Circular No. 09/2012/TT-NHNN dated April 10, 2012 of the State Bank of Vietnam regulating the use of payment facilities for loan capital disbursement of credit institutions, branches of foreign banks to customers

THE STATE BANK OF VIETNAM

Circular No. 09/2012/TT-NHNN of April 10, 2012, specifying the use of payment instruments for disbursement of loans provided by credit institutions or foreign bank branches for their clients

Pursuant to June 16, 2010 Law No. 46/2010/QH12 on the State Bank of Vietnam;

Pursuant to June 16, 2010 Law No. 47/2010/QH12 on Credit Institutions;

Pursuant to the Government’s Decree No. 96/2008/ND-CP of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

In furtherance of the Prime Minister’s Decision No. 2453/QD-TTg of December 27, 2011, approving the Scheme to step up non-cash payment in Vietnam during 2011-2015;

At the proposal of the director of the Monetary Policy Department;

The Governor of the State Bank of Vietnam promulgates this Circular to specify the use of payment instruments for disbursement of loans provided by  credit institutions or foreign bank branches for their clients.

Article 1. Scope of regulation and subjects of application

1. This Circular specifies the use of payment instruments for disbursement of loans provided by credit institutions or foreign bank branches for their clients, contributing to stepping up non-cash payment and monitoring clients’ use of loans for the purposes agreed upon in credit contracts.

2. Subjects of application:

a/ Credit institutions and foreign bank branches providing loans under regulations of the State Bank of Vietnam and relevant laws;

b/ Clients taking loans at credit institutions or foreign bank branches;

c/ Organizations and individuals involved in the use of payment instruments for loan disbursement.

Article 2. Interpretation of terms

In this Circular, the terms below are construed as follows:

1. Beneficiary mean an organization or individual that has relationship with borrowers in the sale and purchase of property, payment of property-forming costs and other costs for satisfying loan demands under credit contracts signed between borrowers and credit institutions or foreign bank branches.

2. Loan disbursement means that credit institutions or foreign bank branches provide borrowers a sum of money to make payment to beneficiaries according to the purposes indicated in credit contracts signed between borrowers and credit institutions or foreign bank branches.

Article 3. Payment instruments used for loan disbursement

1. Credit institutions and foreign bank branches shall use non-cash payment instruments for loan disbursement and make direct payment to beneficiaries, except the cases specified in Clause 2 of this Article.

2. Credit institutions and foreign bank branches shall consider and decide to use non-cash instruments or cash or borrowers’ payment accounts to disburse loans in the following cases:

a/ Making payment to institutional beneficiaries with an amount of under VND 100,000,000 (one hundred million Vietnam dong) for each disbursement;

b/ Making payment to individual beneficiaries having payment accounts at payment service-providing organizations with an amount of under VND 100,000,000 (one hundred million Vietnam dong) for each disbursement;

c/ Making payment to individual beneficiaries without payment accounts at payment service-providing organizations;

d/ Offsetting equity capital and financial sources already used by borrowers to implement investment projects, production, business or service plans or investment projects, plans in service of people’s daily life;

e/ Paying salaries to employees;

f/ Transmitting loans to clients’ payment accounts for making payment for the purposes subject to payment via borrowers’ accounts under law.

Article 4. Responsibilities of credit institutions and foreign bank branches

1. Credit institutions and foreign bank branches shall specify the use of payment instruments in accordance with this Circular and loan control measures to ensure that loan disbursement is made according to the capital use progress of borrowing plans and projects and the contents agreed upon in credit contracts.

2. Credit institutions and foreign bank branches shall publicly notify clients of the State Bank of Vietnam’s regulations and their own rules on the use of payment instruments to disburse loan for clients.

Article 5. Responsibilities of borrowers

Clients taking loans at credit institutions and foreign bank branches shall provide information, documents and payment documents under regulations of credit institutions and foreign bank branches for consideration and decision on the use of payment instruments for loan disbursement under this Circular and relevant laws. Borrowers shall take responsibility before law for the accuracy and truthfulness of information and documents provided to credit institutions and foreign bank branches.

Article 6. Organization for implementation

1. This Circular takes effect on June 1, 2012.

2. For credit contracts signed before the effective date of this Circular, borrowers and credit institutions and foreign bank branches continue to use payment instruments to disburse loans under the signed credit contracts in accordance with law or modify credit contracts in accordance with this Circular.

3. The director of the Office, the director of the Monetary Policy Department and heads of units under the State Bank of Vietnam, directors of the State Bank of Vietnam’s provincial-level branches, chairpersons of boards of directors, member councils and directors general (directors) of credit institutions and foreign bank branches, and other concerned organizations and individuals shall implement this Circular.-

For the Governor of the State Bank of Vietnam
Deputy Governor
NGUYEN DONG TIEN