DECISION

ON THE AMENDMENT, SUPPLEMENT OF SEVERAL ARTICLES OF THE REGULATION ON THE BANK GUARANTEE ISSUED IN CONJUNCTION WITH THE DECISION NO. 283/2000/QD-NHNN14 DATED 25 AUGUST, 2000 OF THE GOVERNOR OF THE STATE BANK OF VIETNAM

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam No. 01/1997/QH10 dated 12 December, 1997 and the Law on the Credit Institutions No. 02/1997/QH10 dated 12 December, 1997;
- Pursuant to the Decree No. 86/2002/ND-CP dated 05 November, 2002 of the Government on function, assignment, authority and organizations structure of Ministries and ministerial level agencies;
- Pursuant to the Decree No. 90/1998/ND-CP dated 07 November, 1998 of the Government promulgating Regulation on the management of foreign borrowing and repayment;
- Upon the proposal of the Director of the Credit Institutions Department,

DECIDES

Article 1. To amend, supplement several Articles of the Regulation on the bank guarantee issued in conjunction with the Decision No. 283/2000/QD-NHNN14 dated 25 August, 2000 of the Governor of the State Bank as follows:

1. Article 4 shall be amended as follows:

Article 4. Customers guaranteed by credit institutions

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a. Members of the Board of Directors, Controllers Committee, General Directors (Directors), Assistant General Directors (Deputy Directors) of credit institutions;

b. Officers, staffs of credit institutions who carry out the appraisal, make decisions on the guarantee;

c. Father, mother, wife, husband, childrens of members of the Broad of Directors, Controllers Committee, General Directors (Directors), Assistant General Directors (Deputy Directors).

d. The application of provisions as provided for in point c of this Article for guarantees who are father, mother, wife, husband, childrens of Directors, Deputy Directors of branches of credit institutions shall be considered and decided upon by credit institutions.

2. The guarantee restriction of credit institutions for customers shall be performed in accordance with provisions of Article 78 of the Law of credit institutions.

2. Article 8 shall be amended as follows:

Article 8. Conditions for the provision of a guarantee

Credit institutions shall consider and decide on the provision of a guarantee upon the satisfaction by customers of following conditions:

1. Having full legal capacity for civil relations, civil act capacity in accordance with applicable laws;

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3. Availability of lawful security for the obligation to be guaranteed in accordance with the provisions of Article 21 of this Regulation;

4. Availability of financial capacity to perform the guaranteed obligation for duration of commitment;

5. In case where the guarantee relates to foreign factors (guarantee accepting party or guaranteed party being foreign organizations, individuals), in addition to conditions as provided for in paragraph 1,2,3,4 of this Article, a customer shall comply with provisions on the management of foreign borrowing and repayment, foreign lending and debts collection, provisions on foreign exchange control and other related provisions of applicable laws.

6. In the event of the guarantee of a bill of exchange, promissory note, customers shall satisfy conditions provided for by applicable laws on commercial papers

3. Article 14 shall be amended as follows:

Article 14. Co-guarantee

1. The initiation, co-ordination and sequences of procedures for the implementation of co-guarantee shall be performed in accordance with provisions on the co-financing of the State Bank.

2. Credit institutions participating in the co-guarantee shall be jointly responsible for the implementation of guarantee obligations that the co-ordinating credit institution has made to the guarantee accepting party unless parties have agreed otherwise. In the event of the failure by the customer to perform or duly perform the obligation committed to the guarantee accepting party, the co-ordinating credit institution shall be responsible to perform the guarantee obligation in lieu of the customer. The credit institutions participating to the co-guarantee shall be responsible for the repayment of the amount which is paid by the co-ordinating credit institution in lieu of their respective commitment in the guarantee contract of joint liability signed by credit institutions participating to the co-guarantee.

4. Article 21 shall be amended as follows:

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Credit institutions and their customers shall agree on whether or not to take security measures for the guarantee. Forms of security for a guarantee shall include: deposit, mortgage, pledge of asset, guarantee with assets of a third party and other forms of security in accordance with provisions of applicable laws.

Article 2. This Decision shall be effective after 15 days from the date of publication in the official gazette.

Article 3. The Director of Administrative Department, Heads of related units of the State Bank of Vietnam, General Managers of the State Bank branches in provinces, cities under the central Government's management, the Chairman of the Board of Directors, General Directors (Directors) of credit institutions shall be responsible for the implementation of this Decision.

THE GOVERNOR OF THE STATE BANK




Le Duc Thuy