Decision No. 94/2004/QD-NHNN on Amending Certain Articles of the Regulation on Secured Loans with Pledged Securities of the State Bank of Vietnam for Banks Issued Pursuant to Decision No. 1452/2003/QD-NHNN dated November 3, 2003 of the Governor of the State Bank of Vietnam

DECISION OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

Regarding the amendment of certain provisions of the Regulation on secured lending by pledge of negotiable instruments of the State Bank of Vietnam for banks issued together with Decision No. 1452/2003/QD-NHNN dated November 3, 2003 of the Governor of the State Bank of Vietnam

GOVERNOR OF THE STATE BANK OF VIETNAM

Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated December 12, 1997; the Law Amending and Supplementing Certain Provisions of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated June 17, 2003 and the Law on Credit Institutions No. 02/1997/QH10 dated December 12, 1997;

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

At the proposal of the Director of the Credit Department,

DECISION:

Article 1. Amend certain provisions of the Regulation on secured lending by pledge of negotiable instruments of the State Bank of Vietnam for banks issued together with Decision No. 1452/2003/QD-NHNN dated November 3, 2003 of the Governor of the State Bank of Vietnam as follows:

1. Article 7 is amended as follows:

Rights of People's Credit Funds Collateral

Collateral includes:

1. State Bank Treasury Bills;

2. Government Bonds, including:

a) Treasury Bills,

b) Treasury Bonds,

c) Central Government Construction Bonds,

d) Foreign Currency Bonds,

đ) National Construction Bonds,

3. Other negotiable instruments that can be used as collateral as specified by the Governor of the State Bank of Vietnam during each period."

2. Article 16 is amended as follows:

"Article 16. Handling collateral when compulsory debt recovery must be carried out according to the regulations of the Governor of the State Bank of Vietnam regarding the handling of collateral of banks borrowing from the State Bank."

3. Article 19 is amended as follows:

"Article 19. Responsibilities of units under the State Bank of Vietnam

1. Monetary Policy Department:

a) Determine the amount of money supply for refinancing purposes quarterly and annually, submit to the Governor of the State Bank of Vietnam for approval, including the amount allocated for secured lending by pledge of negotiable instruments and notify relevant units;

b) Coordinate with relevant units to resolve difficulties and issues arising during the implementation of secured lending by pledge of negotiable instruments;

2. Credit Department:

a) Receive and review loan application files of banks headquartered in Hanoi;

b) Submit to the Governor of the State Bank of Vietnam for approval the applications for secured lending by pledge of negotiable instruments from banks; transfer the original file approved by the Governor of the State Bank of Vietnam to the State Bank of Vietnam Trading Center or send the authorization letter of the Governor of the State Bank of Vietnam to the provincial branches of the State Bank of Vietnam through fax and postal service;

c) Notify the bank applying for a loan whether the application has been approved or not;

d) Lead and coordinate with relevant units to resolve difficulties and issues arising during the implementation of secured lending by pledge of negotiable instruments;

đ) Monthly compile information and data on secured lending by pledge of negotiable instruments at the State Bank of Vietnam and its provincial branches, report to the Governor of the State Bank of Vietnam and send to the Monetary Policy Department.

3. State Bank of Vietnam Trading Center:

a) Publicly announce the interest rate for secured lending at the State Bank of Vietnam Trading Center;

b) Based on the file approved by the Governor (sent by the Credit Department), process the signing of the secured lending by pledge of negotiable instruments contract, implement the loan and recover principal and interest according to this Regulation;

c) Implement the safekeeping, preservation, transfer of files, documents, and collateral, and perform accounting according to regulations;

d) Monthly compile information and data on secured lending by pledge of negotiable instruments, promptly identify difficulties and issues arising during the implementation, and send to the Credit Department for compilation and reporting to the Governor of the State Bank of Vietnam.

4. Accounting and Finance Department shall guide the accounting for secured lending by pledge of negotiable instruments;

5. Provincial Branches of the State Bank of Vietnam:

a) Publicly announce the interest rate for secured lending at the provincial branch of the State Bank of Vietnam;

b) Receive and examine the loan application file of banks requesting loans within their jurisdiction;

c) Submit to the Governor of the State Bank of Vietnam for approval of the maximum loan amount through the Credit Department (send via fax of the Credit Department and send the original approval document and copy of the loan application file of the bank to the Credit Department);

d) Carry out secured lending by pledge of negotiable instruments after being authorized in writing by the Governor of the State Bank of Vietnam (fax); recover principal and interest according to this Regulation;

đ) Implement the safekeeping, preservation, transfer of files, documents, and collateral, and perform accounting according to regulations;

e) Monthly compile information and data on secured lending by pledge of negotiable instruments, promptly identify difficulties and issues arising during the implementation, and send to the Credit Department for compilation and reporting to the Governor of the State Bank of Vietnam."

4. Repeal Clause 4 of Article 3 and Clause 5 of Article 8.

5. Replace the five attached forms and tables in Decision No. 1452/2003/QD-NHNN dated November 3, 2003 of the Governor of the State Bank of Vietnam with the five attached forms and tables in this Decision.

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

Article 3. Heads of units under the State Bank of Vietnam, Directors of Provincial Branches of the State Bank of Vietnam, Chairmen of Management Boards and General Managers (Directors) of banks are responsible for implementing this Decision./.