Circular No. 02/2005/TT-NHNN guiding the transfer and receipt of debts between organizations, households, and individuals receiving assets formed from loans from credit institutions during the restructuring, renovation, and development of state-owned forestry and agricultural farms.

CIRCULAR

Guidelines for the transfer and receipt of debts by organizations, households, and individuals receiving transferred assets formed with borrowed funds from credit institutions during the restructuring, modernization, and development of state-owned farms and forestry enterprises.

Guidelines for the transfer and receipt of debts by organizations, households, and individuals receiving transferred assets, orchards, livestock herds, and forest areas formed with borrowed funds from credit institutions as follows:

borrowing from credit institutions during the reorganization, renovation

and development of state-owned farms and forestry enterprises

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Government's regulations set forth in Decree No. 170/2004/NĐ-CP dated September 22, 2004 on the restructuring, modernization, and development of state-owned farms, and Decree No. 200/2004/NĐ-CP dated December 3, 2004 on the restructuring, modernization, and development of state-owned forestry enterprises, the State Bank issues guidelines for the transfer and receipt of debts by organizations, households, and individuals receiving transferred assets, orchards, livestock herds, and forest areas formed with borrowed funds from credit institutions as follows:

This Circular applies to units under the Ministry of Education and Training; departments of education and training, education and training divisions; preschool education institutions, general education institutions, regular education institutions, teacher training colleges, college of education, universities, universities, academies, other educational institutions, and related organizations and individuals (hereinafter referred to collectively as agencies and units).

1.1. Organizations, households, and individuals receiving transferred assets, orchards, livestock herds, and forest areas (hereinafter referred to as assets) where part or all of the asset value was formed using borrowed funds from credit institutions (hereinafter referred to as TCTD) of state-owned farms, state-owned agricultural enterprises, and state-owned forestry enterprises (hereinafter referred to as NLTQD) implementing organizational reform according to Article 4 of Decree No. 170/2004/NĐ-CP and Article 4 of Decree No. 200/2004/NĐ-CP shall be responsible for receiving debts.

The amount of debt that organizations, households, and individuals receive from TCTD is the outstanding balance determined between NLTQD and organizations, households, individuals, and TCTD at the time of asset transfer, corresponding to the reduction in NLTQD's debt.

1.2. State-owned farms, Forestry Companies, Forest Management Boards, and public service units established through the conversion of NLTQD shall continue to fulfill obligations related to the debt that NLTQD borrowed from TCTD according to Point 3 below.

1.3. These provisions of this Circular do not apply to assets transferred according to Decision No. 255/2003/QĐ-TTg dated December 1, 2003 of the Prime Minister regarding the transfer of roads, power systems, irrigation works, schools, and health stations of state-owned farms and forestry enterprises to local management.

2. Principles for transferring and receiving debts

2.1. Capital borrowed by NLTQD from TCTD must be preserved in the construction and implementation of the Restructuring, Modernization, and Development Plans of NLTQD by provincial People's Committees and General Corporations (hereinafter referred to as the Plan).

2.2. The principal and interest of the loan debt of TCTD that NLTQD has not repaid must be fully recognized and received.

2.3. In cases where the value of the asset formed from borrowed capital (determined at the time when TCTD and NLTQD re-evaluate the asset value) is less than the outstanding loan, NLTQD shall have the obligation to pay the difference or supplement collateral before transferring the asset and the debt to organizations, households, and individuals.

3. Determining Debts and Receiving Debts

3.1. TCTD lending and NLTQD shall base on the borrowing plan, credit agreement, promissory note, accounting records, and the re-evaluated value of the asset formed from borrowed capital up to the transfer date to determine specifically the loan debt forming the transferred asset as the basis for determining the debt that organizations, households, and individuals receiving the transferred asset must receive.

3.2. Based on the results determined in Point 3.1 above, based on the proposed asset transfer of the locality or General Corporation and the provisions of this Circular, the lending TCTD shall cooperate with NLTQD with outstanding debt to review the calculation results with relevant loan documents held by both parties to develop a transfer and debt reception plan and list of organizations, households, and individuals receiving debts to report to the Provincial People's Committee and General Corporation as the basis for transfer and implementation of the Plan.

3.3. In cases where the transferred asset originates from credit capital, the Restructuring, Modernization, and Development Plan of NLTQD established by the competent authority must include a transfer and debt reception plan and related contents according to the principles stated in Point 2 above.

3.4. Debt Reception by the Asset Recipient

Based on the asset transfer plan of the Restructuring, Modernization, and Development Plan of NLTQD approved by the competent authority and based on the agreement with NLTQD on the debt forming the transferred asset, the lending TCTD (branch of TCTD) and NLTQD shall develop an asset transfer and loan debt plan according to Form No. 5.

3.5. The transfer of assets and debt reception must be conducted simultaneously and must be documented in writing among three parties: NLTQD transferring assets and transferring debt; organizations, households, and individuals receiving debt; and TCTD. The document clearly states the contents related to the transfer of assets formed from borrowed capital such as: the party transferring, the party receiving, quantity, value, assets transferred and received, outstanding loan balance (principal, interest), current status of outstanding debt, responsibilities of each party in transferring and receiving debt, assumption of debt repayment obligations...

The lending TCTD and each organization, household, and individual receiving transferred assets must complete the procedures for receiving debt through the establishment of a Credit Agreement, Loan Guarantee Contract, and Promissory Note simultaneously with the termination of the Credit Agreement and Loan Guarantee Contract between TCTD and NLTQD for the transferred outstanding debt. This is the procedure for receiving debt, the assessment has been carried out by TCTD since the loan was granted, so TCTD may reassess if necessary; The loan term shall be agreed upon by TCTD and the debtor based on the income from the transferred asset and other sources of income of the customer; The loan guarantee mechanism shall be applied according to the current mechanism.

Organizations, households, and individuals receiving debt have the obligation to repay the received debt and accrued interest from the principal to TCTD.

3.6. Credit institutions (branch credit institutions) shall review all debts of state-owned enterprises (SOEs) subject to reorganization under Decree No. 170/2004/NĐ-CP and Decree No. 200/2004/NĐ-CP of the Government, prepare a list of loans, repayments, and outstanding debts for each SOE according to Form No. 1; Based on the list according to Form No. 1, credit institutions (branch credit institutions) shall prepare a consolidated statement of outstanding loan balances of credit institutions related to assets formed from borrowed funds for handover by state-owned farms and forestry units when transitioning according to Form No. 2, and send one copy to the State Bank branch in the province/city and one copy up the system to the headquarters of the credit institution. The State Bank branch in the province/city shall consolidate according to Form No. 3, and the credit institution shall consolidate according to the system according to Form No. 4 and send it to the State Bank (Credit Department).

4. Effective date

This Circular takes effect fifteen days after its publication in the Official Gazette.

5. Implementation

5.1. The General Director (Director) of credit institutions shall direct branches within the system to coordinate with SOEs subject to reorganization and relevant agencies in the area to implement contents related to the transfer of outstanding debts of assets formed by bank loans in accordance with the guidelines set out in this Circular; report periodically every quarter to the State Bank (Credit Department) on the transfer and receipt of debts, and the results of debt resolution according to the approved reorganization plan.

5.2. The Director of the State Bank Branches in provinces and cities shall compile the situation of transferring outstanding debts of SOEs in their areas subject to reorganization under Decree No. 170/2004/NĐ-CP and Decree No. 200/2004/NĐ-CP, and make recommendations to the People's Committee of the province/city regarding the direction of credit institutions (branch credit institutions) and state-owned farms and forestry units to comply with relevant documents.

5.3. The Chairman of the People's Committee of the province/city directly under the central government; the Heads of units under the State Bank; the Chairmen of the Board of Directors and General Directors (Directors) of commercial banks; the Chairmen of the Board of Directors and General Directors of state-owned corporations; state-owned farms, state-owned agricultural enterprises, state-owned forestry units, forestry companies, forest management boards, and related units are responsible for implementing this Circular.

5.4. In case of difficulties or obstacles during implementation, credit institutions and State Bank branches in provinces and cities shall report to the State Bank (Credit Department) for consideration and resolution./.