SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, January 18, 2010
STIPULATING THE APPLICATION OF THE BANKRUPTCY LAW TO CREDIT INSTITUTIONS
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the June 24, 2004 Bankruptcy Law;
Pursuant to the December 12, 1997 Law on Credit Institutions, and the June 15, 2004 Law Amending and Supplementing a Number of Articles of the Law on Credit Institutions;
At the proposal of the Governor of the State Bank of Vietnam,
Article 1. Scope of regulation and subjects of application
1. This Decree stipulates the application of the Bankruptcy Law to credit institutions regarding conditions and filing of applications for opening of bankruptcy procedures; determines property obligations and asset-preserving measures in bankruptcy procedures; conditions and procedures for restoring business operations, procedures for asset liquidation and bankruptcy declaration; rights, obligations and responsibilities of applicants for opening of bankruptcy procedures, of credit institutions requested to be declared bankrupt and of persons participating in settling applications for declaring bankruptcy.
2. This Decree applies to credit institutions established and operating under the Law on Credit Institutions.
Article 2. Bankruptcy procedures
1. Except for the case specified in Clause 2 of this Article, bankruptcy procedures applied to a credit institution falling into bankruptcy include:
a/ Filing an application for opening of bankruptcy procedures;
b/ Restoring business operations;
c/ Liquidating assets and debts;
d/ Declaring a credit institution bankrupt.
In case the State Bank of Vietnam has issued a document terminating special control of or application of solvency-restoring measures to a credit institution, after opening bankruptcy procedures, judges shall decide to apply the procedure for liquidating assets and debts under Point c of Clause 1 and declare the credit institution bankrupt without applying the procedures for restoring business operations under Point b. Clause 1 of this Article.
For cases not provided by this Decree, matters related to credit institution bankruptcy procedures comply with the Bankruptcy Law and its guiding documents.
Article 3. Interpretation of terms
In this Decree, the terms below are construed as follows:
1. Special control means the placement of a credit institution under the direct control of the State Bank of Vietnam as it is at risk of insolvency.
2. Mature debt means a sum of money or an asset which a credit institution owes to another person (below referred to as creditor) which is not secured or is partly secured (only the unsecured amount or part is taken into account) and becomes mature as agreed upon or provided by law.
Article 4. Conditions for identifying a credit institution falling into bankruptcy
A credit institution that is unable to pay mature debts upon request of creditors after the State Bank of Vietnam has issued a document on the non-application or termination of application of solvency-restoring measures or on the termination of special control is regarded as falling into bankruptcy.
Article 5. Jurisdiction of courts
1. People's Courts of provinces and centrally run cities (below collectively referred to as provincial-level People's Courts) have jurisdiction to carry out bankruptcy procedures with respect to credit institutions that have registered business with business registries in their respective provinces or cities.
2. Provincial-level People's Courts of localities where Vietnam-based foreign-invested credit institutions are headquartered have jurisdiction to carry out bankruptcy procedures with respect to these credit institutions.
Article 6. Asset management and liquidation teams
1. Simultaneously with issuing a decision to open bankruptcy procedures, the judge or the judges' group (below collectively referred to as judge) responsible for bankruptcy of a credit institution shall issue a decision to form an asset management and liquidation team to manage and liquidate assets of the credit institution.
2. An asset management and liquidation team consists of:
a/ An enforcer of the judgment enforcement agency at the same level with the Court with jurisdiction to receive the application for opening bankruptcy procedures, as the team head;
b/ An officer of the Court with jurisdiction to receive the application for opening of bankruptcy procedures;
c/ A representative of the creditor that is the organization or individual with the biggest debt among creditors;
d/ A lawful representative of the credit institution against which bankruptcy procedures are opened;
e/ A representative of the State Bank of Vietnam;
f/ A representative of Vietnam Deposit Insurance, in case Vietnam Deposit Insurance has paid deposit insurances to clients of the credit institution;
g/ In case the credit institution owes salaries and other debts to its employees, the judge shall consider and decide whether the asset management and liquidation team has trade union's and employees' representatives as its members.
3. The organizations mentioned in Clause 2 of this Article shall appoint their representatives to join the asset management and liquidation team at the request of the judge.
4. In case the credit institution falling into bankruptcy has branches operating in different provinces and centrally run cities, the asset management and liquidation team may form assisting sections to manage and liquidate assets of these branches.
The asset management and liquidation team shall specify the composition, tasks and powers of its sections.
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