What are subjects, scope and principles of registration of security interests in Vietnam?

What are subjects, scope and principles of registration of security interests in Vietnam? - image from internet

Pursuant to Article 169 of the Decree 155/2020/ND-CP stipulating subjects, scope and principles of registration of security interests in Vietnam:

1. Securities that have been collectively registered at VSDCC shall be used as guarantee for fulfillment of obligations in secured transactions at VSDCC. Registration of security interests of other securities shall be carried out at Property and Transaction Registration Center of National Secured Transaction Registry affiliated to the Ministry of Justice.

2. The registration of security interests at VSDCC shall comply with regulations of law on registration of security interests and the following principles:

a) The securities registered as security interests must be transferable and are not deposited in securities transactions, not frozen, impounded and must be deposited before execution. During the duration of the security interest, the securities registered as security interests must be frozen at VSDCC;

b) Information about securities held by the guarantor in the registration application must be consistent with information at VSDCC;

c) The effective date of a security interest is the time written by VSDCC on the security interest register;

d) When cancelling registration of a security interest, VSDCC shall unfreeze the securities registered as security interest.

3. The applicant shall have a written agreement that allows VSDCC to freeze, provide information about securities registered as security interests as prescribed in this Decree.

4. Once securities registration is cancelled, VSDCC shall notify the depository member where the securities are deposited as collateral, which will request the parties to complete procedures for cancelling registration of security interests. In case the parties fail to cancel registration of security interests, VSDCC shall cancel the registration of security interest on the same date of cancellation of securities registration.

5. In case of discrepancies between securities laws, regulations of law on registration of security interests and their guiding documents, securities laws shall apply. For issues that are not regulated by this Decree but regulated by regulations of law on registration of security interests, the latter shall apply.

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