Decree No. 08/2000/NĐ-CP on Registration of Security Transactions

DECREE

Regarding the registration of secured transactions

_______________

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Based on the Civil Code dated October 28, 1995;

At the proposal of the Minister of Justice,

DECREE:

PART I

GENERAL PROVISIONS

Article 1. Scope of Application

This Decree stipulates the registration of pledges, mortgages, and guarantees with assets (hereinafter referred to collectively as the registration of secured transactions); the organization, tasks, and powers of the secured transaction registration authority, and the procedures and formalities for registration, except where otherwise provided by law, ordinances, or decrees.

Article 2. Objects of Registration

1. The following cases must be registered at the secured transaction registration authority:

a) Pledges and mortgages of assets that the law requires to be registered for ownership rights;

b) Pledges and mortgages of assets not covered by point a, Clause 1 of this Article but agreed upon by the pledgor, mortgagor, or third party holding the asset;

c) Pledges and mortgages of a single asset to secure the performance of multiple obligations;

d) Documents notifying the handling of secured assets.

2. Upon request, guarantee transactions with assets may also be registered.

3. Other cases as prescribed by law.

Article 3. Principles of Secured Transaction Registration

1. Secured transactions are registered based on the contents declared in the application form submitted by the person requesting registration.

The contents declared in the registration application form must be accurate, complete, and truthful. The person requesting registration shall be responsible for the registration content.

In necessary cases, the registration authority has the right to require the person requesting registration to provide relevant documents related to the registration.

2. The registration authority must promptly and accurately register according to the contents declared in the application form submitted by the person requesting registration and create conditions for registration and information inquiry.

3. The national database of secured transactions and the secured transaction registration book shall be publicly opened for anyone to search and inquire about information when requested.

Article 4. Fees

1. The person requesting registration, the person requesting changes to registration, the person requesting extension of registration, and the person requesting information on secured transactions must pay fees when submitting the application form; in case of sending the application form through postal services or other communication means, the fee must be paid into the account of the secured transaction registration authority.

2. The level of fees, management, and use of registration fees and information provision fees for secured transactions shall be regulated by the Ministry of Finance in coordination with the Ministry of Justice.

Chapter II

STATE MANAGEMENT OF SECURED TRANSACTION REGISTRATION,

SECURED TRANSACTION REGISTRATION AUTHORITY

Article 5. Tasks and Powers of the Ministry of Justice in State Management of Secured Transaction Registration

The Ministry of Justice is the agency assisting the Government in implementing unified state management over secured transaction registration, having the following tasks and powers:

1. Drafting and submitting to competent authorities for promulgation or promulgating within its competence legal normative documents on secured transaction registration;

2. Guiding, inspecting, directing, organizing professional training for staff engaged in secured transaction registration work;

3. Managing the national secured transaction registration authority;

4. Issuing, managing, and guiding the use of application forms, documents, registration books, and organizing the management of the "National Database of Secured Transactions" within its competence;

5. Statistics on secured transaction registration, compiling and reporting to the Government on secured transaction registration work nationwide;

6. Resolving complaints and denunciations regarding secured transaction registration within its competence;

7. International cooperation on secured transaction registration.

Article 6. Tasks and Powers of the Ministry of Transport and the Civil Aviation Administration of Vietnam in State Management of Secured Transaction Registration

The Ministry of Transport and the Civil Aviation Administration of Vietnam implement state management over secured transaction registration for ships and aircraft, having the following tasks and powers:

1. Drafting and submitting to competent authorities for promulgation or promulgating within its competence legal normative documents on secured transactions for ships and aircraft;

2. Cooperating with the Ministry of Justice in directing, guiding, inspecting, and organizing the implementation of secured transaction registration for ships and aircraft as prescribed by law;

3. Organizing professional training for staff engaged in secured transaction registration work for ships and aircraft;

4. Reporting semi-annually and annually to the Ministry of Justice on secured transaction registration for ships and aircraft;

5. Resolving complaints and denunciations regarding secured transaction registration within its competence.

Article 7. Tasks and Powers of Provincial People's Committees and Municipal People's Committees under Central Government in State Management of Secured Transaction Registration

Provincial People's Committees and Municipal People's Committees under Central Government implement state management over secured transaction registration for land use rights and immovable property attached to land in their localities, having the following tasks and powers:

1. Directing, inspecting, and organizing the implementation of secured transaction registration and management of registration for immovable property and land use rights as prescribed by this Decree and other relevant legal normative documents;

2. Establishing a registration system for secured transactions for immovable property and land use rights in their localities;

3. Organizing professional training for staff engaged in secured transaction registration work for immovable property and land use rights;

4. Reporting semi-annually and annually to the Ministry of Justice on secured transaction registration for immovable property and land use rights;

5. Resolving complaints and denunciations regarding secured transaction registration within its competence.

Article 8. Secured Transaction Registration Authority

1. The secured transaction registration authorities include:

a) National secured transaction registration authority and branches;

b) Ship and seafarer registration authority in regions;

c) Civil Aviation Administration of Vietnam;

d) Department of Land Administration or Department of Land Administration - Real Estate;

đ) People's Committee of communes, wards, towns.

2. The registration authority of the secured transaction registration authorities is defined as follows:

a) The national secured transaction registration authority and branches shall carry out registration of secured transactions for various types of assets, except for cases registered at the authorities as specified in points b, c, d, and đ of this clause;

b) The ship and seafarer registration authority in regions where ships have been registered shall carry out registration of secured transactions for ships;

c) The Civil Aviation Administration of Vietnam shall carry out registration of secured transactions for aircraft;

d) The Department of Land Administration or the Department of Land Administration - Real Estate shall perform registration of secured transactions concerning land use rights and immovable property attached to the land when the guarantor is an organization.

đ) The People's Committee of the commune, ward, town where the immovable property is located shall perform registration of secured transactions concerning land use rights and immovable property attached to the land when the guarantor is a household or an individual.

Article 9. Duties and powers of the registration authority for secured transactions

The registration authority for secured transactions has the following duties and powers:

1. Registering secured transactions; registering changes to the contents already registered; registering extensions; deleting registrations;

2. Issuing certificates of secured transaction registration and certified copies thereof;

3. Registering notices regarding the disposal of collateral;

4. Refusing to register or refuse to provide information when the person requesting registration or the person requesting information does not fill out the application form fully or does not pay the prescribed fee;

5. Providing information on registered secured transactions;

6. Collecting registration fees and fees for providing information on secured transactions;

7. Storing files and documents, preserving information that has been registered.

Chapter III

PROCEDURES FOR REGISTRATION AND INFORMATION DISCLOSURE

OF SECURED TRANSACTIONS

Article 10. The person requesting registration of secured transactions submits an application for registration of secured transactions

1. The person requesting registration of secured transactions may be the guarantor, the secured creditor, or a person authorized by them. In cases of changing the guarantor or the secured creditor, the new guarantor or the new secured creditor may also be the person requesting registration of such changes.

2. The person requesting registration may submit the application directly to the registration authority or send it through postal services or other means of communication to the registration authority.

Article 11. Contents of the application for registration of secured transactions

The application for registration of secured transactions contains the following main contents:

1. Guarantor and secured creditor:

a) In case of individuals: full name, date of birth, citizen identification number (if available), address, telephone number or fax number (if available);

b) In case of organizations: name, type, business registration number (if available), main office address, branch office address if the applicant is a branch, telephone number or fax number (if available).

2. Description of collateral.

Article 12. Responsibilities of the person requesting registration

1. The person requesting registration must declare fully according to the application form, truthfully, and in accordance with the agreement of the parties concerning the secured transaction.

2. If the person requesting registration enters incorrect information in the application form, which does not reflect the true facts or the agreement of the parties concerning the secured transaction and causes damage, they must compensate the damaged party.

Article 13. Effectiveness of registration

Registration of secured transactions is valid for five years from the date of registration, except in cases where the parties request cancellation before the expiration date or request extension of registration.. Each extension period is five years.

Article 14. Receiving applications for registration of secured transactions

1. When receiving an application for registration of secured transactions that is fully filled out according to the model, the registration authority must record the time of receipt (hour, day, month, year) on the application and provide the applicant with a certified copy of the application with the valid receipt time recorded.

2. In cases where the application for registration of secured transactions is not fully filled out according to the model or the applicant does not pay the fee, the registration authority will return the application for registration and clearly state the reasons for refusing registration.

Article 15. Issuing certificates of registration of secured transactions

The registration authority must promptly enter the declared contents in the application for registration into the National Database or the Register Book and within three days from the date of receiving a valid application, issue a certificate of registration of secured transactions to the applicant.

Article 16. National database of secured transactions

Secured transactions concerning movable assets, ships, aircraft, land use rights, and immovable property attached to the land are stored in the "National Database of Secured Transactions" under the name of the guarantor (hereinafter referred to as the Database).

The Database is a unified national database managed uniformly by the national registration authority for secured transactions.

Article 17. Register book of secured transactions

1. Secured transactions concerning ships and aircraft are recorded in the National Ship Register Book and the Aircraft Register Book.

2. Secured transactions concerning immovable property and land use rights of organizations, individuals, and households are recorded in the Register Book of Secured Transactions on Immovable Property under the name of the guarantor.

Article 18. Contents of the certificate of registration of secured transactions

The certificate of registration of secured transactions contains the following main contents:

1. Guarantor and secured creditor:

a) In case of individuals: full name, date of birth, citizen identification number (if available), address, telephone number or fax number (if available);

b) In case of organizations: name, type, business registration number (if available), main office address, branch office address if the applicant is a branch, telephone number or fax number (if available).

2. Collateral: recording the contents about the collateral as stated in the application for registration;

3. Date of registration;

4. Duration of registration validity;

5. Expiration date of registration;

6. Registration number;

7. List of secured transactions under the guarantor's name currently stored in the Database or in the Register Book at the time of issuing the certificate of registration of secured transactions.

Article 19. Changing contents already registered

1. The person requesting registration has the right to request the registration authority to change the contents already registered. The person requesting to change the registered contents must submit a change request application to the competent registration authority as stipulated in Article 8 of this Decree.

2. The application for changing registration contains the following main contents:

a) The person requesting to change registration:

In case of individuals: full name, date of birth, citizen identification number (if available), address, telephone number or fax number (if available);

In case of organizations: name, type, business registration number (if available), main office address, branch office address if the applicant is a branch, telephone number or fax number (if available).

b) Changed contents: guarantor, secured creditor, collateral, change in payment priority order (if any) and other registered contents.

Article 20. Correcting errors

In case the person requesting registration discovers errors in the registration request form or the certificate of registration for secured transactions, they have the right to request the registration authority to correct it to match the content declared in the registration request form. The submission of a request for correction of errors shall be carried out in accordance with Article 10 of this Decree.

Upon receiving the request for correction of errors, the registration authority must record the time of receipt on the request (hour, day, month, year). Within three days from the date of receiving a valid request, the registration authority must issue a certificate of registration for secured transactions to the person requesting the correction of errors.

Article 21. Registration Time

1. The registration time for secured transactions is the time when the registration authority receives a valid application in accordance with Clause 1 of Article 14 of this Decree.

2. The registration time for secured transactions in the following cases is determined as follows:

a) In case the person requesting registration has a request for correction of errors in the registration request form, the registration time is the time when the registration authority receives the request for correction of errors.

b) In case the person requesting registration has a request for correction of errors in the certificate of registration, the registration time is the time when the registration authority receives the registration request form in accordance with Clause 1 of Article 14 of this Decree.

c) In case the person requesting registration has a request for change registration, the registration time is the time when the registration authority receives the registration request form in accordance with Clause 1 of Article 14 of this Decree; if it is a request for additional collateral registration, the registration time is the time when the registration authority receives the request for additional collateral registration.

Article 22. Legal effect of registration of secured transactions

1. Secured transactions that have been registered have validity for third parties from the registration time until the expiration of the registration validity period as prescribed in Article 13 of this Decree.

2. The priority order of payment among those who receive security interest in the same asset is determined according to the order of registration.

3. The registration of secured transactions and the certificate of registration for secured transactions do not confirm the authenticity of the secured transaction.

Article 23. Deletion of registration

Deletion of registration is carried out as follows:

1. Before the registration validity period ends as prescribed in Article 13 of this Decree, the guarantor or the secured party may request deletion of registration in the cases stipulated in Articles 343, 362, 375, and 418 of the Civil Code and in the case where the guaranteed obligation is terminated; the person requesting deletion of registration must fully declare in the deletion request form and submit it to the registration authority in accordance with Article 10 of this Decree. The person requesting deletion of registration does not have to pay the registration fee.

2. The registration authority deletes the registration in the System database or in the registration book. Within three days from the date of receiving the deletion request, the registration authority issues a certificate of deletion of registration for secured transactions to the person making the request. If the person requesting deletion of registration is the guarantor, the registration authority must send a copy of the certificate of deletion of registration for secured transactions to the secured party.

Article 24. Provision of information about secured transactions

1. Every individual and organization has the right to seek information about secured transactions. The registration authority has the responsibility to guide and facilitate individuals and organizations in seeking information about secured transactions.

2. Information provision is carried out based on the name of the guarantor stated in the registration request form.

The registration authority provides information about secured transactions to the person requesting information based on the name of the guarantor recorded in the System database or in the registration book at the time of provision.

Article 25. Authority to provide information of registration authorities for secured transactions

The authority to provide information of registration authorities for secured transactions is defined as follows:

1. The national registration authority for secured transactions and its branches provide information about secured transactions recorded in the System database.

2. The maritime registration authority and the Vietnam Maritime Administration provide information about secured transactions registered for ships.

3. The Civil Aviation Authority of Vietnam provides information about secured transactions registered for aircraft.

4. The Land Administration Department or the Land Administration - Real Estate Department, where the immovable property is located, provides information about secured transactions registered for land use rights and immovable property attached to land of organizations.

5. The People's Committee of communes, wards, towns, where the immovable property is located, provides information about secured transactions registered for land use rights and immovable property attached to land of individuals and households.

Chapter IV

IMPLEMENTING PROVISIONS

Article 26. Conversion of re-registration of secured transactions

Secured transactions registered for movable assets before the effective date of this Decree, which now fall under the jurisdiction of the national registration authority for secured transactions and its branches, can be re-registered upon request by the person requesting registration.

Within twelve months from the effective date of this Decree, if an individual or organization requests re-registration, they will not have to pay the registration fee and the original registration date will be retained; if the request for re-registration is made beyond this period, it will be considered a new registration request and will take effect from the registration time as prescribed in Article 21 of this Decree.

Article 27. Effectiveness of the Decree

This Decree shall take effect fifteen days from the date of signature.

All previous regulations contrary to this Decree are hereby abolished.

Article 28Implementation of the Decree

1. The Ministry of Justice, Ministries, ministerial-level agencies, and government agencies within their respective functions, tasks, and powers have the responsibility to guide the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairmen of provincial and centrally-administered city People's Committees are responsible for implementing this Decree./.