Quyết định 742/2002/QĐ-NHNN của Ngân hàng Nhà nước về việc ban hành Quy định uỷ thác và nhận uỷ thác cho vay vốn của tổ chức tín dụng

DECISION

ON THE ISSUANCE OF THE REGULATION ON THE ENTRUSTMENT AND TAKING ENTRUSTMENT FOR LENDING BY CREDIT INSTITUTION

THE GOVERNOR OF THE STATE BANK

Pursuant to the Law on the State Bank of Vietnam and the Law on Credit Institutions dated 12 December, 1997;
Pursuant to the Decree No. 15/CP of the Government dated 2 March, 1993 on the assignment, authority and responsibility for the State management of Ministries, ministry-level agencies;
Upon the proposal of the Director of the Monetary Policy Department,

DECIDES

Article 1.To issue in conjunction with this Decision Regulation on the entrustment and taking entrustment for lending by credit institutions.

Article 2.This Decision shall be effective after 15 days from the date of signing.

Article 3.The Director of the Administrative Department, the Director of the Monetary Policy Department, Heads of units of the State Bank, General Managers of State Bank branches in provinces and cities under the central Governments management, General Directors (Directors) of credit institutions and organizations, individuals in relating to the entrustment and taking entrustment for lending shall be responsible for the implementation of this Decision.

REGULATION

ON THE ENTRUSTMENT AND TAKING ENTRUSTMENT FOR LENDING BY CREDIT INSTITUTIONS
(issued in conjunction with the Decision No. 742/2002/QD-NHNN dated 17 July, 2002 of the Governor of the State Bank of Vietnam)

Article 1.Governing scope

This Regulation provides for the entrustment and taking entrustment for lending, debts collection by the entrusting party and the entrusted party for lending, in order to transfer credit funds of the entrusting party through the contract to the entrusted party for lending directly to customers who carry out the plan, project of development, investment, production, business, service, living and poverty-alleviation activity.

Article 2.Subjects of application

1. The entrusting party for lending shall include: the Government, economic organizations, socio-political organizations, domestic and foreign individuals and credit institutions established and operating under the Law on credit institutions require for lending credit funds to customers.

2. The entrusted party shall be credit institutions which are established and operating under the Law on credit institutions and have the function of credit extension in form of lending in accordance with provisions of applicable laws.

3. Borrowing customers shall be organizations, individuals, households that are borrowing customers of the entrusted party.

Article 3.Interpretation

1. Lending entrustment is capital delivery by the entrusting party to the entrusted party through the contract of lending entrustment to lend directly to customers, the entrusting shall pay trust fees to the entrusted party.

2. Trust fees is the compensation which is paid by entrusting person to the entrusted party to carry out directly the lending, debts collection for customers on the basis of the agreement between the entrusting party and the entrusted party.

3. Contract of lending entrustment is a written agreement between the entrusting party and the entrusted party so that the entrusted party lends directly to and collect debts from customers.

Article 4. Principles of the entrustment and taking entrustment for lending

1. The entrustment and taking entrustment for lending shall be performed through the contract of lending entrustment between the entrusting party and the entrusted party for lending;

2. Borrowing customers, subjects of lending, conditions of lending, level of lending funds, lending interest rate, debts rescheduling, loans security, risks settlement shall be agreed and undertaken by the entrusting party and the entrusted party for lending in the contract in accordance with provisions of applicable laws;

3. The entrusting party shall have right to select the entrusted party for lending to secure the safety, effectiveness, except for case where the entrusted party is appointed by the Government or competent authorities.

Article 5.Conditions of the entrusted party

The entrusted party shall satisfy following conditions:

1. Having the function of credit extension in form of lending in accordance with applicable laws;

2. Having the organization network in order to satisfy the direct requirement for lending and debts collection for customers;

3. Having the officer team with professional level and experience in the performance of lending and debts collection;

4. Not violating provisions on the safety in banking activities, being credible in lending, debts collection and securing the safety of loan funds.

Article 6.Contract of lending entrustment

1. The contract of lending entrustment shall consist of following contents: name, address of the entrusting party and entrusted party for lending, amount of money entrusted for lending, term of entrustment, lending interests, debts extension, loans security for customers, trust fees, responsibilities of the entrusting party and the entrusted party, other agreements in accordance with provisions of applicable laws.

2. Parties may authorize their member units to perform agreements and undertakings stated the contract of lending entrustment in accordance with provisions of applicable laws.

Article 7.Examination, supervision for the implementation of contract of lending entrustment

1. The entrusting party shall be responsible for the examination and supervision of the implementation progress of contract of lending entrustment by the entrusted party in accordance with agreements and undertakings stated in the contract.

2. The entrusted party must create favorable conditions for the entrusting party for lending to examine, supervise the implementation of contract of lending entrustment.

Article 8.Settlement for risks of entrustment and taking entrustment

1. Risks due to objective and subjective reasons caused by customers, failure to pay shall be the responsibility of the entrusting party. The settlement of risks shall be performed in accordance with provisions of applicable laws.

2. Risks which are caused by the lending entrusted party due to its performance, in contrary to agreements and undertakings stated the contract of lending entrustment, shall be the responsibility of the entrusted party. The settlement of risks shall be performed in accordance with provisions of applicable laws.

Article 9.Rights and obligations of the entrusted party

1. The entrusted party shall have the right:

+ To refuse requirements of the entrusting party which are in contrary to agreements and undertakings stated in the contract of lending entrustment.

+ To initiate a law court against the entrusting party in accordance with applicable laws if the latter violates the contract of lending entrustment.

2. The entrusted party shall have the obligation:

- To provide full, faithful information, documents relating to lending funds received from the entrusting party and be responsible for the accuracy of information, documents it provides.

- To use entrusted funds for right purposes, contents which are agreed upon and committed in the contract of lending entrustment.

- To return the entrusted funds and interests collected in due course in accordance with agreements and undertakings stated in the contract of lending entrustment.

Article 10. Rights and obligations of the entrusted party

1. The entrusting party shall have the right:

+ To require the entrusted party to provide for their documents on financial capacity, customers, disbursement performance, debts payment capability and some other documents.

+ To refuse requirements of the entrusted party which are in contrary with agreements and undertakings stated in the contract of lending entrustment. To examine and supervise the use of borrowed funds and payment of the entrusted party.

+ To terminate the contract of lending entrustment and accelerate the debts collection when the entrusted party violates agreements and undertakings stated in the contract of lending entrustment.

+ To initiate a law court against the lending entrusted party in accordance with applicable laws who violates the contract of lending entrustment.

2. The entrusting party shall have the obligation:

- To implement in accordance with agreements and undertakings stated in the contract of lending entrustment.

- To transfer entrusted funds in accordance with the progress implementation, maintain files for entrustment of lending in accordance with provisions of applicable laws.

- To pay trust fee of entrustment fully and timely.

- To cooperate with the entrusted party for the settlement of risks in accordance with agreements and undertakings stated in the contract of lending entrustment.

Article 11.Implementing provisions

The amendment, supplement of this Regulation shall be decided upon by the Governor of the State Bank of Vietnam.