Does the bank in Vietnam have the right to enforce the mortgage as a means of transport?
Does the bank in Vietnam have the right to enforce the mortgage as a means of transport?
Mortgage of property is one of the security measures. Article 317 of the Civil Code 2015 stipulates that mortgage of property means the use by one party (hereinafter referred to as the mortgagor) of property under the ownership of the obligor as security for the performance of an obligation to the other party (hereinafter referred to as the mortgagee) without transferring such property to the mortgagee.
The mortgaged property shall be held by the mortgagor. The parties may agree to deliver the mortgaged property to a third person to hold.
Accordingly, mortgage of property means the use by one party of property under the ownership of the obligor as security for the performance of an obligation to the other party
Pursuant to Article 323 of the Civil Code 2015, the rights of the mortgagee will include:
Rights of mortgagees
1. Examine and inspect directly the mortgaged property provided that such examination and inspection does not hinder or cause difficulty to the use and exploitation of the mortgaged property.
2. Require the mortgagor to provide information on the current status of the mortgaged property.
3. Require the mortgagor to apply necessary measures to preserve the property and the value of the property if there is a danger that use and exploitation of the mortgaged property will cause loss of value or depreciation in value of the property.
4. Conduct the registration of mortgage as prescribed by law.
5. Require the mortgagor or a third person holding the mortgaged property to deliver it to the mortgagee for realization if, upon expiry of the term for fulfillment of the obligation, the obligor has failed to perform or performed incorrectly the obligation.
6. Hold documents related to mortgaged property as agreed by parties, unless otherwise prescribed by law
7. Follow procedures for realization of mortgaged property as prescribed in Article 299 of this Code.
Thus, based on the provisions on the rights of the mortgagee, there is no provision that recognizes that the mortgagee has the right to coerce the property.
Does the bank in Vietnam have the right to enforce the mortgage as a means of transport? (Image from the internet)
What are the regulations on the authority to distraint of vehicles in Vietnam?
Pursuant to Article 96 of the Law on Enforcement of Civil Judgments 2008, the case of enforcement of distraint of vehicles is as follows:
Distraint of vehicles
1. Upon distraint of vehicles of judgment debtors, enforcers shall request judgment debtors or current managers or users of these vehicles to hand their registration certificates, if any.
2. For vehicles currently in use or operation, after the distraint thereof enforcers may seize or assign these vehicles to judgment debtors or their current managers or users for further use, operation and preservation without transfer, pledge or mortgage.
In case of assignment of vehicles to judgment debtors or their current managers or users for further use, operation, enforcers shall issue to these persons written records of the seizure of their registration certificates as permission for these vehicles to join traffic.
3. Enforcers may request competent agencies to prohibit the transfer, pledge, mortgage or lease of, or restrict traffic by, distrained vehicles.
4. The distraint of aircraft and seagoing ships for judgment enforcement must comply with the law on arrest of aircraft and seagoing ships.
Thus, only enforcers may request competent agencies to prohibit the transfer, pledge, mortgage or lease of, or restrict traffic by, distrained vehicles.
When will the banks in Vietnam be entitled to seize collateral put up by a grantor or holder of collateral?
Pursuant to Clause 2, Article 7 of Resolution 42/2017/QH14 stipulating that a credit institution or the bad debt purchaser/manager is entitled to seize collateral put up by a grantor or holder of collateral only if it satisfies fully the following conditions:
- Occurrence of any case in terms of treatment of collateral prescribed in Article 299 of the Civil Code 2015;
- The security agreement clearly indicates the grantor’s consent to the credit institution’s right to seize the collateral upon occurrence of the case of treating collateral as per the law;
- The secured transaction or security interests has been registered as prescribed by law;
- The collateral is not in dispute in a case that has been accepted but remained unsolved or has been resolving at an authorized court; the collateral is not put under temporary emergency measures; and the collateral is not distrained or under judgment enforcement as prescribed by law;
- The credit institution or bad debt purchaser/manager has fulfilled obligation to publish information as prescribed in Clause 3 or Clause 4 of Article 7 of Resolution 42/2017/QH14.
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