Quyết định 94/2004/QD-NHNN

DECISION

ON THE AMENDMENT OF SEVERAL ARTICLES OF THE REGULATION ON LENDING SECURED BY THE MORTGAGE OF VALUABLE PAPER BY THE STATE BANK OF VIETNAM TO BANKS ISSUED IN CONJUNCTION WITH THE DECISION NO. 1452/2003/QD-NHNN DATED 3 NOVEMBER, 2003 OF THE GOVERNOR OF THE STATE BANK

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated 12 December, 1997; the Law on the amendment, supplement of several Articles of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated 17 June, 2003 and the Law on Credit Institutions No. 02/1997/QH10 dated 12 December, 1997;
- Pursuant to the Decree No. 86/2002/ND-CP dated 05 November, 2002 of the Government providing for the function, assignment, authority and organization structure of the ministries and ministerial-level agencies;
- Upon the proposal of the Director of the Credit Department,

DECIDES:

Article 1. To amend several Articles of the Regulation on lending secured by the mortgage of valuable paper by the State Bank of Vietnam to banks issued in conjunction with the Decision No. 1452/2003/QD-NHNN dated 3 November, 2003 of the Governor of the State Bank as follows:

1. Articles shall be amended as follows:

"Article 7- Mortgage assets

Mortgage assets shall include:

1. Bills of the State Bank of Vietnam;

3- Government Bonds, including:

a. Treasury Bills

b. Treasury Bonds,

c. Bonds for Central Government's projects,

d. Foreign currency Bonds,

dd. Government Bonds for the construction of the Motherland.

3. Other valuable paper, which can be used as mortgage assets as stipulated by the Governor of the State Bank of Vietnam from time to time."

2. Article 16 shall be amended as follows:

"Article 16- Treatment of mortgage assets in the event of compulsory debt collection

The treatment of mortgage assets in the event of compulsory debt collection shall be carried out in accordance with the provisions of the State Bank's Governor on the treatment of mortgage assets of banks that borrow funds from the State Bank."

3. Article 19 shall be amended as follows:

"Article 19- Responsibilities of units of the State Bank of Vietnam

1- The Monetary Policy Department shall be responsible:

a. To determine the limit of quarterly, annual currency supply, including the limit on the currency supply for the operation of valuable paper mortgage, for the purpose of the refinancing and submit it to the Governor of the State Bank for decision and give notice to related units;

b. To cooperate with related units to deal with difficulties, obstacles that arise during the  process of mortgage lending.

2- The Credit Department shall be responsible:

a- To receive and appraise application files for funds borrowing of banks, head offices of which are located in Hanoi;

b. To submit the request for the borrowing, which is secured by the mortgage of valuable papers by banks to the State Bank's Governor for approval; to deliver the original set of the file approved by the Governor of the State Bank to the Banking Operation Department or deliver the written authorization by the State Bank Governor to the State Bank branches in provinces, cities under the central Government's management via fax and per post;

c. To give notice of the acceptance or refusal of the lending, which is secured by the mortgage of valuable paper to the banks that request for funds borrowing;

d. To take the lead to cooperate with related units in dealing with difficulties, obstacles that arise during the process of mortgage lending.

dd. To consolidate, on the monthly basis, all information, data of the lending on the basis of the mortgage of valuable papers that arise in the State Bank of Vietnam and the State Bank branches in provinces, cities under the central Government's management and report to the Governor of the State Bank and send to the Monetary Policy Department.

3- The Banking Operation Department shall be responsible:

a- To publicly announce the interest rate of the mortgage lending at the Banking Operation Department.

b. Based on the file approved by the State Bank's Governor (sent by the Credit Department), to complete procedures for entering into the lending agreement mortgaged by valuable papers, to carry out the lending and collection of principal and interest in accordance with provisions in this Regulation;

c. To keep as archive, preserve and safely hand over files, documents and mortgage assets and perform the accounting in accordance with applicable provisions;

d. To consolidate, on the monthly basis, all information, data of the lending on the basis of the mortgage of valuable papers, timely discover difficulties, obstacles, which arise during the implementation and send to the Credit Department for consolidation and report to the Governor of the State Bank.

4- The Finance and Accounting Department shall provide guidance on the accounting for the lending, which is made on the basis of the mortgage of valuable papers.

5- The State Bank's branches in provinces, cities under the central Government's management shall be responsible for:

a- Public announcement of interest rate of the mortgage lending at the office of the State Bank's branches.

b- Receipt and verification of application file for funds borrowing of banks, which apply for borrowing in the locality;

c. Submission to the Governor of the State Bank, via the Credit Department, for approval of the maximum lending limits (submission through the fax machine of the Credit Department, at the same time, submission to it of the bank's original application to the Governor and the copy of its application file for funds borrowing).

 d. Performance of mortgage lending upon the availability of a written authorization of the Governor of the State Bank (by fax); collection of principal, interests  in accordance with applicable provisions in this Regulation;

dd. Record and preservation, safe delivery of files, documents, mortgaged assets and performance of the accounting in accordance with applicable provisions;

e. Compilation of monthly information, data of mortgage lending, timely discovery of obstacles, difficulties, which arise during the implementation and submit to the Credit Department for consolidation and report to the Governor of the State Bank."

4. To repeal paragraph 4, Article 3 and paragraph 5 of Article 8.

5. To replace 5 sample forms attached to the Decision No. 1452/2003/QD-NHNN dated 3 November, 2003 of the State Bank's Governor with 5 sample forms attached to this Decision.

Article 2. This Decision shall be effective after 15 days from its publication in the Official Gazette.

Article 3. Heads of units of the State Bank, General Managers of the State Bank branches in provinces, cities under the central Government's management, Chairperson(s) of the Board of Directors and General Managers (Managers) of Banks shall be responsible for the implementation of this Decision.

LIST OF VALUABLE PAPER PROPOSED FOR USE AS MORTGAGE ASSETSFOR BORROWING FUNDS FROM THE STATE BANK

Unit: 1 VND

Note: Paper of the same maturity shall be grouped in column (2)

LIST OF VALUABLE PAPER ACCEPTED FOR USE AS MORTGAGE ASSETSFOR BORROWING FUNDS FROM THE STATE BANK

Unit: 1 VND

 Note: Paper of the same maturity shall be grouped in column (2)

NOTICE

Of the approval by the State Bank of Vietnam of lending secured by the mortgage of valuable paper to the bank...............

Pursuant to the Regulation on lending secured by the mortgage of valuable paper by the State Bank of Vietnam to banks issued in conjunction with the Decision No. 1452/2003/QD-NHNN dated 3 November, 2003 and the Decision No. .../2004/QD-NHNN dated      /       / 2004 of the Governor of the State Bank;

After considering the application file for borrowing secured by the mortgage of valuable paper by the Bank........... on..............., 200..., the State Bank of Vietnam accepts to perform the lending secured by the mortgage of valuable paper to the bank .............. with following contents:

1. Amount of mortgage lending:

2. Mortgage lending interest rate:

3. The last term of mortgage lending is on ...................... with following repayment periods:

3.1

3.2

3.3

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4. Valuable paper used for mortgage shall be in accordance with the list of valuable papers accepted for use as mortgage at the State Bank of Vietnam drawn by the bank.............  on........................, 200..., No.:......

The State Bank of Vietnam would like to inform for the knowledge and implementation of your Good Bank.

Form No. 04/CC

NOTICE

Of the non-approval by the State Bank of lending secured by the mortgage of valuable paper to the bank...............

Pursuant to the Regulation on lending secured by the mortgage of valuable paper by the State Bank of Vietnam to banks issued in conjunction with the Decision No. 1452/2003/QD-NHNN dated 3 November, 2003 and the Decision No. ......./2004/QD-NHNN dated .../.../2004 of the Governor of the State Bank;

After considering the application file for mortgage by the Bank........... on..............., 200..., the State Bank of Vietnam does not accept  the lending secured by the mortgage of valuable paper to the bank .............. with following reasons:

1.

2.

3.

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The State Bank of Vietnam would like to inform for the knowledge of your Good bank

Form No. 05/CC

CONTRACT ON LENDING SECURED BY MORTGAGE OF VALUABLE PAPER

No.: ……………………………..

Name of applicant bank:............................................... Code................................................

Address:...............................................................................................................................

Number of deposit account:..................................................................................................

Number of loan account:.......................................................................................................

Maintained at:.......................................................................................................................

Based on the application for borrowing secured by mortgage of valuable paper stated in the Official Dispatch No………dated…………/200… of     ………..that has been accepted in accordance with the content of the Notice of the State Bank No……..dated……………/200……..together with the List of valuable papers accepted for use as mortgage assets No................ dated ............. 200... of ............... the State Bank of Vietnam, the Bank……….recognize the debt secured by mortgage of valuable paper at the State Bank  of Vietnam with following contents:

- Amount of mortgage loan:...................................................................................................

- In words..............................................................................................................................

- Interest rate of mortgage borrowing:.....................................................................................

- Term of mortgage borrowing: ………………………. from the date of the debt recognition and broken down into  repayment periods stated in the back of this contract

- Purpose of the mortgage borrowing:....................................................................................

The applicant Bank commits to correctly comply with the Regulation on the lending secured by mortgage of valuable paper of the State Bank to banks issued in conjunction with the Decision No. 1452/2003/QD-NHNN dated 3 November, 2003 and the Decision No. ..../2004/QD-NHNN of the Governor of  the State Bank of Vietnam.

ACCEPTANCE BY THE STATE BANK OF LENDING SECURED BY THE MORTGAGE OF VALUABLE PAPER

Amount of mortgage lending:................................................................................................

In words:...............................................................................................................................

Interest rate on mortgage lending:..........................................................................................

Term of mortgage lending:.....................................................................................................

Types of paper accepted for use as mortgage assets:............................................................

Purpose of mortgage lending:...............................................................................................

DISBURSEMENT OF BORROWING AMOUNT AND REPAYMENT PERIODS

FOLLOWING UP REPAYMENT PERFORMANCE AND OVERDUE DEBT