What are the negotiable instruments in which the payment sum is written in a foreign currency? What is the penalty for forging signatures affixed to negotiable instruments in Vietnam?
Vietnam: What is a negotiable instrument?
According to the provisions of Clause 1, Article 4 of the Law on Negotiable Instruments 2005, the negotiable instrument means a valuable paper recording an order or undertaking to pay unconditionally a specific sum within a fixed time.
What are the negotiable instruments in which the payment sum is written in a foreign currency? What is the penalty for forging signatures affixed to negotiable instruments in Vietnam?
What are the negotiable instruments in which the payment sum is written in a foreign currency in Vietnam?
Pursuant to the provisions of Article 9 of the Law on Negotiable Instruments 2005, regulations on negotiable instruments in which the payment sum is written in a foreign currency are as follows:
Negotiable instruments in which the payment sum is written in a foreign currency
1. The payment sum in a negotiable instrument may be written in a foreign currency in accordance with the provisions of the law on foreign exchange control.
2. Negotiable instruments in which the payment sum is written in a foreign currency in accordance with the provision of clause 1 of this article may be paid in foreign currency when the last beneficiary is permitted to receive foreign currency in accordance with the provisions of the law on foreign exchange control.
3. With respect to negotiable instruments in which the payment sum is written in a foreign currency but the last beneficiary is not permitted to receive foreign currency in accordance with the provisions of the law on foreign exchange control, the sum in the negotiable instrument shall be paid in Vietnamese Dong at the exchange rate published by the State Bank of Vietnam on the date of payment or at the rate for foreign currency trading published by the paying bank on the date of payment in the case where the bank makes the payment.
Accordingly, the payment sum in a negotiable instrument may be written in a foreign currency in accordance with the provisions of the law on foreign exchange control.
- Negotiable instruments in which the payment sum is written in a foreign currency in accordance with the provision of clause 1 of this article may be paid in foreign currency when the last beneficiary is permitted to receive foreign currency in accordance with the provisions of the law on foreign exchange control.
- With respect to negotiable instruments in which the payment sum is written in a foreign currency but the last beneficiary is not permitted to receive foreign currency in accordance with the provisions of the law on foreign exchange control, the sum in the negotiable instrument shall be paid in Vietnamese Dong at the exchange rate published by the State Bank of Vietnam on the date of payment or at the rate for foreign currency trading published by the paying bank on the date of payment in the case where the bank makes the payment.
What is the penalty for forging signatures affixed to negotiable instruments in Vietnam?
Pursuant to the provisions of Article 12 of the Law on Negotiable Instruments 2005, there are provisions as follows:
Forged signatures and signatures of unauthorized persons
When a negotiable instrument contains a forged signature or the signature of an authorized person, such signature shall not be valid; the signatures of other related persons on the negotiable instrument shall remain valid.
Accordingly, when a negotiable instrument contains a forged signature, such signature shall not be valid; the signatures of other related persons on the negotiable instrument shall remain valid.
In addition, based on Point a, Clause 4, Clause 5, Clause 6, Article 29 of Decree 88/2019/ND-CP stipulating violations of regulations on negotiable instruments as follows:
Violations against regulations on negotiable instruments
1. A fine ranging from VND 15.000.000 to VND 20.000.000 shall be imposed for signing any negotiable instruments ultra vires.
2. A fine ranging from VND 20.000.000 to VND 30.000.000 shall be imposed for committing one of the following violations:
a) failing to fulfill acceptor's duties as defined in Article 22 of the Law on negotiable instruments;
b) sending collection orders to collectors against regulations in Clauses 1, 2 and 3 Article 39 of the Law on negotiable instruments.
3. A fine ranging from VND 30.000.000 to VND 50.000.000 shall be imposed for committing one of the following violations:
a) transferring a negotiable instrument whose prescribed time limit for presentment has expired, which has been not accepted or rejected for payment or lost as informed by holder as prescribed in Clause 4 Article 15 of the Law on negotiable instruments;
b) drawing a cheque in case of insolvency.
4. A fine ranging from VND 60.000.000 to VND 120.000.000 shall be imposed for committing one of the following violations:
a) forging signatures affixed to negotiable instruments;
b) failing to comply with regulations on printing, delivery and management of blank cheques in Clause 2, 3 Article 64 of the Law on negotiable instruments.
5. Additional penalties:
The exhibits and instrumentalities used for committing any of the administrative violations prescribed in Clause 4 of this Article shall be confiscated.
6. Remedial measures:
Enforced transfer of benefits illegally obtained from any of the administrative violations prescribed in Point b Clause 3 and Clause 4 of this Article to state budget.
Accordingly, A fine ranging from VND 60.000.000 to VND 120.000.000 shall be imposed for forging signatures affixed to negotiable instruments;
At the same time, the exhibits and instrumentalities used for committing any of the administrative violations shall be confiscated.
Note that the above fine level applies to individual violators. In case of violation by an organization, the fine will be twice as the individual.
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