20/05/2024 10:33

Is it possible to register for secured transactions online? Guidance on online procedures for registration of security interests in Vietnam

Is it possible to register for secured transactions online? Guidance on online procedures for registration of security interests in Vietnam

Is it possible to register for secured transactions online? What are the online registration procedure? What are cases eligible for carry out this procedures in Vietnam? (Mr. Nam - Hai Duong)

Regarding this matter, LawNet would like to answer as follows:

1. What is registration of security interests under the law in Vietnam?

According to the provisions of Clause 1, Article 3 of Decree 99/2022/ND-CP, registration of security interests refers to the recording in a security interest register or entry into a database on security interests by a security interest registry of the use of assets by the grantor to secure performance of an obligation of their own or another person, or also to secure performance of an obligation of their own or another person with the secured party (hereinafter referred to as registration).

The registration of security interests is carried out according to agreement or according to Article 298 of the Civil Code 2015.

2. Methods of applications for registration of security interests in Vietnam

Pursuant to Article 13 of Decree 99/2022/ND-CP, a registration application shall be filed by any of the following methods: via the online registration system; in person or by post; via emails.

In which, registration of security interests through the online registration system is widely used due to its convenience and time-saving benefits for registrants. Online applications for registration of security interests have the same legal validity as paper-based applications, so registrants do not need to worry about the legal aspects of online registration.

Methods of filing registration applications (via the online registration system; via emails) apply to land use rights, property on land, rights to use the sea area, and property on the sea area or for aircraft and sea-going ships in compliance with the law on land, exploitation and utilization of marine resources, aviation or maritime law.

3. Guidance on online procedures for registration of security interests in Vietnam

Online procedures for registration of security interests in Vietnam are guided in Article 24 of Decree 99/2022/ND-CP as follows:

- The registration applicant uses the account to log in to the online registration system and declare information and authenticate the registration application according to the process on the online registration interface.

Where it is required by law that the registration application must be attached to an electronic copy, the registration applicant shall attach this document, except for the case of registration through the online registration system, which includes information that must be declared and shown on the online registration interface.

The registration applicant shall pay the registration fee according to the process on the online registration interface or according to the payment method prescribed in the law on fees and charges and other relevant laws.

The online application has the same legal validity as the paper application.

The time limit for processing online registration application and returning registration results is specified in Clauses 1 and 3, Article 16 of Decree 99/2022/ND-CP.

- In case the grantor or secured party makes online registration through the representative's account, the representative must declare the information of the authorized party's account number. Information about the registered security interest must be updated to the account of the authorized party, not to the account of the representative.

- If there are grounds for refusal of registration specified in Clause 1, Article 15 of Decree 99/2022/ND-CP, the registry shall refuse to register through the online registration interface or send a written notice to the registration applicant.

- Where the law on land, exploitation and utilization of marine resources, on aviation or the law on maritime provides other provisions on online registration procedures as prescribed in Clauses 1 and 2 of Article 24 of Decree 99/2022/ND-CP, these provisions shall prevail.

At the same time, Decree 99/2022/ND-CP also clearly stipulates the time limit for processing registration application and returning registration results as follows:

- The registry is responsible for processing the registration application within the working day on which it receives the valid application; if the application is received after 15:00 of the same day, the registration can be done in the next working day.

If the registry has a legitimate reason to extend the processing time for the application, the time limit for processing the application shall not exceed 03 working days from the date of receipt of a valid application. In this case, the registry must send a notice with explanation to the registration applicant in paper or electronic document (hereinafter referred to as electronic version) or in another convenient form to the. registration applicant and in accordance with the conditions of the registry as soon as there is a good reason.

- Time not included in the time limit includes:

+ Time of occurrence of natural disaster, epidemic, fire, online registration system failure, power grid failure, internet failure or other force majeure events as written or decided by the competent authority that prevent the registry from carrying out the registration according to the procedures and time limit specified in this Decree.

In this case, the registry must immediately send a notice within the working day of the event or within the same working day that it receives the document or decision of the competent authority in the form of posting it at the head office of the registry and post it on the website of the regulatory body, the registry (if any) or another convenient form to the registration applicant and suitable to the conditions of the registry;

+ The time period for the registry to carry out the procedures specified in Clause 2, Article 35 of Decree 99/2022/ND-CP.

Best regards!

Le Nguyen Anh Vy
28


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