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Official Gazette

Tuesday, January 21, 2020

DECREE No. 53/2013/ND-CP OF MAY 18, 2013: On the establishment, organization and operation of the Asset Management Company for Vietnamese credit institutions

Updated: 15:37’ - 30/07/2013

THE GOVERNMENT

Decree No. 53/2013/ND-CP of May 18, 2013, on the establishment, organization and operation of the Asset Management Company for Vietnamese credit institutions

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to June 16, 2010 Law No. 46/2010/QH12 on the State Bank of Vietnam;

Pursuant to June 16, 2010 Law No. 47/2010/QH12 on Credit Institutions;

Pursuant to November 29, 2005 Law No. 60/2005/QH11 on Enterprises;

At the proposal of the Governor of the State Bank of Vietnam,

The Government promulgates the Decree on the establishment, organization and operation of the Asset Management Company for Vietnamese credit institutions.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides the establishment, organization and operation of the Asset Management Company for Vietnamese credit institutions (below referred to as Vietnam Asset Management Company).

Article 2. Subjects of application

1. Vietnam Asset Management Company.

2. Vietnamese credit institutions (below referred to as credit institutions).

3. Other organizations and individuals related to the establishment, organization and operation of Vietnam Asset Management Company.

Article 3. Establishment of Vietnam Asset Management Company

1. The State Bank of Vietnam (below referred to as the State Bank) establishes Vietnam Asset Management Company with a view to tackling non-performing loans and boosting credit growth at a rate suitable to the economy.

2. Vietnam Asset Management Company is a special business organized as a wholly state-owned single-member limited liability company and subject to the state management, inspection and supervision by the State Bank.

Article 4. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Vietnamese credit institutions are credit institutions set up and operating under the Law on Credit Institutions, except wholly foreign-owned and joint-venture credit institutions.

2. Borrowers include organizations (excluding credit institutions and foreign bank branches) and individuals obtaining credit facilities from, or having their corporate bonds purchased by, credit institutions, and organizations (excluding credit institutions and foreign bank branches) entrusted by credit institutions to purchase corporate bonds from enterprises whose non-performing loans are sold to Vietnam Asset Management Company.

3. Borrowers still in existence are institutional borrowers which have not yet had their operation licenses revoked or have not yet been dissolved or gone bankrupt and individual borrowers who are still alive or are not missing.

Article 5. Principles of operation of Vietnam Asset Management Company

Vietnam Asset Management Company operates in the following principles:

1. Covering expenditures with revenues and serving not-for-profit purposes.

2. Assuring publicity and transparency in the purchase and handling of non-performing loans.

3. Limiting risks and expenses in the handling of non-performing loans.

Article 6. Extension of credit to borrowers having their non-performing loans sold to Vietnam Asset Management Company

Credit institutions may consider and further extend credit to borrowers whose  non-performing loans are sold to Vietnam Asset Management Company according to agreements between the two parties and law, on the condition that such borrowers have feasible production and business plans.

Article 7. Methods for Vietnam Asset Management Company to purchase non-performing loans from credit institutions.

1. Purchasing non-performing loans of credit institutions at the book value with special bonds issued by Vietnam Asset Management Company itself.

2. Purchasing non-performing loans of credit institutions at the market value with capital sources other than special bonds.

3. Based on its financial capacity, economic efficiency and market conditions, Vietnam Asset Management Company may apply the method specified in Clause 2 of this Article to purchase from credit institutions non-performing loans which:

a/ Satisfy the conditions specified in Article 8 of this Decree;

b/ Are assessed as retrievable;

c/ Are backed by saleable collateral assets;

d/ Are owed by borrowers that show prospects of recovering their solvency.

4. The Members’ Council of Vietnam Asset Management Company shall elaborate a plan on purchase of non-performing loans by the method specified at Clause 2 of this Article and submit it to the State Bank Governor for approval before implementation.

Article 8. Conditions on non-performing loans purchased by Vietnam Asset Management Company

1. Vietnam Asset Management Company shall purchase a non-performing loan that fully meets the following conditions:

a/ The loan is owed to a credit institution and may be a bad debt in credit extension, corporate bond purchase, entrusted purchase of corporate bonds, entrusted credit extension and other activities prescribed by the State Bank;

b/ The loan is backed by a collateral asset;

c/ The loan and collateral asset are lawful and accompanied with valid dossiers and papers;

d/ The borrower is still in existence;

dd/ The balance of the non-performing loan or the credit balance of the borrower is not lower than the level prescribed by the State Bank.

2. The State Bank shall guide in detail conditions on non-performing loans prescribed in Clause 1 of this Article.

3. The purchase of non-performing loans which do not satisfy the conditions specified in Clause 1 of this Article by Vietnam Asset Management Company must be decided by the Prime Minister at the proposal of the State Bank.

Chapter II

ORGANIZATION, ADMINISTRATION AND MANAGEMENT OF VIETNAM ASSET MANAGEMENT COMPANY

Article 9. Charter capital

Vietnam Asset Management Company has a charter capital of VND 500 billion.

Article 10. Organizational apparatus of Vietnam Asset Management Company

1. Vietnam Asset Management Company is headquartered in Hanoi and may set up branches and representative offices in big provinces and centrally run cities after obtaining approval from the State Bank.

2. The managerial apparatus of Vietnam Asset Management Company comprises the Members’ Council, the Control Board and the general director.

Article 11. Administration and management of Vietnam Asset Management Company

1. The Members’ Council is composed of 7 members at most.

2. The Control Board is composed of 3 members at most.

3. Vietnam Asset Management Company has a general director and several deputy general directors.

4. Powers, tasks and responsibilities of the Members’ Council, the Control Board, members of the Members’ Council, members of the Control Board, and the general director are prescribed by law and the company’s charter.

5. The State Bank shall appoint and dismiss the chairman and members of the Members’ Council; head and members of the Control Board and the general director and deputy general directors of Vietnam Asset Management Company.

6. The at-law representative of Vietnam Asset Management Company must not necessarily be an auctioneer as prescribed by the law on asset auction.

Chapter III

OPERATION OF VIETNAM ASSET MANAGEMENT COMPANY

Article 12. Operation of Vietnam Asset Management Company

1. Vietnam Asset Management Company may:

a/ Purchase non-performing loans from credit institutions;

b/ Recover loans, claim debts, and handle and sell loans and collateral assets;

c/ Restructure loans, change conditions on loan repayment or convert loans into contributed capital or share capital at borrowers;

d/ Invest in, repair, upgrade, exploit, use or lease collateral assets it has recovered;

dd/ Manage purchased non-performing loans and inspect and supervise collateral assets related to such loans, including documents and documents related to the loans and collateral assets.

e/ Provide loan and asset sale and purchase consultancy and brokerage services;

g/ Make financial investment, contribute capital and purchase shares;

h/ Conduct asset auctions;

i/ Provide guarantee for organizations, businesses and individuals to borrow capital from credit institutions;

k/ Conduct other operations relevant to its functions and tasks after obtaining permission from the State Bank Governor.

2. Vietnam Asset Management Company may authorize loan-selling credit institutions to conduct the operations specified at Points b, c, d and dd, Clause 1 of this Article.

Article 13. Rights and obligations of Vietnam Asset Management Company

1. Rights of Vietnam Asset Management Company:

a/ To request loan-selling credit institutions, borrowers, parties with loan repayment obligation, guarantors and related agencies, organizations and individuals to provide information and documents on the organization and operation of borrowers, parties with loan repayment obligation and guarantors; information and documents on non-performing loans already sold to Vietnam Asset Management Company and collateral assets for such loans;

b/ To request credit institutions to sell their non-performing loans to Vietnam Asset Management Company;

c/ To participate in the restructuring of borrowers after contributing capital to or purchasing shares from such borrowers;

d/ To receive collateral assets as replacement for the performance of obligations by the guarantors in accordance with law; to seize collateral assets for loan handling and recovery;

dd/ To request related state management agencies and law protection agencies to complete legal dossiers and procedures regarding collateral assets and coordinate and support in the process of seizing collateral assets and recovering and handling loans and collateral assets;

e/ To request secured transaction registry offices to register secured transactions related to collateral assets of purchased non-performing loans, which have not yet been registered;

g/ To act as the guaranteed and conduct the registration of secured transactions  based on non-performing loan sale and purchase contracts without re-signing guaranty contracts with the guarantor;

h/ To supervise and inspect credit institutions in performing jobs authorized by Vietnam Asset Management Company under Clause 2, Article 12 of this Decree;

i/ To enjoy a percentage of the proceeds from recovery of non-performing loans it has purchased with special bonds after reaching agreements with the Ministry of Finance;

k/ To exercise other rights of creditors and the guaranteed in accordance with law.

2. Obligations of Vietnam Asset Management Company

a/ To preserve and develop capital allocated by the State;

b/ To conduct annual independent audit;

c/ To register contracts on the sale and purchase of the right to claim debts according to the law on secured transactions;

d/ To explain to state management agencies and the public about its operation;

dd/ To perform other obligations as prescribed in its charter and law.

Article 14. Purchase of non-performing loans by Vietnam Asset Management Company

1. Vietnam Asset Management Company shall purchase a non-performing loan from a credit institution at the book value of the principal balance not yet paid by the borrower minus a specific provision amount already set aside but not yet used for such loan.

2. Vietnam Asset Management Company shall purchase a non-performing loan from a credit institution at the market value on the basis of agreement and revaluation of such loan.

3. Loan-selling credit institutions shall provide Vietnam Asset Management Company with information and documents on the principal balance and the whole payable interest amount not yet paid by borrowers.

4. In case of purchasing a non-performing loan at the market value, Vietnam Asset Management Company shall revaluate the loan based on the possibility for recovering the loan and collateral asset. When necessary, Vietnam Asset Management Company may hire consultancy organizations to valuate non-performing loans and collateral assets.

5. For credit institutions with a non-performing loan ratio of 3% or more or another non-performing loan ratio specified by the State Bank by which they are not entitled to sell non-performing loans to Vietnam Asset Management Company, the State Bank shall consider and apply the following measures:

a/ To conduct inspection or request credit institutions to hire independent audit firms or valuation organizations to revaluate the quality and value of their assets, equity capital and charter capital. Credit institutions shall bear audit or valuation expenses;

b/ On the basis of results of inspection or independent valuation or audit, credit institutions shall sell non-performing loans to Vietnam Asset Management Company so as to keep the non-performing loan ratio at a safe level; set aside the risk provision and comply with prudential ratios as prescribed by the State Bank; and restructure themselves under plans approved by the State Bank.

6. The sale and purchase of a non-performing loan must be effected under a contract and the loan-selling credit institution shall notify in writing the borrower, parties with loan repayment obligation and guarantor within 10 working days after the contract signing for information and performance of obligations toward Vietnam Asset Management Company.

Article 15. Capital sources of Vietnam Asset Management Company

1. Vietnam Asset Management Company has the following capital sources:

a/ Its charter capital;

b/ Special bonds issued by the company to purchase non-performing loans from credit institutions;

c/ Funds set up in accordance with law;

d/ Capital raised from other sources in accordance with law.

2. Vietnam Asset Management Company is not subject to the ratio of raised capital to charter capital applicable to state enterprises.

Article 16. Methods of handling non-performing loans and collateral assets by Vietnam Asset Management Company

1. To exercise rights of creditors and the guaranteed toward borrowers, parties with loan repayment obligation and guarantors so as to recover loans and collateral assets.

2. To urge and request loan repayment by, or collect debts from, borrowers, parties with loan repayment obligation and guarantors.

3. To restructure non-performing loans and support borrowers as prescribed in Article 17 of this Decree.

4. To negotiate with borrowers to convert non-performing loans into contributed capital or share capital so as to take part in borrowers’ financial and operational restructuring.

5. To collect debts by receiving collateral assets; to recover, seize and handle collateral assets in accordance with law.

6. To sell loans to other organizations and individuals.

7. To initiate lawsuits against borrowers, parties with loan repayment obligation and guarantors.

8. To file petitions to request courts to open bankruptcy procedures prescribed by the law on bankruptcy against borrowers that are unable to repay loans or parties with loan repayment obligation or guarantors that are unable to perform their obligations.

Article 17. Methods of restructuring non-performing loans and supporting borrowers by Vietnam Asset Management Company

1. Vietnam Asset Management Company may apply the following methods to restructure loans with a view to supporting borrowers:

a/ Rescheduling loan repayment in conformity with borrowers’ production and business conditions;

b/ Imposing interest rates suitable to borrowers’ loan repayment capacity and market conditions;

c/ Giving overdue loan interest reduction or exemption in case borrowers are unable to repay loans.

2. The State Bank shall guide in detail the loan restructuring by Vietnam Asset Management Company specified in Clause 1 of this Article.

3. Vietnam Asset Management Company may consider investing in or providing funds to borrowers that are evaluated as highly recoverable for them to tackle their temporary financial difficulties and restore their production and business.

4. Vietnam Asset Management Company may provide guarantee for borrowers that to borrow capital from credit institutions if the borrowers are evaluated as highly recoverable or have new, efficient projects which can secure their loan repayment.

Article 18. Handling of collateral assets of non-performing loans purchased by Vietnam Asset Management Company

1. Collateral assets for non-performing loans already purchased by Vietnam Asset Management Company must be handled according to agreements between involved parties; in case no agreements are available, such collateral assets must be put up for auction.

2. In case involved parties have reach no agreements on the handling of collateral assets, such assets must be handled through the following auction methods:

a/ Auction through professional auction institutions;

b/ Auction conducted by Vietnam Asset Management Company.

Vietnam Asset Management Company shall select and decide on the method of auction in conformity with law and the principles of publicity and transparency.

3. After seizing or receiving a collateral asset from an asset holder, Vietnam Asset Management Company may put such asset for auction under Clause 2 of this Article without having to obtain the consent of the guarantor. Vietnam Asset Management Company shall notify in writing the asset owner of the auction at least 10 working days before the date the auction is organized.

4. Auction results and asset sale and purchase contracts between Vietnam Asset Management Company and asset buyers serve as grounds for determination of  financial obligations, notarization, certification and performance of procedures for the transfer of the right to own or use collateral assets and termination of guarantors’ or asset owners’ ownership or use right over such asset.

5. In case the right to own or use a collateral asset put up for auction by Vietnam Asset Management Company has been registered, a state agency competent to grant asset ownership or use right certificates shall grant such a certificate to the transferee of the asset ownership or use right.

The procedures for transferring the right to own or use collateral assets comply with the law on registration of asset ownership and use rights. In case the written consents of asset owners or asset sale and purchase contracts between the asset owners or judgment debtors and the asset buyers are required by law, mortgage contracts or pledge contracts may be used as substitutes in carrying out procedures for transfer of the right to own or use such assets.

6. The order and procedures for organization of asset auction by Vietnam Asset Management Company comply with the law on auction.

Article 19. Handling of proceeds from recovery of non-performing loans purchased by Vietnam Asset Management Company with special bonds

1. After subtracting expenses related to the handling of collateral assets, proceeds from recovery of loans, which are earned from sale of such loans, handling of collateral assets, payments made by borrowers or parties with loan repayment obligation, may be used to fulfill loan repayment obligation of borrowers and parties with loan repayment obligation.

2. After subtracting the money amount payable to Vietnam Asset Management Company prescribed at Point i, Clause 1, Article 13 of this Decree, loan-selling credit institutions may enjoy the proceeds from recovery of non-performing loans already sold to Vietnam Asset Management Company, which are earned from loan repayment by borrowers or other payments made by parties with loan repayment obligation and guarantors; sale of debts; or sale or handling of collateral assets.

3. The order of priority payment in handling collateral assets complies with the Civil Code and the law on registration of secured transactions.  

Chapter IV

SPECIAL BONDS OF VIETNAM ASSET MANAGEMENT COMPANY

Article 20. Special bonds

1. Special bonds are issued by Vietnam Asset Management Company to purchase non-performing loans from credit institutions and have the following characteristics:

a/ They are issued in the form of certificate, book entry or electronic data;

b/ Their face value equals the purchase price of the non-performing loans prescribed in Clause 1, Article 14 of this Decree;

c/ They are issued in Vietnam dong with a maximum term of 5 years and an interest rate of 0%;

d/ They are used to get refinancing loans from the State Bank.

2. Vietnam Asset Management Company shall issue special bonds under issuance plans already approved by the State Bank.

3. The State Bank shall specify the provision of refinancing loans based on special bonds and the level of refinancing loan against the face value of special bonds.

4. The State Bank shall propose the Prime Minister to decide on the interest rate of refinancing loans provided to credit institutions on the basis of special bonds in each period.

5. The issuance of bonds by Vietnam Asset Management Company is not subject to regulations on issuance of corporate bonds. The State Bank shall specify the issuance of special bonds by Vietnam Asset Management Company.

Article 21. Rights and obligations of credit institutions owning special bonds

1. Credit institutions owning special bonds have the following rights:

a/ To use special bonds to get refinancing loans from the State Bank according to the State Bank’s regulations;

b/ To enjoy proceeds from recovery of non-performing loans as prescribed in Clause 2, Article 19 of this Decree.

2. Credit institutions owning special bonds have the following obligations:

a/ To set aside annual risk provision for special bonds from their operating funds at a rate of at least 20% of the face value of special bonds within their term to create sources for handling non-performing loans once they redeem such loans from Vietnam Asset Management Company;

b/ To use special bonds to redeem at the book value non-performing loans which have been purchased by Vietnam Asset Management Company with such special bonds but not yet been handled or fully recovered at the time such special bonds become due according to regulations.

3. The State Bank shall guide the setting aside and use of risk provision for special bonds.

Article 22. Payment for special bonds and redemption of non-performing loans purchased by Vietnam Asset Management Company with special bonds

1. Within 5 working days after setting aside risk provision for a special bond which is not smaller than the book value of the principal balance of the concerned non-performing loan or within 5 working days after a special bond becomes due, a loan-selling credit institution shall:

a/ Refund the debit balance of the refinancing loan provided based on the concerned special bond to the State Bank;

b/ If the loan has not yet been fully recovered, the credit institution will redeem such non-performing loan from Vietnam Asset Management Company at the book value of the principal balance, refund the special bond related to such loan to Vietnam Asset Management Company and receive from the latter a money amount calculated on the proceeds from recovery of non-performing loans it is eligible for as prescribed in Clause 2, Article 19 of this Decree;

c/ If the loan is fully recovered, the loan-selling credit institution shall refund the special bond to Vietnam Asset Management Company and receive from the latter the proceeds from recovery of non-performing loans it is eligible for as prescribed in Clause 2, Article 19 of this Decree.

2. Vietnam Asset Management Company shall provide credit institutions redeeming non-performing loans with information and documents on the principal balance and whole payable interest amounts not yet paid by borrowers.

3. After receiving non-performing loans from Vietnam Asset Management Company, credit institutions shall use corresponding risk provisions already set aside for special bonds for handling risks related to such loans and, at the same time, continue to make accounting on off-balance sheet accounts for monitoring loans and taking measures to recover and handle loans in accordance with law.

4. Credit institutions may redeem loans from Vietnam Asset Management Company without the consents of borrowers, parties with loan repayment obligation and guarantors.

5. Within 10 working days after signing loan purchase and sale contracts, credit institutions shall notify borrowers, parties with loan repayment obligation and guarantors of the redemption of loans from Vietnam Asset Management Company for information and fulfillment of obligations toward credit institutions.

6. Credit institutions shall report on results of redemption of loans from Vietnam Asset Management Company to the State Bank.

7. The State Bank shall guide in detail the payment for special bonds and the redemption of non-performing loans purchased by Vietnam Asset Management Company with special bonds.

Chapter V

FINANCE, ACCOUNTING AND REPORTING REGIME

Article 23. Financial mechanism and accounting regime applicable to Vietnam Asset Management Company

1. Turnover of Vietnam Asset Management Company includes:

a/ Collected loans and payments of borrowers;

b/ Proceeds from the sale of loans and collateral assets;

c/ Revenue from financial investment, capital contribution and share purchase;

d/ Charge and commission from the consultancy and brokerage on purchase, sale and handling of loans and assets;

dd/ Revenue from asset lease and operation;

e/ Revenue from financial activities;

g/ Irregular income;

h/ Asset auction charge;

i/ Other revenues.

2. Business expenses of Vietnam Asset Management Company include:

a/ Loan purchase expense;

b/ Loan collection expense;

c/ Expense for the consultancy and brokerage for purchase, sale and handling of loans and assets;

d/ Expense for sale of loans and shares, and transfer of contributed capital;

dd/ Expense for asset preservation, investment, repair and upgrading;

e/ Expense for setting aside risk provision for non-performing loans purchased at market prices; for investment, financing and guarantee as prescribed in Clauses 3 and 4, Article 17 of this Decree;

g/ Expense for wages, bonuses and allowances for employees as prescribed at Point a, Clause 6 of this Article;

h/ Asset auction expense;

i/ Company management expense;

k/ Expense for payment of loan interests;

l/ Asset-related expense;

m/ Other expenses.

3. The distribution of profits and setting up of funds of Vietnam Asset Management Company comply with law.

4. The Ministry of Finance shall guide in detail the setting aside and use of provisions for investment, financing and guarantee amounts; and turnover, expenses, distribution of profits, setting up and use of funds of Vietnam Asset Management Company as prescribed in Clauses 1, 2 and 3 of this Article.

5. Vietnam Asset Management Company shall set aside risk provision from its operating expenses and use risk provision for non-performing loans purchased at market prices according to the State Bank’s regulations.

6. Vietnam Asset Management Company may apply the following specific financial mechanisms:

a/ The law-prescribed mechanism on wages, bonuses and allowances applicable to state enterprises and suitable to its operation characteristics;

b/ It is not required to set aside provision for non-performing loans purchased with special bonds and for receivables from credit institutions;

c/ The regulations on investment by state enterprises in other sectors are not applicable to Vietnam Asset Management Company.

7. Vietnam Asset Management Company shall make cost accounting under the State Bank’s guidance.

Article 24. Publicity, transparency and reporting regime of Vietnam Asset Management Company

1. Vietnam Asset Management Company shall publicize:

a/ Its annual financial statements which are independently audited;

b/ Processes and methods of debt and asset valuation;

c/ Processes and methods of debt and asset sale;

d/ Sale of debts and assets;

dd/ Other issues as prescribed by the State Bank.

2. Vietnam Asset Management Company shall provide debt and asset purchasers with necessary information on the debts and assets it intends to sell.

3. Vietnam Asset Management Company shall publicize information details prescribed in Clause 1 of this Article in one of the following forms:

a/ At press conferences;

b/ On its website;

c/ At its head office and places for debt and asset sale;

d/ In the mass media;

dd/ In documents or publications.

4. Vietnam asset Management Company shall implement the reporting regime according to law and the State Bank’s guidance.

Chapter VI

RESPONSIBILITIES OF STATE MANAGEMENT AGENCIES AND RELATED PARTIES

Article 25. Responsibilities of the State Bank

1. To promulgate a decision on the establishment of Vietnam Asset Management Company.

2. To approve the charter of Vietnam Asset Management Company and its amendments and supplementations.

3. To use lawful capital sources to ensure sufficient charter capital for Vietnam Asset Management Company as prescribed in Article 9 of this Decree.

4. To exercise the right to represent the owner of state capital at Vietnam Asset Management Company.

5. To perform the state management of, supervise, examine and inspect, credit institutions and Vietnam Asset Management Company in observing regulations on purchase, sale and handling of non-performing loans, and handle their violations.

6. To assume the prime responsibility for, and coordinate with the Ministry of Finance in, guiding the cost accounting of Vietnam Asset Management Company.

7. To provide credit institutions and Vietnam Asset Management Company with guidance on non-performing loan purchase, sale and handling operations.

8. To detail and guide the articles and clauses as assigned in this Decree.

Article 26. Responsibilities of the Ministry of Finance

1. To assume the prime responsibility for, and coordinate with the State Bank in, guiding the financial mechanism for Vietnam Asset Management Company.

2. To coordinate with the State Bank in guiding the cost accounting of Vietnam Asset Management Company.

Article 27. Responsibilities of the Ministry of Justice

1. To assume the prime responsibility for, and coordinate with related agencies and organizations in, studying and finalizing documents guiding asset auction order and procedures in accordance with this Decree and relevant laws.

2. To assume the prime responsibility for, and coordinate with related agencies and organizations in, directing their attached units and secured transaction registry offices to coordinate with and assist Vietnam Asset Management Company in registration of secured transactions.

Article 28. Responsibilities of the Ministry of Natural Resources and Environment

To direct and guide its attached units in coordinating and assisting one another in the transfer of land use rights in the process of handling collateral assets of Vietnam Asset Management Company.

Article 29. Responsibilities of the Ministry of Labor, War Invalids and Social Affairs

To assume the prime responsibility for, and coordinate with the Ministry of Finance and the State Bank in, guiding the mechanism on wages, bonuses and allowances of employees of Vietnam Asset Management Company like that applicable to state enterprises, which is suitable to the operation characteristics of Vietnam Asset Management Company.

Article 30. Responsibilities of related ministries, agencies and organizations and People’s Committees at all levels

1. People’s Committees and Public Security agencies at all levels of localities where collateral assets are collected and seized shall participate in collecting, seizing and inventorying collateral assets, take law-prescribed measures to maintain security and order, and guarantee the exercise of the rights of Vietnam Asset Management Company to collect and seize collateral assets.

2. People’s Committees and tax agencies at all levels shall assist Vietnam Asset Management Company in finalizing procedures and dossiers for the performance of financial obligations toward the State upon the transfer of the right to collateral assets to buyers.

3. People’s Committees, Natural Resources and Environment agencies and related agencies at all levels shall coordinate with one another in carrying out procedures for registration and transfer of asset ownership and use rights at the request of Vietnam Asset Management Company.

4. Within the ambit of their assigned tasks and powers, related ministries, agencies and organizations and People’s Committees at all levels shall direct their attached units in finalizing procedures and legal dossiers of, and handling collateral assets, and collecting debts at the request of Vietnam Asset Management Company.

Article 31. Responsibilities of credit institutions

1. To assess and identify non-performing loans which are eligible to be sold to Vietnam Asset Management Company.

2. To sell non-performing loans to Vietnam Asset Management Company.

3. Credit institutions selling non-performing loans to Vietnam Asset Management Company shall:

a/ Fully and timely provide Vietnam Asset Management Company with information and documents on borrowers, parties with loan payment obligation, guarantors, debts and collateral assets of non-performing loans already sold to Vietnam Asset Management Company; and take responsibility for the completeness and accuracy of such information and documents;

b/ Closely coordinate with competent agencies and organizations, Vietnam Asset Management Company and borrowers in finalizing procedures and legal dossiers related to non-performing loans and collateral assets of the non-performing loans already sold to Vietnam Asset Management Company;

c/ Consider and extend credit to borrowers that have non-performing loans sold to Asset management company according to law and their agreements.

4. Credit institutions selling non-performing loans to Vietnam Asset Management Company and receiving special bonds shall:

a/ Fulfill all the obligations specified in Clause 2, Article 21 of this Decree;

b/ Receive and perform tasks authorized by Vietnam Asset Management Company as prescribed in Clause 2, Article 12 of this Decree;

c/ Include in their operating expenses the expenses related to management, collection and handling of loans and collateral assets of non-performing loans purchased by Vietnam Asset Management Company with special bonds and the expenses related to implementation of tasks authorized by Vietnam Asset Management Company;

d/ Keep safe the assets, dossiers and documents authorized by Vietnam Asset Management Company; supervise, urge, collect and handle non-performing loans and handle collateral assets as authorized by Vietnam Asset Management Company;

dd/ Immediately inform Vietnam Asset Management Company of the amounts arising from the collection of loan principals and interests and the handling and sale of collateral assets.

5. To perform other responsibilities prescribed by law.

Article 32. Responsibilities of borrowers and parties with loan repayment obligation

1. To fulfill all the obligations toward credit institutions and Vietnam Asset Management Company according to law and their commitments.

2. To arrange capital, sell assets or hand collateral assets owned by borrowers for paying loan principals and interests to Vietnam Asset Management Company or its authorized credit institutions.

3. To closely coordinate with, and fully and timely provide information and documents at the request of, Vietnam Asset Management Company and its authorized credit institutions; to take responsibility for the accuracy of information and documents they provide to Vietnam Asset Management Company and its authorized credit institutions.

4. To complete legal dossiers related to non-performing loans and collateral assets of the non-performing loans already sold to Vietnam Asset Management Company.

5. To add or replace collateral assets or take loan payment assurance measures according to agreements among related parties.

6. To accept debt purchase and sale between credit institutions and Vietnam Asset Management Company.

7. To perform other responsibilities prescribed by law.

Article 33. Responsibilities of guarantors

1. To fulfill all the obligations according to law and the signed guarantee contracts.

2. To closely coordinate with, and fully and timely provide information and documents at the request of, Vietnam Asset Management Company and its authorized credit institutions; to take responsibility for the accuracy of information and documents they have provided to Vietnam Asset Management Company and its authorized credit institutions.

3. To arrange capital, sell assets or hand collateral assets owned by guarantors for paying loan principals and interests to Vietnam Asset Management Company or its authorized credit institutions.

4. To add or replace collateral assets or take loan payment assurance measures according to agreements among related parties.

5. To accept debt purchase and sale between credit institutions and Vietnam Asset Management Company.

6. To perform other responsibilities prescribed by law.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 34. Effect

This Decree takes effect on July 9, 2013.

Article 35. Implementation provisions

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, the chairperson of the Members’ Council and the general director of Vietnam Asset Management Company, chairpersons of Boards of Directors, chairpersons of Members’ Councils and general directors (directors) of credit institutions, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG

VNL_KH1 

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