Law Amending and Supplementing Certain Articles of the Law on Credit Institutions No. 96/2025/QH15

LAW

AMENDMENTS AND SUPPLEMENTS TO CERTAIN PROVISIONS OF THE INSURANCE BUSINESS LAW

LAW ON CREDIT ORGANIZATIONS

Pursuant to the Constitution of the Socialist Republic of Vietnam amended and supplemented by Resolution No. 203/2025/QH15;

The National Assembly enacts this Law to amend and supplement certain provisions of the Law on Credit Organizations number 32/2024/QH15 which has been amended and supplemented by certain provisions of Law number 43/2024/QH15.

Article 1. Amending and supplementing certain provisions of the Law on Credit Organizations

1. Amending and supplementing Clause 1 of Article 193 as follows:

"1. The State Bank decides to grant special loans with collateral, without collateral for credit organizations in cases provided for in Clause 1 of Article 192 of this Law. The collateral for special loans from the State Bank shall be governed by regulations of the Governor of the State Bank. The interest rate for special loans from the State Bank is 0%/year."

2. Supplementing Articles 198a, 198b, and 198c after Article 198 as follows:

"Article 198a. Right to seize collateral

1. The guarantor and the person holding the collateral for non-performing debt shall have the obligation to hand over the collateral along with the legal documents of the collateral to the credit organization, foreign bank branch, or organization buying and handling debts according to the guarantee contract or other documents (hereinafter referred to as the guarantee contract) and the provisions of the law on guaranteeing the performance of obligations.

In case the guarantor and the person holding the collateral do not hand over the collateral to the credit organization, foreign bank branch, or organization buying and handling debts for processing, the credit organization, foreign bank branch, or organization buying and handling debts may seize the collateral in accordance with the provisions of this Article.

2. The credit organization, foreign bank branch, or organization buying and handling debts have the right to seize the collateral for non-performing debt when meeting the following conditions:

a) When the event occurs to handle the collateral as prescribed in Article 299 of the Civil Code;

b) The guarantee contract stipulates that the guarantor agrees to allow the creditor to seize the collateral for non-performing debt when the event occurs to handle the collateral as prescribed by the law on guaranteeing the performance of obligations;

c) The security measure has taken effect against third parties in accordance with the provisions of the law on guaranteeing the performance of obligations;

d) The collateral is not a disputed asset in a lawsuit that has been accepted but not yet resolved or being resolved at the competent court; not currently subject to urgent temporary measures by the court; not currently seized or subject to enforcement security measures under the law; not in a situation temporarily suspended from handling under the law on bankruptcy;

đ) The collateral seized must meet the conditions prescribed by the Government;

e) The credit organization, foreign bank branch, or organization buying and handling debts have fulfilled the obligation to publicly disclose information as prescribed in Clause 3 or Clause 4 of this Article.

3. At least 15 days before the date of seizing real estate collateral, the credit organization, foreign bank branch, or organization buying and handling debts must carry out procedures to publicly disclose information about the time, location, collateral to be seized, and reasons for seizure. Public disclosure of information shall be carried out in the following forms:

a) Posting information on their own electronic information website;

b) Sending a notification letter to the People's Committee of the commune and the police station of the commune where the collateral is located;

c) Affixing the notification letter at the office of the People's Committee of the commune where the guarantor registered the address according to the guarantee contract and the office of the People's Committee of the commune where the collateral is located;

d) Notifying the guarantor and the person holding the collateral (if any) according to the notification method agreed upon in the guarantee contract.

If there is no agreement, the credit organization, foreign bank branch, or organization buying and handling debts shall send the notification letter directly to the guarantor and the person holding the collateral (if any) or through authorization, postal service, electronic means in the form of data messages or other methods based on the information and addresses provided by the guarantor and the person holding the collateral.

If the guarantor and the person holding the collateral (if any) change their address without notifying the creditor, the address of the guarantor and the person holding the collateral shall be determined according to the address previously provided by these parties according to the guarantee contract or the information stored at the registration authority for security measures.

4. Before seizing movable collateral, the credit organization, foreign bank branch, or organization buying and handling debts must carry out procedures to publicly disclose information about the collateral to be seized and the reasons for seizure. Public disclosure of information shall be carried out in the following forms:

a) Posting information on their own electronic information website;

b) Sending a notification letter to the People's Committee of the commune and the police station of the commune where the guarantor registered the address according to the guarantee contract;

c) Notifying the guarantor and the person holding the collateral (if any) according to the notification method agreed upon in the guarantee contract.
If there is no agreement, the credit organization, foreign bank branch, or organization buying and handling debts shall send the notification letter directly to the guarantor and the person holding the collateral (if any) or through authorization, postal service, electronic means in the form of data messages or other methods based on the information and addresses provided by the guarantor and the person holding the collateral.

If the guarantor and the person holding the collateral (if any) change their address without notifying the creditor, the address of the guarantor and the person holding the collateral shall be determined according to the address previously provided by these parties according to the guarantee contract or the information stored at the registration authority for security measures.

5. The People's Committee of the commune and the police station of the commune where the seizure takes place, within the scope of their functions, tasks, and powers, shall ensure public security and social order during the process of seizing collateral.

In case the guarantor does not cooperate or is not present as notified by the credit organization, foreign bank branch, or organization buying and handling debts, a representative of the People's Committee of the commune where the seizure takes place shall participate as a witness and sign the record of seizure of collateral.

6. A credit organization may only authorize the collection of collateral for the asset management company of that credit organization; an organization buying and handling debts may only authorize the collection of collateral for the credit organization selling debts or the asset management company of the credit organization selling debts; a credit organization transferred compulsorily may only authorize the collection of collateral for the credit organization receiving the compulsory transfer or the asset management company of the credit organization receiving the compulsory transfer.

During the process of seizing collateral assets, credit institutions, foreign bank branches, organizations buying and disposing of debts, and organizations authorized to seize collateral assets as provided for in this clause shall not apply measures that violate prohibitions under the law or contravene social morals.

7. Based on the provisions of this Law and other relevant laws, credit institutions, foreign bank branches, and organizations buying and disposing of debts must establish and promulgate internal regulations regarding the procedures and formalities for seizing collateral assets, including regulations when implementing the authorization to seize collateral assets as stipulated in Clause 6 of this Article.

Article 198b. Seizure of Assets of the Party Subject to Enforcement Used as Collateral for Non-performing Debts

Assets of the party subject to enforcement that are being used as collateral for non-performing debts at credit institutions, foreign bank branches, and organizations buying and disposing of debts shall be seized and disposed of according to the law on civil enforcement proceedings when they fall into one of the following cases:

1. The guarantee contract has been signed and become effective after the date the judgment or decision of the court becomes legally binding;

2. Enforcement of judgments or decisions on alimony payments, compensation for damage to life or health;

3. There is written consent from credit institutions, foreign bank branches, and organizations buying and disposing of debts.

Article 198c. Return of Collateral Assets as Evidence in Criminal Cases

1. After completing the procedures for identifying evidence and determining that it does not affect the handling of the case and criminal enforcement, the investigative agency shall return the evidence in the criminal case which is collateral for non-performing debts to the creditor organization, foreign bank branch, or organization buying and disposing of debts upon their request if the guarantee contract includes an agreement that the guarantor agrees to allow the creditor to seize the collateral for non-performing debts when such seizure is required under the law on guaranteeing obligations.

2. The disposal of the returned collateral assets shall be carried out in accordance with the law on guaranteeing obligations after the return as prescribed in Clause 1 of this Article.

3. Repeal the phrase "or within sixty days from the date the Prime Minister decides on special loans as provided for in Clause 4 of this Article" in Clause 3 of Article 169.

4. Repeal Clause 4 of Article 169, Clause 4 of Article 172, Clause 5 of Article 179, Clause 7 of Article 183, and Clause 4 of Article 193.

5. Repeal the phrase ", 5" in Clause 4 of Article 180.

Article 2. Implementation clause

1. This Law shall take effect from October 15, 2025.

2. The Government shall provide guidance on the implementation of this Law.

Article 3. Transitional Provisions

1. Special loans granted by the State Bank to credit institutions before the date this Law takes effect shall be implemented as follows:

a) The parties continue to implement the special loan decision of the Prime Minister and the special loan contract already signed;

b) The State Bank shall consider extending the term of the special loan with an interest rate of 0% per annum as prescribed by the Governor of the State Bank.

2. Collateral assets of non-performing debts that have been seized and disposed of according to Article 90 of the Law on Civil Enforcement Proceedings before the date this Law takes effect but have not yet been fully resolved shall continue to be governed by the law on civil enforcement proceedings.