Circular No. 11/2009/TT-NHNN amends Clause 1 of Article 7 of Circular No. 03/2009/TT-NHNN dated March 2, 2009, concerning the provision of secured loans by the State Bank of Vietnam to banks through pledge of negotiable instruments.

CIRCULAR

AMENDING CLAUSE 1 OF ARTICLE 7 OF CIRCULAR NO. 03/2009/TT-NHNN DATED MARCH 2, 2009 ON LOANS SECURED BY PLEDGE OF NEGOTIABLE INSTRUMENTS ISSUED BY THE STATE BANK OF VIETNAM TO BANKS

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BASED ON THE LAW ON THE STATE BANK OF VIETNAM 1997 AND THE LAW AMENDING AND COMPLEMENTING CERTAIN PROVISIONS OF THE LAW ON THE STATE BANK OF VIETNAM 2003;

BASED ON THE LAW ON CREDIT ORGANIZATIONS 1997 AND THE LAW AMENDING AND COMPLEMENTING CERTAIN PROVISIONS OF THE LAW ON CREDIT ORGANIZATIONS 2004;

Pursuant to Decree No. 96/2008/NĐ-CP dated August 26, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the State Bank of Vietnam;

THE STATE BANK OF VIETNAM AMENDS CIRCULAR NO. 03/2009/TT-NHNN DATED MARCH 2, 2009 ON LOANS SECURED BY PLEDGE OF NEGOTIABLE INSTRUMENTS ISSUED BY THE STATE BANK OF VIETNAM TO BANKS AS FOLLOWS:

Article 1. CLAUSE 1 OF ARTICLE 7 shall be amended as follows:

"1. CRITERIA FOR NEGOTIABLE INSTRUMENTS ELIGIBLE FOR PLEDGE:

a. PERMITTED TO BE TRANSFERRED;

b. THE NEGOTIABLE INSTRUMENTS MUST BE LEGALLY OWNED BY THE BANK SEEKING A LOAN;

c. THE REMAINING MATURITY MUST BE AT LEAST EQUAL TO THE LOAN PERIOD."

Article 2. Implementation

1. This Circular shall take effect 45 days from the date of signature.

2. THE HEAD OF THE OFFICE, DIRECTOR OF THE CREDIT DEPARTMENT, HEADS OF UNITS UNDER THE STATE BANK OF VIETNAM, GOVERNORS OF THE STATE BANK OF VIETNAM BRANCHES IN PROVINCES AND CITIES DIRECTLY UNDER THE CENTRAL GOVERNMENT, BOARD OF MANAGEMENT, CHIEF EXECUTIVES (DIRECTORS) OF BANKS SHALL BE RESPONSIBLE FOR IMPLEMENTING THIS CIRCULAR./.