Decision No. 30/2008/QD-NHNN amending and supplementing certain Articles of the Collection Guarantee Operation Regulation for credit institutions issued pursuant to Decision No. 1096/2004/QD-NHNN dated September 6, 2004 of the Governor of the State Bank of Vietnam.

Pursuant to …;

Amending and supplementing certain provisions of the Collection Guarantee Operation Regulation of credit institutions issued pursuant to Decision No. 1096/2004/QĐ-NHNN dated September 6, 2004of the Governor of the State Bank of Vietnam

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GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam 1997 and the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam 2003;

Pursuant to the Law on Credit Institutions 1997 and the Law Amending and Supplementing Certain Provisions of the Law on Credit Institutions 2004;

Pursuant to the Enterprise Law 2005;

Pursuant to the Government Decree No. 16/2001/NĐ-CP dated May 2, 2001 on the organization and operation of financial leasing companies;

Pursuant to the Government Decree No. 95/2008/NĐ-CP dated August 25, 2008 amending and supplementing certain provisions of the Government Decree No. 16/2001/NĐ-CP dated May 2, 2001 on the organization and operation of financial leasing companies;

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;

At the proposal of the Director of the Department of Commercial Banks and Non-Bank Financial Institutions,

DECISION:

Article 1. Amending and supplementing certain provisions of the Collection Guarantee Operation Regulation of credit institutions issued pursuant to Decision No. 1096/2004/QĐ-NHNN dated September 6, 2004 of the Governor of the State Bank (hereinafter referred to as the Collection Guarantee Operation Regulation) as follows:

1. The following terms in the Collection Guarantee Operation Regulation shall be amended as follows:

- "Sales contract for goods" to "Contract for sale of goods and supply of services".

- "Purchase and sale of goods" to "Purchase and sale of goods and supply of services".

- "Sales document" to "Document for purchase and sale of goods and supply of services".

- "Purchaser" to "Purchaser of goods and user of services".

- "Seller" to "Seller of goods and supplier of services".

2. Clause 2, Article 1 is amended and supplemented as follows:

2. Scope of application:

2.1. Credit institutions conducting collection guarantee business include:

a. Credit institutions established and operating under the Law on Credit Institutions:

- State-owned commercial banks;

- Joint-stock commercial banks;

- Joint venture banks;

- Foreign banks with 100% foreign capital;

- Finance companies;

- Financial leasing companies.

b. Foreign banks opening branches in Vietnam according to the Law on Credit Institutions.

2.2. Customers eligible for collection guarantee by credit institutions are economic organizations in Vietnam and abroad selling goods and supplying services (hereinafter referred to as the seller) and entitled to receivables arising from the sale of goods and supply of services according to the agreement between the seller and the purchaser of goods and user of services (hereinafter referred to as the buyer) in the contract for sale of goods and supply of services. For financial leasing companies, they can only conduct collection guarantee for customers who are lessees of the financial leasing company.

"b. The ratio of non-performing debt to total outstanding debt at the end of each month of the last three months is less than 5%; not violating the regulations on safety ratios in banking operations;"

"3. For financial leasing companies, they can only conduct collection guarantee activities when their registered capital is equivalent to the statutory minimum capital required for finance companies,"

4. Clause 3 of Article 8 shall be supplemented as follows:

"3. Documents in the file must be original copies. In case of copies, they must be certified by the issuing authority or authenticated by a competent authority in accordance with the law."

5. Article 10 is amended and supplemented as follows:

"2. Credit institutions must send to the State Bank the issues published, certified copies of the business registration certificate authenticated by a competent authority, and other related documents.

3. Within six months from the date of written approval by the State Bank, credit institutions must commence the collection guarantee activity. After the expiry of this period, if the credit institution does not commence the collection guarantee activity, the approval document of the State Bank will become invalid."

6. Points d, đ, e of Clause 1 of Article 13 shall be amended as follows:

"d. The seller sends a notification letter regarding the collection guarantee contract to the buyer and relevant parties, clearly stating that the seller has transferred the right to claim payment to the collection guarantor and instructing the buyer to make payment to the collection guarantor.

đ. The buyer sends a confirmation letter to the seller and the collection guarantor acknowledging receipt of the notification and committing to make payment to the collection guarantor. If the buyer does not provide a commitment to make payment to the collection guarantor, the continuation of the collection guarantee between the seller and the collection guarantor will be decided by both parties and they will bear responsibility for any risks arising therefrom.

e. The seller transfers the list attached with the original contract for sale of goods and supply of services; document for purchase and sale of goods and supply of services and other documents related to receivables to the collection guarantor. If the aforementioned documents are certified copies issued by a competent authority, it will be agreed upon and borne by the seller and the collection guarantor, who will be responsible for their decision in case of risk."

7. Article 19 shall be supplemented with Clause 8 and Clause 9 as follows:

"8. Receivables arising from contracts for supply of services in the construction sector; financial and banking sectors as specified in the annex;

9. Contracts for sale of goods and supply of services with an agreement prohibiting the transfer of rights and obligations in the contract."

8. Article 23 shall be amended and supplemented as follows:

- Amend Point b, Clause 1: "Request the seller to transfer the entire list attached with the original or certified copy issued by a competent authority of the contract for sale of goods and supply of services; document for purchase and sale of goods and supply of services; rights, interests, and other documents related to the receivable guaranteed."

- Remove Point a, Clause 2, Article 23;

9. Point d, Clause 2, Article 24 shall be amended and supplemented as follows:

"d. Transfer fully and on time to the collection guarantor the entire list attached with the original (or certified copy issued by a competent authority) of the contract for sale of goods and supply of services; document for purchase and sale of goods and supply of services; rights, interests, and other documents related to the receivable guaranteed according to the agreement in the collection guarantee contract."

Article 2. This Decision shall take effect fifteen days after its publication in the Official Gazette.

Article 3. The Head of the Office, the Director of the Department of Banks and Non-Bank Credit Institutions, the Heads of units under the State Bank, the Governors of the State Bank Branches in provinces and centrally governed cities, the Chair and members of the Board of Directors, the Heads and members of the Supervisory Board, and the General Directors (Directors) of credit institutions are responsible for implementing this Decision./.