Decision No. 47-TC-NHKT promulgates temporary regulations on lending money for housing construction for workers and officials who have retired or left work due to health reasons.

Pursuant to …;

Issuing temporary regulations on providing loans for housing to retired workers and officials or those who have ceased work due to loss of labor capacity

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THE MINISTER OF FINANCE

Pursuant to Decree No. 197-CP dated November 7, 1961 of the Council of Ministers stipulating the tasks, powers, and organizational structure of the Ministry of Finance.

Pursuant to Circular No. 11-TTg-TN dated January 29, 1965 of the Prime Minister on providing loans for housing to retired workers and officials and those who have lost their labor capacity.

After consultation with the Ministry of Interior and the General Confederation of Labor of Vietnam.

DECISION:

Article 1. – Issuing, along with this decision, the temporary regulations on providing loans for housing to retired workers and officials and those who have lost their labor capacity.

Article 2. - These temporary regulations shall be effective from the date of issuance.

TEMPORARY REGULATIONS

ON THE PROVISION OF LOANS FOR HOUSING TO RETIRED WORKERS AND OFFICIALS AND THOSE WHO HAVE LOST THEIR LABOR CAPACITY
(Issued together with Decision No. 47-TC-NHKT dated February 19, 1965 of the Ministry of Finance)

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Chapter 1:

GENERAL PRINCIPLES

Article 1- To assist retired workers and officials or those who have ceased work due to loss of labor capacity in resolving difficulties related to housing, demonstrating the care and concern of the Party and State for those who have contributed to the common revolutionary cause of the nation, the Prime Minister has issued Circular No. 11-TTg-TN dated January 29, 1965 on providing loans for housing to retired workers and officials and those who have ceased work due to loss of labor capacity.

These regulations provide detailed implementation of the aforementioned circular.

Article 2. - The Ministry of Finance assigns the Construction Bank sector to organize and implement the provision of loans for housing to retired workers and officials and those who have ceased work due to loss of labor capacity.

Article 3. - The loan recipients are retired workers and officials or those who have ceased work due to loss of labor capacity receiving regular allowances, having worked in the revolutionary cause for many years or participated in the resistance war and been awarded medals or resistance or victory orders, having families and not yet having housing wishing to borrow money to build houses to live in.

Article 4. – The Construction Bank provides loans for housing to retired workers and officials or those who have ceased work due to loss of labor capacity according to the following procedures:

a) The borrower may only use the loan amount for building a house to live in and may not use it to purchase a house or for other purposes.

b) Those wishing to borrow money will request additional funds from the Construction Bank based on their available funds, in accordance with their income and repayment capabilities.

The loan amount shall not exceed the value of a sufficient living house for family members living permanently in the household, such as the majority of people in the locality, minus any self-funded portion (if any), and a maximum of 1,000 dong. For workers and officials who have been active since before August 1945, the maximum is 1,500 dong.

c) The interest rate on the loan is 0.6% per year (zero point six percent) or 1.5‰ (one point five thousandths) per quarter. Interest is calculated on the actual outstanding debt at the Construction Bank and is charged quarterly to the borrower.

d) The borrower must repay the loan quarterly. In the initial period, the quarterly repayment amount shall be between 10% and 15% of the retirement allowance or disability allowance. After completion of the house and stabilization of living conditions, depending on specific circumstances, the borrower may voluntarily repay more to repay the state capital earlier than the term. The repayment period, including both principal and interest, shall not exceed nine years.

đ) The loan amount will be directly provided to the borrower and disbursed gradually.

e) Retired workers or officials who wish to build a house where they reside should apply for a loan from the Construction Bank in that location.

g) The Construction Bank may provide a loan to one person to build one house or to two or three people to jointly build one house, depending on land conditions, requirements for capital savings, and the wishes of the borrowers.

h) During the time the borrower or heir has not fully repaid the debt, any transfer of the house built with borrowed funds must be agreed upon by the Construction Bank.

i) For certain exceptional cases not covered by the above provisions, if deemed necessary to provide a loan in accordance with the spirit of Circular No. 11-TTg-TN dated January 29, 1965 of the Prime Minister, the Ministry of Finance will decide after consulting relevant agencies.

Article 5. - The capital for providing loans for housing to retired workers and officials or those who have ceased work due to loss of labor capacity is within the annual capital allocated by the State for long-term loans for housing for workers and officials, and will be supplemented by recovered debts from this type of loan.

Chapter 2:

PROCEDURES FOR LOAN ISSUANCE AND DEBT RECOVERY

Article 6. – Workers and officials who wish to borrow money for housing must submit the following documents to the Construction Bank:

a) Loan application form.

b) Copy of the decision to retire or cease work due to loss of labor capacity.

c) Land use permit for construction issued by the competent authority.

d) Budget for the planned housing construction (with drawings attached).

đ) Contract for accepting the tender (if tendered).

, Clause 1, Clause 2 Article 7a of this Regulation.. – Upon receipt of the loan application, the Construction Bank will review and determine the loan amount, terms, and repayment period to save capital, ensure debt recovery, and appropriately consider the borrower's living conditions.

Article 8. – After the Construction Bank reviews the loan application and agrees to provide the loan, both parties will sign a loan agreement specifying the loan amount, repayment period, and quarterly repayment amount.

Article 9. – Once the loan agreement is signed, the borrower can request withdrawal of funds to prepare for construction.

Article 10.– To encourage borrowers to quickly build houses and stabilize their lives, the Construction Bank will begin collecting debt from the third quarter for loans for temporary houses and from the fourth quarter for loans for tiled houses, starting from the first quarter when the Construction Bank allows withdrawal of funds.

Article 11. - In the case where the borrower dies before fully repaying the debt and leaves the house to the spouse or another heir, the debt collection measures are as follows:

- If the heir is a retired worker or official or someone who has ceased work due to loss of labor capacity, they must continue to repay the debt quarterly. If the heir is a working worker or official, they must continue to repay the debt monthly. The Construction Bank may adjust the quarterly or monthly repayment amount based on the specific circumstances of each individual but must ensure full recovery of the debt within the term specified in the contract.

- If the heir is not a worker or cadre, they must continue to repay the debt according to the conditions agreed upon by the borrower.

- If the borrower dies before fully repaying the debt and there is no heir, the Construction Bank may transfer the house to another person. If the transfer price exceeds the remaining debt, the excess amount will be used as a source for lending.

Article 12. - If the borrower has not fully repaid the debt and the house is destroyed or severely damaged, the Construction Bank will handle the debt collection appropriately based on the specific circumstances.

Chapter 3:

ESTABLISHING AND REVIEWING THE LENDING PLAN

Article 13- Each year, at the end of November, the local Construction Bank must coordinate with the management agencies for retired workers and cadres or those who have stopped working due to health reasons, and the local Trade Union Federation to establish the next year's lending plan, submit it for review by the Administrative Committee, and then send it to the Ministry of Finance.

The Ministry of Finance compiles the lending plans from various regions and consults with the Ministry of Home Affairs and the General Confederation of Labor to incorporate the lending plan into the state budget for approval by the Council of Ministers.

After the state budget is approved by the Council of Ministers, the Ministry of Finance consults with the Ministry of Home Affairs and the General Confederation of Labor to allocate lending limits to each region.

Article 14. - In the first ten days of the last month of each quarter, the local Construction Bank must coordinate with the management agencies for retired workers and cadres or those who have stopped working due to health reasons, and the local Trade Union Federation to develop a comprehensive lending plan for the upcoming quarter, broken down by month, and submit it for review by the Provincial Administrative Committee twenty days before the start of the next quarter.

Chapter 4:

INSPECTION AND HANDLING

Article 15. - To ensure that the loan funds are used for their intended purpose, the Construction Bank must inspect the use of the loan funds and regularly monitor the construction progress.

If the borrower encounters difficulties in construction, the Construction Bank should cooperate with relevant local agencies to assist the borrower in resolving these difficulties.

Article 16. - The borrower must ensure that the loan funds are used for their intended purpose and repay the debt on time:

a) If the borrower uses the loan funds for purposes other than building a house, the Construction Bank will suspend further lending and take appropriate measures to recover the loaned amount.

b) In cases where the borrower or the heir, who is a retired worker or cadre, fails to repay the debt for two consecutive quarters, or if the heir, who is a working cadre, fails to repay the debt for three consecutive months, the Construction Bank will take appropriate measures based on the specific circumstances in accordance with current regulations;

c) If the borrower or the heir has not fully repaid the debt by the deadline specified in the contract, the remaining unpaid debt will accrue double interest. The Construction Bank may extend the repayment period depending on the case, but the total extended period plus the original period shall not exceed nine years.

Issued together with Decision No. 47-TC-NHKT dated February 19, 1965 of the Ministry of Finance.