Decision No. 283/2000/QĐ-NHNN14 on the issuance of the Bank Guarantee Regulation

Article 1The Bank Guarantee Regulation is hereby promulgated together with this Decision.

Article 2. This Decision shall take effect fifteen days from the date of signature. This Decision replaces Decisions No. 23/QĐ-NH14 dated February 21, 1994, issued by the Governor of the State Bank of Vietnam on the Bank Guarantee and Re-guarantee Regulation for Foreign Borrowings; Decision No. 196/QĐ-NH14 dated September 16, 1994, issued by the Governor of the State Bank of Vietnam on the Bank Guarantee Business Regulation for Banks; Decision No. 262/QĐ-NH14 dated September 19, 1995, issued by the Governor of the State Bank of Vietnam on amending certain provisions of the Bank Guarantee Business Regulation for Banks promulgated together with Decision No. 196/QĐ-NH14 dated September 16, 1994, issued by the Governor of the State Bank of Vietnam; and Decision No. 263/QĐ-NH14 dated September 19, 1995, issued by the Governor of the State Bank of Vietnam on amending certain provisions of the Bank Guarantee and Re-guarantee Regulation for Foreign Borrowings promulgated together with Decision No. 23/QĐ-NH14 dated February 21, 1994, issued by the Governor of the State Bank of Vietnam.

Article 3The Heads of the Office, Department of Credit, heads of relevant units under the State Bank of Vietnam, Branch Governors of the State Bank of Vietnam in provinces and centrally governed cities, Chairmen of Management Boards, General Directors (Directors) of credit organizations are responsible for implementing this Decision.

Article 1. Scope of application

This Regulation stipulates the implementation of guarantee business by credit organizations for customers.

Article 2Definitions

In this Regulation, the following terms are understood as follows:

1. "Bank Guarantee" means a written commitment by a credit organization (the guarantor) to the creditor (the beneficiary) regarding the performance of financial obligations on behalf of the customer (the guaranteed party) when the customer does not perform or performs incorrectly the obligations already committed to the creditor. The customer must accept the debt and repay the credit organization the amount that has been paid on their behalf.

2. "Guarantor" means credit organizations as defined in Article 3 of this Regulation.

3. "Guaranteed Party" means customers as defined in Article 4 of this Regulation.

4. "Beneficiary" means domestic and foreign organizations and individuals entitled to enjoy the guarantees issued by credit organizations.

5. "Guarantee Commitment" means a unilateral written commitment by a credit organization or an agreement among the credit organization, the guaranteed party, and the beneficiary regarding the credit organization's commitment to perform financial obligations on behalf of the customer when the customer fails to fulfill the obligations committed to the beneficiary.

6. "Guarantee Contract" means an agreement between the credit organization and the customer regarding the rights and obligations of the parties in the guarantee and repayment.

7. "Loan Guarantee" means a bank guarantee issued by a credit organization to the beneficiary committing to pay off the customer's debt on behalf of the customer in case the customer does not repay or repays insufficiently or late.

8. "Payment Guarantee" means a bank guarantee issued by a credit organization to the beneficiary committing to make payment on behalf of the customer in case the customer does not perform or performs insufficiently its obligations at maturity.

9. "Bid Guarantee" means a bank guarantee issued by a credit organization to the tenderer to ensure the customer's obligation to participate in the bidding process. If the customer is penalized for violating bidding regulations and does not pay or pays insufficiently the penalty to the tenderer, the credit organization will fulfill the guarantee commitment.

10. "Performance Guarantee" means a bank guarantee issued by a credit organization to the beneficiary ensuring the customer's fulfillment of all obligations under the contract signed with the beneficiary. In case the customer fails to fulfill the obligations under the contract, the credit organization will fulfill the guarantee commitment.

11. "Quality Guarantee" means a bank guarantee issued by a credit organization to the beneficiary ensuring the customer's compliance with quality agreements in the contract signed with the beneficiary. If the customer is fined for failing to comply with quality agreements in the contract with the beneficiary and does not pay or pays insufficiently the fine to the beneficiary, the credit organization will fulfill the guarantee commitment.

12. "Advance Payment Guarantee" means a bank guarantee issued by a credit organization to the beneficiary ensuring the customer's obligation to refund advance payments according to the contract signed with the beneficiary. If the customer breaches the commitments with the beneficiary and must refund advance payments but does not refund or refunds insufficiently the advance payments to the beneficiary, the credit organization will refund the advance payments to the beneficiary.

13. "Reciprocal Guarantee" means a bank guarantee issued by a credit organization (the Reciprocal Guarantee Issuer) to another credit organization (the Guarantor) requesting the Guarantor to issue a guarantee for the obligations of the Reciprocal Guarantee Issuer's customer to the beneficiary. If the customer breaches the commitments with the beneficiary and the Guarantor must fulfill the guarantee obligation, the Reciprocal Guarantee Issuer must fulfill the reciprocal guarantee obligation to the Guarantor.

14. "Confirmation of Guarantee" means a bank guarantee issued by a credit organization (the Confirming Guarantor) to the beneficiary ensuring the ability of the confirmed credit organization (the Confirmed Guarantor) to fulfill the guarantee obligations to the customer. If the Confirmed Guarantor fails to perform or performs insufficiently the obligations committed to the beneficiary, the Confirming Guarantor will fulfill the obligations on behalf of the Confirmed Guarantor.

15. "Joint guarantee" refers to multiple credit institutions jointly guaranteeing a customer's obligation through a lead credit institution.

Article 3. Credit institutions conducting guarantee business

1. State commercial banks, joint-stock commercial banks, investment banks, development banks, policy banks, joint venture banks, foreign bank branches in Vietnam, cooperative banks, other types of banks, and non-bank credit institutions established and operating under the Law on Credit Institutions (collectively referred to as credit institutions) shall conduct banking guarantee business in accordance with relevant laws and regulations set forth in this Circular.

2. Banks permitted by the Governor of the State Bank of Vietnam to conduct international payments may undertake loan guarantees, payment guarantees, and other forms of guarantees where the beneficiary is foreign organizations or individuals.

3. Credit institutions shall issue bill guarantees and draft guarantees in accordance with the Commercial Paper Law and this Circular.

Article 4. Customers guaranteed by credit institutions

1. Enterprises legally engaged in business operations in Vietnam.

a. State-owned enterprises

b. Joint-stock companies

c. Limited liability companies

d. Partnership companies

e. Enterprises of political organizations and political-social organizations

g. Joint ventures

h. Wholly foreign-owned enterprises in Vietnam

i. Private enterprises, individual business households.

2. Credit institutions established and operating under the Law on Credit Institutions.

3. Cooperatives and other organizations meeting the conditions stipulated in Article 94 of the Civil Code.

4. Foreign economic organizations participating in joint venture contracts and bidding for investment projects in Vietnam or borrowing funds to implement investment projects in Vietnam.

Article 5Types of guarantees

1. Loan guarantee.

a. Domestic loan guarantee.

b. Foreign loan guarantee.

2. Payment guarantee.

3. Bid guarantee.

4. Contract performance guarantee.

5. Product quality guarantee.

6. Completion payment guarantee.

7. Other types of guarantees.

Article 6. Forms of issuing guarantees

1. Issuing guarantee letters and confirmation of guarantees.

2. Signing confirmation of guarantees on bills and drafts.

3. Other forms as prescribed by law.

Article 7. Scope of guarantees

1. The obligations covered by the guarantee include one, several, or all of the following obligations:

a. Obligation to repay principal, interest, and other related costs of the loan;

b. Obligation to pay money for purchasing materials, goods, machinery, equipment, and other expenses for the customer to implement projects or production, business, service, and development plans;

c. Obligation to pay taxes and other financial obligations to the State;

d. Customer's obligations when participating in bids and performing contracts in accordance with the provisions of the law;

đ. Other lawful obligations agreed upon by the parties in related contracts.

2. The total outstanding balance of guarantees provided by a credit institution for one customer shall not exceed 15% (fifteen percent) of the credit institution's own capital. In case the credit institution has to pay on behalf of the customer, leading to the total outstanding loan balance and the outstanding balance due to such payments exceeding 15% of the credit institution's own capital, the credit institution must immediately cease new lending and guaranteeing activities for that customer and simultaneously recover the debt to ensure compliance with the maximum outstanding loan balance for one customer as stipulated.

If a customer requests a guarantee exceeding 15% of the credit institution's own capital, the credit institution shall jointly with other credit institutions provide the guarantee in accordance with Article 14 of this Circular.

3. The total outstanding balance of guarantees provided by a foreign bank branch for one customer shall not exceed 15% of the foreign bank's own capital.

4. Credit institutions shall determine the total amount of guarantees appropriate to their financial capacity, ensuring compliance with the current regulations of the State Bank of Vietnam regarding safety ratios in the operation of credit institutions.

Article 8Conditions for guarantees

Credit institutions shall consider and decide to provide guarantees when customers meet the following conditions:

1. Having full civil legal capacity and civil conduct capacity as prescribed by law.

2. Being creditworthy in their relationship with credit institutions.

3. Providing lawful security for the guaranteed obligations as stipulated in Article 21 of this Circular.

4. Having feasible and effective investment projects or production and business plans when requesting loan guarantees.

5. For bill and draft guarantees, customers must meet the conditions prescribed by the Commercial Paper Law.

6. In cases of foreign loans, customers must comply with the legal regulations on managing foreign borrowings and repayments.

7. Foreign economic organizations must be allowed to invest, operate, or participate in bidding in Vietnam according to Vietnamese laws.

Article 9. Guarantee application documents

The guarantee application documents of customers include the Guarantee Application (attached Form No. 01/BL) and other relevant documents related to the guarantee transaction as specified by the credit institution.

Article 10. Guarantee Contract

1. The guarantee contract, agreed upon by the credit institution providing the guarantee, the guaranteed customer, and related parties (if any), shall include the following contents:

a. Name and address of the credit institution and the customer;

b. Amount, term, and guarantee fee;

c. Purpose, scope, and object of the guarantee;

d. Conditions for fulfilling the guarantee obligation;

đ. Form of security for the guarantee obligation and value of the collateral;

e. Rights and obligations of the parties;

g. Provisions on compensation after the credit institution fulfills its guarantee obligation;

h. Resolution of disputes arising;

i. Transfer of rights and obligations of the parties;

k. Other agreements.

2. The guarantee contract may be amended, supplemented, or terminated if the parties agree.

Article 11. Guarantee Commitment

1. The guarantee commitment includes the following basic contents:

a. Name and address of the credit institution, the guaranteed customer, and the beneficiary;

b. Amount of the guarantee;

c. Scope, object, and validity period of the guarantee;

d. Form and conditions for fulfilling the guarantee obligation;

In addition to the contents mentioned above, the Guarantee Commitment may include other contents such as the rights and obligations of the parties; dispute resolution arising from the guarantee transaction; transfer of rights and obligations of the parties, and other contents.

2. In cases where the guarantee commitment includes provisions that the use of related documents to the guarantee transaction (such as the contract between the customer and the guarantor, third-party confirmation of the customer's breach, or other documents) is a condition for performing the guarantee obligation, the guarantee obligation shall be performed according to the conditions stated above.

3. In cases where the guarantee commitment is signed on promissory notes or bills of exchange, the content of the guarantee commitment shall be implemented in accordance with the provisions of the law on negotiable instruments.

4. The guarantee commitment may be amended, supplemented, or revoked if the relevant parties agree.

Article 12. Sử dụng ngôn ngữ

1. Documents related to the guarantee transaction shall be established in the Vietnamese language.

2. Documents related to the guarantee transaction may be used in two languages: Vietnamese and a commonly used foreign language agreed upon by the parties in cases where there is a foreign party participating in the guarantee transaction.

Article 13. application of international treaties and customs in guarantee transactions when there is a foreign party involved

1. International treaties on guarantees to which the Socialist Republic of Vietnam is a signatory or participant, if they provide different provisions than those set out in this Regulation, shall apply the provisions of the international treaty.

2. The parties may agree to apply international rules, customs, and practices on guarantees if such rules, customs, and practices do not conflict with Vietnamese law.

Article 14. Multiple credit institutions jointly guaranteeing one obligation of a customer

1. Joint guarantee:

a. The lead credit institution issues the guarantee to the beneficiary based on the guarantee contract signed between the participating credit institutions.

b. In case the customer does not perform or performs incompletely the obligation committed to the beneficiary, the lead credit institution shall be responsible for performing the guarantee obligation. The participating credit institutions in the joint guarantee shall be responsible for refunding the amount paid by the lead credit institution according to the intercreditor agreement among the participating credit institutions.

c. In case the lead credit institution does not perform or performs incompletely the guarantee obligation towards the beneficiary, the beneficiary has the right to request any of the participating credit institutions in the joint guarantee to perform the guarantee obligation.

2. In cases where the customer's obligation can be divided into separate, independent parts, each credit institution may issue a guarantee for the independent parts of the customer's obligation without being jointly liable for each other. Each credit institution shall bear its own responsibility for the committed obligation.

Article 15. A credit institution guarantees an obligation that multiple customers participate in performing and are jointly responsible for.

A credit institution may guarantee an obligation that multiple customers participate in performing and are jointly responsible for through a joint liability contract among the parties, based on considering the reputation, financial capacity, and security of each participating party.

Article 16. Rights and obligations of the guaranteeing credit institution

1. The guaranteeing credit institution has the right:

a. To request another credit institution to confirm its guarantee for the customer;

b. To accept or reject the customer's guarantee request or the corresponding issuing bank's guarantee request within a maximum period of 45 days from the date of receipt of all guarantee request documents;

c. To require the customer to provide financial documents as well as documents related to the guarantee transaction; reports on business operations; reports on the implementation of contracts and obligations related to the guarantee transaction;

d. To require the customer to provide security for the guaranteed obligation;

đ. To charge guarantee fees as agreed;

e. To require the customer or the corresponding issuing bank to repay the amount guaranteed that the credit institution has paid on their behalf;

g. To debit the customer or the corresponding issuing bank the amount paid on their behalf to fulfill the guarantee obligation, if the customer or the corresponding issuing bank does not acknowledge the debt within 15 days from the date of payment by the credit institution;

h. To handle the customer's collateral assets in accordance with Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government and guiding documents for this Decree;

i. To initiate legal proceedings as provided by law when the customer or the corresponding issuing bank breaches the Guarantee Contract;

k. To transfer its rights and obligations to another credit institution specified in Article 3 of this Regulation if approved in writing by the beneficiary.

2. The guaranteeing credit institution has the obligation:

a. To perform the guarantee obligation according to the guarantee commitment;

b. To urge the customer to fully and properly perform the committed obligation

to the beneficiary;

c. To return the full collateral asset (if any) and related documents to the customer when the customer has fully fulfilled all obligations to the beneficiary.

Article 17. Rights and obligations of the corresponding issuing credit institution

1. The corresponding issuing credit institution has the right:

a. To request the guaranteeing credit institution to issue a guarantee for its customer;

b. To accept or reject the customer's request for issuance of a corresponding guarantee;

c. To require the customer to provide financial documents as well as documents related to the guarantee transaction; reports on business operations; reports on the implementation of contracts and obligations related to the guarantee transaction;

d. To require the customer to provide security for the guaranteed obligation;

đ. To charge guarantee fees as agreed;

e. To require the customer to repay the amount guaranteed that the credit institution has paid on their behalf;

g. To debit the customer the amount paid on their behalf to fulfill the guarantee obligation, if the customer does not acknowledge the debt within 15 days from the date of payment by the credit institution;

h. To handle the customer's collateral assets in accordance with Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government and guiding documents for this Decree;

i. To initiate legal proceedings as provided by law when the customer or the guaranteeing credit institution breaches the Guarantee Contract;

k. To transfer its rights and obligations to another credit institution specified in Article 3 of this Regulation if approved in writing by the guaranteeing credit institution.

2. The corresponding issuing credit institution has the obligation:

a. To perform the guarantee obligation according to the guarantee commitment;

b. Urge the customer to fully and properly fulfill the obligations committed to the beneficiary and the guaranteeing credit institution;

c. To return the full collateral asset (if any) and related documents to the customer when the customer has fully fulfilled all obligations to the beneficiary.

Article 18. Rights and Obligations of the Credit Institution Confirming the Guarantee

1. The credit institution confirming the guarantee has the right:

a. To accept or reject the customer's or the guaranteeing credit institution's request for confirmation of the guarantee;

b. To require the customer or the guaranteeing credit institution to provide financial documents as well as documents related to the guarantee transaction; reports on business operations; reports on the implementation of contracts and obligations related to the guarantee transaction;

c. To require the customer or the guaranteeing credit institution to secure the guaranteed obligation;

d. To charge guarantee fees according to the agreement;

đ. To require the customer or the guaranteeing credit institution to repay the amount of guarantee that the credit institution has paid on their behalf;

e. To debit the customer or the guaranteeing credit institution's account with the amount that the credit institution has paid on their behalf to fulfill the guarantee obligation, if within 15 days from the date the credit institution pays on their behalf, the customer or the guaranteeing credit institution does not acknowledge the debt;

g. To handle the collateral assets of the customer or the guaranteeing credit institution in accordance with Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government and guiding documents for this Decree;

h. To initiate legal proceedings as prescribed by law when the customer or the guaranteeing credit institution breaches the Guarantee Contract;

i. May transfer its rights and obligations to another credit institution specified in Article 3 of this Regulation if approved in writing by the beneficiary;

2. The credit institution confirming the guarantee has the obligation:

a. To perform the guarantee obligation according to the guarantee commitment;

b. To urge the customer and the guaranteeing credit institution to fully and properly fulfill the obligations committed to the beneficiary;

c. To return all collateral assets (if any) and related documents to the customer or the guaranteeing credit institution when the customer or the guaranteeing credit institution has fully fulfilled their obligations to the beneficiary;

Article 19. Rights and Obligations of the Customer

1. The customer has the right:

a. To require the credit institution to fulfill its commitments to the beneficiary;

b. To require the credit institution to fulfill the agreements in the Guarantee Contract;

c. To initiate legal proceedings as prescribed by law if the credit institution breaches the Guarantee Contract;

d. May transfer its rights and obligations to another party meeting the conditions stipulated in Article 8 of this Regulation if approved in writing by the guarantor and the beneficiary;

2. The customer has the obligation:

a. To provide complete, accurate, and truthful documents and reports related to the guaranteed transaction upon the request of the guaranteeing credit institution or the issuing credit institution;

b. To pay the guarantee fee and other related fees to the guaranteeing credit institution, the confirming credit institution, and the issuing credit institution according to the agreement;

c. To acknowledge and repay the guaranteeing credit institution, the issuing credit institution, and the confirming credit institution the amount paid on their behalf to fulfill the guarantee obligation for the customer including principal, interest, and direct costs arising from the performance of the guarantee;

d. To fully and properly fulfill the obligations committed to the beneficiary, the guaranteeing credit institution, or the issuing credit institution;

e. To be subject to inspection and supervision by the guaranteeing credit institution or the issuing credit institution regarding activities related to the guaranteed transaction;

Article 20. Authority to Sign Guarantees

1. The legal representative of the credit institution has the authority to sign guarantee documents of the credit institution.

2. The legal representative of the credit institution may delegate the General Director or Director (in cases where the Chairman of the Board of Management is the legal representative), Deputy General Director or Deputy Director, Branch Manager of the credit institution to sign guarantee documents; or to specify the authority to sign guarantees of the credit institution in accordance with the provisions of the law.

Article 21. Security for Guarantees

1. Based on the characteristics of the production and business situation, financial capacity, and reputation of the customer, the credit institution and the customer agree to apply or not apply security measures for the guarantee. Forms of security for guarantees include: deposit, pledge, mortgage, third-party guarantee, and other security measures as prescribed by law.

2. Using assets formed from borrowed capital as security for the fulfillment of the guarantee obligation (for loan guarantees) or not applying asset-based security for the fulfillment of the guarantee obligation shall be carried out in accordance with Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government on securing loans of credit institutions and guiding documents for this Decree.

Article 22Guarantee Fees

1. The customer must pay the guarantee fee to the credit institution. The fee level is agreed upon by the parties, not exceeding 2% per year based on the outstanding guaranteed amount. In cases where the guarantee fee calculated at this rate is lower than 300,000 VND, the credit institution may collect a minimum fee of 300,000 VND. Additionally, the customer must pay reasonable expenses related to the guarantee transaction to the credit institution as agreed in writing by the parties.

2. The guarantee fee level specified in Clause 1 of this Article is the maximum fee the customer must pay to the credit institution in cases of corresponding guarantees and confirmations. The specific fee level of each credit institution participating in the guarantee is agreed upon by the participating credit institutions.

3. For cases where the customer pays the guarantee fee to the lead credit institution, then the credit institutions will receive the guarantee fee according to their participation ratio in the guarantee from the lead credit institution as stipulated in Clause 1 of Article 14.

4. For cases where multiple organizations participate in fulfilling a single obligation, the parties involved must pay the guarantee fee to the credit institution according to their respective share of the total obligation.

5. The period for calculating guarantee fees and the specific methods of collecting such fees shall be agreed upon by the parties in the Guarantee Contract.

6. In case the customer delays in paying the guarantee fee to the credit institution, they shall bear overdue interest not exceeding 150% of the interest rate on the guaranteed loan amount in the case of loan guarantees, or the short-term lending interest rate that the credit institution is currently applying to the overdue fee amounts of other types of guarantees, from the due date until the actual payment date.

Article 23. Procedures and formalities for issuing guarantees

Credit institutions shall specify in detail the procedures, formalities, conditions, and authority for issuing guarantees suitable to the characteristics of each credit institution and each type of guarantee.

Article 24. Duration of guarantees

1. The duration of guarantees shall be determined based on the performance period of the guaranteed obligation of the customer towards the beneficiary, except where there are other agreements or commitments.

2. Any extension of the guarantee must be approved in writing by the beneficiary.

Article 25. Procedures for performing guarantee obligations

1. A credit institution shall perform its guarantee obligation towards the beneficiary when the following conditions are met:

a. The guarantee obligation has become due;

b. The beneficiary requests the credit institution in writing to perform the guarantee obligation;

c. Documents proving that the customer has not performed or has not fully performed their committed obligations towards the beneficiary, if the guarantee commitment specifies this as a condition for performing the guarantee obligation.

The credit institution shall examine the documents; if they comply with the guarantee commitment, it shall perform the guarantee obligation.

2. After performing the guarantee obligation, the credit institution shall request the customer to compensate according to the following steps:

a. For ordinary guarantees

- The guarantor credit institution shall notify the customer along with related documents, requesting the customer to repay the amount the credit institution has paid on their behalf.

- Upon receiving the notification from the credit institution, the customer shall have the obligation to repay the debt or provide a written acknowledgment of the debt to the credit institution regarding the amount the credit institution has paid on their behalf. If the customer fails to repay or provide a written acknowledgment within fifteen days from the receipt of the notification, the credit institution shall record the debt against the customer (the recording date being the date the credit institution fulfilled the guarantee obligation for the customer). The customer shall bear overdue interest as agreed by the parties but not exceeding 150% of the interest rate stipulated in the contract between the customer and the beneficiary (in the case of loan guarantees) or the short-term lending interest rate currently applied by the credit institution, from the date the credit institution fulfills the guarantee obligation for the amount paid on behalf of the customer.

- In cases of objective reasons such as natural disasters, fires, temporary financial difficulties, and other objective reasons, or if repayment to the beneficiary does not align with the production and business cycle, preventing the customer from fulfilling their obligation on time to the beneficiary. Based on the customer's request in the acknowledgment of debt, the credit institution may consider rescheduling the repayment period and applying the normal lending interest rate to the amount paid on behalf of the customer.

- The guarantor credit institution has the right to take measures such as selling off collateral assets, deducting funds from the customer's account (if agreed), initiating legal proceedings, and other asset disposal measures as prescribed in Decree No. 178/1999/NĐ-CP dated December 29, 1999 of the Government and guiding documents implementing this Decree to recover the amount paid on behalf of the customer.

b. For reciprocal guarantees.

After performing the reciprocal guarantee obligation, the issuer of the reciprocal guarantee has the right to request the customer to repay the amount the issuer of the reciprocal guarantee has paid to the guarantor credit institution. The procedure for repaying the debt or acknowledging the debt between the issuer of the reciprocal guarantee and the customer shall be carried out similarly to the provisions at Point a, Clause 2 of this Article.

c. For confirmed guarantees.

After the confirming guarantor performs the guarantee obligation on behalf of the confirmed party, the confirming guarantor has the right to request the confirmed party to repay the amount the confirming guarantor has paid to the beneficiary. The procedure for repaying the debt or acknowledging the debt of the confirmed party to the confirming guarantor shall be carried out similarly to the provisions at Point a, Clause 2 of this Article.

d. In the case where a credit institution guarantees an obligation that multiple customers jointly perform, the participating parties shall be responsible for repaying the debt or acknowledging the debt to the credit institution in proportion to their respective obligations in the joint obligation. If one of the participating parties fails to fulfill their part of the obligation, the credit institution has the right to require any of the participating parties to fulfill that part of the obligation. The procedure for repaying the debt and acknowledging the debt of the participating parties to the credit institution shall be carried out according to the provisions at Point a, Clause 2 of this Article.

3. In the case of bill of exchange or promissory note guarantees, the performance of the guarantee obligation and the request for the customer to compensate shall be carried out in accordance with the provisions of the law on commercial bills.

Article 26. Exemption from performing guarantee obligations

1. In the event that the beneficiary exempts the credit institution from performing the guarantee obligation, the customer still has to fulfill their obligation towards the beneficiary, except where there are agreements or laws stipulating that the credit institution must perform the guarantee obligation.

2. In the case where only one credit institution among several credit institutions jointly guaranteeing a customer's obligation is exempted from performing its part of the guarantee obligation, the other credit institutions still have to perform their guarantee obligations but are not liable for the part of the guarantee obligation of the exempted credit institution.

Article 27. Termination of guarantees in the following cases

1. The guarantee obligation has been fully performed by the guarantor credit institution.

2. The guarantee obligation terminates as provided by law.

3. The guaranteed party has fully performed their obligation towards the beneficiary.

4. The guarantor agrees to cancel the guarantee in accordance with the provisions of the law.

5. The guarantee may be replaced by another form of security as agreed upon by the parties.

6. The guarantee expires when its validity period ends, if such a period is specified in the guarantee.

7. In the event that the credit institution providing the guarantee ceases operations, the guarantee obligation shall be fulfilled in accordance with relevant legal provisions.

Article 28. Inspection and supervision regime for guarantees

1. The customer must undergo inspection and supervision by the credit institution providing the guarantee during the term of the guarantee.

2. Credit institutions must be subject to audit and inspection by the State Bank in accordance with current regulations.

Article 29. Accounting system and information reporting regime

1. The accounting and monitoring of guarantees provided by credit institutions shall be carried out in accordance with current regulations.

2. Customers are responsible for periodically or ad hoc reporting to the credit institution on their operational status related to the guaranteed transactions.

3. Credit institutions shall compile the status of their guarantee activities to report to the State Bank in accordance with the current information reporting regime.

Article 30.Credit institutions and customers are responsible for implementing this Regulation. Based on this Regulation and relevant legal documents, credit institutions shall issue specific guidance documents consistent with their conditions, characteristics, and bylaws.

Article 31. Any supplementation or amendment to this Regulation shall be decided by the Governor of the State Bank.

  Form No. 01/BL

Unit: Equivalent USD:.............................................

- Name of the applicant...

- Address... Established pursuant to License No....dated...by...

- Business activities...

- Full name of General Director (Director)...

- Account number for VND deposits...opened at...

- Account number for foreign currency deposits...opened at...

- Account number for VND loans...opened at...

- Account number for foreign currency loans...opened at...

Request for the Bank...to provide a guarantee

- Purpose of the guarantee...

- Beneficiary of the guarantee...

- Amount of the guarantee...

- Term of the guarantee...

- Guarantee fee payable to the guarantor...

- Approval authority for the economic and technical feasibility study of the project, if applicable (specify the approval number and date).

- Contract signed with the beneficiary of the guarantee No...dated...

- Security form for the guarantee...value of the collateral...

- Attached documents include:...

+.............

+............

We hereby commit to fully comply with the provisions of the Banking Guarantee Regulation issued together with Decision No...dated...by the Governor of the State Bank.

...day...month...year

Guarantee applicant

General Director (Director)

(signature, stamp)