. Elaborating and submitting to the Government
for adoption or adopting according to its competence programs and/or projects
with assistance and support from other countries and/or international
organizations for the development of the People’s Credit Fund system; directing
and inspecting the realization of such programs and/or projects.
6. Inspecting, examining People’s Credit Funds
according to law provisions.
Article 65.- Responsibilities
of ministries, branches
The ministries, the ministerial-level agencies
and the agencies attached to the Government shall, within the scope of their
tasks and powers, have to support and create favorable conditions for the
People’s Credit Funds to operate.
Article 66.-
Responsibilities of the People’s Committees of the provinces and centrally run
cities
The People’s Committees of the provinces and
centrally run cities (hereinafter referred collectively to as the
provincial-level People’s Committees) shall perform the function of State
management over the People’s Credit Funds according to the following contents:
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2. Directing and supervising the granting and
withdrawal of business registration certificates to/from local People’s Credit
Funds and/or central People’s Credit Fund offices in their localities. Creating
conditions for and assisting the People’s Credit Funds in handling problems
arising in the course of their operation. Deciding on the forced dissolution of
local People’s Credit Funds which have violated laws.
3. Settling complaints and denunciations and
handling according to competence acts of law violation, protecting the
legitimate rights and interests of the People’s Credit Funds and of their
members.
4. Proposing amendments and supplements to
policies for the development of the People’s Credit Funds.
5. Directing the People’s Committees of rural
districts, urban districts, provincial capitals and towns to supervise and
assist the People’s Credit Funds in the realization of plans for the
consolidation and reorganization of their operations, and at the same time well
performing the State management function according to law provisions with a
view to ensuring the safe and efficient development of the People’s Credit
Funds in the localities.
Article 67.-
Responsibilities of the People’s Committees of rural districts, urban
districts, provincial capitals and towns
The People’s Committees of rural districts,
urban districts, provincial capitals and towns (hereinafter called collectively
the district-level People’s Committees) shall perform the function of State
management over the People’s Credit Funds according to the following contents:
1. Propagating, mobilizing and creating
conditions for the formation and development of People’s Credit Funds in their
localities.
2. Considering the proposals of the People’s
Committees of communes, wards and district capitals so as to reply them in
writing whether the setting up of People’s Credit Funds is approved or not.
3. Directing the concerned boards and branches
in handling existing problems in the operation of the People’s Credit Funds.
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5. Directing the People’s Committees of
communes, wards and district capitals to supervise and assist the local
People’s Credit Funds in deploying the implementation of plans for operation
consolidation and reorganization, and at the same time well performing the State
management function according to law provisions with a view to ensuring the
safe and efficient development of the local People’s Credit Funds in the
localities.
Article 68.- Responsibilities
of the commune/ward/district capital People’s Committees
The People’ Committees of communes, wards and
district capitals shall perform the State management over the local People’s
Credit Funds set up and operating in their localities, according to the
following contents:
1. Propagating, popularizing, guiding and
creating favorable conditions for the setting up of local People’s Credit Funds
in accordance with law provisions.
2. Considering plans for establishment and
operation of local People’s Credit Funds put forth by the founding members;
basing themselves on the provisions of law, replying the founding members in
writing whether they agree on the setting up of the local People’s Credit Funds
or not. In case of agreement, there must be written document proposing the
setting up of the local People’s Credit Funds to the district-level People
Committees.
3. Having to participate in consideration and
posting of managerial cadres, controllers and executive officials of the local
People’s Credit Funds, creating conditions for officials of the local People’s
Credit Funds to work for a long term and with efficiency.
4. Directing concerned boards and branches in
handling existing problems in the operations of the local People’s Credit
Funds.
5. Supervising and assisting the local People’s
Credit Funds in deploying the realization of plans on operation consolidation
and reorganization and at the same time well performing the State management
function according to law provisions with a view to ensuring the safe and
efficient development of the People’s Credit Funds in the localities; being
responsible for the consequences caused by collectives or individuals under
their respective management to local People’s Credit Funds.
Chapter IX
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Article 69.-
Commendation
Organizations, individuals and People’s Credit
Fund members that record outstanding achievements in building and developing
the People’s Credit Funds, make many contributions to the efficient operation
of the People’s Credit Funds shall be commended and/or rewarded according to
the provisions of law.
Article 70.- Discipline
1. Those who violate the Charters and/or
operation regulations of the People’s Credit Funds shall, depending on the
nature and seriousness of their violations, be subject to reprimand, warning,
expulsion from People’s Credit Funds, administrative sanction or penal
liability examination; if causing damage, they have to pay compensations
therefor.
2. Any organizations or individuals that take
advantage of the name of the People’s Credit Fund to operate for the purpose of
seeking personal profits, violate the legislation on monetary and banking
operation, shall, depending on the nature and seriousness of their violations,
be disciplined, administratively handled or examined for penal liability; if
causing damage, they shall have to pay compensation therefor according to the
provisions of law.
Chapter X
IMPLEMENTATION
PROVISIONS
Article 71.- Adjustment
upon the disparity between the Law on Credit Institutions and the Law on
Cooperatives
In cases where this Decree fails to prescribe the
contents which have been stipulated differently in the Law on Credit
Institutions and the Law on Cooperatives, the provisions of the Law on Credit
Institutions shall apply.
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As from the effective date of this Decree,
within the time limits prescribed by the State Bank, each People’s Credit Fund
shall have to readjust its operation area, organizational structure and
operation contents in accordance with the provisions of this Decree and the State
Bank’s legal documents guiding the implementation thereof.
Article 73.- Guiding
the implementation
The State Bank Governor and the concerned
ministries and branches shall have to guide matters which they must specify, as
assigned to them in this Decree.
Article 74.-
Implementation effect
This Decree replaces Decree No. 42/CP of April
29, 1997 of the Government and takes effect 15 days after its signing; all
previous regulations contrary to this Decree are hereby annulled.
Article 75.-
Implementation organization
The ministers, the heads of the
ministerial-level agencies, the heads of the agencies attached to the
Government and the presidents of the provincial/municipal People’s Committees
shall, within the scope of their powers and responsibility, have to organize
the implementation of this Decree.
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