Can pledgees use the pledged property in Vietnam?

Can pledgees use the pledged property in Vietnam?

Pursuant to Article 314 of the 2015 Civil Code, there are provisions on rights of pledgees as follows:

1. Require a person unlawfully possessing or using the pledged property to return the property.

2. Demand the realization of the pledged property in accordance with the methods as agreed or as provided by law.

3. Lease, lend, exploit, and to enjoy the yield and income derived from, the pledged property if so agreed.

4. Receive reimbursement of reasonable expenses incurred in taking care of the pledged property upon returning the pledged property to the pledgor.

Thus, according to the above provisions in Vietnam, there has no direct regulations on the use of the pledged property by the pledgee. However, the pledgee is allowed to exploit the use of the pledged property if there is an agreement.

Therefore, when you pledge a motorbike that has an agreement with the pledgee, allowing the pledgee to exploit the pledged property, the pledgee has the right to use your motorbike for travel or other purposes suitable for the purpose of the vehicle. Without this agreement, the pledgee cannot use your vehicle.

What are obligations of pledgees in Vietnam?

Pursuant to Article 313 of the 2015 Civil Code, the pledgee has the following obligations:

1. Take care of and preserve the pledged property; if the pledgee loses or damages the pledged property, the pledgee must compensate the pledgor for the damage.

2. Do not sell, exchange, give or use the pledged property as security for the performance of another obligation.

3. Do not lease, lend, exploit the yield or income derived from, the pledged property, unless otherwise agreed.

4. Return the pledged property and related documents upon fulfillment of the secured obligation or where the pledge is substituted with another security.

When does the pledge contract terminate in Vietnam?

Pursuant to Article 315 of the 2015 Civil Code, the pledge of property shall terminate in the following cases:

1. The obligation secured by the pledge has terminated;

2. The pledge has been cancelled or substituted with another security;

3. The pledged property has been realized;

4. As agreed by the parties.

Best Regards!