Decree No. 53/2013/ND-CP On the establishment, organization, and operation of asset management companies of Vietnamese credit institutions

DECREE

Von the establishment, organization, and operation of asset management companies rights to property

of credit institutionsVstrict N |||am

___________________

Pursuant to the Law on Organization of the Government dated December 25, 2001;

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;

Pursuant to Law on Enterprises No. 60/2005/QH11 dated November 29, 2005;

At the proposal of the Governor of the State Bank of Vietnam,

The Government issues the Decree on the establishment, organization, and operation of the Asset Management Company of Credit Institutions of Vietnam.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the establishment, organization, and operation of the Asset Management Company of Credit Institutions of Vietnam (hereinafter referred to as the Asset Management Company).

Article 2. Applicability

1. Asset Management Company.

2. Credit institution of Vietnam (hereinafter referred to as the credit institution).

3. Other organizations and individuals related to the establishment, organization, and operation of the Asset Management Company.

Article 3. Establishment of the Asset Management Company

1. The State Bank of Vietnam (hereinafter referred to as the State Bank) establishes the Asset Management Company to handle non-performing loans and promote reasonable credit growth for the economy.

2. The Asset Management Company is a special enterprise organized in the form of a limited liability company with 100% state-owned charter capital and subject to state management, inspection, and supervision by the State Bank.

Article 4. Definitions

In this Decree, the following terms shall be understood as follows:

1. Credit institution of Vietnam means a credit institution established and operating in accordance with the Law on Credit Institutions, except for credit institutions with 100% foreign capital and joint venture credit institutions.

2. Borrower includes organizations (excluding credit institutions and foreign bank branches), individuals granted credit or purchased corporate bonds by credit institutions; enterprises and organizations (excluding credit institutions and foreign bank branches) receiving mandates from credit institutions to purchase corporate bonds with bad debts sold to the Asset Management Company.

3. Existing borrower refers to borrowers who have not been revoked their business licenses, liquidated, or declared bankrupt according to the law (for organizations) or who have not died or gone missing (for individuals).

Article 5. Principles of Operation of the Asset Management Company

The Asset Management Company operates under the following principles:

1. Revenue covers expenses and does not aim at profit.

2. Transparency in the activities of purchasing and handling non-performing loans.

3. Limiting risks and costs in handling non-performing loans.

Article 6. Granting Credit to Borrowers with Bad Debts Sold to the Asset Management Company

Borrowers with bad debts sold to the Asset Management Company and having feasible production and business plans may continue to be considered and granted credit by credit institutions in accordance with agreements and legal provisions.

Article 7. Methods for the Asset Management Company to Purchase Bad Debts from Credit Institutions

1. Purchasing bad debts from credit institutions at book value through the issuance of special bonds by the Asset Management Company.

2. Purchasing bad debts from credit institutions at market value using non-special bond funds.

a) Meeting the conditions stipulated in Article 8 of this Decree;

b) Being assessed as having the ability to recover the full amount of the purchased non-performing debt;

c) Secured assets of the bad debt are capable of being auctioned;

d) Borrowers have prospects for restoring their ability to repay debts.

4. The Board of Directors of the Asset Management Company develops a plan to purchase bad debts according to the method prescribed in Clause 2 of this Article to be submitted to the Governor of the State Bank for approval before implementation.

Article 8. Conditions for non-performing debts to be purchased by Asset Management Corporation

1. The Asset Management Corporation purchases non-performing debts that meet the following conditions:

a) Non-performing debts of credit institutions, including non-performing debts arising from credit activities, corporate bond purchases, entrusted corporate bond purchases, entrusted credit activities, and other activities as prescribed by the State Bank;

b) The non-performing debt has collateral;

c) Non-performing debts and collateral assets must be lawful and have valid documentation;

d) The borrower still exists;

d) The balance of non-performing debts or bad loan balances of borrowing customers must not be lower than the level prescribed by the State Bank.

2. The State Bank provides specific guidance on the conditions for non-performing debts as stipulated in Clause 1 of this Article.

3. The Prime Minister decides on the Asset Management Corporation's acquisition of non-performing debts of credit institutions that do not fully meet the conditions prescribed in Clause 1 of this Article upon the proposal of the State Bank.

Chapter II

ORGANIZATION, MANAGEMENT, AND OPERATIONS

OF THE ASSET MANAGEMENT CORPORATION

The charter capital of the Asset Management Corporation is 500 billion Vietnamese dong.

Article 10. Organizational structure of the Asset Management Corporation

1. The Asset Management Corporation has its headquarters in Hanoi City and may establish branches and representative offices in some major centrally-administered cities after obtaining approval from the State Bank.

2. The management machinery of the Asset Management Corporation includes the Board of Members, the Supervisory Board, and the General Director.

Article 11. Management and operations of the Asset Management Corporation

1. The Board of Members consists of no more than seven members.

2. The Supervisory Board consists of no more than three members.

3. The Asset Management Corporation has a General Director and several Deputy General Directors.

4. The rights, duties, and responsibilities of the Board of Members, the Supervisory Board, members of the Board of Members, members of the Supervisory Board, and the General Director of the Asset Management Corporation are implemented according to the provisions of the law and the Charter of the Asset Management Corporation.

5. The State Bank appoints and dismisses the Chairman and members of the Board of Members; the Head and members of the Supervisory Board; the General Director and Deputy General Directors of the Asset Management Corporation.

6. The legal representative of the Asset Management Corporation does not necessarily have to be an auctioneer as prescribed by the law on public sale of assets.

Chapter III

CONTENTS OF ACTIVITIES OF THE ASSET MANAGEMENT CORPORATION

Article 12. Activities of the Asset Management Corporation

1. The Asset Management Corporation shall carry out the following activities:

a) Purchase of non-performing debts of credit institutions;

b) Debt recovery, debt collection, and debt processing, selling debts, and collateral assets;

c) Restructuring of debts, adjusting repayment conditions, converting debts into equity contributions or shares of borrowing customers;

d) Investment, repair, upgrading, exploitation, utilization, leasing of collateral assets already recovered by the Asset Management Corporation;

đ) Management of purchased non-performing debts and supervision of related collateral assets, including documents and files related to non-performing debts and loan guarantees;

e) Consulting and brokerage services for buying and selling debts and assets;

g) Financial investment, capital contribution, share purchase;

h) Organization of asset auctions;

i) Guaranteeing for organizations, businesses, and individuals borrowing from credit institutions;

k) Other activities consistent with the functions and tasks of the Asset Management Corporation after being approved by the Governor of the State Bank.

2. The Asset Management Corporation is authorized by credit institutions to sell debts to carry out the activities specified in Points b, c, d, and đ of Clause 1 of this Article.

Article 13. Rights and Obligations of the Asset Management Corporation

1. Rights of the Asset Management Corporation

a) Request credit organizations selling debts, borrowers, debtors, guarantors, and related agencies, individuals to provide information and documents about the organization and activities of borrowers, debtors, guarantors; information and documents about bad debts and collateral assets of bad debts sold to the Asset Management Corporation;

b) Propose credit organizations to sell bad debts to the Asset Management Corporation;

c) Participate in the restructuring process of borrowers after contributing capital or purchasing shares in borrowers;

d) Accept collateral assets to substitute for the performance of guarantors' obligations according to the law; seize collateral assets for disposal and debt recovery;

đ) Propose relevant state management agencies and law enforcement agencies to complete legal procedures and documents regarding collateral assets and cooperate, support during the seizure of collateral assets and debt recovery and disposal;

e) Propose registration of security transactions from agencies responsible for registering security transactions related to collateral assets of bad debts purchased by the Asset Management Corporation that have not been registered;

g) The Asset Management Corporation becomes the beneficiary of the guarantee and can register security transactions based on the bad debt purchase contract without having to sign a new guarantee contract with the guarantor;

h) Supervise and inspect credit organizations in performing activities authorized by the Asset Management Corporation according to Clause 2, Article 12 of this Decree;

2. Obligations of the Asset Management Corporation

a) Preserve and develop the capital assigned by the State;

b) Conduct independent audits annually;

c) Register security transaction contracts according to the law on security transactions;

d) Be responsible for explaining to state management agencies and the public about its operational situation;

đ) Fulfill other obligations according to the Articles of Association and the law.

1. The Asset Management Corporation purchases bad debts from credit organizations at the book value of the outstanding principal balance of borrowers, reduced by specific provisions already established but not yet utilized for that bad debt.

2. The Asset Management Company purchases non-performing loans from financial institutions at market value based on agreement and re-evaluated value of the non-performing loans.

3. Credit organizations selling debts must provide the Asset Management Corporation with information and documents about the outstanding principal balance and all unpaid interest due to borrowers.

4. In cases where bad debts are purchased at market value, the Asset Management Corporation reassesses the value of the bad debt based on the ability to recover capital and collateral assets of the bad debt; when necessary, the Asset Management Corporation hires consulting organizations to appraise the bad debt and collateral assets.

5. Credit organizations with a bad debt ratio of 3% or higher, or another bad debt ratio specified by the State Bank, shall not sell bad debts to the Asset Management Corporation if they are subject to the following measures by the State Bank:

a) Conduct inspections or require credit organizations to hire auditing companies or independent valuation organizations to re-evaluate the quality and value of assets, equity, and charter capital of the credit organization; the cost of auditing and valuation shall be borne by the credit organization;

b) Based on the results of inspections, valuations, and independent audits, credit organizations must sell bad debts to the Asset Management Corporation to ensure their bad debt ratio remains at a safe level; implement risk provisions and comply with safety ratios prescribed by the State Bank; restructure the credit organization according to the plan approved by the State Bank.

6. The purchase and sale of bad debts must be documented in a contract, and credit organizations selling debts must notify borrowers, debtors, and guarantors in writing within ten working days from the date of signing the purchase and sale contract so that they are aware and fulfill their obligations with the Asset Management Corporation.

Article 15. Sources of Capital for the Asset Management Company

1. The Asset Management Company has the following sources of capital:

a) Registered capital;

b) Special bonds issued by the Asset Management Company to purchase non-performing loans from credit institutions;

c) Funds established in accordance with the provisions of the law;

d) Other sources of capital mobilized in accordance with the provisions of the law.

2. The Asset Management Company is not required to comply with the regulations on the ratio of capital mobilization to registered capital applicable to state-owned enterprises.

Article 16. Measures for Handling Non-Performing Debts and Collateral of the Asset Management Company

1. Exercise the rights of creditors and guarantors against borrowers, debtors, and guarantors to recover debts and collateral.

2. Organize and urge debt repayment from borrowers, debtors, and guarantors.

3. Reorganize non-performing debts and support borrowers in accordance with Article 17 of this Decree.

4. Reach agreements with borrowers regarding the conversion of debts into equity contributions or shares to participate in financial restructuring and operations of the borrower.

5. Recover debts by accepting collateral assets; retrieve, seize, and dispose of collateral assets in accordance with the provisions of the law.

8. File applications requesting the Court to initiate bankruptcy proceedings in accordance with the law on bankruptcy for borrowers unable to repay debts and for debtors and guarantors unable to fulfill their obligations.

Article 17. Measures for Debt Restructuring and Supporting Borrowers of the Asset Management Company

1. The Asset Management Company implements measures to restructure debts to support borrowers as follows:

a) Adjust the repayment period and term of the loan to be consistent with the production and business conditions of the borrower;

b) Apply interest rates on purchased loans that are appropriate to the borrower's ability to repay and market conditions;

c) Reduce or waive overdue interest that the borrower is unable to repay.

2. The State Bank shall provide detailed guidance on the restructuring of debts by the Asset Management Company as stipulated in Clause 1 of this Article.

3. In cases where the borrower is assessed to have good recovery potential, the Asset Management Company may consider investing and providing financing to assist the borrower in addressing temporary financial difficulties and restoring production and business activities.

4. The Asset Management Company may guarantee loans taken by borrowers from credit institutions if the borrower is assessed to have good recovery potential or has new projects that ensure the ability to repay the loan.

Article 18. Disposal of Collateral Assets of Non-Performing Loans Purchased by the Asset Management Company

a) Auction through a professional auction organization;

b) The Asset Management Company conducts the auction.

The Asset Management Company selects and decides on the method of selling collateral assets in accordance with the provisions of the law and ensures transparency and fairness.

3. After seizing and receiving collateral assets from the holder of the collateral assets, the Asset Management Company has the right to auction the collateral assets in accordance with Clause 2 of this Article without the consent of the guarantor. The Asset Management Company is responsible for notifying the owner of the collateral asset in writing about the auction at least ten working days before the auction date.

4. The results of the auction and the sale contract of the Asset Management Company with the buyer of the asset serve as the basis for determining financial obligations, notarization, certification, and procedures for transferring ownership and usage rights of the collateral asset and terminating the ownership and usage rights of the guarantor or the owner of the asset.

5. In cases where the Asset Management Company auctions collateral assets with registered ownership and usage rights, the person receiving the transfer of ownership and usage rights of the asset will be granted a certificate of ownership and usage rights by the competent authority.

Procedures for transferring ownership and usage rights of collateral assets are carried out in accordance with the provisions of the law on registration of ownership and usage rights of assets. In cases where the law requires the consent in writing of the owner for the transfer of ownership and usage rights of the asset, the pledge contract or mortgage contract will replace these documents.

6. The procedures for organizing self-auction of assets by the Asset Management Company are carried out in accordance with the provisions of the law on auction.

Article 19. Handling recovered funds for non-performing debts purchased by the Asset Management Corporation using special bonds

1. After deducting related costs associated with asset disposal, the recovered funds from selling debts, disposing of collateral assets, borrowers repaying debts, and obligors paying off debts shall be used to settle the obligations of borrowers and obligors.

2. After deducting the amount payable to the Asset Management Corporation as stipulated in Point i Clause 1 Article 13 of this Decree, credit institutions that sell debts shall benefit from the recovered funds from non-performing debts sold to the Asset Management Corporation due to borrowers repaying debts, obligors and guarantors settling debts, selling debts, and disposing of collateral assets.

3. The priority order for payments when disposing of collateral assets shall be carried out in accordance with the Civil Code and laws on collateral registration.

Chapter IV

SPECIAL BONDS OF THE ASSET MANAGEMENT CORPORATION

Article 20. Special Bonds

1. Special bonds issued by the Asset Management Corporation to purchase non-performing debts of credit institutions shall have the following characteristics:

a) Special bonds shall be issued in the form of certificates, book-entry records, or electronic data;

b) The face value of special bonds shall be equal to the purchase price of non-performing debts as specified in Clause 1 Article 14 of this Decree;

d) Special bonds may be used to borrow refinancing funds from the State Bank.

2. The Asset Management Corporation shall issue special bonds according to the issuance plan approved by the State Bank.

4. The State Bank shall submit to the Prime Minister for a decision on the interest rate for refinancing loans based on special bonds for credit institutions during each period.

5. Provisions regarding corporate bond issuance shall not apply to the issuance of special bonds by the Asset Management Corporation. The State Bank shall specify the details of the issuance of special bonds by the Asset Management Corporation.

Article 21. Rights and Obligations of Credit Institutions Holding Special Bonds

1. Credit institutions holding special bonds shall have the following rights:

a) To use special bonds to borrow refinancing funds from the State Bank in accordance with the regulations of the State Bank;

2. Credit institutions holding special bonds shall have the following obligations:

b) To use special bonds to repurchase non-performing debts acquired by the Asset Management Corporation using special bonds but not yet disposed of or fully recovered by the time the special bonds mature, according to their book value.

3. The State Bank shall guide the setting aside and use of risk provisions for special bonds.

Article 22. Payment of Special Bonds and Repurchase of Non-performing Debts Purchased with Special Bonds

1. Within five working days from the date when the risk reserve amount allocated for special bonds is not lower than the book value of the principal of the non-performing debt related to such bonds or within five working days from the maturity date of the special bonds, the credit institution selling debts must perform:

a) Repaying the re-lending loan balance based on the relevant special bonds to the State Bank;

b) In case the debt has not been fully recovered, the credit institution repurchases the non-performing debts from the Asset Management Corporation at the book value of the principal of the debt, returns the relevant special bonds to the Asset Management Corporation, and receives payment for the amount due according to the provisions of Clause 2, Article 19 of this Decree;

c) In case the debt has been fully recovered, the credit institution returns the special bonds to the Asset Management Corporation and receives payment for the amount due according to the provisions of Clause 2, Article 19 of this Decree;

2. The Asset Management Corporation must provide the credit institution purchasing non-performing debts with information and documents about the principal balance and all unpaid interest owed by the borrower;

3. After receiving the non-performing debts back from the Asset Management Corporation, the credit institution uses the risk reserve amount allocated for the corresponding special bonds to handle risks associated with these debts, while continuing to record off-balance sheet accounts to monitor and implement measures to recover and manage debts as prescribed by law;

4. The credit institution purchasing debts from the Asset Management Corporation does not require the consent of the borrower, the debtor, and the guarantor;

5. Within ten working days from the date of signing the debt purchase and sale contract, the credit institution purchasing debts must notify the borrower, the debtor, and the guarantor about the purchase of debts from the Asset Management Corporation so that they are aware and fulfill their obligations to the credit institution;

6. The credit institution must report to the State Bank on the results of purchasing debts from the Asset Management Corporation;

7. The State Bank provides detailed guidance on the payment of special bonds and the repurchase of non-performing debts purchased by the Asset Management Corporation with special bonds.

Chapter V

FINANCE, ACCOUNTING AND REPORTING REGIME

Article 23. Financial Mechanism and Accounting System of the Asset Management Corporation

b) Money from selling debts and collateral assets;

c) Income from financial investments, capital contributions, and share purchases;

d) Fees and commissions earned from advisory, brokerage, buying, selling, and debt management activities;

đ) Money from leasing and operating assets;

e) Income from financial activities;

g) Unusual income;

h) Auction fees;

i) Other revenues;

2. Business expenses of the Asset Management Corporation include:

a) Debt purchase costs;

b) Debt collection costs;

c) Advisory and brokerage fees for buying, selling, and managing debts and assets;

d) Costs for selling debts, selling shares, and transferring capital contributions;

đ) Costs for asset preservation, investment, repair, and upgrade;

e) Risk reserve costs for non-performing debts purchased at market value, for investments, financing, and guarantees as stipulated in Clause 3, 4, Article 17 of this Decree;

g) Salary, bonus, and allowance costs for employees as provided for in Point a, Clause 6 of this Article;

h) Auction costs;

i) Company management costs;

k) Interest payment costs;

l) Asset-related costs;

m) Other expenses;

3. Profit distribution and reserve fund allocation of the Asset Management Corporation shall be carried out in accordance with the provisions of the law;

4. The Ministry of Finance shall provide specific guidance on the establishment and use of reserves for investments, financing, and guarantees; revenue, expenses, profit distribution, and the establishment and use of reserve funds of the Asset Management Corporation as stipulated in Clauses 1, 2, and 3 of this Article;

5. The Asset Management Corporation shall establish risk reserves in business expenses and use risk reserves for non-performing debts purchased at market value in accordance with the regulations of the State Bank;

6. The Asset Management Corporation may apply certain special financial mechanisms as follows:

a) Wage, bonus, and allowance mechanisms applicable to state-owned enterprises under the provisions of the law and suitable for the operational characteristics of the Asset Management Corporation;

b) Not required to establish reserves for non-performing debts purchased with special bonds and receivables from credit institutions;

c) Not subject to the regulations on investment outside the main business of state-owned enterprises;

7. The Asset Management Corporation shall conduct accounting in accordance with the guidelines of the State Bank.

Article 24. Transparency, Publicity, and Reporting System of Asset Management Corporation

1. The Asset Management Corporation must implement transparency:

a) The annual audited financial statements of the Asset Management Corporation;

b) Procedures and valuation methods for debts and assets;

c) Procedures and methods for selling debts and assets;

d) Sales of debts and assets;

đ) Other issues as prescribed by the State Bank.

2. The Asset Management Corporation must provide necessary information to debt purchasers about the debts and assets that the Asset Management Corporation intends to sell.

3. The Asset Management Corporation shall disclose the information stipulated in Clause 1 of this Article through one or more of the following forms:

a) Press conferences;

b) Posting on the electronic news website of the Asset Management Corporation;

c) Publicly posting at the headquarters of the Asset Management Corporation and the locations where debts and assets are sold;

d) Publishing on mass media;

đ) Widely distributing in the form of documents and publications.

4. The Asset Management Corporation shall implement the reporting system in accordance with the provisions of the law and guidelines of the State Bank.

Chapter VI

RESPONSIBILITIES OF STATE MANAGEMENT AUTHORITIES

AND THE RELATED PARTIES

Article 25. Responsibilities of the State Bank

1. Issuing the Decision to establish the Asset Management Corporation.

2. Approving the Charter and the contents of amendments and supplements to the Charter of the Asset Management Corporation.

3. Using legitimate sources of capital to ensure sufficient registered capital for the Asset Management Corporation as prescribed in Article 9 of this Decree.

4. Exercising the rights of state owner representative at the Asset Management Corporation.

5. State management, supervision, inspection, and handling of violations by credit organizations and the Asset Management Corporation in complying with the laws on purchasing, selling, and handling non-performing debts.

6. Taking the lead and coordinating with the Ministry of Finance to guide accounting entries for the Asset Management Corporation.

7. Guiding credit organizations and the Asset Management Corporation on business operations related to purchasing, selling, and handling non-performing debts.

8. Providing detailed regulations and guidance on implementing the provisions assigned to the State Bank in this Decree.

Article 26. Responsibilities of the Ministry of Finance

1. Taking the lead and coordinating with the State Bank to guide the financial mechanism of the Asset Management Corporation.

Article 27. Responsibilities of the Ministry of Justice

Directing and guiding subordinate units to coordinate and support the implementation of land use right transfers during the process of handling collateral assets of the Asset Management Corporation.

Article 29. Responsibilities of the Ministry of Labor, Invalids and Social Affairs

Taking the lead and coordinating with the Ministry of Finance and the State Bank to guide the salary, bonus, and allowance mechanisms for employees working at the Asset Management Corporation according to the mechanism applicable to state-owned enterprises and consistent with the specific nature of the Asset Management Corporation's activities.

Article 30. Responsibilities of Ministries, agencies, organizations related and People's Committees at all levels

2. People's Committees and tax agencies at all levels shall support the Asset Management Corporation in completing procedures and documents to fulfill financial obligations to the State when transferring ownership rights of collateral assets to buyers.

3. People's Committees, natural resources and environment agencies, and related agencies at all levels shall cooperate in registering and transferring ownership and usage rights of assets upon request of the Asset Management Corporation.

4. Within their assigned tasks and authorities, Ministries, agencies, related organizations, and People's Committees at all levels shall direct subordinate units to complete legal procedures and documents for collateral assets and handle collateral assets and recover debts according to the requests of the Asset Management Corporation.

Article 31. Responsibilities of credit institutions

1. Conduct evaluations and determine non-performing loans eligible for sale to the Asset Management Corporation.

2. Sell non-performing loans to the Asset Management Corporation.

3. Credit institutions selling non-performing loans to the Asset Management Corporation shall be responsible for:

a) Providing the Asset Management Corporation with full and timely information and documents about borrowers, debtors, guarantors, non-performing loans, and collateral assets sold to the Asset Management Corporation; they shall be responsible for the completeness and accuracy of such information and documents;

b) Closely coordinate with competent agencies and organizations, the Asset Management Corporation, and borrowers to complete relevant legal procedures and documents concerning non-performing loans and collateral assets sold to the Asset Management Corporation;

c) Consider and provide credit to borrowers whose non-performing loans have been sold to the Asset Management Corporation according to agreements and legal provisions.

4. Credit institutions selling non-performing loans to the Asset Management Corporation and receiving special bonds shall be responsible for:

a) Fulfilling all obligations stipulated in Clause 2, Article 21 of this Decree;

b) Receiving and performing tasks delegated by the Asset Management Corporation as provided in Clause 2, Article 12 of this Decree;

c) Recording related costs for managing, recovering, and handling non-performing loans purchased by the Asset Management Corporation with special bonds and costs associated with performing activities under delegation from the Asset Management Corporation in operating expenses;

d) Ensuring the safety of assets, files, and documents entrusted by the Asset Management Corporation; supervising, urging, recovering, and handling non-performing loans and collateral assets entrusted by the Asset Management Corporation;

e) Immediately notifying the Asset Management Corporation of any recovered amounts from principal and interest on non-performing loans and proceeds from the disposal and sale of collateral assets.

5. Fulfill other responsibilities as prescribed by law.

Article 32. Responsibilities of Borrowers and Debtors

1. Fully perform obligations towards credit institutions and the Asset Management Corporation as committed and stipulated by law.

2. Arrange funds, proactively sell assets, and hand over collateral assets owned by borrowers to repay principal and interest to the Asset Management Corporation or credit institutions authorized by the Asset Management Corporation.

3. Closely cooperate and promptly provide full information and documents requested by the Asset Management Corporation and credit institutions authorized by the Asset Management Corporation; they shall be responsible for the accuracy of the information and documents provided to the Asset Management Corporation and credit institutions authorized by the Asset Management Corporation.

4. Complete legal documents related to non-performing loans and collateral assets sold to the Asset Management Corporation.

5. Supplement or replace collateral assets or implement appropriate debt guarantee measures agreed upon by the parties involved.

6. Accept the sale of debts between credit institutions and the Asset Management Corporation.

7. Fulfill other responsibilities as prescribed by law.

Article 33. Obligations of the Guarantor

1. Fulfill all obligations under the guarantee contract signed and as prescribed by law.

2. Cooperate closely and provide complete and timely information and documents upon request of the Asset Management Corporation and credit institutions authorized by the Asset Management Corporation; bear responsibility for the accuracy of the information and documents provided to the Asset Management Corporation and credit institutions authorized by the Asset Management Corporation.

3. Arrange funds, proactively sell assets, and transfer assets guaranteed owned by the guarantor to repay principal and interest to the Asset Management Corporation or credit institutions authorized by the Asset Management Corporation.

4. Supplement, replace collateral, or implement appropriate debt repayment measures in accordance with agreements between the parties involved.

5. Accept the sale and purchase of debts between credit institutions and the Asset Management Corporation.

6. Perform other responsibilities as prescribed by law.

Chapter VII

IMPLEMENTING PROVISIONS

Article 34. Effective Date

This Decree takes effect from July 9, 2013.

Article 35. Implementation Provisions

The Minister, Head of a ministerial-level agency; Head of an agency under the Government; Chairman of the People's Councils of provinces and centrally governed cities; Chairman of the Board of Members, General Director of the Asset Management Corporation; Chairman of the Board of Directors, Chairman of the Board of Members, and General Director (Director) of credit institutions and related organizations and individuals are responsible for implementing this Decree./​