Chapter III
OPERATION OF FINANCIAL LEASING COMPANIES
Article 16. Operation of financial leasing companies
1. Financial leasing companies may conduct the operations specified in Articles 112 thru 116 of the Law on Credit Institutions and this Decree.
2. Purchase and sub-lease.
3. Sale of payable amounts from financial leasing contracts to organizations and individuals under the State Bank’s regulations.
Article 17. Rights of lessors
1. To own leased assets throughout the lease term and not to be affected in case the lessee goes bankrupt, is dissolved or involved in a dispute or lawsuit at court related to a third party. Leased assets are not regarded as assets of the lessee upon the handling of assets for payment of debts to other creditors.
2. To affix their ownership signs onto leased assets throughout the lease term.
3. To request lessees to pay deposits or to apply other security methods in accordance with law if necessary.
4. To request lessees to provide information on suppliers, quarterly reports on their production and business activities, annual financial settlement as well as matters related to lessees and leased assets.
5. To examine the management and use of leased assets.
6. To transfer their rights and obligations in financial leasing contracts to other financial lessors. In this case, lessors shall notify such in writing to lessees.
7. To request lessees to pay compensations when the latter violates terms and conditions of financial leasing contracts.
8. To terminate leasing contracts ahead of schedule and request lessees to pay the remaining rent and expenses arising during the termination of financial leasing contracts ahead of schedule as lessees violate terms and conditions which constitute grounds for termination of contracts as prescribed in financial leasing contracts.
9. To recover leased assets if lessees use and exploit leased assets in contravention of provisions of financial leasing contracts; to request competent state agencies to apply methods in accordance with law to ensure that lessors exercise the owner’s rights to leased assets.
10. To recover irreparably damaged leased assets, request lessees to pay their remaining rent and expenses arising in the course of recovery of leased assets.
11. Other rights prescribed in financial leasing contracts.
Article 18. Obligations of lessors
1. To assess the financial capacity and prestige of legally operating suppliers; leased assets, including their technical specifications, types, prices and time limits for delivery, installation and warranty; the feasibility and efficiency of production and business investment projects, conditions on financial leasing, leased asset use purpose and lessees’ debt payment capacity.
2. To purchase and import assets already agreed upon by both parties in financial leasing contracts.
3. To register the ownership of, and carry out the procedures for buying insurance for, leased assets in accordance with law.
4. To take no responsibility for the non-delivery of assets or failure to deliver the assets under the conditions already agreed upon between lessees and suppliers.
5. To implement properly other terms and conditions in financial leasing contracts.
Article 19. Rights of lessees
1. To receive and use leased assets under provisions of financial leasing contracts.
2. To decide on purchase or continued lease of assets upon the expiry of the lease term.
3. To request lessors to pay compensations for their violation of terms and conditions of financial leasing contracts.
4. Other rights prescribed by financial leasing contracts.
Article 20. Obligations of lessees
1. To be responsible for the selection of leased assets, suppliers, terms and conditions relating to leased assets, including technical specifications, types, prices and time limits for delivery, installation and warranty and other leased asset-related terms and conditions.
2. To use leased assets for right purposes as agreed upon in financial leasing contracts; to refrain from selling or transferring the right to use leased assets to other individuals and organizations, unless otherwise agreed between lessors and lessees in financial leasing contracts.
3. To provide information on suppliers, quarterly reports on their production and business activities, annual financial settlement as well as matters related to leased assets at lessors’ request; to create conditions for lessors to check leased assets.
4. To pay rents and pay other expenses related to leased assets under provisions of financial leasing contracts.
5. To bear all risks of loss of leased assets, all expenses for maintenance, repair or replacement of leased assets throughout the lease term and be responsible for all consequences caused by the use of leased assets to other organizations and individuals in the course of using leased assets.
6. To refrain from erasing or damaging lessors’ ownership signs affixed on leased assets.
7. To refrain from using leased assets for mortgage, pledge or use as security for performance of other obligations.
8. To pay the remaining rent and expenses incurred to lost or irreparably damaged leased assets or upon the termination of financial leasing contracts ahead of schedule as lessees violate terms and conditions which constitute grounds for terminating contracts prescribed in financial leasing contracts.
9. To properly implement other terms and conditions in financial leasing contracts.
Article 21. Termination of financial leasing contracts ahead of schedule
1. A financial leasing contract may terminate ahead of schedule in one of the following cases:
a/ The lessee fails to pay the rent or violates one of other terms and conditions constituting grounds for terminating the contract under provisions of the financial leasing contract;
b/ The lessee is declared bankrupt or dissolved;
c/ The lessor violates one of other terms and conditions constituting grounds for terminating the contract under provisions of the financial leasing contract;
d/ The leased assets are lost or irreparably damaged;
dd/ The lessor and lessee agree to the latter’s payment of the remaining rent ahead of schedule prescribed by the financial leasing contract.
2. Lessors and lessees shall provide in detail the termination of contracts in financial leasing contracts specified in Clause 1 of this Article.
Article 22. Handling of financial leasing contracts terminated ahead of schedule
1. In case a financial leasing contract is terminated ahead of schedule under Points a and b, Clause 1, Article 21 of this Decree, the lessee shall immediately pay the remaining rent. If the lessee fails to pay the rent, the lessor shall handle the leased assets as follows:
a/ The lessor shall notify in writing to the lessee, the People’s Committee and the public security office of the place where the lessee’s head office and leased assets are located the recovery of the leased assets and request such agencies, within the ambit of their functions, tasks and powers, to apply methods in accordance with law to maintain security and order in the course of recovery of the leased assets, to ensure the lessor’s exercise of the owner rights to the leased assets; immediately recover the leased assets (except the leased assets being subjects and material evidences of criminal cases handled in accordance with the criminal law); grant compulsory loans to the lessee to pay the cost of recovering the leased assets upon its/his/her breach of the financial leasing contract and involuntary transfer of assets;
b/ The lessee shall immediately cease the use and return the leased assets to the lessor at the latter’s request, refrain from any act to hinder the recovery of the leased assets or continued possession or use of the leased assets; pay the remaining rent under provisions of the financial leasing contract and expenses arising from the recovery of the leased assets; accept compulsory loans offered by the lessor to pay for the cost of recovering the leased assets upon the lessee’s breach of the financial leasing contract and involuntary transfer of assets.
2. In case a financial leasing contract is terminated ahead of schedule specified at Points c and dd, Clause 1, Article 21 of this Decree, its provisions shall be complied with.
3. In case a financial leasing contract is terminated ahead of schedule under Point d, Clause 1, Article 21 of this Decree:
a/ If the leased assets are lost or irreparably damaged, the lessor shall notify in writing the administration of the locality where the lessee’s head office and leased assets are located of the lost or irreparably damaged assets and request the application of methods within its competence in accordance with law to ensure the lessor’s exercise of the owner rights to the leased assets; send the lessee a notice of recovery of the lost assets and request its/him/her to pay the remaining rent under provisions of the financial leasing contract and expenses relating to the recovery of the leased assets;
b/ The lessee shall transfer the damaged leased assets at the request of the lessor, pay the latter the remaining rent under provisions of the financial leasing contract and expenses arising from the recovery of the leased assets.
Article 23. Certificates of leased asset ownership
In the course of leasing term, the lessor shall keep the original of the certificate of ownership of the leased assets. The lessee may use copies certified by competent state agencies in legal relations involving the use of leased assets.
Article 24. Registration of financial leasing contracts
The registration of financial leasing contracts complies with law.
Tìm kiếm
Nghị định 39/2014/NĐ-CP (Bản Word)
Nghị định 39/2014/NĐ-CP (Bản Pdf)
