Circular No. 113/2012/TT-BTC investment activities with the intent of maintaining increasing insurance funds đã được thay thế bởi Decree 30/2016/ND-CP detailing investment social insurance health insurance unemployment insurance funds và được áp dụng kể từ ngày 16/06/2016.
Nội dung toàn văn Circular No. 113/2012/TT-BTC investment activities with the intent of maintaining increasing insurance funds
THE MINISTRY OF FINANCE | THE SOCIALIST REPUBLIC OF VIETNAM |
No. 113/2012/TT-BTC | Hanoi, July 17, 2012 |
CIRCULAR
PROVIDING DETAILED PROVISIONS ON INVESTMENT ACTIVITIES WITH THE INTENT OF MAINTAINING AND INCREASING INSURANCE FUNDS MANAGED BY VIETNAM SOCIAL SECURITY
Pursuant to the Government’s Decree No. 118/2008/ND-CP dated November 27, 2008 on defining the functions, tasks, entitlements and organizational structure of the Ministry of Finance;
Pursuant to the Prime Minister’s Decision No. 04/2011/QD-TTg dated January 20, 2011 on practicing the financial management of the Vietnam Social Security;
At the request of the Director of the Finance and Administration Department,
The Minister of Finance hereby promulgates the Circular on providing detailed provisions on investment activities with the intent of maintaining and increasing insurance funds managed by Vietnam Social Security.
Article 1. Governing scope and entities
1. This Circular provides for processes and procedures for investment activities with the intent of maintaining and increasing insurance funds managed by Vietnam Social Security, including: Compulsory social insurance fund, mandatory social insurance fund, unemployment insurance fund, medical insurance fund (hereinafter referred to as insurance funds).
2. This Circular is applied to Vietnam Social Security and relevant entities getting involved in the investment activities with the intent of maintaining and increasing insurance funds managed by Vietnam Social Security.
Article 2. Distributed investment fund
1. Annual investment fund for the growth means all of temporarily idle cash coming from insurance funds managed by Vietnam Social Security.
2. Vietnam Social Security shall be responsible to collect all receipts, make financial statements of receipts and payments derived from insurance funds as well as determine temporarily idle funds used to perform the investment activities with the intent of maintaining and increasing insurance funds in accordance with laws.
Article 3. Preparation of investment plans under the regulations laid down in Clause 4 Article 7 of the Decision No. 04/2011/QD-TTg
1. Based on annual socio-economic development achievements, investment principles and types according to legal regulations, Vietnam Social Security shall formulate the investment plan for submission to the Management Board for their approval, including the following contents:
a) An evaluation report on previous year’s investment performance and current year’s estimated performance on the basis of general and detailed criteria set for each investment type, including investment outstanding debt, investment sum, loan repayment (principal and interest), and investment interest rate.
b) A plan for proposed investments that shall be made in a planning year on the basis of general and detailed criteria set for each investment type, including investment sum, investment validity period, loan repayment (principal and interest), and year-end investment outstanding debt.
2. The preparation time of annual investment plan shall be aligned with the preparation time of financial plan as stipulated by laws and shall be also included in the financial plan prepared by Vietnam Social Security.
3. Based on the investment plan approved by the Management Board, Vietnam Social Security shall perform investment activities in accordance with the regulated regime. In the course of implementation, given any required adjustment or modification to investment plans with the purpose of increasing the investment efficiency, Vietnam Social Security shall send a report to the Management Board for their consideration and decision.
Article 4. Processes and procedures for the grant of loans to the State budget under the regulations laid down in Clause 1 Article 8 of the Decision No. 04/2011/QD-TTg
1. Loan limit, term and interest rate:
a) Loan limit shall be decided by the General Director of Vietnam Social Security with reference to the demand for loans from the State budget and the annual investment plan approved by the Management Board.
b) Loan term shall be calculated from the grant date to the maturity date; the loan term specified in each loan agreement shall be mutually agreed by Vietnam Social Security and the Ministry of Finance, but shall not exceed a maximum of 10 years.
c) The interest rate applied to each loan shall equal the interest rate applied to the government bonds with the same maturity date as that of the loan at the loaning time. When a no-bid loan is granted or a loan is not secured on the Government bonds with the same term, the interest rate shall be decided by the President of the Management Board.
With regard to the loan with the agreed term of over 05 years, Vietnam Social Security and the Ministry of Finance shall consider any possible adjustment to the loan interest rate every five years so that the adjusted interest rate can benefit all contracting parties.
2. Loaning procedural steps:
a) When the demand for loans emerges, the Ministry of Finance shall send a written request to Vietnam Social Security in which the loan amount, loan term, loan disbursement schedule, loan use purpose and detailed schedule for loan sum transfer shall be clearly stated.
b) Within a maximum of 05 working days as from the receipt of loan request made by the Ministry of Finance (with reference to the date specified on the date stamp affixed on the arrival document), Vietnam Social Security shall examine and check it against the limit of loan within the year that the Management Board has approved to grant to the State budget after which, depending on its relevance, the Board shall decide whether a loan shall be granted; in case of rejecting the grant of loan, they must send a written response to the Ministry of Finance in which reasons for that rejection must be clearly stated.
c) A binding contract must be ratified by both contracting parties under which the loan amount, term, interest rate, use purpose, and other related terms and conditions (according to the form No.01 issued under this Circular) must be clearly specified.
d) In reliance on the loan agreement that has been signed by both parties, Vietnam Social Security shall transfer an amount of loan to the State budget’s account.
3. Loan repayment:
a) A lump-sum payment shall be made on the principal of a loan on the maturity date.
b) An annual payment shall be made on the interest which is calculated on the basis of outstanding loan and loan interest rate specified in the loan agreement; the maturity date of interest payment is fixed on the closing date of a full year that begins with the date on which the Ministry of Finance receives loan sums. Formula:
Annual interest payment | = | Outstanding loan | x | Loan interest rate (%/year) |
c) Where the principle repayment is scheduled to correspond with the time when the Ministry of Finance is making great effort in mobilizing resources to implement pressing policies and tasks assigned by the State, Vietnam Social Security shall consider extending the loan repayment deadline upon the request made by the Ministry of Finance.
Article 5. Loaning procedural steps applied to state-owned commercial banks, Vietnam Development Bank and Vietnam Bank for Social Policies under the regulations laid down in Clause 2 Article 8 of the Decision No.04/2011/QD-TTg
1. The entities eligible to take out a loan (hereinafter referred to as the borrower) comprise:
a) State-owned commercial banks, including:
- Domestic commercial banks that have been established and operated in the form of joint-stock companies in which State-owned stocks make up more than 50% of charter capital;
- State-owned commercial banks that have been established and operated in the form of State-owned single member limited companies in which the State owns 100% of charter capital.
b) Vietnam Development Bank.
c) Vietnam Bank for Social Policies.
2. Loan limit, term and interest rate:
a) Loan limit shall be decided by the General Director of Vietnam Social Security with reference to the demand for loan and loan repayment capacity of borrowers and the investment plan of the year that has been approved by the Management Board.
b) Loan term is calculated from the date of loan grant to the date of loan repayment; specific loan term specified in the loan agreement shall be agreed by Vietnam Social Security and borrower but shall not be allowed to exceed a maximum of 05 years.
In order to improve the efficiency of investment activities, temporarily idle sums that remain at a specific point of the year shall be optimized. Depending on the borrower’s demands, Vietnam Social Security shall take initiative in determining the loan term (day, week, month, or year) which must ensure the principles of safety, effectiveness and loan repayment on schedule and simultaneously shall not lead to bad impacts on the plan for other investment types approved by the Management Board.
c) Loan interest rate:
Loan interest rate shall be agreed on by contracting parties but shall not be lower than the average interest rate applied to deposits with the same term defined on the date when that loan is granted at four transaction centers or branches of four equivalent state-owned commercial banks throughout the territory of Hanoi. Formula for calculating the interest rate shall be:
The average interest rate applied to deposits with the same term at four transaction centers or branches of state-owned commercial banks (%/year) | = |
L1 + L2 + L3 + L4 |
4 |
Where:
L1, L2, L3 , L4 denotes the deposit interest rate with the same term defined on the date when that loan is granted at four transaction centers or branches of four equivalent state-owned commercial banks throughout the territory of Hanoi such as Vietnam Joint Stock Commercial Bank for Industry and Trade, Vietnam Joint Stock Commercial Bank for Foreign Trade, Vietnam Joint Stock Commercial Bank for Investment and Development, and Vietnam Bank for Agriculture and Rural Development. The decision to choose four aforesaid transaction centers or branches shall be made by General Director of Vietnam Social Security.
In order to facilitate the inspection of investment activities performed by the competent authority, Vietnam Social Security must keep a full record of deposit interest rate tables officially posted by four transaction centers or branches that state-owned commercial banks have designated to set or adjust the loan interest rate (original, duplicate or fax copies).
d) Adjustment to loan interest rate:
- Within the effective period of the loan agreement, whenever the average interest rate set on deposits with the same term at four transaction centers or branches throughout Hanoi increases or decreases by 30% as against the interest rate specified in the valid loan agreement, Vietnam Social Security and borrowers shall consider adjusting the interest rate at the corresponding rate in order to protect the interests for contracting parties.
- When Vietnam Social Security with the intent of determining the loan interest rate shall refer to the interest rate applied to deposits with the same term at four transaction centers or branches of a state-owned commercial bank, the adjustment to the loan interest rate is required to rely on the average deposit interest rate defined at such four transaction centers or branches thereof.
dd) Interest rate applied to the late interest payment equals 150% of the loan interest rate defined on the maturity date of loan repayment.
3. Loaning procedural steps:
a) When the demand for loans emerges, the borrower shall send a written request to Vietnam Social Security in which the outstanding loan granted by Vietnam Social Security, loan limit, term, loan disbursement and transfer schedule.
b) Within a maximum of 10 working days as from the receipt of loan request made by the borrowers (with reference to the date specified on the date stamp affixed on the arrival document), Vietnam Social Security shall verify whether the borrower is eligible to take out the loan, and if all requirements as stipulated by laws are fulfilled, The grant of loans shall be considered; in case of rejecting the request, a written response is required in which reasons for that rejection must be clearly stated.
c) Loaning procedures: A binding contract must be ratified by contracting parties (according to the form No. 02 issued together with this Circular). Depending on the specific requirements of each borrow, both contracting parties shall agree on detailed contractual terms and conditions which are not in breach of regulations set out in the Article 8 of the Prime Minister's Decision No.04/2011/QD-TTg dated January 20, 2011 and this Circular.
4. Loan repayment:
a) A lump-sum payment shall be made on the principal of a loan on the maturity date.
b) Interest shall be paid on a monthly basis and calculated on the basis of the outstanding loan or outstanding debt of each loan and the loan interest rate which is determined at the maturity date of interest payment; the maturity date of interest payment is fixed on the closing date of a full month that begins with the date on which the borrower receives loan sums. In respect of short-term loans with the term of below 03 month, the interest shall be paid on a monthly basis or lump-sum payment, inclusive of principal repayment, as agreed upon by contracting parties, which must be clearly specified in the loan agreement. Formula of calculating the loan interest rate shall be:
Amount of interest payment | = | Outstanding loan | x | Loan interest rate (%/year) | x | Actual days |
360 |
5. Loan repayment extension and loan renewal:
a) Within 30 days before the maturity date of principal repayment, if the borrower wishes to extend the deadline for loan repayment or renew a loan, a written request must be submitted to Vietnam Social Security for consideration and decision in which reasons must be clearly explained.
b) Within a maximum of 05 working days as from the receipt of the request made by the borrower (with reference to the date specified on the date stamp affixed on the arrival document), Vietnam Social Security shall decide whether they agree to extend the loan repayment or renew the loan. In case of refusal, the written response must be sent to the borrower in which clear reasons must be provided.
c) Where Vietnam Social Security agrees to extend the loan repayment deadline or renew the loan, the following steps must be taken:
- In terms of loan repayment extension: Each loan is accepted to get only one extension of loan repayment with the extended deadline of less than 06 months which does not exceed the contractual loan term.
- In terms of loan renewal: The borrower is not required to repay the principal but is obliged to repay all outstanding interest specified in the loan agreement. Then, the borrower and Vietnam Social Security can enter into a mutual consent to the new loan term, interest rate and make a new loan agreement. Pursuant to the new loan agreement signed by both parties, Vietnam Social Security shall document the brought-forward principal repayment and carry on with new loaning process; the loan term agreed in the new loan agreement shall be calculated from the maturity date of loan repayment specified in the preceding loan agreement.
6. Actions to be taken against loan prepayment and late repayment:
a) Within a period of the validity of the loan agreement, the borrower is vested with the right to make the loan prepayment but also obligated to repay all the interest accrued over the remaining contractual term in proportion to the amount of principal prepayment and loan interest rate within the loan term which is applicable at the date of loan prepayment. Formula of calculating the amount of interest payment:
Amount of interest payment | = | Amount of principal prepayment | x | Loan interest rate (%/year) | x | Prepayment days |
360 (days) |
b) By the date on which the interest payment is due, if the borrower fails to pay or insufficiently pays the interest as agreed upon by both parties, in addition to making a full payment on the outstanding loan interest, the borrower is also bound to pay the interest on late payment interest at the rate that equals 150% of the loan interest rate specified at the maturity date of loan interest payment in proportion to the number of late payment days. Formula of calculating the amount of interest payment:
Interest on the late payment interest | = | Late payment interest | x | Late payment interest rate (%/year) | x | Days of late payment interest |
360 (days) |
c) By the date on which the principal payment is due, if the borrower fails to pay or insufficiently pays the principal amount as agreed upon by both parties, in addition to making a full payment on the principal of the loan, the borrower is also bound to pay the interest on late payment principal at the rate that equals 150% of the loan interest rate specified at the maturity date of loan principal payment in proportion to the number of late payment days. Formula of calculating the amount of interest payment:
Late payment interest | = | Late payment principal | x | Late payment interest rate (%/year) | x | Days of late payment principal |
360 (days) |
Article 6. Processes for other types of investment stipulated in Clause 2 Article 7 of the Decision No. 04/2011/QD-TTg
1. As regards the investment to be made in the form of purchasing bonds and treasury bills issued by the State and state-owned commercial banks:
a) Prerequisites for an investment are that it falls within the investment portfolio and permissible investment fund in a specified year approved by the Management Board.
b) Investment interest rate shall be aligned with the interest rate of bonds and treasury bills as stipulated by the State and state-owned commercial banks, or the interest rate defined in the bidding process through the securities market as stipulated by laws.
c) Regulations on money transfer, payment on principal and interest of bonds and treasury bills shall comply with the regulations set out by the State and state-owned commercial banks on the issuance of bonds and treasury bills.
2. As regards the investment to be made in the projects that are of national economic importance and require a great deal of capitals, decided by the Prime Minister:
a) Investment prerequisites consist of:
- Those that are of national economic importance and approved by the Prime Minister, and have a certain investment granted and managed by Vietnam Social Insurance.
- Those that fall within the investment portfolio and permissible investment fund in a year approved by the Management Board
b) Regulations on investment methods, modes of payment, developmental process, inspection and supervision mechanisms that enable the investment fund to be used for the right purpose and in an efficient manner, together with other relevant information, shall conform to the particular regulations decided by the Prime Minister and the Resolution approved by the Management Board in terms of specific cases.
Article 7. Effect
1. This Circular shall come into force from September 01, 2012.
2. In respect of the loan agreement concluded before the effective date of this Circular, Vietnam Social Security and the borrower shall continue to adhere to the contractual terms and conditions agreed in the existing loan agreement until such loan agreement is terminated or any terms or conditions agreed herein are changed or modified to conform to regulations laid down in Article 8 of the Prime Minister’s Decision No.04/2011/QD-TTg dated January 20, 2011 and this Circular.
Article 8. Implementation
1. Vietnam Social Security, when agreeing to approve a loan, must consider the right person who can be eligible to take out the loan in accordance with regulations set out at Point b Clause 2 Article 7 of the Prime Minister's Decision No. 04/2011/QD-TTg dated January 20, 2011 and this Circular. The loaning process applied to specific cases under the Prime Minister’s directive (if any) shall be governed by the particular statutory document promulgated by the Prime Minister and comply with the loaning process stipulated herein.
2. Every month, the division in charge of investment fund management and accounting tasks, affiliated to Vietnam Social Security, shall check the loan sum, collect debts incurred within a specified month and outstanding debts of each borrower in order to expedite the loan repayment (including principal and interest) on schedule and ensure the strict loan management.
3. The General Director of Vietnam Social Security shall direct their officers in charge of investment funds to regularly update information about the interest rate applied to government bonds and deposits at transaction centers and branches of state-owned commercial banks throughout Hanoi with the aim of determining and modifying loan interest rates to correspond with the practical situation and contribute to improving the efficiency of investment activities.
| PP. THE MINISTER |
This Form is applicable to loans taken out by the State budget |
| Form No. 01 Promulgated together with the Circular No. 113/2012/TT-BTC dated July 17, 2012 by the Ministry of Finance |
THE SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
---------------
LOAN AGREEMENT
No.........................................
Pursuant to the Civil Code dated June 14, 2005;
Pursuant to the Law on Social Insurance dated June 29, 2006;
Pursuant to the Law on Medical Insurance dated November 14, 2008;
Pursuant to the Prime Minister’s Decision No. 04/2011/QD-TTg dated January 20, 2011 on practicing the financial management of the Vietnam Social Security;
Pursuant to the Circular No. 113/2012/TT-BTC promulgated on July 17, 2012 by The Minister of Finance on providing detailed provisions on the investment in maintaining and fostering insurance funds managed by Vietnam Social Security;
At the request of the Ministry of Finance enclosed in the Official Dispatch No........dated............
Today, on date................, at..............................
Witnesseth we are
Lender: Vietnam Social Security
Address: ...........................................................................................................
Telephone:................................................ Fax:................................................
Account No............................................... Opened at.............................................
Represented by Mr (Mrs.)................................. Title: ............................................
Borrower: the State budget (represented by the Ministry of Finance)
Address: No.28, Tran Hung Dao street, Hoan Kiem district, Hanoi
Telephone:................................................ Fax:................................................
Account No............................................... opened at
Represented by Mr (Mrs.)................................. Title: ............................................
After entering into a mutual agreement, Vietnam Social Security hereby agrees on the grant of loan to the State budget under terms and conditions as agreed upon by both contracting parties as follows:
Article 1. Loan amount, term and interest rate:
1. Loan amount (in numbers):.............................................................VND
(in words:.......................................)
2. Loan term: ....year(s), calculated from the Vietnam Social Security’s transfer of loan sum (based on day, month and year specified on documents on money transfer formulated by the State Treasuries or their subordinate banks)
3. Loan interest rate fixed at the date on which this agreement is signed is ......%/year.
Article 2. Debt collection
1. a) A lump-sum payment shall be made on the principal on the maturity date. The interest payment shall be made on an annual basis, which is due on the closing date of a full year that begins with the date on which Vietnam Social Security transfers loan sums as stipulated in the Clause 2 Article 1 hereof.
2. Where maturity date of loan repayment (including principal and interest) corresponds with holidays or days-off, the date on which the loan repayment is due shall be moved to the nearest subsequent working day; the increased amount of interest in these additional days shall be calculated on the basis of the loan interest rate defined at the specified maturity date of loan repayment (including principal and interest).
3. Within 10 days before the maturity date of loan repayment (including principal and interest), Vietnam Social Security shall send the debt collection note to the Ministry of Finance in order to take active control of the debt repayment.
4. By the date on which the payment on principal and interest is due, if the Ministry of Finance fails to pay, in addition to making a full payment on the principal and loan, the Ministry of Finance is also obliged to pay the late payment interest at the rate that equals 150% of the loan interest rate specified at the maturity date of loan repayment in proportion to the number of late payment days.
Article 3. Mode of payment
1. Vietnam Social Security shall transfer a sum of loan to the State budget’s account provided in this Agreement in installments as follows:
a) Date: Month................, Year.............................. : ...........................................................................VND
b) Date: Month.........., Year...........: .......................................VND
................ Other subsequent installment transfer (if any), contingent on the request of the Ministry of Finance.
After each installment transfer, Vietnam Social Security shall send a notification to the Ministry of Finance as a proof of loan disbursement.
2. The Ministry of Finance shall transfer a sum of loan repayment (including principal and interest) to the Vietnam Social Security’s account provided in this Agreement.
Article 4. Mutual commitment
1. Both contracting parties are committed to complying with contractual terms and conditions hereof.
2. The mutual consent to any adjustment and modification to this Agreement must be in written and sent by both parties.
3. This Agreement shall take effect from the signing date. After the Ministry of Finance has already fulfilled their obligations to repay the loan (including principal and interest), this Agreement is deemed to come to an end.
4. This Agreement shall be made into 04 copies with the same value and each of contracting parties keeps 02 copies.
REPRESENTATIVE OF THE MINISTRY OF FINANCE | REPRESENTATIVE OF VIETNAM SOCIAL SECURITY |
This Form is applicable to loans taken out by state-owned commercial banks, Bank for Social Policies and Vietnam Development Bank |
| Form No. 02 Promulgated together with the Circular No. 113/2012/TT-BTC dated July 17, 2012 by the Ministry of Finance |
THE SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
-----------
LOAN AGREEMENT
No...............................................
Pursuant to the Civil Code dated June 14, 2005;
Pursuant to the Law on Social Insurance dated June 29, 2006;
Pursuant to the Law on Medical Insurance dated November 14, 2008;
Pursuant to the Prime Minister’s Decision No. 04/2011/QD-TTg dated January 20, 2011 on practicing the financial management of the Vietnam Social Security;
Pursuant to the Circular No. 113/2012/TT-BTC promulgated on July 17, 2012 by The Minister of Finance on providing detailed provisions on the investment in maintaining and fostering insurance funds managed by Vietnam Social Security;
Given the request of ................................ (Name of bank that applies for a loan) made at the Official Dispatch No..........
dated...................................
Today, on date................, at..............................
Witnesseth we are:
Lender: Vietnam Social Security (abbreviated as VSS)
Address: ...........................................................................................................
Telephone......................................................... Fax:................................................
Account No............................................... Opened at.....................................
Represented by Mr. (Mrs.)................................. Title: ............................................
Borrower: (Full name of the bank).....................................
Address: ...........................................................................................................
Telephone......................................................... Fax:................................................
Account No............................................... Opened at.....................................
Represented by Mr. (Mrs.)................................. Title: ............................................
After entering into the mutual agreement, Vietnam Social Security hereby agrees to grant the loan to the borrower under contractual terms and conditions as agreed upon as follows:
Article 1. Loan amount, term and interest rate:
1. Loan amount (in numbers):.............................................................VND
(in words:.......................................)
2. Loan term:......... (specifying the number of years: ....year(s), beginning with the date on which the borrower receives loan sums (based on day, month and year specified on documents on money transfer formulated by the subordinate banks).
3. Loan interest rate:
a. Loan interest rate applied in the conclusion of this Agreement is...... %/year, which is determined with reference to the deposit interest rate set on the same term........ (specifying the term as required in Clause 2 of this Article) the date in which the loan is approved by four following transaction centers, branches: throughout Hanoi
- Transaction center/branch..............................................................................
- Transaction center/branch..............................................................................
- Transaction center/branch..............................................................................
- Transaction center/branch..............................................................................
b) Adjustment to loan interest rate: Within the effective period of the loan agreement, whenever the average interest rate set on deposits with the same term..........(specifying the term as required in Clause 2 of this Article) at four transaction centers or branches given at Point a of this Clause throughout Hanoi increases or decreases by 30% as against the interest rate specified in the valid loan agreement, Vietnam Social Security shall have the right to adjust the interest rate at the corresponding rate. After performing such adjustments, Vietnam Social Security shall notify the borrower in writing of the adjusted loan interest rate and the date on which the new interest rate is applied in order to serve as the basis for the interest payment.
c) Interest rate applied to the late interest payment equals 150% of the loan interest rate defined on the maturity date of loan repayment.
Article 2. Debt collection, Loan repayment extension and loan renewal
1. A lump-sum payment shall be made on the principal on the maturity date.
2. Interest shall be paid on.............................. (specifying: monthly basis or on the basis of lump-sum payment at the same time with principal repayment); the time of interest payment (specifying: on the closing date of a full month identical to the date on which the borrower receives loan sums as stipulated in Clause 2 Article 1 hereof / identical to the principal repayment date).
3. Where maturity date of loan repayment (including principal and interest) corresponds with holidays or days-off, the date on which the loan repayment is due shall be moved to the nearest subsequent working day; the increased amount of interest in these additional days shall be calculated on the basis of the loan interest rate defined at the specified maturity date of loan repayment (including principal and interest).
4. Within 30 days before the maturity date of principal repayment, if the borrower wishes to extend the deadline for loan repayment or renew a loan, a written request must be sent to Vietnam Social Security for consideration and decision in accordance with legal regulations.
Article 3. Mode of payment
1. Vietnam Social Security shall transfer loan sums to the borrower’s account specified herein with the following schedule:
b) Date: Month.........., Year...........: .......................................VND
b) Date: Month.........., Year...........: .......................................VND
................. Other subsequent installment transfer (if any), contingent on the request of the borrower.
2. The borrower shall transfer loan repayment sum (including principal and interest) to Vietnam Social Security’s account given in this Agreement.
Article 4. Rights and obligations of Vietnam Social Security
1. Rights and obligations of Vietnam Social Security have been provided for in the State's regulatory documents represented in the opening section of this Agreement.
2. Bear responsibility for transferring the loan to the borrower in a sufficient and timely manner in accordance with terms and conditions agreed herein.
3. Make up for any loss of the borrower on account of Vietnam Social Security’s default on fulfilling their obligations agreed herein.
4. Adjust loan interest rate as agreed upon at Point b Clause 3 Article 1 hereof.
Article 5. Rights and obligations of the borrower
1. Receive the loan sum in compliance with terms and conditions hereof.
2. Have the right to request Vietnam Social Security to adjust loan interest rate as agreed upon at Point b Clause 3 Article 1 hereof.
3. Comply with regulations mentioned in the State’s regulatory documents represented in the opening section hereof.
4. Provide required information and documents in a timely, sufficient and accurate manner according to the request of Vietnam Social Security, and bear responsibility for ensuring the accuracy and truth of provided information and documents.
5. Make a full repayment on the principal and interest on the agreed maturity date.
Article 6. Scope
1. By the date on which the interest payment is due, if the borrower fails to pay or insufficiently pays the interest as agreed upon by both parties, in addition to making a full payment on the outstanding interest, the borrower is also bound to pay the interest on late payment interest at the rate that equals 150% of the loan interest rate specified on the maturity date of loan interest payment in proportion to the number of late payment days.
2. By the date on which the principal payment is due, if the borrower fails to pay or insufficiently pays the principal amount as agreed upon by both parties, in addition to making a full payment on the principal of the loan, the borrower is also bound to pay the late payment principal at the rate that equals 150% of the loan interest rate specified on the maturity date of loan repayment in proportion to the number of late payment days.
3. Within a period of the validity of the loan agreement, the borrower is vested with the right to make the loan prepayment but also obligated to repay all the interest accrued over the remaining contractual term in proportion to the amount of principal prepayment and loan interest rate within the loan term which is applicable at the date of loan prepayment.
Article 7. Mutual commitment
1. Both contracting parties are committed to complying with contractual terms and conditions hereof. If any dispute arises during the implementation of this Agreement, both contracting parties shall be advised to enter into a negotiation; in case such negotiation is failed, a lawsuit shall be filed to the Court to mediate such dispute.
2. Any adjustment or modification to this Agreement must be in written and sent by both parties.
3. Notifications and documents shall be sent to the address of both parties mentioned herein by postal mails.
4. This Agreement shall take effect from the signing date. After the borrower has already fulfilled their obligations to repay the loan (including principal and interest) and even the late payment interest (if any), this Agreement is deemed to come to an end.
5. This Agreement shall be made into 04 copies with the same value and each of contracting parties keeps 02 copies.
REPRESENTATIVE OF THE BORROWER | REPRESENTATIVE OF VIETNAM SOCIAL SECURITY |
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