Decision No. 185-QD/NH5 dated September 06, 1994 of the State Bank about service regulations

 DECISION

ABOUT SERVICE REGULATIONS "

GOVERNOR OF STATE BANK

Regarding to the decree of Vietnamese State bank, Bank decree, Credit Cooperative and Financial 

Regarding to the Decree No15/CP dated March 2nd 1993 of government about duties, rights, responsibilities of State management of ministries and offices equal with ministry.

DECIDES

Article 1:

"Regulations on mortgage service" is enforced by this decision. 

Article 2:

This decision becomes effectual in implementation since the date of signature.

Article 3:

Chairman of Government office, Chairman of Finance regulation Bureaus, Chief of concerned bureaus, departments of State Bank; Directors of State Bank of Province, city; General Directors of General Jewelry companies. General Directors of State-run credit organizations; 

Chairman of management Board of Credit Joint Stock organizations, Joint-venture banks, Director of Foreign Bank Branches; Director of People's credit fund; Credit Cooperative's managers are responsible for implementing regulations enforced in this decision.

FOR THE STATE BANK

  

  

GOVERNOR

  

  

Cao Sy Kiem

REGULATION

PUBLISHED OF MORTGAGE SERVICES

According to the Decision no.185/QD-NH5 dated

Chapter I

GENERAL REGULATION

Article 1:

In this regulation, the group of words must be understood as follows: 

1.1. Mortgage services: is the way to land by the method of mortgage in which the mortgage forces mortgagor (or guarantor) to hand the pawn (his own property) over to mortgagee to keep as a guarantee of the paying off the debt in case the mortgagor is unable to pay the debt.

1.2. The pawn must be personal estate 

1.3. Mortgage's money - level: is the money in each mortgage service, including capital and profit which mortgagor receive and has to pay for mortgage when the term of the mortgage contract comes. 

1.4. Mortgagor must be. 

1.4.1. Juridical person.

1.4.2. Personalities included normal Vietnamese citizens from 18 years old and upwards; foreigners from 18 years old and upwards who is residing in Socialist Republic of Vietnam.

1.5. Mortgagees must be: State-run banks; General jewelry companies, Commercial joint-stock Banks, financial joint-stock enterprises, joint-venture banks; Foreign Bank branches, Credit Cooperatives, People's Credit fund.

Article 2:

Both of mortgagor and mortgagee have the responsibility to obey the undertaken articles of the mortgage contract about the using capital and maintaining the pawn.

Chapter II

CONCRETE REGULATIONS

COLUMN 1: PROPERTY ACCEPTED TO MORTGAGE

Article 3:

Mortgagees only allowed the pawns as follows: 

3.1. Gold, silver, precious stones; jewel made of gold, silver, precious stone.

3.2. Current effectual valuable proofs: bonds, letters of credit: bonds at notice, credit cards, commercial letters and certificates of deposit (if any).

3.3. Small machines, equipment's with high value. 

3.4. Means of transport: bicycle, motorbike, car. 

3.5. Another valuable properties. 

Article 4:

The pawns, which are stipulated in Article 3 of this regulation, will not be allowed to receive, if they belong to the kinds as bellows: 

4.1. Properties prohibited from buying, selling, 

4.2. Properties 

4.3. Properties declared to confiscate, temporarily kept by competent officials.

4.4. Properties prosodyed or blockaded. 

4.5. Properties used for pledging, guaranteeing or for rent. 

4.6. Properties belonging to the public. 

4.7. Properties having no condition to keep, preserve, examine. 

Article 5:

5.1. Mortgagor 

5.2. When the joint-stock companies, limited companies, joint-venture enterprises want to put their own properties into pawn, they have to have the correspondence of decision of management Board. 

5.3. All of the co-owners have to sign in mortgage contract in the case of owning the same pawn.

Article 6:

In the case that business of mortgagor go to bankrupt, the value of pawn are not allowed to be the liquidated assets. 

Article 7:

7.1. Depending on features of each pawn, to examine, assess the pawn before signing the mortgage contract. 

7.2. Mortgagor 

Article 8:

Responsibility of partners to the pawn. the responsibility to keep, preserve the pawn and concerned documents, not to use, rent or lend.

8.2. In the case that the pawn which had handed over to the mortgagee were spoiled; mortgagee with mortgagor have tore-examine, identify the cause and find out the way to settle.

8.3. In the case that the lost, mortgagee have responsibly to compensate to mortgagor. If any dispute, partners have the right to make a complaint or sue.

COLUMN II: MORTGAGE CONTRACT. 

Article 9:

9.1. Mortgage service 

9.2. There must be following factors in mortgage contract:

9.2.1. Surname and first name of both partners (included surname and first name of guarantor if any) address, telephone number, telex, fax, identity card number.

9.2.2. Current account number that mortgagor opens in the bank. 

9.2.3. Kind of pawn, label, code, symbol, quality, quantity

9.2.4. Sum of mortgage money and the purpose in using the mortgage money.

9.2.5 The term of mortgage, the date of payment for the debt.

9.2.6. Mortgage's rate of interest.

9.2.7. Affirming the responsibilities in case when the broken or lost.

9.2.8. Acknowledging the accounting condition (in arrearage case). 

9.2.9. The way to solve the dispute.

9.2.10. Other commitment articles.

Article 10:

10.1. The changing over or canceling the mortgage contract must be agreed on writing-text by partners who are taking parts in the contract.

20.2. A juridical person, who take part in mortgage contract, uniting, separating, incorporating or dissolving, have to affirm the responsibilities of juridical persons and persons, who have responsibility to continue the fulfillment of the mortgage contract.

10.3. When mortgagor died, legal heir will be the responsibility to continue the implement of the mortgage contract.

Article 11:

11.1. When mortgagor had paid off the debt (included capital and profit), the mortgagee have to give back the pawn and concerned documents to mortgagor.

11.2. When the date for debt payment comes according to mortgagor contract, if mortgagor can not pay the debt without asking for the expanding the date, mortgagee have the right to sell the pawn in order to take the debt back. The expanding the date of payment, the turning over the debt, which had exceed the time limit, have to be concretely regulated by juridition echelon of mortgagee. 

COLUMN III: MORTGAGE'S MONEY-LEVEL, DATE AND RATE OF INTEREST.

Article 12:

12.1. Basing on the value of examined-pawn, mortgage's money-level with the maximum of 70% of the value of pawn. 

12.2. The mortgagors who are officers of State bank, civil servant of credit departments officers system of General jewelry company, and other objects mentioned in point 1, 2, 3 Article 30 of bank, credit cooperative's and Financial company ordinance have to follow the regulations bellows. 

12.2.1. To all of subjects mentioned above, the level of mortgage debt balance is not allowed 15% of the level of the total mortgage debt balance.

12.2.2. When the officers of organizations, mentioned at column 1, 5 Article I of this regulation, want to mortgage, they have to be confirmed by competent person of .

Article 13: 

Basing on the kinds features, preservative conditions of the pawn, the mortgagee set the concrete mortgage date (maximum is not over 90 days) 

Article 14:

Basing on the short term loan's rate of interest at the time, and on the expense-level for pawn preservation, mortgagee fix the level of rate of interest conformed to the market and accepted by mortgagor. 

COLUMN IV: SETTLEMENT OF PAWN.

Article 15:

Mortgagee have the right to sell the pawn to take the debt back in the following cases:

15.1. The expansion mentioned in point 11.2 Article 11 of this regulation, is finished.

15.2. Mortgagor 

15.3. Mortgagor died without heir or the his own right to heritage.

15.4. Business of mortgagor were dissolved or bankrupted. 

Article 16:

Sales of pawn must be implemented, basing on the way of sell by the auction public and according to the regulations of law. 

Article 17:

Money received from sales of pawn will be solved as following orders. 

17.1. To pay the expenses of the organizing the pawn's sales. 

17.2. To pay the mortgage-money: Capital and profit (included fine). 

17.3. The rest will be paid to the mortgagor. In the case that no one 

Article 18.

In the case that money, which received from the pawn's sales, is not enough to pay the debt (included capital, profit and fine); the right to ask mortgagor to pay this lack or sue (in law).