Chương 5 Nghị định 85-CP: Quy định về việc góp vốn liên doanh, thế chấp bằng giá trị quyền sử dụng đất

Chapter V

PROVISIONS ON CAPITAL CONTRIBUTION TO JOINT VENTURES, MORTGAGE OF THE LAND USE RIGHT VALUE

Article 15.- Domestic economic organizations with land assigned by the State for use for agricultural production, forestry, aquaculture and salt production shall, within the land assignment term, be entitled to contribute the land use right value as their capital to joint ventures according to the following provisions:

1. Joint venture with domestic organizations and/or individuals:

a/ If the land use purpose does not change, the joint venture is entitled to continue using such land. The land use right value to be contributed as capital to the joint venture shall be agreed upon by the parties, but must not be lower than the land price bracket promulgated by the State. The joint venture shall also have to fulfill the financial obligations provided for by the Ministry of Finance.

b/ If the land use purpose is changed, the party contributing land as capital to the joint venture shall have to shift to the form of land lease from the State. The land use right value contributed as capital to the joint venture shall be equivalent to the land rent to be paid to the State corresponding to the joint venture duration.

2. The contribution of the land use right value as capital to joint ventures with foreign organizations and/or individuals must be permitted by the competent State agencies defined in Decree No. 191-CP of December 28, 1994 of the Government. The party contributing land as capital to a joint venture shall have to shift to the form of land lease from the State, record its debt and remit the land rent to the State budget in accordance with the regulations of the Ministry of Finance.

Article 16.- Domestic economic organizations using land for agricultural production, forestry, aquaculture and salt production shall be entitled to mortgage the land use right value attached to the properties under their ownership at Vietnamese banks to borrow capital for production and business.

The conditions for mortgage shall be agreed upon by the Bank and the mortgagor but the following principles must be ensured:

1. If the borrowing organization cannot pay the debt when it is due or has been dissolved before term, the Bank shall be entitled to request the competent State agency to auction the properties on the mortgaged land for the payment of debt to the Bank and to decide the assignment of land to the properties purchaser for continued use;

2. The mortgaging organization and the Bank accepting the mortgage shall not be allowed to re-assign, transfer or lease the land use right as stipulated in Clause 2, Article 4 of the Ordinance on the Rights and Obligations of the Domestic Organizations with Land Assigned or Leased by the State of October 14, 1994;

3. The mortgage and its removal must be registered at the Land Administration Service.

Article 17.- With regard to domestic economic organizations which are assigned land by the State and subject to the land use levy, if they are allowed by the competent State agency to enter into joint venture with domestic and/or foreign organizations and/or individuals, the value of the contributions to joint ventures shall be agreed upon by the parties and made in accordance with the provisions of law.

Article 18.- Domestic economic organizations which are assigned land by the State and subject to the land use levy shall be entitled to mortgage the value of the land use right or the value of the land use right associated with the properties under their ownership at Vietnamese banks to borrow capital for production development according to the following provisions:

1. The value of the land use right to be mortgaged shall be the land use levy already paid at the land prices set by the People�s Committees of the provinces or cities directly under the Central Government on the basis of the land price brackets promulgated by the Government.

2. The value of mortgaged properties which have been invested on the mortgaged land shall be agreed upon by the mortgagor and the Bank.

3. If the borrowing party cannot pay the debt when it is due or the organization has been dissolved before term, the bank shall be entitled to request the competent State agency to auction the land use right and the properties (if any) which have been mortgaged by the borrowing organization so as to pay the debt for the Bank. The auction winner, after having paid in full the auction money, shall be assigned land by the State without having to pay the land use levy.

4. The mortgage of land and its removal must be registered at the Land Administration Service.

Article 19.- The value of the leased land use right to be contributed as capital to joint ventures with domestic or foreign organizations and/or individuals by State enterprises, enterprises of political and social organizations, security and defense enterprises shall be determined in accordance with the provisions of Clause 2, Article 13 of this Decree.

Article 20.- Economic organizations with land leased by the State shall, within the land lease term, be entitled to mortgage the value of the land use right associated with properties under their ownership at Vietnamese banks to borrow capital for production development according to the following provisions:

1. The value of the mortgaged land use right shall be decided by the Bank and must not exceed the value of the invested properties on the mortgaged land plus the land rent already paid.

2. When the debt is due or the mortgaging organization has been dissolved before term and cannot pay the debt, the Bank shall be entitled to request the competent State agency to auction the properties on the mortgaged land to pay the bank debt and to decide to lease the land to the purchaser of the properties.