New Regulations on Withdrawal from Tontine in Vietnam under Decree 19/2019/ND-CP

Unless otherwise agreed, a person may become a new member of the tontine with the consent of the tontine owner and all members or by fully contributing their parts according to the agreement as of the time of participation. Withdrawal from the tontine is regulated by Decree 19/2019/ND-CP as follows:

- A member who has received contributions may withdraw from the tontine but must contribute the remaining unpaid parts and deliver them to the tontine owner or the member keeping the tontine records in the absence of the tontine owner.

- The withdrawal from the tontine of members who have contributed but not yet received contributions is conducted as follows:

+ They are entitled to receive back the contributed parts as per the agreement. In the absence of an agreement, the withdrawing member is entitled to receive back their contributed parts at the end of the tontine.

+ The withdrawing member must return a portion of the interest received and fulfill other obligations as agreed; if damages are caused, they must compensate.

- In case a participant of the tontine dies, the rights and obligations of the deceased established in the tontine relationship will be resolved according to inheritance regulations. Participation in the tontine by the heir is conducted according to the agreement between the heir and the tontine participants.

See the full regulation at Decree 19/2019/ND-CP, effective from April 5, 2019.

- Thanh Lam -

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