Consolidated Document number 46/VBHN-NHNN stipulates on the custody and use of securities at the State Bank of Vietnam.

STATE BANK OF VIETNAM VIETNAM --------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
Number: 46/VBHN-NHNN	Hanoi, December 9, 2019

CIRCULAR

REGULATIONS ON THE DEPOSITORY AND USE OF SECURITIES AT THE STATE BANK OF VIETNAM

Circular No. 04/2016/TT-NHNN dated April 15, 2016 of the Governor of the State Bank of Vietnam on the depository and use of securities at the State Bank of Vietnam, which took effect from June 1, 2016, has been amended and supplemented by:

Circular No. 23/2019/TT-NHNN dated November 22, 2019 of the Governor of the State Bank of Vietnam amending and supplementing certain provisions of Circular No. 39/2014/TT-NHNN dated December 11, 2014 of the Governor of the State Bank of Vietnam guiding payment intermediary services, which took effect from January 7, 2020.

Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated June 16, 2010;

Pursuant to the Law on Credit Organizations No. 47/2010/QH12 dated June 16, 2010;

BASED ON THE SECURITIES LAW NUMBER 70/2006/QH11 OF JUNE 29, 2006;

BASED ON THE LAW AMENDING AND COMPLEMENTING CERTAIN PROVISIONS OF THE SECURITIES LAW NUMBER 62/2010/QH12 OF NOVEMBER 24, 2010;

Pursuant to Decree No. 01/2011/NĐ-CP dated January 5, 2011 of the Government on government bond issuance operations, government-guaranteed bonds, and local government bonds;

Pursuant to Decree No. 156/2013/NĐ-CP dated November 11, 2013, 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 Trading Department;

The Governor of the State Bank of Vietnam promulgates this Circular on the depository and use of securities at the State Bank of Vietnam[1].

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the depository and use of securities at the State Bank of Vietnam (hereinafter referred to as the State Bank).

Article 2. Applicability

1. Units under the State Bank.

2. Credit institutions, foreign bank branches, and other organizations as decided by the Governor of the State Bank (hereinafter referred to as members).

Article 3. Explanation of Terms

1. Securities are evidence confirming the obligation to repay between the issuer of the securities and the holder of the securities within a specified period, interest payment conditions, and other conditions.

2. Depository of securities at the State Bank is the activity of receiving deposits, preserving, transferring, and performing rights related to the ownership of securities directly deposited at the State Bank by members or deposited at the Customer Account of the State Bank at the Vietnam Securities Depository Center (hereinafter referred to as VSD) to ensure the rights and interests related to securities of the holder and perform certain operations at the State Bank.

3. Transfer of securities among parties in transactions involving the use of securities is the transfer of accounts for book-entry securities or delivery, counting, and recording into the accounting system for certificate-type securities. The transfer of securities may include or not include the transfer of ownership of the securities.

4. Self-trading account is an account opened by VSD for VSD depositary members or organizations allowed to open accounts at VSD to manage securities owned by the depositary member or the organization allowed to open accounts at VSD.

5. Brokerage account is an account opened by VSD for VSD depositary members or organizations allowed to open accounts at VSD to manage securities owned by customers of the depositary member or customers of the organization allowed to open accounts at VSD.

6. State Bank's securities account includes the State Bank's securities account being managed and the State Bank's securities account deposited at VSD.

The State Bank's securities account being managed is an internal account of the State Bank for the depository of securities owned by the State Bank.

The State Bank's securities account deposited at VSD is a self-trading type account opened by VSD upon request of the State Bank for the depository of securities owned by the State Bank.

7. Customer account of the State Bank at VSD is a brokerage type account opened by VSD upon request of the State Bank to freeze and depository securities owned by members to perform certain operations at the State Bank.

8. Customer securities account deposited with the State Bank is an account opened by the State Bank to monitor the depository of securities of members. The customer securities account deposited with the State Bank includes the customer securities account deposited directly with the State Bank and the customer securities account deposited on the State Bank's customer account at VSD.

The customer securities account deposited directly with the State Bank is an account opened by the State Bank upon request of members for direct depository of securities at the State Bank.

The customer securities account deposited on the State Bank's customer account at VSD is an account opened by VSD upon request of the State Bank for the depository of securities of members at VSD.

9. Collateral securities account is an internal account of the State Bank opened for members to record securities according to their pledge or collateral requests when participating in certain money market operations.

10. Interbank credit collateral securities account is an internal account of the State Bank opened for members to freeze securities in interbank lending transactions secured by collateralized securities among members in the interbank market.

Article 4. Conditions, Denomination, and Code of Valuable Instruments to be Deposited with the State Bank

1. Types of valuable instruments include:

a) State Bank Treasury Bills;

b) Government Bonds;

c) Government-guaranteed bonds for full payment of principal and interest at maturity;

d) Other types of valuable instruments decided by the Governor of the State Bank during each period.

2. Conditions of valuable instruments

a) Legally owned by members;

b) Belonging to the type of valuable instruments specified in Clause 1 of this Article;

c) Not settled for principal and interest upon maturity;

d) Valuable instruments of the deposit receipt type deposited with the State Bank must be intact, not torn, damaged, color-changed, faded in design, letter, number, wrinkled, deteriorated, blurred, dirty, erased.

3. Denomination of valuable instruments

The denomination of valuable instruments deposited with the State Bank is 100,000 VND (one hundred thousand dong) or multiples of 100,000 VND (one hundred thousand dong).

For special valuable instruments directly managed by the State Bank and valuable instruments denominated in foreign currency, the denomination of valuable instruments shall be implemented according to the legal provisions applicable to each type of valuable instrument.

4. Code of valuable instruments

Valuable instruments deposited with the State Bank are uniformly managed under the International Securities Identification Number (ISIN) system assigned at issuance.

Article 5. Use of Valuable Instruments Deposited with the State Bank

1. Valuable instruments used in money market operations include:

a) Open market operations;

b) Refinancing operations:

- Secured lending by pledging valuable instruments of the State Bank to credit institutions and foreign bank branches;

- Discounting of valuable instruments of the State Bank by credit institutions and foreign bank branches;

- Other forms of refinancing as decided by the Governor of the State Bank.

c) Pledging valuable instruments to establish overdraft limits and overnight loans in interbank electronic payments;

d)^2[2]Pledging valuable instruments to establish net debt limits in interbank electronic payments and participation in the Electronic Payment System.

2. Transactions involving valuable instruments deposited with the State Bank between members include:

a) Secured lending by pledging valuable instruments between members;

b) Purchase and sale of valuable instruments between members.

Chapter II

SPECIFIC PROVISIONS

Section 1. DEPOSIT OF VALUABLE INSTRUMENTS

Article 6. Opening of Deposit Accounts for Valuable Instruments

1. Documents for opening an account

To deposit valuable instruments with the State Bank, organizations specified in Clause 2 of Article 2 of this Circular (referred to as organizations) shall prepare and submit to the State Bank one (1) set of documents including:

a) A request for opening a deposit account for valuable instruments according to Appendix 1a/LK attached to this Circular;

b) A specimen signature and stamp registration form according to Appendix 1b/LK attached to this Circular;

c) Documents proving the establishment and lawful operation of the organization opening a deposit account for valuable instruments such as: Decision on establishment, business license, business registration certificate, or other documents as prescribed by law;

d) Documents proving the lawful representative status of the account holder's representative accompanied by their identity card or citizen identification card or passport still valid;

đ) In cases where the organization opening a deposit account is required by law to have the signature of the accounting director or accounting officer on accounting transaction documents with banks, in addition to the documents mentioned in points a, b, c, and d of Clause 1 of this Article, the application for opening a deposit account for valuable instruments must include a decision on appointment along with the identity card or citizen identification card or passport still valid of the accounting director (or accounting officer) of the organization opening a deposit account for valuable instruments.

2. The documents specified in points a and b of Clause 1 of this Article are originals, while the documents specified in points c, d, and đ of Clause 1 of this Article are certified copies issued from the original book or certified copies accompanied by presentation of the original for verification.

3. Within five (5) working days from the date of receiving complete and valid documents as stipulated in Clauses 1 and 2 of this Article, the State Bank (Trading Department) shall open a deposit account for valuable instruments for members.

Article 7. Custody of negotiable instruments

1. For negotiable instruments directly deposited with the State Bank

a) In the case where a member deposits negotiable instruments listed in the inventory managed by the State Bank:

The member submits to the State Bank (Trading Department) a request for depositing negotiable instruments according to Appendix 2/LK attached to this Circular and related documents. Within one working day from the date of receipt of the member's request for depositing negotiable instruments, the State Bank (Trading Department) transfers the negotiable instruments into the customer's negotiable instrument account at the State Bank.

b) In the case where a member wins a bid to purchase negotiable instruments in trading sessions organized by the State Bank, the State Bank (Trading Department) transfers the winning negotiable instruments of the member into the customer's negotiable instrument account at the State Bank.

2. For negotiable instruments recorded in custody accounts at VSD

a) When there is a need to deposit negotiable instruments with the State Bank, the member transfers the negotiable instruments from their custody account at VSD to the customer account opened by the State Bank at VSD. Upon receiving VSD's notification about the transfer of the member's negotiable instruments, the State Bank updates the changes on the customer's negotiable instrument account.

b) In the case where a member wins a bid to purchase negotiable instruments in trading sessions organized by the State Bank as the issuing agent or the State Bank sells negotiable instruments, the State Bank sends VSD bidding information so that VSD can record the deposit of negotiable instruments.

3. For negotiable instruments in certificate form

The member submits to the State Bank (Trading Department or authorized branch) a request for depositing negotiable instruments according to Appendix 2/LK attached to this Circular and all negotiable instruments in certificate form. The State Bank (Trading Department or authorized branch) receives, counts, and checks the negotiable instruments in certificate form. Within one working day from the completion of checking the negotiable instruments, the State Bank (Trading Department) processes the transfer of the negotiable instruments into the customer's negotiable instrument account at the State Bank.

Article 8. Principles for transferring ownership of negotiable instruments

1. For negotiable instruments directly deposited with the State Bank, the State Bank (Trading Department) transfers ownership of negotiable instruments on the day the transaction occurs according to the following principles:

a) In the case where the State Bank is the buyer or the recipient of negotiable instruments when handling collateral assets, the negotiable instruments are transferred from the customer's negotiable instrument account at the State Bank or the member's pledged negotiable instrument account to the State Bank's negotiable instrument account.

b) In the case where the State Bank is the seller, the negotiable instruments are transferred from the State Bank's negotiable instrument account to the customer's negotiable instrument account at the State Bank.

c) In the case of handling collateral in interbank lending transactions secured by negotiable instruments between members, the negotiable instruments are transferred from the collateral negotiable instrument account of the pledgor to the customer's negotiable instrument account at the State Bank of the pledgee.

2. For negotiable instruments deposited in the customer account of the State Bank at VSD, the transfer of ownership of negotiable instruments is carried out by VSD according to the agreement between the State Bank and VSD based on the following principles:

a) In the case where the State Bank is the buyer or the recipient of negotiable instruments when handling collateral assets, the negotiable instruments are transferred from the customer's negotiable instrument account deposited in the State Bank's customer account at VSD to the State Bank's negotiable instrument account deposited at VSD.

b) In the case where the State Bank is the seller, the negotiable instruments are transferred from the State Bank's negotiable instrument account deposited at VSD to the customer's negotiable instrument account deposited in the State Bank's customer account at VSD.

c) In the case of handling collateral in interbank lending transactions secured by negotiable instruments between members, the negotiable instruments are transferred from the pledgor to the pledgee within the State Bank's customer account opened at VSD.

3. The State Bank carries out the transfer of ownership of negotiable instruments according to the Purchase and Sale Contract or the Auction Result Notice in money market operations upon the member's authorization. For discounting, pledging, margin deposit of negotiable instruments, refinancing based on special bonds and debt-for-bond swaps at the market value of Vietnam Asset Management Company (VAMC), and negotiable instrument transactions between members, the transfer of negotiable instruments is implemented according to Articles 13, 14, 15, 16, and 17 of this Circular.

4. The State Bank (Trading Department) transfers ownership of negotiable instruments in cases of division, separation, merger, consolidation, and revocation of licenses of credit institutions based on the member's request as the owner of negotiable instruments, using the Request for Transfer of Ownership of Negotiable Instruments according to Appendix 5/LK attached to this Circular and related documents.

Article 9. Principal and interest payment for securities

1. For negotiable instruments directly deposited with the State Bank

a) Book-entry securities

When securities mature, the State Bank (Trading Department) shall check the completion of members' obligations to the State Bank in related securities transactions. If the member has fulfilled their obligations, the State Bank (Trading Department) shall process the principal and interest payment for the member. If the obligations have not been completed, the provisions of Clause 4 of this Article shall be implemented;

b) Certificate-type securities

When certificate-type securities reach maturity, if the member requests withdrawal of securities according to Article 10 of this Circular, the State Bank (Trading Department) shall check the completion of members' obligations to the State Bank in related securities transactions. If the member has fulfilled their obligations, the securities shall be returned to the member to process payment at the issuing organization or its agent. If the obligations have not been completed, the provisions of Clause 4 of this Article shall be implemented;

2. For securities deposited in the customer account of the State Bank at VSD

a) When interest payment date for periodic interest payment securities arrives, the State Bank (Trading Department) shall check the completion of members' obligations to the State Bank in related securities transactions. If the member has fulfilled their obligations, the State Bank (Trading Department) shall notify VSD to confirm the list of members holding securities in the customer account of the State Bank so that VSD can process interest payment for the member. If the obligations have not been completed, the provisions of Clause 4 of this Article shall be implemented;

b) When securities reach maturity, The State Bank (Trading Department) shall check the completion of members' obligations to the State Bank in related securities transactions. If the member has fulfilled their obligations, the State Bank (Trading Department) shall notify VSD to confirm that the securities of the member in the customer account of the State Bank at VSD meet the conditions for principal and interest payment so that VSD can process payment for the member. If the obligations have not been completed, the provisions of Clause 4 of this Article shall be implemented;

c) The principal and interest payment for securities deposited in the customer account of the State Bank at VSD shall be carried out according to the agreement between the State Bank and VSD.

3. Interest and other income (if any) from securities during the period of ownership transfer from the seller to the buyer in term-limited transactions on the money market shall be implemented according to the regulations of the State Bank.

4. In cases where members have not fulfilled their obligations to the State Bank, the State Bank (Trading Department) shall temporarily freeze or retain the principal and interest of securities currently being used for these obligations. The handling of members who have not fulfilled their obligations shall be carried out according to the regulations of the State Bank for each transaction.

Article 10. Withdrawal of Valuable Documents

1. Valuable documents directly deposited with the State Bank

When there is a need to withdraw valuable documents of direct deposit certificates at the State Bank, members submit to the State Bank (Trading Department) a request for withdrawal of valuable documents according to Appendix 3/LK attached to this Circular.

Within 01 (one) working day from the date of receipt of the member's request, the State Bank (Trading Department) checks the completion of the member's obligations to the State Bank in related valuable document transactions. If the member has fulfilled their obligations, the State Bank (Trading Department) records the issuance of valuable documents from the customer's valuable document account deposited with the State Bank and returns the valuable document type certificate to the member. If the obligations have not been completed, it shall be implemented in accordance with Clause 3 of this Article.

2. Valuable documents deposited in the Customer Account of the State Bank at VSD

When there is a need to withdraw valuable documents deposited in the Customer Account of the State Bank at VSD, members submit to the State Bank (Trading Department) a request to transfer valuable documents from the customer's valuable document account deposited on the Customer Account of the State Bank at VSD to the member's deposit account at VSD.

Within 01 (one) working day from the date of receipt of the member's request, the State Bank (Trading Department) checks the completion of the member's obligations to the State Bank in related valuable document transactions. If the member has fulfilled their obligations, the State Bank (Trading Department) requests VSD to transfer the member's valuable documents from the Customer Account of the State Bank at VSD to the member's deposit account at VSD. If the obligations have not been completed, it shall be implemented in accordance with Clause 3 of this Article.

3. In cases where members have not fulfilled their obligations to the State Bank, the State Bank (Trading Department) temporarily freezes valuable documents currently being used for these obligations. The handling of members who have not fulfilled their obligations is carried out in accordance with the regulations of the State Bank for each transaction.

Article 11. Closure of Valuable Document Deposit Accounts

1. When there is no need to deposit valuable documents with the State Bank or due to division, separation, merger, consolidation, and revocation of the License, members submit to the State Bank (Trading Department) a request for closure of the valuable document account according to Appendix 4/LK attached to this Circular.

2. Within 05 working days from the date of receipt of the member's request, the State Bank (Trading Department) closes the valuable document deposit account of the member, requests VSD to close the corresponding valuable document deposit account on the Customer Account of the State Bank at VSD, and notifies the member.

3. In cases where members are divided, separated, merged, consolidated, and have their License revoked do not process the closure of the valuable document deposit account, The State Bank (the Trading Department) will close the account 15 working days from the date of receipt of the Governor's State Bank decision on division, separation, merger, consolidation, and revocation of the License (if the account has no balance) or freeze the account (if the account has a balance) and notify the member. The handling of valuable documents on the account is carried out in accordance with the provisions of the law regarding the liquidation of assets of credit institutions and relevant laws.

Section 2. USE OF SECURITIES IN FOREIGN EXCHANGE MARKET OPERATIONS

Article 12. OPEN MARKET OPERATIONS

1. The State Bank purchases securities outright or on repurchase terms

Based on the securities purchase and sale contract for the State Bank's repurchase transactions or the tender result announcement for the State Bank's outright purchase transactions, the State Bank (Trading Department) shall pay the purchase price for the securities and carry out the procedures to transfer ownership of the awarded securities from the customer's securities account at the custodian member to the State Bank's securities account.

For State Bank's repurchase securities transactions, on the maturity date of the contract, the member must repay the purchase price of the securities. Based on valid documentation, the State Bank (Trading Department) shall transfer ownership of the securities from the State Bank's securities account to the customer's securities account at the custodian member.

2. The State Bank sells securities outright or on resale terms

Based on the securities purchase and sale contract for the State Bank's resale transactions or the tender result announcement for the State Bank's outright sale transactions, the member must pay the purchase price for the securities and the State Bank (Trading Department) shall carry out the procedures to transfer ownership of the securities from the State Bank's securities account to the customer's securities account at the custodian member.

For State Bank's resale securities transactions, on the maturity date of the contract, the member must resell the securities under the contract back to the State Bank. Based on valid documentation, the State Bank (Trading Department) shall transfer funds to the member and transfer ownership of the securities from the customer's securities account at the custodian member to the State Bank's securities account.

Article 13. THE STATE BANK'S DISCOUNTING OF SECURITIES FOR MEMBERS

1. After receiving a discounting request for securities from a member, if the request is accepted, the State Bank (Trading Department) shall carry out the procedures to transfer ownership of the discounted securities from the customer's securities account at the custodian member to the State Bank's securities account.

2. In cases where the State Bank accepts a term discount, the remaining term of the securities must be longer than the discount period.

After the member pays according to the commitment to repurchase the discounted securities, the State Bank (Trading Department) shall carry out the procedures to transfer ownership of the securities from the State Bank's securities account to the customer's securities account at the custodian member.

Article 14. LOAN GUARANTEED BY PLEDGING SECURITIES, REFINANCING BASED ON SPECIAL BONDS AND DEBT PURCHASE BONDS AT MARKET VALUE (VAMC)

1. After a member submits a loan application guaranteed by pledging securities or refinancing based on special bonds and debt purchase bonds at market value of VAMC to the State Bank and the State Bank accepts the request, the member shall transfer the pledged securities or special bonds and debt purchase bonds at market value of VAMC to the State Bank. The State Bank (Trading Department) shall freeze and transfer the securities from the customer's securities account at the custodian member to the member's pledged securities account at the State Bank, while transferring the loan amount to the member's deposit account at the State Bank.

2. In cases where the member requests to replace the pledged securities (in secured lending operations) or after the member fully repays the principal and interest, based on the member's repayment or replacement request and payment documentation, the State Bank (Trading Department) shall release and transfer the pledged securities from the member's pledged securities account to the customer's securities account at the custodian member at the State Bank.

Article 15. Pledging and depositing negotiable instruments to establish overdraft limits and overnight lending limits, net debt limits in interbank electronic payment transactions

1. After receiving a member's request to pledge or deposit negotiable instruments to establish overdraft limits and net debt limits in interbank electronic payment transactions, the State Bank (Trading Department) shall implement the freezing and transfer of negotiable instruments from the member's customer negotiable instrument account to the pledged negotiable instrument account at the State Bank.

2. The State Bank shall release pledged negotiable instruments of members when such pledged negotiable instruments have reached their maturity date, or when members use other negotiable instruments to replace them, or when members no longer need to maintain overdraft limits and net debt limits in interbank electronic payment transactions. The State Bank may release part or all of the pledged negotiable instruments upon the member's request and transfer the negotiable instruments from the pledged negotiable instrument account back to the member's customer negotiable instrument account.

3. To release pledged negotiable instruments, members must submit a request for return of pledged negotiable instruments to the State Bank (Trading Department). The State Bank (Trading Department) will check whether the member has fulfilled its obligations to the State Bank on the interbank electronic payment system. If the member has fulfilled its obligations, the State Bank (Trading Department) will proceed with the procedures to return the negotiable instruments to the member.

4. In cases where members have not fulfilled their obligations to the State Bank on the interbank electronic payment system, the State Bank (Trading Department) will temporarily freeze the negotiable instruments currently being used for these obligations. The handling of members who have not fulfilled their obligations will be carried out according to specific regulations of the State Bank regarding the pledging and depositing of negotiable instruments to establish overdraft limits and overnight lending limits, net debt limits in interbank electronic payment transactions.

Section 3. NEGOTIABLE INSTRUMENT TRANSACTIONS BETWEEN MEMBERS

Article 16. Secured lending through pledging negotiable instruments between members

1. Negotiable instruments used in secured lending transactions through pledging negotiable instruments between members must be negotiable instruments that have not been used to guarantee the fulfillment of obligations in business operations at The State Bank.

2. When there is a need to pledge negotiable instruments to borrow funds from another member (the pledgee), the member (the pledgor) shall submit to the State Bank (Trading Department) one set of documents including:

a) A request form for confirmation of negotiable instrument freezing according to Appendix 6/LK attached to this Circular;

b) The negotiable instrument pledge agreement between the pledgor and the pledgee (original).

3. The State Bank (Trading Department) shall accept the documents, process the freezing of negotiable instruments, and transfer the negotiable instruments from the member's customer negotiable instrument account to the pledged negotiable instrument account for the purpose of credit provision in the interbank market of the pledgor.

4. During the pledge period, if the pledgee agrees, the pledgor may request the State Bank (Trading Department) to extend the pledge period and/or exchange the negotiable instruments currently frozen by the State Bank with other negotiable instruments deposited at the State Bank. The State Bank will consider implementing the pledgor's request after obtaining confirmation from the pledgee.

5. The State Bank shall release and transfer negotiable instruments from the pledged negotiable instrument account for credit provision in the interbank market back to the member's customer negotiable instrument account upon receipt of the pledgor's request for negotiable instrument release accompanied by the pledgee's confirmation agreeing to the release of negotiable instruments.

6. In cases where the pledgor cannot repay the full or partial principal and interest of the loan to the pledgee within the due date, the State Bank shall carry out the procedures to transfer ownership of the negotiable instruments from the pledgor to the pledgee based on a written request from the pledgee with confirmation from the pledgor (owner of the negotiable instruments) and the settlement record between the two parties. In cases where the pledgor fails to fulfill its obligations and does not confirm the use of collateral to settle the debt obligation, the handling of the collateral shall be carried out in accordance with the provisions of the law.

Article 17. Purchase and sale of negotiable instruments among members

1. For negotiable instruments directly deposited with the State Bank

a) Members may purchase and sell negotiable instruments directly deposited with the State Bank. The selling member submits to the State Bank (Trading Department) the Request for Transfer of Ownership of Negotiable Instruments according to Appendix 5/LK attached to this Circular and the purchase and sale contract between both parties. The State Bank (Trading Department) transfers ownership of negotiable instruments from the buyer's customer deposit account to the seller's customer deposit account. The negotiable instruments will continue to be deposited with the State Bank unless otherwise requested by the buyer;

b) In the case of term purchase and sale of negotiable instruments, the selling member submits to the State Bank (Trading Department) the Request for Transfer of Ownership of Negotiable Instruments according to Appendix 5/LK attached to this Circular and the purchase and sale contract between both parties. The State Bank transfers ownership of negotiable instruments from the term selling member to the term buying member.

On the maturity date of the contract, based on valid payment documents and the Request for Transfer of Ownership of Negotiable Instruments according to Appendix 5/LK attached to this Circular submitted by the owner of the negotiable instruments (the term buying member), the State Bank (Trading Department) transfers ownership of negotiable instruments from the term buying member to the term selling member. In other cases, the State Bank transfers ownership of negotiable instruments according to the lawful agreement between the parties or as provided by law.

2. For negotiable instruments deposited at VSD, members must withdraw negotiable instruments from their customer accounts at the State Bank at VSD before conducting purchases and sales. The purchase and sale of negotiable instruments deposited at VSD shall be carried out in accordance with the provisions of securities laws.

Chapter III

IMPLEMENTING PROVISIONS

³[3]

Article 18. Responsibilities of Units under the State Bank

1. Trading Department

a) Carry out deposit registration, settlement, interest collection, deposit fee collection, accounting, pledge, freeze, and transfer of ownership of negotiable instruments at the State Bank in accordance with regulations;

b) Monitor, review, and grant transaction permissions to personnel of members participating in deposit registration business and using negotiable instruments at the State Bank;

c) Provide members with access to check deposit balances and the status of negotiable instrument usage by members at the State Bank through the network and statement of the customer deposit account;

d) Serve as the point of contact to coordinate with related units to handle difficulties and issues during the implementation of deposit registration and negotiable instrument usage at the State Bank;

e) The Trading Department Director signs an agreement with VSD regarding the use of VSD services and electronic data transmission between the two parties in deposit registration and negotiable instrument usage at the State Bank.

2. Financial Accounting Department

Guide accounting entries for deposit registration transactions and negotiable instrument usage at the State Bank as stipulated in this Circular.

3. Information Technology Bureau

a) Serve as the point of contact, coordinate with the Trading Department and related units to develop, install, maintain, and ensure the trading and communication infrastructure for deposit registration and negotiable instrument usage at the State Bank;

b) Issue digital signatures, access codes, and approval codes for deposit registration and negotiable instrument usage at the State Bank.

4. Banking Inspection and Supervision Authority

Serve as the point of contact to coordinate with related units to handle violations by members in implementing the provisions of this Circular.

5. Branches of the State Bank in provinces and centrally-administered cities where credit institutions and foreign bank branches are headquartered

a) Verify the legality and validity of negotiable instruments and retain certificate-type negotiable instruments for members whose headquarters are located in the area;

b) Manage, monitor, and return certificate-type negotiable instruments according to notifications from the Trading Department.

Article 19. Responsibilities of Members

1. Provide complete and timely documents and materials as prescribed in this Circular and bear legal responsibility for the accuracy and legality of the data and materials provided to the State Bank.

2. Fulfill commitments and make full and timely payments to the State Bank and other members according to signed contracts.

3. Authorize the State Bank to execute the transfer of ownership of securities in money market transactions.

4. Strictly comply with requirements announced by the State Bank related to money market transactions.

5. Members are responsible for paying service fees arising from the transfer of ownership of securities in accordance with regulations of the Ministry of Finance (if applicable).

Article 20. Transitional Provisions

1. Credit institutions, foreign bank branches, and organizations recognized as members under Decision No. 1022/2004/QĐ-NHNN dated August 17, 2004, of the Governor of the State Bank on the issuance of the Securities Custody Regulation at the State Bank shall continue to be members of custody operations and use securities in accordance with this Circular.

2. Transactions completed before the effective date of this Circular shall continue to be carried out according to agreements already signed between the relevant parties.

Article 21. Effective Date

1. This Circular takes effect from June 1, 2016.

2. From the date this Circular takes effect, the following documents shall cease to be effective:

a) Decision No. 1022/2004/QĐ-NHNN dated August 17, 2004, of the Governor of the State Bank on the issuance of the Securities Custody Regulation at the State Bank;

b) Decision No. 42/2006/QĐ-NHNN dated August 28, 2006, of the Governor of the State Bank on amending and supplementing certain provisions of the Securities Custody Regulation at the State Bank issued together with Decision No. 1022/2004/QĐ-NHNN dated August 17, 2004, of the Governor of the State Bank.

3. The Director of the Office, the Director of the Trading Department, Heads of units related to the State Bank, Directors of State Bank Branches in provinces and centrally-administered cities; Chairmen of the Board of Directors, Chairmen of the Board of Members, General Managers (Directors) of credit institutions and foreign bank branches are responsible for organizing the implementation of this Circular./.

Appendix 1a/LK

(Securities Custody Member) ……………… --------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
No.:...	..., day..... month..... year.......

APPLICATION FOR OPENING A SECURITIES CUSTODY ACCOUNT

Unit: Equivalent USD: The State Bank of Vietnam Trading Department

Name of unit: (securities custody member)...Code number:...

Name of authorized representative of the Account Holder:...

ID/Citizen Identification Card/Passport Number:...

Address:…

Phone number:...Fax:...

Request to open a securities custody account at the Trading Department of the State Bank.

..., day..... month.... year....... LEGAL REPRESENTATIVE1 (Signature, stamp)

------------------------------------------------------------------------------------

SECTION FOR THE TRADING DEPARTMENT OF THE STATE BANK

Securities custody account:

Account name:...

Account number:...

Effective date:...

Have reviewed necessary documents:

- License for establishment and operation number:...date...

- Decision appointing the Account Holder number...date...and related documents.

HEAD OF ACCOUNTING DEPARTMENT

Hanoi, day...month...year..... DIRECTOR

____________________

¹ Is the legal representative or authorized representative of the legal representative. In case of being an authorized representative, must attach the Power of Attorney.

Appendix 1b/LK

REGISTRATION OF SAMPLE STAMPS AND SIGNATURES USED

SECURITIES CUSTODY ACCOUNT AT THE STATE BANK

(Attached to Application for Opening an Account number...dated...of...)

Name unit: (Account Holder)...

Transaction address:...Transaction phone:...

Securities custody account name:...

Securities custody account number:...

Place where the securities custody account was opened:...

Registration of sample signatures and stamps will use on transaction documents with the State Bank as follows:

1. Sample signature

4. Declaration and payment of the feeTime of registering sample signature	First Signature Sample	Second Signature Sample
Authorized representative of the Account Holder and authorized person Name: ………………………………………………… ID/Citizen Identification Card/Passport number: ... Date of Issue: … Issuing authority: …
Name of the person authorized by the authorized representative of the Account Holder (first person) ID/Citizen Identification Card/Passport number: ... Date of Issue: … Issuing authority: … Power of Attorney number ...dated ... Duration of authorization: ... Scope of authorization: ...
Name of the person authorized by the authorized representative of the Account Holder (second person): ID/Citizen Identification Card/Passport number: ... Date of Issue: … Issuing authority: … Power of Attorney number ...dated ... Duration of authorization: ... Scope of authorization: ...
Finance Department, Head (or accounting manager, transaction document controller with the State Bank) and authorized person

HName of the accounting head (or accounting manager, transaction document controller in the Field of Teachers and Educational Institution Managers State Bank): ID/Citizen Identification Card/Passport number: ... Date of Issue: … Issuing authority: …
Name of the person authorized by the Accounting Head (first person): ID/Citizen Identification Card/Passport number: ... Date of Issue: … Issuing authority: … Power of Attorney number ...dated ... Duration of authorization: ... Scope of authorization: ...
Name of the person authorized by Finance Department, the Head (second person): ID/Citizen Identification Card/Passport number: ... Date of Issue: … Issuing authority: … Power of Attorney number ...dated ... Duration of authorization: ... Scope of authorization: ...
2. Sample stamp First sample stamp	Second sample stamp

...day... the...year... LEGAL REPRESENTATIVE1 (Signature, full name, stamp)

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CONFIRMATION BY THE TRADING DEPARTMENT OF THE STATE BANK

Hanoi, day...... month...... year......

DIRECTOR

_____________________

[1] Is the legal representative or authorized representative of the legal representative. In case of being an authorized representative, must attach the Power of Attorney.

Appendix 2/LK

(Securities Custody Member) ………………	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
No.: …	..., day..... month..... year.......

APPLICATION FOR SECURITIES CUSTODY

Unit: Equivalent USD: Trading Department of the State Bank

My name is:...Position:...

Representing the Bank...

Address:…

Bank code:...Phone:...Fax...

Securities custody account:...

Request to custody the following types of securities:

Unit:...VND

No.	Name of security	Form of security	Code Number	Face value	Date of issue	Issue interest rate	Due date	Remarks
	Total

d.1. Amount of taxable income in Vietnam:Face value in words:...

LEGAL REPRESENTATIVE[4]
(Signature and stamp)

Appendix 3/LK

(Securities Custody Member) ………………	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
No.: …	..., day..... month..... year.......

APPLICATION FOR WITHDRAWING SECURITIES

Unit: Equivalent USD: Trading Department of the State Bank of Vietnam

My name is:...Position:...

Representing the Bank...

Address:…

Bank code:...Phone:...Fax...

Securities custody account:...

Request to withdraw the following types of securities:

Unit:...VND

No.	Name of securityJune 2024;	Form of security	Code Number	Face value	Date of issue	Due date	Issue interest rate	Remarks
	Total

d.1. Amount of taxable income in Vietnam:Face value in words:...

LEGAL REPRESENTATIVE[5]
(Signature and stamp)

Appendix 4/LK

(Securities Custody Member) ………………	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
No.: …	..., day..... month..... year.......

APPLICATION FOR CLOSING A SECURITIES ACCOUNT

Unit: Equivalent USD: Trading Department of the State Bank of Vietnam

Name of member (Account Holder):...

Name of authorized representative of the Account Holder:...

ID/Citizen Identification Card/Passport Number:...

Date of issuance:…Issuing place:…

Address:…

.........................................................................................................................................

Phone number:...

Fax number:...

Request to close the securities custody account number...opened at the Trading Department of the State Bank from...

Remaining balance...VND (in words:...) request the Trading Department of the State Bank to handle...

..., day..... month.... year....... LEGAL REPRESENTATIVE[6] (Signature, stamp)

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CONFIRMATION BY THE TRADING DEPARTMENT OF THE STATE BANK
Hanoi, day...... month...... year......
DIRECTOR

Appendix 5/LK

Pledgee Currency Exchange Agent No. 3 Telephone FAX Number /CQSH	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------
	..., date..., month..., year...

APPLICATION FOR TRANSFER OF OWNERSHIP OF SECURITIES

Respectfully submitted to: Trading Department of the State Bank

Based on Purchase Contract number / Decision number..., date...month...year (attached), we are...(Seller/Transferor) agree to sell/transfer ownership to...(Buyer/Recipient) the amount of securities listed below:

Unit:...VND

No.	Name of negotiable instrument	Type of negotiable instrument issuance	Code Number	Date of issue	Face value	Due date for payment
	Total

Total face value in words:...

We request the Trading Department of the State Bank to confirm and transfer ownership of the securities listed above to us as detailed below:

Seller/Transferor

- Code number...Address:...

- Phone...Fax:...

- Securities custody account number...at the Trading Department of the State Bank.

Buyer/Recipient

- Code number...Address:...

- Phone...Fax:...

- Securities custody account number...at the Trading Department of the State Bank.

We sincerely thank you.

LEGAL REPRESENTATIVE[7]

Attached:

- Purchase Contract; or

- Decision of the Governor of the State Bank (Signed, stamped)

CONFIRMATION BY THE TRADING DEPARTMENT OF THE STATE BANK

The Trading Department of the State Bank confirms that the securities listed in the attached schedule up to the time...hours...day...month...year...have not been used for any transaction and/or bound by any obligation at the Trading Department of the State Bank and agrees to transfer ownership of the securities from the securities custody account of...to the securities custody account of...with the details as follows:

Seller/Transferor

- Code number...Address:...

- Phone...Fax:...

- Securities custody account number...at the Trading Department of the State Bank.

Buyer/Recipient

- Code number...Address:...

- Phone...Fax:...

- Securities custody account number...at the Trading Department of the State Bank.

Value in figures:...

Value in words:…

Hanoi, day... month... year...
DIRECTOR

Appendix 6/LK

(Securities Custody Member) No.:...

SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------------

…, on the … day of … month of … year ….

APPLICATION FOR CONFIRMATION OF FREEZING OF SECURITIES

Respectfully submitted to: The State Bank of Vietnam Branch

Pursuant to the pledge agreement (or arrangement) number: … dated … between … and …, we request the State Bank of Vietnam Branch to confirm and freeze the securities currently deposited at the State Bank of Vietnam Branch, detailed as follows:

Serial number	Code of Securities at State Bank of Vietnam Branch	Code of Securities at VSD	Date of issue	Due Date	Face Value (VND)	Quantity	Value (VND)	Remarks
	Total

Value in words:…The above-mentioned securities belong to … (the pledgor) and are not currently being used to secure any financial obligations of this organization.

The above-mentioned securities will be frozen from the date … until the date when the "Application for Release of Freezing of Securities" is confirmed by … (the pledgee).

During the freezing period, … (the pledgor) may only replace the securities according to the agreement and with confirmation by … (the pledgee).

LEGAL REPRESENTATIVE[8]

The State Bank of Vietnam Branch confirms that the securities listed in the table above are currently deposited at the State Bank of Vietnam Branch and up to the time of … hours … on the … day of … month of … year … have not been used for any transactions or bound by any obligations at the State Bank of Vietnam Branch.
(Signature and stamp)

CONFIRMATION BY THE TRADING DEPARTMENT OF THE STATE BANK

The State Bank of Vietnam Branch confirms the freezing of the securities of (Name of Credit Institution)

Freezing period: from the date / /

Value in figures:...

Value in words:…

Dao Minh Tu

Hanoi, day... month... year...
DIRECTOR

CERTIFIED CONSOLIDATED DOCUMENT DIRECTOR DEPUTY DIRECTOR Circular No. 23/2019/TT-NHNN amending and supplementing