Decision No. 615/2003/QĐ-NHNN On the issuance of regulations on granting and revoking licenses for the establishment and operation of people's credit funds; opening and terminating operations of trading offices, branches, representative offices, transaction points of people's credit funds and liquidation of people's credit funds under the supervision of the State Bank.

DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

Regarding the issuance of regulations on granting and revoking licenses for the establishment and operation of people's credit funds;the opening and termination of operations of trading offices, branches, representative offices,

transaction points of people's credit funds;and the liquidation of people's credit funds

under the supervision of the State Bank;Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Organizations dated December 12, 1997;

________________________

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on Cooperatives dated March 20, 1996;

Pursuant to Decree No. 86/2002/ND-CP dated November 5, 2002 of the Government on the functions, tasks, powers, and organizational structure of Ministries and ministerial-level agencies;

Pursuant to Decree No. 48/2001/ND-CP dated August 13, 2001 of the Government on the organization and operation of people's credit funds;

At the proposal of the Director of the Department of Cooperative Credit Organizations,

This Decision promulgates the regulations on granting and revoking licenses for the establishment and operation of people's credit funds; the opening and termination of operations of trading offices, branches, representative offices, transaction points of people's credit funds and the liquidation of people's credit funds under the supervision of the State Bank.

DECISION:

Article 1. This Decision shall take effect fifteen days from the date of publication in the Official Gazette. The following documents shall cease to be effective:

Article 2. 1. Circular No. 578/CV-NH17 dated November 15, 1993 guiding the issuance of operating licenses for people's credit funds;

2. Circular No. 579/CV-NH5 dated November 17, 1993 guiding the issuance of operating licenses for people's credit funds;

3. Decision No. 101/2000/QĐ-NHNN17 dated March 29, 2000 of the Governor of the State Bank on the issuance of regulations on revoking licenses for the establishment and operation of people's credit funds and the liquidation of people's credit funds under the supervision of the State Bank;

4. Decision No. 950/2002/QĐ-NHNN dated September 6, 2002 of the Governor of the State Bank on amending Article 13 of the regulations on revoking licenses for the establishment and operation of people's credit funds and the liquidation of people's credit funds under the supervision of the State Bank issued pursuant to Decision No. 101/2000/QĐ-NHNN17 dated March 29, 2000.

The Heads of the Office, the Directors of the Department of Cooperative Credit Organizations, the Heads of relevant units of the State Bank, the Governors of Provincial and Municipal Branches of the State Bank, the Chairmen of the Management Councils of grassroots people's credit funds, and the Central People's Credit Funds are responsible for implementing this Decision.

Article 3. GRANTING AND REVOKING LICENSES FOR THE ESTABLISHMENT AND OPERATION OF PEOPLE'S CREDIT FUNDS;

REGULATIONS

THE OPENING AND TERMINATION OF OPERATIONS OF TRADING OFFICES, BRANCHES, REPRESENTATIVE OFFICES, TRANSACTION POINTS OF PEOPLE'S CREDIT FUNDS AND THE LIQUIDATION OF PEOPLE'S CREDIT FUNDS UNDER THE SUPERVISION OF THE STATE BANK

(Issued together with Decision No. 615/2003/QĐ-NHNN dated June 16, 2003)

1. These regulations provide for:

a) The issuance of licenses for the establishment and operation (hereinafter referred to as licenses) for grassroots people's credit funds, central people's credit funds (hereinafter collectively referred to as people's credit funds);

b) The opening and termination of operations of trading offices, branches, representative offices of central people's credit funds, and transaction points of grassroots people's credit funds;

of the Governor of the State Bank)

PART I

GENERAL PROVISIONS

Article 1. OBJECTS AND SCOPE OF REGULATION

c) The revocation of licenses and the liquidation of grassroots people's credit funds under the supervision of the State Bank.

2. The revocation of licenses and the liquidation of central people's credit funds will be regulated separately.

Authority to grant, revoke licenses, approve the opening and termination of operations of trading offices, branches, representative offices of people's credit funds

1. The Governor of the State Bank issues decisions to grant and revoke licenses for central people's credit funds; approves the opening and termination of operations of trading offices, branches, representative offices of central people's credit funds.

2. The Governor of the State Bank delegates the Governors of Provincial and Municipal Branches of the State Bank to issue decisions to grant and revoke licenses; approve the opening and termination of operations of transaction points of grassroots people's credit funds within their jurisdiction.

Article 2. Competent authority for issuing, revoking licenses, and approving the establishment and termination of trading offices, branches, and representative offices of Credit Cooperatives

1. The Governor of the State Bank shall issue decisions on granting and revoking licenses for Central Credit Cooperatives; approve the establishment and termination of operations of trading offices, branches, and representative offices of Central Credit Cooperatives.

2. The Governor of the State Bank shall delegate to the Director of the Provincial Branch of the State Bank the authority to issue decisions on granting and revoking licenses; approve the establishment and termination of operations of trading points of grassroots Credit Cooperatives within their jurisdiction.

Chapter II

SPECIFIC PROVISIONS

PART 1. ISSUANCE OF LICENSE AND OPERATIONS

Article 3. Conditions for Issuance of License

1. There must be a need to operate a banking activity on the local territory; For grassroots Credit Unions, there must be a proposal from the People's Committee of the commune, ward, town (hereinafter referred to as the People's Committee at the commune level) regarding the establishment of a grassroots Credit Union and approval from the People's Committee at the district, city, town, provincial city level (hereinafter referred to as the People's Committee at the district level). For Central Credit Unions, it must originate from the requirements of grassroots Credit Unions.

2. Have a minimum charter capital equal to the statutory capital as prescribed by the Government.

3. Founding members must be organizations or individuals with good reputation and must contribute a minimum of 5% of the statutory capital and not exceed the maximum contribution limit of a member as stipulated by the State Bank.

4. Managers and operators must have full capacity for civil acts and meet the standards of ethics, professional qualifications, and other standards as prescribed by the State Bank and other laws.

5. Must have Articles of Organization and Operation consistent with the provisions of the Law on Credit Organizations, the Law on Cooperatives, and other relevant laws.

6. Must have a feasible business plan.

Article 4. Application Documents for License Issuance

1. An application form for license issuance and operation according to the prescribed model (attached Appendix 1).

2. Minutes of the Founding Assembly of the Credit Union.

3. Draft Articles of the Credit Union approved by the founding assembly.

4. Three-year business plan.

5. List, curriculum vitae, and certified copies of diplomas proving the capabilities and professional qualifications of founding members, members of the Board of Management, Supervisory Board, and General Director (Director).

6. Contribution levels, contribution plans, and list of contributing members.

7. Proposal letter from the People's Committee at the commune level, approved by the People's Committee at the district level regarding the establishment of grassroots Credit Unions; Approval letter regarding the location of the headquarters from the People's Committee at the commune level (for grassroots Credit Unions), from the People's Committee of the province, city (for Central Credit Unions).

Article 5. Licensing Fee

The Credit Union must pay a one-time licensing fee of 50,000 VND (fifty thousand dong) to the State Bank.

Article 6. Use of License

1. The Credit Union issued a license must use the correct name and operate within the scope specified in the license.

2. It is prohibited to forge, alter, transfer, lease, or lend the license.

Article 7. Business Registration

After obtaining the license, the Credit Union must register its business with the provincial or municipal business registration authority. The Credit Union acquires legal personality from the date of issuance of the business registration certificate.

Article 8. Conditions for operation

1. To conduct banking activities, the Credit Union issued a license must meet the following conditions:

a) Have Articles of Organization approved by the State Bank;

b) Have a business registration certificate; have sufficient statutory capital and a suitable headquarters for banking operations;

c) The statutory capital contributed in cash must be deposited into a frozen account without interest at the State Bank at least 30 days before commencing operations. This amount can only be released when the Credit Union starts operating;

d) At least 10 days before commencing operations, the Credit Union must notify the contents specified in the license:

- For grassroots Credit Unions, they must post at the headquarters of the People's Committee at the commune level, announce on the commune radio for three consecutive days, and publish in the local newspaper for three consecutive issues.

- For Central Credit Unions, they must publish in the central newspaper for three consecutive issues.

2. Within 12 months from the date of issuance of the license by the State Bank, the Credit Union issued a license must commence operations.

Article 9. Time Limit for Issuing License

Within 90 days from the date of receipt of the complete application documents for license issuance from the Credit Union, the State Bank will study and assess whether the conditions set out in Article 3 of this Regulation are met, and issue a decision along with the license for the Credit Union (as attached Appendixes 2 and 5). In case of refusal to issue the license, the State Bank must provide a written explanation of the reasons.

Article 10. Decision Approving Positions and Articles of Organization

1. The Governor of the State Bank decides to approve the positions of Chairman and other members of the Board of Management, Head and other members of the Supervisory Board, and General Director of Central Credit Unions; Decides to approve the implementation of the Articles of Organization of Central Credit Unions.

2. The Governor of the State Bank delegates the Director of the Branch of the State Bank in the province, city to decide to approve the positions of Chairman and other members of the Board of Management, Head and other members of the Supervisory Board, and Director of grassroots Credit Unions; Decides to approve the implementation of the Articles of Organization of grassroots Credit Unions.

PART 2. ESTABLISHING AND TERMINATING THE OPERATIONS OF BRANCHES, SUB-BRANCHES, REPRESENTATIVE OFFICES OF THE CENTRAL PEOPLE'S CREDIT UNION AND TRANSACTION POINTS OF LOCAL PEOPLE'S CREDIT UNIONS

OF LOCAL PEOPLE'S CREDIT UNIONS

Article 11. Conditions for Establishing Branches, Sub-Branches, Representative Offices of the Central People's Credit Union

The Central People's Credit Union may establish branches, sub-branches, representative offices when it meets the following conditions:

1. Having at least three years of operational experience from the date of commencement; There is a need to expand its network of operations to serve member credit unions within the proposed area for establishing branches, sub-branches, representative offices.

2. Sound financial condition; profitable business operations in the two most recent years

3. Effective management structure, operational system, and internal control system.

4. Information systems meeting management requirements.

5. Not violating regulations on safety in banking operations as stipulated by the State Bank and other laws.

Article 12. Establishing Branches, Sub-Branches, Representative Offices of the Central People's Credit Union

1. Documents:

a) A document from the Chairman of the Board of Directors (or authorized person) requesting the Governor of the State Bank to approve the establishment of branches, sub-branches, representative offices; which must include a summary of the necessity, name, location, content, scope of operations of the branches, sub-branches, representative offices, and must affirm that all conditions for establishment are met;

b) An authorization document from the Chairman of the Board of Directors (for cases of delegation).

c) A resolution of the Board of Directors regarding the establishment of branches, sub-branches, representative offices.

d) A proposal for establishing branches, sub-branches, representative offices; which must clearly state the necessity to establish branches, sub-branches, representative offices, organizational structure, content, scope of operations, and plans for the first three years of operation;

đ) Certified copies of financial reports and audit reports for the two most recent years of the Central People's Credit Union;

e) A document from the Director of the State Bank Branch in the province or city where the Central People's Credit Union plans to establish branches, sub-branches, representative offices about the necessity to establish branches, sub-branches, representative offices of the Central People's Credit Union in the locality;

g) A document approving the establishment of headquarters issued by the People's Committee of the province or city where the Central People's Credit Union plans to establish branches, sub-branches, representative offices.

2. Procedures and Formalities:

a) The Central People's Credit Union submits one set of documents for establishing branches, sub-branches, representative offices to the State Bank (as specified in Clause 1 of this Article). Within a maximum period of 15 working days from the date of receipt of complete documents as prescribed, the State Bank will review and issue an approval or non-approval opinion on the establishment of branches, sub-branches, representative offices of the Central People's Credit Union; In case of non-approval, a document stating the reasons must be provided;

b) Within six months from the date of receiving the approval document from the State Bank, the Central People's Credit Union must complete all necessary procedures to commence operations of the branches, sub-branches, representative offices;

The contents of the operations of branches, sub-branches, representative offices must be posted at their headquarters; published in central and local newspapers (where the headquarters of the branches, sub-branches, representative offices are located) for three consecutive issues.

Article 13. Terminating Operations of Branches, Sub-Branches, Representative Offices of the Central People's Credit Union

1. The Central People's Credit Union is permitted to terminate the operations of branches, sub-branches, representative offices upon obtaining approval from the State Bank, with the following documents:

a) A document from the Chairman of the Board of Directors (or authorized person) regarding the termination of operations of branches, sub-branches, representative offices, which must clearly state the reasons, current status of operations, and financial situation of the branches, sub-branches, representative offices up to the date of application for termination of operations, and must affirm that the termination of operations of the branches, sub-branches, representative offices will not affect the operations of member credit unions in the area;

b) An authorization document from the Chairman of the Board of Directors (for cases of delegation);

c) A resolution of the Board of Directors regarding the termination of operations of branches, sub-branches, representative offices;

d) A plan for handling the termination of operations of branches, sub-branches, representative offices;

đ) A written opinion from the Director of the State Bank Branch in the province or city where the branches, sub-branches, representative offices are located regarding the termination of operations of branches, sub-branches, representative offices of the Central People's Credit Union (except in cases where the Central People's Credit Union terminates operations of branches, sub-branches, representative offices in the same area where the Central People's Credit Union has its main office).

2. Procedures and formalities:

The Central People's Credit Union submits one set of documents for terminating operations of branches, sub-branches, representative offices to the State Bank (as specified in Clause 1 of this Article). Within a maximum period of 15 working days from the date of receipt of complete documents for terminating operations of branches, sub-branches, representative offices of the Central People's Credit Union as prescribed, the State Bank will review and issue a written approval or non-approval opinion on the termination of operations of branches, sub-branches, representative offices of the Central People's Credit Union; In case of non-approval, a document stating the reasons must be provided.

3. Within thirty working days from the date of receipt of the approval document from the State Bank, the Central People's Credit Union must proceed with the formalities for terminating operations of branches, sub-branches, representative offices.

The decision to terminate operations of branches, sub-branches, representative offices must be sent to the State Bank, the registration authority, relevant organizations, individuals; published in central and local newspapers (where the headquarters of the branches, sub-branches, representative offices are located) for three consecutive issues.

4. When the trading office, branch, or representative office ceases operations, the Central Credit Cooperative Fund shall be responsible for settling debts to creditors and resolving other related matters in accordance with the provisions of the law. The cessation of operations of the trading office, branch, or representative office must ensure that it does not affect the operations of member credit cooperatives within the area.

Article 14. Changing the location of the headquarters of the trading office, branch, or representative office of the Central Credit Cooperative Fund

1. The application dossier for the State Bank's approval of the change in the location of the headquarters of the trading office, branch, or representative office:

a) A proposal from the Chairman of the Board of Directors (or authorized person) requesting the relocation of the trading office, branch, or representative office;

b) Opinions from the People's Committee of the province or city and the provincial or municipal branch of the State Bank regarding the relocation of the trading office, branch, or representative office of the Central Credit Cooperative Fund at the local level;

c) Documents proving the legal ownership or right to use the new headquarters where the trading office, branch, or representative office of the Central Credit Cooperative Fund will relocate.

2. Procedures and formalities:

a) The Central Credit Cooperative Fund shall submit one set of the dossier for changing the location of the headquarters of the trading office, branch, or representative office to the State Bank in accordance with Clause 1 of this Article. Within a maximum period of 15 working days from the date of receipt of the complete dossier, the State Bank shall examine and issue a document approving or disapproving the change in the location of the headquarters of the trading office, branch, or representative office. In case of non-approval, the reasons must be clearly stated in the document.

b) After receiving the approval document from the State Bank, the Central Credit Cooperative Fund must report to the business registration authority and notify the change in the location of the headquarters of the trading office, branch, or representative office; publish the notice in the local newspaper (at the location of the trading office, branch, or representative office) for three consecutive issues.

Article 15. Opening and ceasing operations of a transaction point of a grassroots credit cooperative

1. A grassroots credit cooperative may open a transaction point within the operational area specified in the license issued by the State Bank.

The transaction point is a subordinate unit of the grassroots credit cooperative, operating under regulations established by the Board of Directors of the grassroots credit cooperative, accounting and reporting through the main books, without a separate balance sheet, and without cash reserves or its own seal. At the end of each day's transactions, all books, vouchers, and remaining cash of the transaction point must be centralized at the main office of the grassroots credit cooperative.

2. The opening of a transaction point by a grassroots credit cooperative must be approved by the People's Committee of the commune where it is located and permitted in writing by the provincial or municipal branch of the State Bank.

3. The decision to cease operations of a transaction point of a grassroots credit cooperative shall be made by the Board of Directors of the grassroots credit cooperative and reported to the People's Committee of the commune where it is located and the provincial or municipal branch of the State Bank.

PART 3. REVOCATION OF LICENSES FOR RURAL CREDIT COOPERATIVES

Article 16. A rural credit cooperative may have its license revoked if any of the following circumstances occur:

1. There is evidence that the information in the application for a license was intentionally falsified.

2. It does not meet the conditions for operation as prescribed in Article 8 of this Regulation.

3. It operates contrary to the purpose stated in the license.

4. It is ordered to be dissolved by a competent state authority.

5. It splits, merges, or consolidates according to the resolution of the Member Assembly.

6. It goes bankrupt.

7. It voluntarily requests dissolution when it has the ability to pay off all debts.

Article 17. The revocation of a license shall be carried out when there is evidence that the information in the application for a license was intentionally falsified.

1. For a rural credit cooperative that has been granted a license but has not yet commenced operations, the procedures for revoking the license shall be implemented in accordance with the provisions of Article 18 of this Regulation.

2. For a rural credit cooperative that has commenced operations, the procedures for revoking the license shall be implemented in accordance with the provisions of Article 23 of this Regulation.

The revocation of a license shall be carried out in accordance with the provisions of Clause 4, Article 24 of this Regulation.

Article 18. Revocation of a license in cases where a rural credit cooperative does not meet the conditions for operation.

In cases where a rural credit cooperative does not meet the conditions for operation as prescribed in Article 8 of this Regulation, when the State Bank revokes its license, the founders shall be responsible for settling payments to those who have contributed capital after covering costs related to the establishment of the rural credit cooperative.

Article 19. Revocation of a license in cases where a rural credit cooperative is merged.

1. Conditions for merger:

a) There must be a feasible merger plan;

b) The Member Assemblies of the involved rural credit cooperatives must agree and commit to jointly bear responsibility for resolving existing issues;

c) There must be a proposal from the People's Committee of the commune, approved by the People's Committee of the district, regarding the merger.

2. Procedures and formalities for merger:

a) The Management Boards of the involved rural credit cooperatives, after reaching consensus on the policy, must develop a merger plan. The plan must reflect the current organizational structure and activities of each rural credit cooperative; the necessity of the merger; measures and methods for implementation, the expected timeline for the merger; responsibilities and rights of the parties involved in the merger; measures to address existing issues and other relevant matters;

b) The involved rural credit cooperatives must:

- Organize a Member Assembly to approve the merger plan, decide on the merger, and resolve other related issues;

- Propose the People's Committee of the commune to submit a document to the People's Committee of the district for approval of the merger;

- The Management Board of the merging rural credit cooperative must complete the dossier in accordance with Point b, Clause 2, Article 24 of this Regulation to present to the Director of the Branch of the State Bank of Vietnam in the province or city.

c) Within a maximum period of 30 working days from the date of receiving the complete dossier, if approved, the Director of the Branch of the State Bank of Vietnam in the province or city will issue a decision to revoke the license of the rural credit cooperative being merged and approve any related issues (if there are changes) in accordance with the regulations for the merged rural credit cooperative.

Article 20. Revocation of a license in cases where a rural credit cooperative splits, merges, or consolidates.

1. Conditions for division and merger:

a) There is a feasible plan for division and merger;

b) The General Assembly of the People's Credit Funds agrees to the division and merger and commits to jointly bear responsibility for resolving existing issues;

c) There is a proposal document from the Commune People's Committee approved by the District People's Committee regarding the division and merger.

2. Procedure and formalities for division and merger:

The People's Credit Fund planning to divide or merge must establish a Council to handle the division and merger. The Council planning division includes the Chairman of the Management Board of the People's Credit Fund planning to divide and representatives of new People's Credit Funds planned to be formed from the divided People's Credit Fund; the Council planning merger includes the Chairmen of the Management Boards of the People's Credit Funds planning to merge.

The Council has the following tasks:

a) Discuss and negotiate to reach consensus on issues related to division and merger; prepare the application dossier for division and merger of the People's Credit Fund;

b) Develop plans for handling assets, capital, funds, organization, and personnel during division and merger; develop operational plans and draft Bylaws for the new People's Credit Fund to submit to the General Assembly for decision;

c) Summon the General Assembly to decide on the plans for handling assets, capital, funds, organization, and personnel during division and merger and implement the contents of the meeting to establish the new People's Credit Fund after division and merger according to regulations;

d) Notify in writing creditors, organizations, and individuals with rights, obligations, and interests related to the decision on division and merger and resolve economic issues related to them;

đ) Propose the Commune People's Committee to submit a document to the District People's Committee for approval of the division and merger;

e) Complete the dossier in accordance with point a, Clause 2, Article 24 of this Regulation and submit it to the Director of the Branch of the State Bank of Vietnam in the province/city;

3. Within a maximum period of 30 working days from the date of receiving the complete dossier as prescribed, if approved, the Director of the Branch of the State Bank of Vietnam in the province/city shall issue a decision to revoke the business license of the People's Credit Fund subject to division and merger; simultaneously issue a decision to grant a business license for the new People's Credit Fund (The procedures for issuing a business license for the new People's Credit Fund after division and merger are carried out in accordance with Section 1 of this Regulation);

4. The People's Credit Funds must complete all procedures related to the revocation of the business registration certificate and seal of the People's Credit Fund that has been divided and merged; register business and engrave seals for the new People's Credit Funds in accordance with the law;

Article 21. Revocation of business license in case of bankruptcy of the People's Credit Fund

1. After the State Bank has issued a document about not applying or ceasing to apply measures to restore payment capacity of the People's Credit Fund and the system of People's Credit Funds has used all support measures but the People's Credit Fund still loses its ability to pay due debts, then it may be declared bankrupt by the court according to the law on enterprise bankruptcy;

2. Within a maximum period of 30 working days from the date of receiving the complete dossier as prescribed in Clause 3, Article 24 of this Regulation, the Director of the Branch of the State Bank of Vietnam in the province/city shall issue a decision to revoke the business license of the People's Credit Fund that has gone bankrupt;

Article 22. Revocation of business license in case of voluntary dissolution of the People's Credit Fund by resolution of the General Assembly

1. The Chairman of the Management Board of the People's Credit Fund must submit the dissolution application dossier to the District People's Committee including:

a) A voluntary dissolution application letter, which must clearly state the current organizational and operational status of the People's Credit Fund and the reasons for dissolution;

b) The resolution of the General Assembly on voluntary dissolution, the resolution only takes effect when at least three-quarters (three-fourths) of the total members or member representatives present at the General Assembly vote in favor;

c) The liquidation plan that has been approved by the General Assembly;

d) The latest balance sheet up to the time of dissolution.

2. Within 30 working days from the end date of debt repayment and contract liquidation, the People's Committee receiving the application must issue a notification approving or disapproving the voluntary dissolution application of the People's Credit Fund. After receiving the approval notification, the Chairman of the Management Board of the People's Credit Fund must submit the application dossier for revoking the business license of the People's Credit Fund to the Branch of the State Bank of Vietnam in the province/city in accordance with Clause 1, Article 24 of this Regulation. Within 30 working days from the date of receiving the complete dossier for revoking the business license of the People's Credit Fund, the Director of the Branch of the State Bank of Vietnam in the province/city shall issue a decision to revoke the business license of the voluntarily dissolved People's Credit Fund;

The People's Credit Fund voluntarily dissolving must publish in the local newspaper where the People's Credit Fund operates for three consecutive issues about the voluntary dissolution request and the deadline for debt repayment and contract liquidation;

3. Within 30 working days from the date of receiving the approval notification for dissolution, the People's Credit Fund must settle dissolution costs, return capital contributions, and pay out amounts according to the Bylaws of the People's Credit Fund to members;

Article 23. Revocation of business license in cases where the People's Credit Fund operates contrary to the purpose stated in the business license, or violates laws and is ordered to dissolve by competent authorities;

1. The State Bank proposes the Provincial/City People's Committee to issue a dissolution notice for the People's Credit Fund. The dossier includes:

- A report from the Branch of the State Bank of Vietnam in the province/city detailing the operational status of the People's Credit Fund, recommendations, and proposed measures for handling the People's Credit Fund;

- A report on the results of inspections identifying violations by the People's Credit Fund.

2. After receiving the dissolution notice of the People's Credit Cooperative Foundation at the grassroots level from the Provincial/Municipal People's Committee, the State Bank shall immediately issue a decision to revoke the license, and the People's Credit Cooperative Foundation at the grassroots level must immediately proceed with liquidation under the supervision of the State Bank in accordance with Articles 4 and 5 of this Regulation.

Article 24. File for revoking the license

1. In the case where the People's Credit Cooperative Foundation at the grassroots level voluntarily requests dissolution, the file includes:

a) The approval document of the District People's Committee regarding the voluntary dissolution of the People's Credit Cooperative Foundation at the grassroots level;

b) Other documents if requested by the State Bank.

2. In the case where the People's Credit Cooperative Foundation at the grassroots level splits, merges, or consolidates

a) In the case of splitting or merging, the file includes:

- A proposal from the Chairman of the Board of Directors of the People's Credit Cooperative Foundation at the grassroots level proposing to split or merge; requesting the branch of the State Bank in the province/city to revoke the license for the People's Credit Cooperative Foundation that will be split or merged, while issuing a new license and approving related issues according to regulations. The content of the proposal must clearly state the current situation regarding organization, operation, existing problems, difficulties, commitments to accept and handle all related issues after splitting or merging, implementing and executing the approved plan.

- Resolution of the Members' Congress on splitting or merging;

- Plan for splitting or merging;

- Request document of the Commune People's Committee approved by the District People's Committee;

- Other documents as required by the State Bank.

b) In the case of consolidation, the file includes:

- A proposal from the Chairman of the Board of Directors of the People's Credit Cooperative Foundation at the grassroots level proposing another People's Credit Cooperative Foundation to consolidate into their unit; requesting the branch of the State Bank to revoke the license for the consolidated People's Credit Cooperative Foundation and approve related issues according to regulations. The content of the proposal must clearly state the current situation regarding organization, operation, existing problems, difficulties, commitments to handle all related issues concerning the cessation of operations, handover, and acceptance and handling of all related issues after consolidation, implementing and executing the approved plan;

- Resolution of the Members' Congress on consolidation;

- Plan for consolidation;

- Request document of the Commune People's Committee approved by the District People's Committee;

- Other documents as required by the State Bank.

3. In the case where the People's Credit Cooperative Foundation at the grassroots level is declared bankrupt, the file includes:

a) A proposal from the Director of the State Bank Branch in the province/city of the Inspector of the State Bank Branch regarding the revocation of the license of the People's Credit Cooperative Foundation at the grassroots level, accompanied by an inspection report identifying violations of the People's Credit Cooperative Foundation at the grassroots level. The content of the proposal must clearly state the current situation and measures taken by the People's Credit Cooperative Foundation at the grassroots level but still unable to overcome the inability to pay maturing debts;

b) Decision of the court declaring bankruptcy of the People's Credit Cooperative Foundation at the grassroots level;

c) Other documents as required by the State Bank.

4. For other cases not specified in Clause 1, Clause 2, and Clause 3 of this Article, the file includes:

a) A proposal from the Director of the State Bank Branch in the province/city of the Inspector of the State Bank Branch regarding the revocation of the license of the People's Credit Cooperative Foundation at the grassroots level. The content of the proposal must clearly state the reasons for revoking the license of the People's Credit Cooperative Foundation at the grassroots level and measures to be taken after revocation;

b) Inspection report identifying violations of the People's Credit Cooperative Foundation at the grassroots level;

c) Dissolution notice of the People's Credit Cooperative Foundation at the grassroots level issued by the Provincial/Municipal People's Committee;

d) Other documents as required by the State Bank.

Article 25. Decision to revoke the license

1. Main contents of the decision:

a) Name and address of the People's Credit Cooperative Foundation at the grassroots level;

b) Reasons for revoking the license;

c) Effectiveness of the decision;

d) Handling after revoking the license;

e) Supervision of liquidation and responsibilities and authorities of the State Bank's Liquidation Supervision Team at the People's Credit Cooperative Foundation at the grassroots level.

2. Recipients of the decision to revoke the license of the People's Credit Cooperative Foundation at the grassroots level:

a) The People's Credit Cooperative Foundation at the grassroots level whose license is revoked;

b) The Commune People's Committee where the People's Credit Cooperative Foundation at the grassroots level is located;

c) The District People's Committee where the People's Credit Cooperative Foundation at the grassroots level whose license is revoked is located;

d) The Provincial/Municipal People's Committee where the People's Credit Cooperative Foundation at the grassroots level whose license is revoked is located.

3. Notice of the decision to revoke the license.

Within a maximum of five working days from the date the Director of the State Bank Branch in the province/city signs the decision to revoke the license of the People's Credit Cooperative Foundation at the grassroots level, the State Bank Branch in the province/city is responsible for notifying the decision at the headquarters of the Commune People's Committee and the commune radio station where the People's Credit Cooperative Foundation at the grassroots level is located.

Article 26. Responsibilities of the People's Credit Cooperative Foundation at the grassroots level whose license is revoked

1. The Board of Directors, Supervisory Board, and Management Board must self-inspect, report, and propose solutions to send to the State Bank.

2. Must commit responsibility for all issues related to the liquidation process of the People's Credit Cooperative Foundation at the grassroots level, in the recovery of debts, and the resolution of remaining issues of the People's Credit Cooperative Foundation at the grassroots level.

3. From the effective date of the decision to revoke the license, the People's Credit Cooperative Foundation at the grassroots level must:

a) Immediately cease capital raising and lending activities; stop calculating and paying interest on outstanding debts and receivables;

b) Cease all transfers of member contributions;

c) Inventory all unused important seals (deposit books, checks...), member cards, and submit them to the State Bank Branch;

d) Carry out liquidation in accordance with the law.

PART 4. LIQUIDATION OF RURAL CREDIT COOPERATIVES

Article 27. Liquidation Board

1. The People's Committee of the province/city shall issue a notice to compulsorily dissolve the Rural Credit Cooperative and decide to establish the Liquidation Board and designate the Chairman of the Board to organize the dissolution of the Rural Credit Cooperative. The decision on establishing the Liquidation Board must include the following contents:

- Names and addresses of those responsible for the Liquidation Board of the Rural Credit Cooperative;

- Liquidation period;

- The supervisory role of the State Bank.

2. The Liquidation Board of the Rural Credit Cooperative shall consist of representatives from local authorities, the Rural Credit Cooperative (Board of Management, management personnel), members of the Rural Credit Cooperative (founders, members), representatives from the Central Rural Credit Cooperative (in case the Rural Credit Cooperative still has debts to the Central Rural Credit Cooperative), representatives from the Vietnam Deposit Insurance Corporation (in case the Vietnam Deposit Insurance Corporation implements payment of insurance money to depositors at the Rural Credit Cooperative), and other relevant departments and organizations (if deemed necessary).

3. The Liquidation Board shall be responsible for:

a) Preparing a list and amount (principal, interest) of creditors and debtors up to the effective date of the license revocation decision and a list of assets of the Rural Credit Cooperative to be liquidated including:

- Individual and economic organization deposits,

- Loan amounts;

- Fixed assets, leased, borrowed, or rented assets;

- Cash reserves (domestic currency, foreign currency), precious metals, gems, deposits at the State Bank, at other credit institutions, and securities;

- Capital contributions to the Central Rural Credit Cooperative and associated development organizations;

- Other receivables and payables;

- Other assets.

b) Developing a liquidation plan; implementing the liquidation plan after approval by the State Bank; taking all measures to recover debts and assets of the Rural Credit Cooperative to pay creditors;

c) Organizing the liquidation of the Rural Credit Cooperative according to current laws. All revenues of the Rural Credit Cooperative must be used to pay creditors in the priority order specified in Article 28 of this Regulation;

d) Monthly, the Liquidation Board must report to the People's Committee of the province/city and the branch of the State Bank in the locality on the situation and results of the liquidation of the Rural Credit Cooperative.

4. The Chairman and members of the Liquidation Board have powers and responsibilities:

a) The Chairman of the Liquidation Board is responsible for assigning tasks to members of the Liquidation Board and signing on related documents, certificates, and reports during the liquidation process of the Rural Credit Cooperative;

b) The Chairman of the Liquidation Board has the right to request support from organizations and individuals in the locality in recovering debts and handling organizations and individuals who deliberately delay repayment of debts to the Rural Credit Cooperative;

c) The Liquidation Board operates according to the establishment decision of the People's Committee of the province/city. The Chairman and members of the Liquidation Board must bear responsibility under the law for performing their duties;

d) The Liquidation Board may use the seal of the Rural Credit Cooperative during the liquidation process of the Rural Credit Cooperative according to the law.

Article 28. Priority order for paying creditors

1. Fees and costs for dissolving the Rural Credit Cooperative.

2. Special loans and deposits made by the State and other organizations with the purpose of supporting payments to depositors (if any).

3. Customer deposits.

4. Loans from the Central Rural Credit Cooperative and other organizations/persons (excluding those specified in Clause 2 of this Article).

5. Tax arrears (if any).

6. Returning capital contributions to members based on current financial capacity and ensuring equality among members.

7. Resolving other rights of members can only be carried out after fulfilling obligations to creditors.

Article 29. The Vietnam Deposit Insurance Corporation becoming a creditor during the liquidation process when the Rural Credit Cooperative is dissolved or bankrupted shall be implemented according to the law on deposit insurance.

Article 30. Liquidation period

The maximum liquidation period for the Rural Credit Cooperative shall not exceed six months from the effective date of the license revocation decision.

In cases where the liquidation period needs to be extended beyond the prescribed period, the Liquidation Board must report to the People's Committee of the province/city, the State Bank, and submit a written request for extension of the liquidation period to the People's Committee of the province. The extension of the liquidation period shall be decided by the Chairman of the People's Committee of the province/city. Each extension period shall not exceed six months.

Article 31. Completion of liquidation

1. The Rural Credit Cooperative shall complete liquidation in the following cases:

a) All debts have been paid off;

b) The liquidation period has expired as prescribed (including any extension period if applicable);

c) There is no ability to fully pay creditors.

2. Upon completion of liquidation, the Liquidation Board of the Rural Credit Cooperative must submit a written report to the People's Committee of the province/city and the State Bank requesting to conclude the liquidation in the following cases:

a) In the case where the Rural Credit Cooperative has completed the processing of all debts and assets, the Liquidation Board must submit a written report requesting the People's Committee of the province/city to issue a resolution to dissolve the Rural Credit Cooperative and proceed with the procedures to terminate its legal status.

b) In case the grassroots People's Credit Cooperative Fund has completed the handling of debts as stipulated in Clauses 1, 2, 3, and 4 of Article 28 of this Regulation, the Liquidation Board must submit a written report requesting the Provincial People's Committee to transfer the remaining receivables to the Commune People's Committee and the founders for continued debt recovery to repay capital contributions to members, distribute among members according to their efforts in establishing the grassroots People's Credit Cooperative Fund (if any), and issue a decision to dissolve the grassroots People's Credit Cooperative Fund. The Liquidation Board is responsible for processing the procedures to terminate the legal status of the grassroots People's Credit Cooperative Fund.

c) In case the grassroots People's Credit Cooperative Fund is unable to fully settle its debts, the Liquidation Board must send a written request to the Provincial People's Committee and the State Bank to conclude the liquidation process and proceed with bankruptcy proceedings in accordance with laws on enterprise bankruptcy and other relevant legal documents.

3. The Liquidation Board is responsible for transferring all related documents and records during the operation and liquidation of the grassroots People's Credit Cooperative Fund to the branch of the State Bank in the province or city for storage, and all unused common seals after the completion of the liquidation of the grassroots People's Credit Cooperative Fund.

4. The Liquidation Board must transfer to local authorities assets that are not to be distributed (capital subsidized by the State, public works, infrastructure serving the community) for management and common use by the community.

Article 32. Liquidation Costs

All costs related to the liquidation shall be borne by the grassroots People's Credit Cooperative Fund. Liquidation expenses must be supported by valid invoices and documents in accordance with the law, consistent with the results of debt recovery as decided by the Chairman of the Liquidation Board and approved by the State Bank. Liquidation costs include:

1. Costs for debt recovery based on the results of debt recovery.

2. Other reasonable costs arising during the liquidation process.

SECTION 5. SUPERVISION OF THE LIQUIDATION OF GRASSROOTS PEOPLE'S CREDIT COOPERATIVE FUNDS

Article 33. Supervisory Liquidation Team

1. The Director of the State Bank Branch in the province or city decides on the establishment of the Supervisory Liquidation Team to oversee the liquidation of grassroots People's Credit Cooperative Funds within their jurisdiction; appoints the Team Leader and members of the Supervisory Liquidation Team, and clearly defines the duties and powers of the Team Leader and members of the Supervisory Liquidation Team. The Supervisory Liquidation Team must have at least three members.

2. The Team Leader and members of the Supervisory Liquidation Team are responsible to the Director of the State Bank Branch in the province or city for the execution of their duties.

Article 34. Standards and Conditions for Members of the Supervisory Liquidation Team

1. Must be staff of the State Bank Branch in the province or city with expertise and experience in banking operations and knowledge of People's Credit Cooperative Fund business.

2. Not being the father, mother, wife, husband, child, brother, sister, or half-sibling of members of the Management Board, Supervisory Board, General Director, or members of the grassroots People's Credit Cooperative Fund subject to liquidation.

3. The Team Leader of the Supervisory Liquidation Team, in addition to the standards and conditions specified in Clauses 1 and 2 of this Article, must be a leader of relevant departments within the State Bank.

Article 35. Duties and Powers of the Supervisory Liquidation Team

1. Direct the Liquidation Board to develop a liquidation plan in accordance with regulations to be submitted for approval by the Director of the State Bank Branch in the province or city.

2. Closely coordinate with local authorities to direct and supervise the Liquidation Board of the grassroots People's Credit Cooperative Fund to inventory all current assets of the grassroots People's Credit Cooperative Fund.

3. Require the Liquidation Board of the grassroots People's Credit Cooperative Fund to report, provide documentation, information, and the current organizational and financial status, as well as developments since the license was revoked, and issues arising during the liquidation process.

4. Supervise the entire liquidation process of the grassroots People's Credit Cooperative Fund.

5. Report to the Director of the State Bank Branch, the Chairman of the Provincial People's Committee about the progress of the liquidation of the grassroots People's Credit Cooperative Fund. If necessary, submit written requests to relevant agencies to support the Liquidation Board in recovering capital as assets, dealing with customers who deliberately delay or refuse to pay, causing loss of assets of the grassroots People's Credit Cooperative Fund.

6. Have the authority to propose the Provincial People's Committee to issue a decision temporarily suspending the activities of Liquidation Board members who intentionally violate the law, fail to follow the liquidation plan, or engage in asset misappropriation, refusal to fulfill responsibilities and obligations; in serious cases, submit written requests to law enforcement agencies to handle individuals who violate the law.

7. Recommend the Director of the State Bank Branch, the Provincial People's Committee to handle the grassroots People's Credit Cooperative Fund upon completion of liquidation as stipulated in Article 31 of this Regulation.

8. Supervise the implementation of legal procedures upon completion of the liquidation of the grassroots People's Credit Cooperative Fund.

9. The Supervisory Liquidation Team is directly under the direction of the Director of the State Bank Branch in the province or city.

Chapter III

RESPONSIBILITIES OF SUBORDINATE UNITS
STATE BANK OF VIETNAM

Article 36. Responsibilities of the State Bank Branch in the province or city

1. Examine and decide on issuing, revoking licenses; approve opening, terminating operations of transaction points of grassroots People's Credit Cooperative Funds within their jurisdiction.

2. Appoint staff to supervise the liquidation of grassroots People's Credit Cooperative Funds.

3. Submit matters beyond their authority to the Governor of the State Bank for examination and handling.

Article 37. Responsibilities of units under the State Bank of Vietnam

1. Banking Inspection Department:

a) Guide and instruct State Bank Branches in the province or city to inspect, examine, and recommend revocation of licenses of grassroots People's Credit Cooperative Funds within their jurisdiction;

b) Examine and evaluate the operational status and financial capability of grassroots People's Credit Cooperative Funds required to have their licenses revoked.

2. Department of Cooperative Financial Institutions:

a) Shall be responsible for guiding, receiving, examining the application files, and submitting to the Governor of the State Bank for the decision to issue licenses and approve the establishment and termination of trading offices, branches, and representative offices of Central Credit Cooperatives;

b) Shall propose solutions to issues hindering the operations related to Credit Cooperatives.

3. The Legal Department:

a) Shall be responsible for reviewing the legal regulations of the State Bank concerning Credit Cooperatives to advise the Governor of the State Bank to amend them in accordance with current laws;

b) Shall serve as the coordinating unit to work with relevant agencies to handle legal issues during the liquidation process of Credit Cooperatives.

4. Other units shall be responsible for considering and reporting to the Governor of the State Bank on issues related to issuing, revoking liquidation licenses, supervising the liquidation process, establishing and terminating the operations of trading points of grassroots Credit Cooperatives; issuing licenses, establishing and terminating the operations of trading offices, branches, and representative offices of Central Credit Cooperatives according to their functions, tasks, and authorities.

Chapter IV

IMPLEMENTING PROVISIONS

Article 38. Credit Cooperatives that have been issued operating licenses do not need to go through the procedure to reapply for new licenses. If there are changes to the contents recorded in the issued operating license, they should request the State Bank to issue a decision to supplement or amend the contents recorded in the license in accordance with the law.

Article 39. Any amendments to this Regulation shall be decided by the Governor of the State Bank./.