THE STATE BANK OF VIETNAM
SOCIALIST REPUBLIC OF VIETNAM
Hanoi, October 12, 2006
PROVIDING GUIDANCE ON ACTIVITY OF FINANCE LEASING SYNDICATION OF FINANCE LEASING COMPANIES IN ACCORDANCE WITH PROVISIONS IN THE DECREE NO. 16/2001/ND-CP DATED 2 MAY 2001 AND THE DECREE NO. 65/2005/ND-CP DATED 19 MAY 2005 OF THE GOVERNMENT
Pursuant to point b, paragraph 2, Article 31 of the Decree 16/2001/ND-CP dated 2 May 2001 of the Government on organization and operation of finance leasing companies, the State Bank of Vietnam would like to provide guidance on activity of finance leasing syndication of finance leasing companies as follows:
1. Governing scope:
This Circular provides guidance on the activity of finance leasing syndication provided by finance leasing companies to Vietnamese and foreign organizations, individuals that are operating in Vietnam and have a demand for hiring assets being machines, equipment, transport means and other movable assets for performing projects of production, business, service or investment project for improvement of domestic living standard (hereinafter referred to as project). This Circular shall not guide the activity of overseas finance leasing syndication.
In this Circular, following terms shall be construed as follows:
2.1. Finance leasing syndication (hereinafter referred to as leasing syndication) means finance leasing activity provided by a group of finance leasing companies (from 2 finance leasing companies and more) to the lessee, in which there is a finance leasing company acting as a coordinator.
2.2. Syndication lessor is a group of finance leasing companies established and operating under applicable laws of Vietnam (from 2 finance leasing companies and more) coordinating with each other to provide the leasing syndication to the lessee in accordance with the provisions in this Circular.
2.3. Member is a finance leasing company or a finance leasing company’s branch which is authorized in accordance with provisions of applicable laws and accepts to participate in the leasing syndication under specific forms performed by that member in leasing syndication to a project.
2.4. Co-ordinating organisation for leasing syndication means a member that other members participating in finance leasing unanimously select and assign it the co-ordinating responsibility for the leasing syndication.
2.5. Coordinating organization for the payment is a member which is unanimously selected by other members and undertakes to perform specific payment operations in the leasing syndication activity.
2.6. The lessee means Vietnamese and foreign organizations or individuals that are stipulated in accordance with the guidance of the State Bank of Vietnam on finance leasing activity and finance leasing entrustment service.
2.7. Syndication contract is a written commitment, between members participating in the leasing syndication, on the performance of rights and obligations of each member during the whole process of leasing syndication.
2.8. Leasing syndication contract is a written commitment on rights and obligations of a group of members or of each member or a coordinating organization for the leasing syndication with respect to the lessee on the finance leasing in accordance with provision of applicable laws on finance leasing activity, guidance in this Circular and other provisions of related laws.
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