Circular No. 04/2002/TT-BTP guiding the authority, procedures, and formalities for registering and providing information on financial lease assets, as well as state management over such registration.

CIRCULAR

Regarding the authority, procedure, and formalities for registering and providing information on financial lease assets and state management over the registration of financial lease assets

Pursuant to Article 19 of Decree No. 16/2001/NĐ-CP dated May 2, 2001 of the Government on the organization and operation of Financial Leasing Companies;

To publicize information on financial lease assets, creating a legal basis for protecting the legitimate rights and interests of the parties involved in financial leasing contracts and related individuals and organizations;

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Pursuant to Decree No. 38/CP dated June 4, 1993 of the Government on the functions, tasks, powers, and organization of the Ministry of Justice;

The Ministry of Justice guides on the authority, procedures, and formalities for registering and providing information on financial lease assets and state management over the registration of financial lease assets as follows:

1.1 Authority, tasks, and powers of the National Registration Agency for Security Transactions under the Ministry of Justice and its Branches located in localities (hereinafter referred to as the Registration Agency and Branch) in the registration and provision of information on financial lease assets;

1.2 Procedures and formalities for registering and providing information on financial lease assets;

I. GENERAL PROVISIONS

b) In cases where funds from organizations and individuals within and outside Vietnam are used for victim support work and victim support benefits, such activities shall be carried out in accordance with the regulations of the Ministry of Finance and the donor; in cases where there is no agreement between the donor or their authorized representative and the Ministry of Finance regarding the expenditure level, the expenditure level prescribed in this Circular shall apply.

1.1. The authority, tasks, and powers of the registration agency in registering and providing information on financial lease contracts;

1.3 State management over the registration and provision of information on financial lease assets;

2. Agencies responsible for registering and providing information on financial lease assets

2.1 The agency authorized to register and provide information on financial lease assets is the Registration Agency and Branch.

2.2 The Registration Agency and Branch have the authority to register and provide information on financial lease assets at the request of individuals and organizations throughout the country. Therefore, the person requesting registration and the person requesting information provision have the right to choose to request the Registration Agency or Branch to perform the registration and information provision on financial lease assets.

The registration and provision of information on financial lease assets at the Registration Agency and Branch have equal legal value.

3. Tasks and powers of the Registration Agency and Branch in the field of registration and provision of information on financial lease assets

3.1 The Registration Agency and Branch have the following tasks and powers in the registration of financial lease assets:

a) Registering financial lease assets;

c) Extending registration;

d) Deleting registration;

c) Canceling registrations;

đ) Issuing Certificates of Registration and copies thereof;

e) Correcting errors in the application for registration and in the Certificate of Registration;

g) Revoking the Certificate of Registration in cases where the applicant for registration has declared false or inaccurate contents in the application for registration that do not comply with the terms of the financial leasing contract;

h) Collecting registration fees;

i) Refusing registration in cases where the application for registration does not declare all required items according to the model issued together with this Circular or the applicant for registration has not paid the registration fee;

k) Storing files and documents, preserving registered information.

3.2 The Registration Agency and Branch have the following tasks and powers in the provision of information on financial lease assets:

a) Providing information on financial lease assets registered at the Registration Agency and Branch;

c) Refusing to provide information on financial lease assets in cases where the application for information provision does not declare all required items according to the model issued together with this Circular or the applicant for information provision has not paid the information provision fee.

3.3 The Registration Agency and Branch have the authority to handle complaints and denunciations as stipulated in Section IX of this Circular.

c) Refusing to provide information on financial lease contracts when there is one of the grounds specified in point 13.2, Clause 13, Section of this Circular.

4. Responsibilities of Registrars

Registrars have the following responsibilities:

4.1 Implementing registration and information provision in accordance with the procedures and formalities prescribed in this Circular;

4.2 Accurately registering the contents declared in the application for registration;

4.3 In cases where the Registrar registers inaccurately the contents declared in the application for registration, causing damage, they must compensate for the damage in accordance with the provisions of the law on the liability for compensation of civil servants.

5. Objects of Registration

The following assets when leased by a financial leasing company within Vietnam or abroad through a financial leasing contract must be registered at the Registration Agency or Branch:

5.1 Machinery, equipment, production lines;

5.2 Cars, ships, river vessels, and other means of transportation;

5.3 Other movable assets as provided for in Clause 2 of Article 181 of the Civil Code.

6. Principles of registration and provision of information on financial lease assets

6.1 Financial lease assets are registered based on the contents declared in the application of the applicant for registration. The applicant for registration must declare accurately, fully, and in compliance with the agreements of the parties in the financial leasing contract and bear responsibility for the contents declared in the application.

A valid application for registration is an application that has declared all required items according to the model issued together with this Circular and contains contents consistent with the signed financial leasing contract.

6.2 The Registration Agency and Branch must register promptly and accurately according to the contents declared in the application and facilitate the registration and acquisition of information on financial lease assets.

6.3 Information retained in the database on financial lease assets and in the Register of Financial Lease Assets is provided to any individual or organization seeking such information.

7. Validity period of the registration of financial lease assets

The validity period of the registration of financial lease assets is calculated from the date the Registration Agency or Branch issues the Certificate of Registration of Financial Lease Assets until the end of the financial leasing period.

8. Legal effect of the registration of financial lease assets

8.1 The registration of financial lease assets has legal effect against third parties during the validity period of the registration as stipulated in Clause 7 of this Section. The Certificate of Registration of Financial Lease Assets serves as a legal basis for the lessor to require a third party who has received the transfer of the leased asset without their consent to return the asset to the lessor.

8. Legal effect of registering financial lease assets

8.1. The registration of financial lease assets has legal effect against third parties during the period of validity of the registration as provided for in Clause 7 of this Section. The certificate of registration of financial lease assets serves as a legal basis for the lessor to request a third party that has received the transfer of leased assets without its consent to return such assets to the lessor.

8.2. In case the leased asset under financial leasing is not registered at the Registration Department or its branch as prescribed in this Circular, the lessee may base on Article 139 of the Civil Code to request the Court to decide that the lessor must register within seven days from the date the Court's decision takes effect; if the registration is not made within that period, the financial leasing contract shall be void. The lessor shall compensate for damages to the lessee if any.

9. Requester for registration, requester for information provision

a) 9.1. The requester for registration in cases stipulated in points 3.1.a, 3.1.b, 3.1.c, 3.1.d and 3.1.e Clause 3 Section of this Article (collectively referred to as the requester for registration) is the lessor in the financial leasing contract, including:

b) State-owned financial leasing company;

c) Joint-stock financial leasing company;

Financial leasing company affiliated with credit institutions;

đ) Wholly foreign-owned financial leasing companies.

7.2. The party requesting registration may authorize another person in accordance with the Civil Code to request registration.

e) In case multiple financial leasing companies lease jointly, they must unanimously appoint one company to represent all lessors to submit the application for registration, and simultaneously declare all joint financial leasing companies in the attached appendix.

9.2. Any individual or organization seeking information about financial leasing assets has the right to request the Registration Department or its branch to provide information.

10. Responsibilities of the requester for registration, requester for information provision

10.1. The requester for registration shall have the following responsibilities:

a) Fully fill out the application form for registration according to the model issued together with this Circular. The contents declared in the application form must be accurate and consistent with the agreement of the parties in the financial leasing contract;

b) Pay registration fees as prescribed by law;

c) In case the requester for registration declares inaccurate contents in the application form which are inconsistent with the agreement of the parties in the financial leasing contract causing damage, they must compensate the damaged party.

10.2. The requester for information provision shall have the following responsibilities:

a) Fully fill out the application form for information provision according to the model issued together with this Circular or the information search request form;

b) Pay the fee for providing information as prescribed by law;

c) In case of self-searching and understanding information about financial leasing assets, the requester for information provision must strictly comply with the internal regulations posted at the Registration Department and its branches.

11. Registration fees, information provision fees

11.1. The requester for registration must pay the registration fee in the following cases:

d) Deleting registration;

c) Canceling registrations;

đ) Issuing Certificates of Registration and copies thereof;

d) Request to correct errors in the application form for registration.

11.2. Individuals and organizations must pay the fee when requesting information about financial leasing assets.

11.3. The level of collection of registration fees and information provision fees for financial leasing assets shall be implemented in accordance with the provisions of the Ministry of Finance and the Ministry of Justice.

II. PROCEDURE FOR REGISTRATION OF ASSETS

FOR FINANCIAL LEASE

1. The requester for registration submits the application form for registration of financial leasing assets according to Form No. 01 to the Registration Department or its branch.

2. The submission of the application form for registration shall be carried out through one of the following methods:

a) Submitting directly at the office of the Registration Department or its branch;

b) Sending the application via postal service; it can be sent by guaranteed mail or express delivery;

c) Sending the application form via fax. This method can only be used when the requester for registration is a financial leasing company listed in the Regular Customer List of the Registration Department.

The Registration Department guides the procedure for registering in the Regular Customer List and organizes the implementation of this registration.

3. The requester for registration pays the fee through one of the following methods:

a) Paying directly at the Registration Department or its branch after the application form for registration is received by the Registration Officer;

b) Transferring money through postal service transfer and sending the transfer receipt along with the application form for registration;

c) Transferring money into the account of the Registration Department or its branch where the application form was received and submitting the confirmation of the transfer to the Registration Department or its branch.

In case the requester for registration is listed in the Regular Customer List of the Registration Department, the payment of the registration fee into the account of the Registration Department or its branch where the application form was received will be carried out monthly, during the period from the 25th to the last day of the month.

4- After receiving the application form for registration, the Registration Officer performs the following tasks:

4.1. Checking the declaration of items in the application form;

4.2. Checking the payment of the fee;

4.3. Recording the time of receipt of the application form (date, month, year) if the application form is valid and the payment of the fee is carried out in accordance with the regulations.

The time of receipt of the directly submitted application form is the time when the Registration Officer receives the valid application form.

The time of receipt of the application form sent by post is the time when the Registration Department or its branch receives the application form.

The time of receipt of the application form sent by fax is the time when the application form is sent by fax;

4.4. In case the application form is received by fax, before performing the tasks specified in points 4.1, 4.2 and 4.3 of this clause, the Registration Officer determines whether the requester for registration is a regular customer or not; if not, the application form for registration will not be accepted;

4.5. In case the application form is submitted directly at the Registration Department or its branch, after performing the tasks specified in points 4.1, 4.2 and 4.3 of this clause, the Registration Officer hands over to the requester for registration a copy of the application form for registration with the time of receipt recorded and the appointment letter for issuance of the Certificate of Registration.

5-In the period of three days from the date of receipt of a valid application form for registration, the Registration Department or its branch where the application form for registration is received must issue the Certificate of Registration of Financial Leasing Assets according to Form No. 07 for the requester for registration; in case the application form for registration is received by post or fax, it shall be accompanied by a copy of the application form for registration.

The Registration Department and its branches will not issue the Certificate of Registration for the requester for registration in case of duplicate registration for the same financial leasing contract.

The Certificate of Registration shall be handed over directly at the Registration Department or its branch where the application form for registration was received or sent through the postal service's guaranteed delivery service.

III- PROCEDURE FOR REGISTRATION

CHANGES TO THE CONTENTS ALREADY REGISTERED

1. In case of the following changes, the person requesting registration must submit an application for registration of change of registered content according to Form No. 02 to the Registration Department or Branch that issued the Certificate of Registration to proceed with the registration of change of registered content:

1.1. The lessor transfers all rights and obligations under the financial lease contract to another leasing company;

1.2. An agreement among the parties to amend and supplement the financial lease contract, which alters the contents declared in the application for registration of leased assets and other related applications.

2. The submission of the application for registration of change and the fee shall be carried out in accordance with the provisions of Clause 2 and Clause 3, Section II of this Circular.

3. After receiving the application for registration of change, the Registration Officer shall perform the tasks as stipulated in Clause 4, Section II of this Circular.

4. Within three days from the date of receipt of the application for registration of change, the Registration Department or Branch that received the application must issue the Certificate of Registration of Change of Registered Content according to Form No. 08 to the applicant in accordance with the method prescribed in Clause 5, Section II of this Circular.

IV- PROCEDURE AND FORMALITIES FOR EXTENSION REGISTRATION

1. Within three months before the expiration date of the validity period of the registration of leased assets under the financial lease contract, if the financial lease contract is extended, the person requesting registration must submit an application for extension registration according to Form No. 03 to the Registration Department or Branch where the asset was registered to proceed with the extension registration.

2. The submission of the application for extension registration and the fee shall be carried out in accordance with the provisions of Clause 2 and Clause 3, Section II of this Circular.

3. After receiving the application for extension registration, the Registration Officer shall perform the tasks as stipulated in Clause 4, Section II of this Circular.

4. Within three days from the date of receipt of a valid application for extension registration, the Registration Department or Branch that received the application must issue the Certificate of Extension Registration according to Form No. 09 to the applicant, clearly stating the duration of the extension registration.

The issuance of the Certificate of Extension Registration of leased assets under the financial lease contract shall be carried out in accordance with the provisions of Clause 5, Section II of this Circular.

V- PROCEDURE AND FORMALITIES FOR CANCELLATION OF REGISTRATION

1. The person requesting registration must submit an application for cancellation of registration of leased assets under the financial lease contract according to Form No. 04 in the following cases:

a) The financial lease contract terminates prematurely in accordance with Article 27 of Decree No. 16/2001/NĐ-CP dated May 2, 2001 on the organization and operation of Financial Leasing Companies. The application must be submitted before the termination date of the financial lease contract;

b) The registration period expires. The application must be submitted before the expiration date of the registration period.

2. The submission of the application for cancellation of registration shall be carried out in accordance with the provisions of Clause 2, Section II of this Circular.

The person requesting cancellation of registration is not required to pay the cancellation fee.

3. Within three days from the date of receipt of a valid application for cancellation of registration, the Registration Department or Branch that received the application must carry out the cancellation of registration and issue the Certificate of Cancellation of Registration of Leased Assets under the Financial Lease Contract according to Form No. 10 to the applicant in accordance with the method prescribed in Clause 5, Section II of this Circular.

4. After the expiration date of the registration period, if the person requesting registration does not submit an application for extension registration or an application for cancellation of registration, the Registration Department or Branch will automatically carry out the cancellation of registration and only issue the Certificate of Cancellation of Registration if requested.

VI. CORRECTION OF ERRORS

1. In case the person requesting registration discovers errors in the application for registration or in the Certificate of Registration, they must submit an application for correction of errors according to Form No. 05 to the Registration Department or Branch that received the application or issued the Certificate to correct it in accordance with the declaration in the application for correction of errors. If correcting errors in the issued Certificate of Registration, the original Certificate must be attached.

2. The submission of the application and the correction fee shall be carried out in accordance with the provisions of Clause 2 and Clause 3, Section II of this Circular.

In case of correcting errors in the issued Certificate of Registration, the Registration Department or Branch that received the application will not collect the correction fee.

3. After receiving the application for correction of errors in the application for registration, the Registration Officer shall erase the receipt date recorded on the previous application for registration and record the receipt date as the date of receipt of the application for correction of errors. The effective period of the registration shall be calculated from the date when the Registration Department or Branch issues the corrected Certificate of Registration.

4. For errors in the issued Certificate of Registration, when correcting the errors, the Registration Officer shall retain the registration date recorded in the issued Certificate and proceed with the correction. The part of the content containing errors that has been corrected on the Certificate must be stamped by the Registration Department or Branch that made the correction.

In case direct correction of the part containing errors is not possible, the Registration Officer must record the correction details in the error correction section of the Certificate of Registration.

5. Within three days from the date of receipt of a valid application for correction of errors, the Registration Department or Branch shall carry out the correction and return the Certificate of Registration of Leased Assets under the Financial Lease Contract to the applicant in accordance with the method prescribed in Clause 5, Section II of this Circular.

VII. PROCEDURE AND FORMALITIES FOR PROVISION OF INFORMATION

ON LEASED ASSETS UNDER THE FINANCIAL LEASE CONTRACT

1. Domestic individuals and organizations, foreign individuals and organizations, overseas Vietnamese who wish to obtain information stored in the Register Book or in the database of leased assets under the financial lease contract may proceed with obtaining information through the following methods:

1.1 Submitting an application for provision of information according to Form No. 06 to the Registration Department or Branch;

1.2 Self-searching and obtaining information in the Register Book at the Registration Department or Branch in accordance with the internal regulations posted at the Registration Department and Branch.

2. The person requesting information shall be provided with information about financial lease assets recorded in the Register Book or the database on financial lease assets under the name of the lessee or lessor.

3. The submission of requests for information provision and the payment of information provision fees shall be carried out in accordance with the provisions of Clause 2 and Clause 3, Section II of this Circular.

4. After receiving the request for information provision regarding financial lease assets, the Registration Officer shall examine the request and the payment of fees; if the request is valid and the fee has been paid in accordance with the regulations, then the Registration Officer shall search for information in the Register Book or in the database on financial lease assets. Within three days from the date of receipt of a valid request, the Department of Registration or Branch must provide information to the requesting party.

In case the requesting party requests to be provided with information in writing, the Registration Officer shall provide the information in writing according to Form No. 11.

The issuance of written information provision on financial lease assets shall be carried out in accordance with the method prescribed in Clause 5, Section II of this Circular.

VIII. STATE MANAGEMENT OF REGISTRATION OF ASSETS

FOR FINANCIAL LEASE

1. The Department of Registration assists the Minister of Justice in implementing state management over the registration of financial lease assets, including the following activities:

2. Drafting, submitting to competent authorities for promulgation or promulgating within its authority legal documents on the registration of financial lease assets;

3. Directing, guiding, organizing training in business skills and expertise for Registration Officers;

4. Issuing, managing, and guiding within its authority the use of application forms, documents, and registration books; organizing the management of the database on financial lease assets;

5. Statistics on the registration of financial lease assets, compiling and reporting to the Government on the registration work of financial lease assets;

6. Resolving complaints and denunciations concerning the registration of financial lease assets within its authority;

Implementing international cooperation in the field of registration of financial lease assets as assigned by the Minister of Justice.

IX. RESOLUTION OF COMPLAINTS AND DENUNCIATIONS

1. Resolution of complaints:

1.1 In the field of registration and provision of information on financial lease assets, the party requesting registration or requesting information provision has the right to lodge a complaint against decisions or actions of the Department of Registration or Branches, Registration Officers, civil servants working at those agencies, when there is evidence that such decisions or actions are contrary to the law, infringing upon their legitimate rights and interests.

1.2 The authority and time limit for resolving initial complaints shall be implemented as follows:

a) The Branch Director shall be responsible for resolving complaints against his/her own decisions or actions, those of the Registration Officer, or civil servants working at the Branch. Within ten days from the date of receipt of the complaint, the Branch Director must accept and resolve the complaint and notify the complainant in writing; in cases where it does not accept the complaint, it must also notify the complainant in writing and specify the reasons.

Within thirty days from the expiration of the resolution period stipulated in Article 36 of the Law on Complaints and Denunciations, if the complaint is not resolved or from the date of receipt of the first decision on complaint resolution by the Branch Director and the complainant disagrees with it, the complainant has the right to lodge a complaint to the Director of the Department of Registration or initiate an administrative lawsuit at the Court in accordance with the law.

b) The Director of the Department of Registration shall be responsible for resolving complaints against his/her own decisions or actions, those of the Registration Officer, or civil servants working at the Department of Registration. Within ten days from the date of receipt of the complaint, the Director of the Department of Registration must accept and resolve the complaint and notify the complainant in writing; in cases where it does not accept the complaint, it must also notify the complainant in writing and specify the reasons.

Within thirty days from the expiration of the resolution period stipulated in Article 36 of the Law on Complaints and Denunciations, if the complaint is not resolved or from the date of receipt of the first decision on complaint resolution by the Director of the Department of Registration and the complainant disagrees with it, the complainant has the right to lodge a complaint to the Minister of Justice or initiate an administrative lawsuit at the Court in accordance with the law.

1.3 The authority and time limit for resolving subsequent complaints shall be implemented as follows:

a) The Director of the Department of Registration shall accept and resolve complaints that have been resolved by the Branch Director but still have complaints or have not been resolved within the prescribed time limit. In these cases, the complainant must submit the complaint along with a copy of the decision on complaint resolution by the Branch Director or related documents (if any) to the Director of the Department of Registration.

Within ten days from the date of receipt of the complaint, the Director of the Department of Registration must accept and resolve the complaint and notify the complainant and the Branch Director who previously resolved the complaint in writing; in cases where it does not accept the complaint for resolution, it must also notify the complainant in writing and specify the reasons.

The time limit for resolving complaints by the Director of the Department of Registration is forty-five days from the date of acceptance for resolution. Within thirty days from the expiration of the resolution period stipulated in Article 43 of the Law on Complaints and Denunciations, if the complaint is not resolved or from the date of receipt of the decision on complaint resolution by the Director of the Department of Registration and the complainant disagrees with it, the complainant has the right to continue lodging a complaint to the Minister of Justice.

b) The Ministry of Justice shall accept and resolve complaints against the decision on complaint resolution by the Director of the Department of Registration but still have complaints or have not been resolved within the prescribed time limit. Within ten days from the date of receipt of the complaint, the Ministry of Justice must accept and resolve the complaint and notify the complainant in writing; in cases where it does not accept the complaint for resolution, it must also notify the complainant in writing and specify the reasons.

The time limit for resolving complaints by the Minister of Justice is stipulated in Article 43 of the Law on Complaints and Denunciations. The decision on complaint resolution by the Minister of Justice is the final decision.

2. Resolution of denunciations

2.1 In the field of registration and provision of information on leased assets, citizens have the right to report to competent authorities, organizations, or individuals about the illegal acts of Registration Officers, civil servants of the Registration Department and Branches that cause or threaten to cause damage to their own legitimate rights and interests or those of others.

The reporter may submit a complaint directly or through a letter to the competent authority, organization, or individual as prescribed by law. In these cases, the reporter must clearly state their name, address, and the content of the complaint.

2.2 The authority to handle complaints shall be carried out as follows:

a) In the case of reporting a Registration Officer or civil servant working at a Branch who violates the law in the registration and provision of information on leased assets, the Branch Director responsible for the reported Registration Officer or civil servant shall be responsible for handling the complaint.

b) In the case of reporting a Registration Officer or civil servant working at the Registration Department who violates the law in the registration and provision of information on leased assets, the Director of the Registration Department shall be responsible for handling the complaint.

c) The Ministry of Justice shall handle and resolve complaints in accordance with the Law on Petitions and Complaints and current guiding documents.

2.3 The time limit for resolving complaints shall be carried out as follows:

Within the latest ten days from the date of receipt of the complaint, the receiving agency must initiate proceedings to resolve it; if the complaint does not fall within its jurisdiction, it must transfer it to the competent agency for resolution and notify the complainant in writing.

The time limit for resolving complaints shall not exceed sixty days from the date of initiating proceedings to resolve them; for complex cases, the time limit for resolution shall not exceed ninety days from the date of initiating proceedings to resolve them.

X. IMPLEMENTATION ORGANIZATION

1. This Circular takes effect from March 8, 2002.

2. Leased assets based on lease contracts signed before this Circular takes effect and still have remaining terms of implementation must also be registered in accordance with the provisions of this Circular.

3. Forms for registration and provision of information on leased assets are attached to this Circular.

4. During implementation, if there are difficulties, individuals and organizations are requested to reflect them to the Ministry of Justice for study and resolution./.