Thông tư 10/2000/TT-NHNN1

CIRCULAR

GUIDING THE IMPLEMENTATION BY CREDIT INSTITUTIONS OF MEASURES OF LOAN SECURITY IN ACCORDANCE WITH THE RESOLUTION NO. 11/2000/NQ-CP DATED 31 JULY, 2000 OF THE GOVERNMENT

Based on point 6 and 7 Section III of the Resolution No. 11/2000/NQ-CP dated 31 July, 2000 of the Government on several measures to conduct the plan of socio-economic development in the last 6 months of 2000, the Governor of the State Bank provides guidance on the implementation by credit institutions of measures of loan security provided for in this Resolution as follows:

I. MEASURES OF LOAN SECURITY OF CREDIT INSTITUTIONS

1. Registration of secured transaction

1.1 For the registration of secured transactions where the security assets are immovable assets, movable assets (except for air planes, ships), credit institutions and borrowing customers shall not carry out the registration of secured transactions until related ministries, agencies, people committees of provinces, cities under the central management establish the National Registration Office for secured transactions and provide detailed guidelines on the sequence, procedure, registration fee for secured transactions.

1.2 For the registration of secured transactions where the security assets are ships, air planes, credit institutions and borrowing customers shall carry out the registration of secured transactions at the Department for civil aviation of Vietnam, the Registration office for regional ships and crew in accordance with current provisions of the Government, the Ministry of Transport and the Department for civil aviation of Vietnam.

2. Lending without asset security to Stated-owned enterprises and enterprises with foreign invested capital:

2.1. For stated-owned enterprises which do not satisfy the condition: "Having profitable production, business performance in the last 2 years preceding to the time of lending consideration", but do not fall under the "Bad" category of the restructuring plan (equitisation, assignment, sale, contracting-out and lease...) of the Government, Ministries, industrial branches and localities, and have an effective investment project, efficient production, business plan to overcome the loss within a certain period of time and are capable of repayment, credit institutions shall consider to lend without asset security in accordance with other provisions stated in Section I Chapter IV of the Decree No. 178/1999/ND-CP dated 29 December, 1999 of the Government and Section I, Chapter IV of Circular No. 06/2000/TT-NHNN1 dated 04 April, 2000 of the Governor of the State Bank guiding the implementation of this Decree.

2.2 Credit institutions shall consider to lend without asset security in accordance with other provisions stated in Section 1 Chapter IV of the Decree No. 178/1999/ND-CP dated 29 December, 1999 of the Government and Section I Chapter IV of the Circular No. 06/2000/TT-NHNN1 dated 04 April, 2000 of the Governor of the State Bank guiding the implementation of this Decree, to enterprises with foreign invested capital that are suffering from looses in accordance with their business plan for having been in operation in Vietnam for less than 3 years if they are considered to be able to perform their loss plan as expected in their investment projects which have been approved by the competent agency

3. Conditions regarding the own capital required to contribute to the investment project and the value of security assets by measures of pledge, mortgage, asset-backed guarantee of the third party in accordance with provisions in point 1.4, Section 2, Chapter III of Circular No. 06/2000/TT-NHNN1 dated 4 April, 2000 of the Governor of the State Bank shall be implemented as follows:

3.1 The own capital required to contribute to the investment project shall be equal to 30% of the total investment capital of the project as a minimum; or

3.2 The own capital contributed to the investment project and the value of the security assets by measures of pledge, mortgage, asset-backed guarantee of the third party shall be equal to 30% of the investment capital of the project as minimum; or

3.3 The value of the security assets by one of measures of pledge, mortgage, asset-backed guarantee of the third party or by measures of pledge, mortgage, asset-backed guarantee of the third party shall be equal to 30% of the investment capital of the project as a minimum.

4. Lending without asset security to farmer's households, owner of farms.

For farmer's households, owners of farms in the areas of agriculture, forestry, aquatic production of the scale of goods productions, that have effective production plan, repayment capacity, credit institutions shall consider and lend up to VND 20 millions without asset security. The borrowers are required to surrender to Credit institutions the original copy of the certificate of the land use right or the written confirmation of people committees of villages, towns to the extent that the land being used is not involved in any dispute, together with the application for borrowing.

II. ORGANISATION OF THE IMPLEMENTATION

1. This Circular shall be effective from the date of signing.

2. The Board of Directors, General Directors (Directors) of credit institutions shall be responsible for the implementation of this Circular.

3. Heads of units of the State bank, General Managers of State Bank branches in provinces, cities under the central management shall be responsible for the supervision of the implementation of this Circular.