Chapter IV
FULFILLMENT OF CREDIT GUARANTEE OBLIGATIONS
Article 29. Process to fulfill commitments to the credit guarantee
1. After the obligor defaults on the debt owned to the obligee under the signed credit contract, the obligee shall notify the guarantor of the fulfillment of guarantee obligations as prescribed in Article 30 of this Decree.
2. The guarantor shall assess documents in the request for fulfillment of guarantee obligations made by the obligee as prescribed in Article 31 of this Decree.
3. The guarantor shall repay debts on behalf of the obligor in case of approval and refuse to fulfill the guarantee obligations in case of disapproval as prescribed in Article 32 of this Decree.
4. The obligor shall undertake to be indebted and reimburse the guarantor the debts which are repaid by the guarantor.
5. Deal with risks of improbability to recover the debts repaid on behalf of the obligor.
Article 30. Notices of credit guarantee obligations
1. By the expiry date on which the debt repayment shall be due, if the obligor fails to repay or insufficiently repay their debts to the obligee under the signed credit contract, the obligee must clarify the reasons for this insolvency and apply regulated measures to collect debts under the credit guarantee contract, guarantee certificate prescribed in Article 23 and Article 23 of this Decree.
2. If the obligor is still unable to repay their debts after all of debt collection measures prescribed in Clause 1 of this Article are failed, the obligee must send a written notice of the obligor’s default to the guarantor and request the guarantor to repay debts on behalf of the obligor under the credit guarantee contract and guarantee certificate, enclosed with proof that debt collection measures are applied but the obligor still be unable to repay the debts and documents related to the guarantee mentioned in the credit guarantee contract, guarantee certificate.
3. The Director of credit guarantee fund request the President to specify required documents in the request for debt repayment on behalf of the obligor made by the obligee.
Article 31. Verification of request for debt repayment on behalf of the obligor made by the obligee
1. Within 15 days after receiving a duly completed request from the obligee as prescribed in Article 30 of this Decree, the guarantor shall verify the request. Matters to be verified:
a) The sum that the obligee requests the guarantor to repay debts on behalf of the obligor;
b) The legitimacy of loan disbursement made by the obligee to the obligor before and after the issuance of guarantee certificate, in accordance with the Law on credit institutions and relevant regulations on the loan;
c) The obligee’s observance to commitments in the guarantee certificate and credit guarantee contract;
d) The fair market value of the collateral in a case where the obligee holds the collateral together with the guarantee and the loan as prescribed in this Decree.
2. In case of qualified guarantee as agreed upon in the guarantee certificate, within 10 days from the completion of request verification, the guarantor must issue an approval for the debt repayment on behalf of the obligor, clarifying the time when the guarantor must repay the debt on behalf of the obligor as committed in the guarantee certificate.
3. In case of unqualified guarantee as agreed upon in the credit guarantee contract, guarantee certificate and the case that the guarantor is entitled not to fulfill the guarantee obligations prescribed in Article 32 of this Decree, the guarantor shall notify the obligee of non-fulfillment of guarantee obligation and clarify reasons thereof.
Article 32. Cases the guarantor entitled not to fulfill the guarantee obligations
The guarantor is entitled not to fulfill the guarantee obligations in the following cases:
1. The obligee has not applied all measures to collect debts from the obligor as prescribed in Clause 1 Article 30 of this Decree.
2. The obligee violates laws on lending regulations of the lender during the extending of credit to the obligor, or fails to inspect, supervise or inspect, supervise not in a timely manner, leading to the consequence that the obligor uses the loan or asset derived from the loan not for the purposes mentioned in the credit contract.
3. Other cases agreed by the guarantor, the obligee and the obligor in the credit guarantee contract and guarantee certificate.
Article 33. Fulfillment of credit guarantee obligations
1. After sending a notice of approval for debt repayment on behalf of the obligor to the obligee prescribed in Clause 2 Article 30 of this Decree, the guarantor shall transfer money to the obligee on schedule specified in this notice. According to the financial situation, the guarantor may deal with the obligee to transfer the guaranteed amount at one time or multiple times.
2. The repayment sum includes principal and interests as agreed upon in the guarantee certificate, credit guarantee contract.
3. Before transferring the money, the guarantor and the obligee must reach an agreement to dispose of the collateral if the collateral is both put up for the loan and the guarantee as prescribed in this Decree.
Article 34. Indebtedness and reimbursement of guaranteed debts
1. The obligor shall undertake to be in debt with the guarantor:
a) After the credit guarantee fund transfers money to repay debts to the obligee, the obligor is obliged to undertake to be indebted and reimburse the guarantor the amount the guarantor has paid on behalf of the obligor
b) The obligor must repay debts to the guarantor, including: the principal to be repaid to the credit guarantee fund (including principal and interests that the credit guarantee fund has repaid to the lender), the forced interests up to 150% of lending interest rates within the term of loan at the time that the debt is accepted, unpaid guarantee fee, other costs that the guarantor has paid on behalf of the obligor. The forced indebtedness shall be made in form of a forced indebtedness contract;
c) According to the credit guarantee contract and guarantee certificate, the credit guarantee fund shall decide the term and interests for forced indebtedness, applied to the debts that the guarantor has paid. The term of the forced indebtedness does not exceed one third of the term of the guaranteed loan.
2. In special circumstances, the Director of credit guarantee fund shall request the President to seek approval from the President of People’s Committee of province for the exemption from or reduction in forced indebtedness interests on a case-by-case basis prescribed in Point b Clause 1 of this Article. The President of credit guarantee fund shall consider issuing the Regulation on indebtedness interest rates, exemption from or reduction in forced indebtedness interests after obtaining the approval from the President of People’s Committee of province.
3. If the obligor is not capable of repaying the due forced loan, the guarantor is entitled to apply responses to risks as prescribed in Article 37 of this Decree.
Article 35. Termination of obligations to guarantee loans
The guarantor’s obligations to guarantee loans shall be terminated in the following cases:
1. The obligor has fulfilled their obligations to make a full payment on debts to the obligee under the credit contract.
2. The guarantor has discharged their guarantee obligations as agreed upon with the obligee in the credit guarantee contract or guarantee certificate.
3. The loan guarantee shall be cancelled or replaced by other guarantee methods if the mutual agreement entered into by interested parties is reached.
4. Within 60 days from the issuance of guarantee certificate, if there is no amount of disbursement from the obligee to the obligor, the guarantee certificate shall cease to be effective.
5. The term of loan guarantee has expired.
6. The obligee has agreed to exempt the guarantor from fulfilling their guarantee obligations, or the guarantee obligations have been terminated in accordance with laws.
7. Pursuant to the agreement signed by contracting parties in compliance with laws.
Article 36. Debt classification, building up guarantee loss reserves
1. Debt classification: The credit guarantee fund shall classify debts that have been repaid on behalf of the obligor (the obligor is forced to be indebted) as prescribed by the State bank of Vietnam.
2. Building up guarantee loss reserves: The credit guarantee fund may build up the guarantee loss reserves and have them deducted from the operational costs as follows:
a) Build up an annual general guarantee loss reserve equal to 0.75% of its guarantee balance;
b) Build up particular guarantee loss reserves: According to the debt classification and annual revenues and expenditures, the credit guarantee fund shall build up particular guarantee loss reserves for debts that have been repaid on behalf of the obligor, the rate of reserve may not exceed the maximum reserve rates by debt groups applied to credit institutions.
3. The credit guarantee fund shall be entitled to use the guarantee loss reserves to cover debts arising from guarantee obligations which cannot be recovered after using risk insurance (if any). At the end of the year, if the balance of the guarantee loss reserve remains positive, it will be carried forward to the following year for further use.
If the guarantee loss reserve is not enough to cover guarantee risks arising in that year, the financial reserve fund shall be taken as prescribed in Article 43 of this Decree.
Article 37.
1. Rules for dealing with risks: The dealing with risks of the credit guarantee fund must respect the following rules:
a) In accordance with laws and regulations;
b) Minimize damage to the state and involve the credit guarantee fund, the obligee, the obligor and relevant agencies taking responsibilities for the guarantee and recovery of the debts as prescribed in this Decree and relevant laws.
2. Responses to risks of credit guarantee fund: debt structuring, charge-off, write-off (principal and interests), debt purchase and disposal of collateral.
3. Power to deal with risks:
a) The President of People’s Committee of province shall decide on: write-off (principal and interests), debt purchase under the book value;
b) The President of credit guarantee fund shall decide on charge-off and disposal of collateral;
c) The Director of credit guarantee fund shall decide the debt structuring.
4. The Ministry of Finance shall provide guidelines for responses to risks of the credit guarantee fund.
5. The recovered amount from guarantees after dealing with risks, including the amount recovered from the disposal of collateral shall be transferred to the guarantee loss reserve of the credit guarantee fund.
Tìm kiếm
Nghị định 34/2018/NĐ-CP (Bản Word)
Nghị định 34/2018/NĐ-CP (Bản Pdf)
