Decision No. 185/2004/QD-NHNN dated February 24, 2004 of the State Bank of Vietnam amending and supplementing Clauses 1, 2 and 3, Article 5 of the Regulation on overdrafts and overnight loans applicable to inter-bank electronic payment, promulgated together with the State Bank Governor’s Decision No. 1085/2002/QD-NHNN of October 7, 2002

DECISION No. 185/2004/QD-NHNN OF FEBRUARY 24, 2004 AMENDING AND SUPPLEMENTING CLAUSES 1, 2 AND 3, ARTICLE 5 OF THE REGULATION ON OVERDRAFTS AND OVERNIGHT LOANS APPLICABLE TO INTER-BANK ELECTRONIC PAYMENT, PROMULGATED TOGETHER WITH THE STATE BANK GOVERNOR'S DECISION No. 1085/2002/QD-NHNN OF OCTOBER 7, 2002 THE STATE BANK GOVERNOR

Pursuant to December 12, 1997 Vietnam State Bank Law No. 01/1997/QH10; June 17, 2003 Law No. 10/2003/QH11 Amending and Supplementing a Number of Articles of Vietnam State Bank Law; and December 12, 1997 Law No. 02/1997/QH10 on Credit Institutions;

Pursuant to the Government's Decree No. 86/2002/ND-CP of November 5, 2002 defining the functions, tasks, powers and organizational structures of the ministries and ministerial-level agencies;

Pursuant to the Government's Decree No. 141/2003/ND-CP of November 20, 2003 on the issuance of Government bonds, Government-underwritten bonds and local administration's bonds;

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

DECIDES:

Article 1.- To amend and supplement Clauses 1, 2 and 3, Article 5 of the Regulation on overdrafts and overnight loans applicable to inter-bank electronic payment, promulgated together with the State Bank Governor's Decision No. 1085/2002/QD-NHNN of October 7, 2002 as follows:

“Article 5.- Assets pledged for overdrafts and overnight loans

1.       Assets pledged for the banks' overdrafts and overnight loans include:

a/ State Treasury bills;

b/ State Bank bills;

c/ State Treasury bonds;

d/ Central works' bonds;

e/ National construction bonds;

f/ Other valuable papers, to be prescribed by State Bank Governor in each period.

2.       Conditions for pledged assets to be accepted:

Valuable papers shall be accepted by the Vietnam State Bank as pledged assets when the following conditions are fully met:

a/ The banks are payees (for registered valuable papers), or lawful holders (for bearer valuable papers);

b/ Pledged valuable papers defined in Clause 1 of this Article have a remaining valid duration of at least 10 days;

c/ They can be traded or paid to Vietnam State Bank as the third party according to law provisions and payees' commitments;

d/ Where they are issued in the book-entry form, there must be certification and guarantee by the organizations liable to pay for such valuable papers that the payment shall be made to Vietnam State Bank when the banks are incapable of paying debts.

3.       The value of pledged valuable papers shall be determined by mode of discount at the time of valuation by Vietnam State Bank's Transaction Office. The formula for valuating valuable papers is as follows:

GT

G = —————————

Ls x n

1 + ——————

365 x 100

Of which:

- G: The value of valuable papers at the time of valuation;

- GT: The value of valuable papers when they become mature:

+ For valuable papers issued in par-value form, GT shall be the amount paid for such valuable papers when they become mature (both principal and interest);

+ For valuable papers issued in discount form, GT shall be the denomination of such valuable papers;

- Ls: The discount interest rate (calculated in percentage/year) announced by Vietnam State Bank for application at the time of valuation;

- n: The remaining valid duration (calculated in days) of valuable papers, counting from the date of valuation to the maturity of such valuable papers.”

Article 2.- This Decision takes implementation effect 15 days after its publication in the Official Gazette.

Article 3.- The heads of the units under the State Bank, the directors of the provincial/municipal branches, the chairmen of the Managing Boards, and the general directors (directors) of the banks being direct members of the inter-bank electronic payment system shall have to implement this Decision.

For the State Bank Governor

Deputy Governor

PHUNG KHAC KE