Chapter V
SPECIAL CONTROL, BANKRUPTCY, DISSOLUTION AND LIQUIDATION
Section 1. SPECIAL CONTROL
Article 91.- Reporting on reimbursement difficulties
When facing a risk of loosing its ability to reimburse customers, a credit institution shall have to immediately report to the State Bank on its present financial status, causes and measures already taken and to be taken to overcome the situation.
Article 92.- Application of special control
1. Special control is the placing of a credit institution under the direct control of the State Bank because such credit institution faces a risk of loosing its ability of reimbursement or ability of payment..
2. The State Bank shall have to inspect and discover in time cases facing the risk of loosing the ability of reimbursement or the ability of payment.
3. A credit institution may be placed in the state of special control in the following cases:
a/ Facing the risk of loosing its reimbursement ability;
b/ Facing the risk of loosing its payment ability due to irrecoverable debts ;
c/ When the amount of its cumulative losses exceeds 50% of the total actual statutory capital and funds.
Article 93.- Decision on special control
1. The Governor of the State Bank shall issue the decision to place a credit institution in the state of the special control.
2. The decision to place a credit institution in the state of the special control includes the following details:
a/ The name of the credit institution to be placed under special control;
b/ Reason(s) for the special control;
c/ The full names of the members of the special control commission and their specific tasks;
d/ Duration of the special control.
3. The decision on special control shall be notified by the State Bank to the competent State agency and concerned local agencies for coordinated implementation.
4. The placing of a credit institution in the state of special control shall not be made public.
Article 94.- Tasks, powers and responsibilities of the special control commission
1. The special control commission shall have the following tasks:
a/ To direct the Managing Board, the Control Board, the general director (director) of the credit institution placed in the state of special control to formulate the plan on strengthening its organization and operation;
b/ To direct and supervise the application of the measures mentioned in the plan on strengthening the credit institution already approved by the special control commission;
c/ To report to the State Bank on the situation of operation and the result of the execution of the plan on strengthening the credit institution.
2. The special control commission shall have the following powers:
a/ To suspend the operations which are inconsistent with the already approved plan on strengthening the organization and operation, with the regulations on safety in banking activities, which may harm the interests of depositors;
b/ To temporarily suspend the rights to administer, manage and control the credit institution of the members of the Managing Board, the Control Board, the general director (director), the deputy general director (director), if deemed necessary;
c/ To request the Managing Board, the general director (director) to dismiss or suspend the work of the people who commit acts of law offenses or fail to abide by the already approved plan on strengthening the organization and operation.
d/ To propose the Governor of the State Bank to extend or terminate the duration of special control;
e/ To make recommendations to the Governor of the State Bank on special loans to credit institutions.
3. The special control commission shall take responsibility for its decisions in the course of exercising the special control.
Article 95.- Duties of the credit institution under the special control
The Managing Board, the Control Board and the general director (director) of the credit institution under the special control shall have the responsibility to:
1. To draw up a plan on strengthening the organization and operation of the credit institution and submit it to the special control commission for approval and organizing the execution of such plan;
2. To continue to manage, supervise and run the operations and ensure safety for the assets of the credit institution, except for cases specified in Point b, Clause 2, Article 94 of this Law;
3. To respond to the requests of the special control commission regarding the organization, management, supervision and running of the credit institution.
Article 96.- Special loans
In case of emergency, to ensure the ability to reimburse deposits to its customers, a credit institution may be provided with special loans by other credit institutions or the State Bank. Priority shall be given to the repayment of these special loans prior to all other debts of the credit institution.
Article 97.- Termination of special control
1. The special control shall terminate in the following cases:
a/ Upon the expiration of the special control duration without extension;
b/ The operations of the credit institution return to normal;
c/ Before the expiration of the special control duration, the credit institution is merged or consolidated;
d/ The credit institution falls into the state of bankruptcy.
2. The special control shall be terminated by a decision of the Governor of the State Bank. This decision shall be notified to the concerned agencies.
Section 2. BANKRUPTCY, DISSOLUTION, LIQUIDATION
Article 98.- Bankruptcy of credit institutions
After the State Bank issues a document on the non-application or termination of the application of the measures to rehabilitate the payment ability of a credit institution but such credit institution still loses its ability to pay mature debts, a Court may start procedures to settle the request for declaring the credit institution bankrupt in accordance with the Law on Enterprises' Bankruptcy.
Article 99.- Dissolution of credit institutions
A credit institution may dissolve in the following cases:
1. The credit institution voluntarily applies for the dissolution if it is able to pay all debts and the State Bank so approves.
2. Upon the expiration of the operating duration the credit institution does not apply for extension or applies for extension but such extension is rejected by the State Bank.
3. The credit institution has its establishment and operation license revoked.
Article 100.- Liquidation of credit institutions
1. In case a credit institution is declared bankrupt, it shall be liquidated in accordance with the legislation on enterprises' bankruptcy.
2. When dissolving in accordance with Article 98 of this Law, the credit institution must conduct liquidation under the supervision of the State Bank.
3. All costs related to the liquidation shall be incurred by the liquidated credit institution.
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Luật tổ chức tín dụng 1997 (Bản Word)