Decision No. 185-QD/NH5 On the issuance of the "Regulation on Pledge Services"

Pursuant to …;

Regarding the issuance of the "Pawn Service Regulation"

 

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the State Bank of Vietnam Ordinance, the Banking Ordinance, Credit Cooperative and Financial Company Ordinance promulgated by the Chairman's Decree No. 37-LCT/HĐNN8 and No. 38-LCT/HĐNN8 dated May 24, 1990;

Pursuant to the Government Decree No. 15/CP dated March 2, 1993 on the tasks, powers, and responsibilities for state management of Ministries and agencies at the ministerial level;

At the proposal of the Head of the Financial Institutions Department;

 

Pursuant to …;

Clause 4 of Article 6The "Pawn Service Regulation" is hereby issued pursuant to this Decision.

12/2025/TT-BNNMT dated June 19, 2025 issued by the Minister of Agriculture and EnvironmentThis Decision takes effect from the date of signing.

Article 3. The Governor's Office Director, the Head of the Financial Institutions Department, the Heads of relevant Departments of the State Bank, the Branch Governors of the State Bank in provinces and cities, the General Directors of the Precious Metals and Jewelry Corporation, the State-owned Credit Organizations, the Chairmen of the Boards of Directors of Joint Stock Credit Organizations, Joint Ventures Banks, the Directors of Foreign Banks' Branches, the Directors of People's Credit Funds, and the Chairmen of Credit Cooperatives shall be responsible for organizing the implementation of the regulation issued under this Decision.

REGULATIONS

ON PAWN SERVICES

(Issued together with Decision No. 185/QĐ/NH5 dated September 6, 1994 of the Governor of the State Bank of Vietnam)

PART I

GENERAL PROVISIONS

Article 1. In this regulation, the following terms are understood as follows:

1. 1. Pawn service is a form of loan secured by pledging wherein the pledgee requires the pledgor (or guarantor) to deliver the pledged item, which is their own property, to the pledgee for management as collateral for repayment of a pledged amount when the pledgor or guarantor fails to repay the debt.

1. 2. Pledged item is a movable asset legally owned by the pledgor or guarantor, having value and utility, and capable of being sold or transferred.

1. 3. Pledged amount is the sum of money in each pawn service, including principal and interest that the pledgor receives and must pay to the pledgee upon maturity according to the pawn agreement.

1. 4. Pledgor:

1. 4.1. Is a legal entity.

1. 4.2. Is an individual, including: Vietnamese citizens aged 18 or older who have full legal capacity and capacity for acts; foreigners aged 18 or older residing in the Socialist Republic of Vietnam.

1. 5. Pledgee: includes state-owned banks, Precious Metals and Jewelry Corporation, joint stock commercial banks, joint stock financial companies, joint venture banks, branches of foreign banks, credit cooperatives, people's credit funds.

Article 2The pledgor and pledgee are responsible for properly using the capital and preserving the pledged item as committed in the pawn agreement.

Chapter II

SPECIFIC PROVISIONS

PART I

ACCEPTABLE ASSETS FOR PLEDGE

Article 3. The pledgee may only accept the following pledged items:

3. 1. Gold, silver, precious stones; jewelry made of gold, silver, and precious stones.

3. 2. Valuable documents currently in circulation within their validity period: bonds, bills of exchange, promissory notes, savings cards, commercial drafts, and deposit certificates (if applicable).

3. 3. Small machines and equipment of high value.

3. 4. Means of transportation: bicycles, motorcycles, automobiles.

3. 5. Other valuable items.

Article 4. The pledgee shall not accept pledged items specified in Article 3 of this Regulation belonging to the following categories:

4. 1. Prohibited from purchase, sale, or transfer by law;

4. 2. Assets currently in dispute;

4. 3. Assets seized or temporarily detained by competent authorities;

4. 4. Assets sealed or frozen;

4. 5. Assets already used as collateral, guarantee, or lease;

4. 6. Public assets;

4. 7. Not meeting the conditions for storage, preservation, and appraisal.

Article 5.

5. 1. The pledgor must submit papers certified by a state notary office (if required by law) regarding lawful ownership, including insurance contracts or other relevant documents.

5. 2. Joint stock companies, limited liability companies, and joint ventures (including those with foreign partners) must have a decision from the Board of Directors when pledging their assets.

5. 3. When the pledged asset belongs to multiple individuals, all co-owners must sign on the pawn agreement.

Article 6In case the pledgor's enterprise goes bankrupt or is dissolved, the value of the pledged asset shall not be listed as liquidation assets.

Article 7.

7. 1. Depending on the nature of the pledged asset, the pledgee must organize an appraisal and evaluation of the pledged item before signing the pawn agreement.

7. 2. Appraisal fees are borne by the pledgor.

Article 8. Responsibilities of the parties concerning the pledged asset:

8. 1. The pledgee is responsible for storing, preserving, and safeguarding the pledged asset and related documents, and shall not use, rent, or lend them.

8. 2. If the pledged item delivered to the pledgee is damaged, the pledgee must jointly re-appraise it with the pledgor to determine the cause and agree on a resolution.

8. 3. If the pledged item is lost, the pledgee is liable to compensate the pledgor. In case of disputes, the parties have the right to lodge complaints or initiate lawsuits.

PART II

PAWN AGREEMENT

Article 9

9. 1. The pawn service is evidenced by a pawn agreement signed by both the pledgee and the pledgor.

9. 2. The pawn agreement must include the following elements:

9. 2.1. Full name of both parties (including guarantor's name if any), address, telephone number, telex, fax, ID number...

9. 2.2. Account number of the pledgor opened at the bank. 9.2.3. Type of pledged asset, brand, serial number, quality, quantity, current value, and accompanying documents.

9. 2.4. Pledged amount and purpose of using the pledged amount.

9. 2.5. Pledge term and repayment date.

9. 2.6. Interest rate on the pledge.

9. 2.7. Determination of responsibility in cases where the pledged asset is damaged or lost.

9. 2.8. Recording payment conditions (in case of late payment).

9. 2.9. Dispute resolution method.

9. 2.10. Other commitment clauses.

Article 10.

10. 1. Any change or cancellation of the pawn agreement must be agreed upon in writing by the parties involved in the agreement.

10. 2. In case a legal entity participating in the pawn agreement merges, splits, consolidates, or dissolves, its responsibility and the person responsible for continuing to perform the pawn agreement must be determined.

10. 3. In case the pledgor dies, the legitimate heir shall be responsible for continuing to perform the pawn agreement.

Article 11.

11. 1. When the person with the pledged property has fully repaid the debt (including principal and interest), the pledgee must return the pledged property and related documents to the pledgor.

11. 2. Upon maturity of the debt according to the pledge contract, if the pledgor cannot repay the debt without requesting an extension, the pledgee has the right to sell the pledged item to recover the debt. The procedures for extensions and overdue debt transfers shall be specified by the competent authority of the pledgee.

PART III

AMOUNT OF PLEDGE, DURATION AND INTEREST RATE

Article 12

12. 1. Based on the appraised value of the pledged item, the pledgee determines the amount of the pledge, which may not exceed 70% of the value of the pledged item.

12. 2. For customers who are State Bank of Vietnam officials, credit institution employees, precious metals system employees, and other entities mentioned in Points 1, 2, and 3 of Article 30 of the Banking Ordinance, Credit Cooperatives, and Finance Companies, the following provisions must be adhered to:

12. 2.1. The total outstanding pledge amount for these entities must not exceed 15% of the total outstanding pledge amount.

12. 2.2. An employee of an organization mentioned in Clause 1.5 of Article 1 of this Regulation wishing to pledge assets must have confirmation from the authorized person of that organization.

Article 13. Based on the type, nature, and storage conditions of the received collateral, the pledgee sets a specific duration for the pledge, which may not exceed 90 days.

Article 14. Based on the short-term loan interest rate for the same period and the cost of preserving the pledged item, the pledgee sets an appropriate interest rate for the pledge consistent with market rates, accepted by the pledgor.

PART IV

HANDLING OF PLEDGED PROPERTY

Article 15. The pledgee has the right to sell the pledged item to recover the debt in the following cases:

15. 1. Expiration of the debt extension period as stipulated in Clause 11.2 of Article 11 of this Regulation.

15. 2. The pledgor refuses to pay the debt or lacks the ability to settle the debt.

15. 3. The pledgor dies without an heir, or the heir declares renunciation of inheritance.

15. 4. The enterprise of the pledgor is dissolved or declared bankrupt.

Article 16. The sale of pledged property shall be conducted through public auction in accordance with the relevant laws.

Article 17. Proceeds from the sale of pledged property shall be handled in the following order:

17. 1. Covering the costs of organizing the sale of pledged property;

17. 2. Repaying the pledge debt: principal and interest (including penalty interest);

17. 3. Any remaining amount shall be returned to the pledgor. In case there is no recipient for this amount, the pledgee must record it separately and await further legal disposition.

Article 18. If the proceeds from the sale of pledged property are insufficient to cover the debt (including principal, interest, and penalty interest), the pledgee has the right to request the pledgor to make up the shortfall, or initiate legal proceedings.

Chapter III

FINAL PROVISIONS

Article 19. Amendments and supplements to this Regulation shall be decided by the Governor of the State Bank of Vietnam.