07/10/2022 15:50

Decree 21/2021/ND-CP on security for fulfillment of obligations to be issued

 Decree 21/2021/ND-CP on security for fulfillment of obligations to be issued

On March 19, 2021, the Government of Vietnam issued Decree 21/2021/ND-CP on implementation of the Civil Code regarding security for fulfillment of obligations

Decree No. 21/2021/ND-CP elaborates on implementation of the Civil Code regarding security for fulfillment of obligations, including collateral; establishment and implementation of security for fulfillment of obligations and realization of collateral.  

In particular, collateral for security for obligation fulfillment includes:

1. Current properties or off-plan properties, except for cases where the Civil Code or other relevant laws forbid sale, transfer or other change of ownership at the time of establishing security contracts, security measures;

2. Properties sold under property sale agreements with retention of ownership;

3. Properties considered as subjects of obligations under infringed bilateral contracts in case of lien measures;

4. Properties under general public’s ownership if prescribed by relevant laws.

Decree No. 21/2021/ND-CP takes effect from May 15, 2021.

Decree No. 163/2006/ND-CP dated December 29, 2006 of the Government on secured transactions, Decree No. 11/2012/ND-CP dated February 22, 2012 of the Government on amendment to Decree No. 163/2006/ND-CP dated December 29, 2006 of the Government on secured transactions expire from the effective date hereof.

- Security contracts and security measures established and/or executed before effective date of Decree No. 21/2021 shall comply with Decree No. 163/2006/ND-CP dated December 29, 2006 on secured transactions, Decree No. 11/2012/ND-CP dated February 22, 2012 on amendment to Decree No. 163/2006/ND-CP dated December 29, 2006 of the Government on secured transactions expire from the effective date hereof.

- In case of security contracts and security measures established and/or executed before effective date of Decree No. 21/2021 that are not being executed in conformity with this Decree, parties may agree on revising security contracts and/or security measures according to this Decree and in order to comply with this Decree. 

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE

Thu Linh
32


Please Login to be able to download
Login
Register

  • Address: 17 Nguyen Gia Thieu, Vo Thi Sau Ward, District 3, Ho Chi Minh City
    Phone: (028) 7302 2286 (6 lines)
    E-mail: info@lawnet.vn
Parent company: THU VIEN PHAP LUAT Ltd
Editorial Director: Mr. Bui Tuong Vu - Tel. (028) 7302 2286
P.702A , Centre Point, 106 Nguyen Van Troi, Ward 8, Phu Nhuan District, HCM City;