If there is no agreement on handling of mortgaged assets, what is settlement for mortgaged assets in Vietnam?

If there is no agreement on handling of mortgaged assets, what is settlement for mortgaged assets in Vietnam?

I borrowed 50 million from Mr. T to mortgage the land use rights, but the contract did not agree on how to handle the mortgaged property. When the due date was not paid, Mr. T informed me to bring the mortgaged property to auction, but I did not agree. So let me ask, if I do not agree to handle the property after the deadline has expired, can Mr. T sell my land use rights?

Reply:

According to the provisions of Article 299 of the 2015 Civil Code, cases of realization of collateral are specified, specifically as follows:

1. An obligator fails to perform or perform not as agreed an obligation when it falls due.

2. An obligator must perform the secured obligation before time limit due to his/her violation against the obligation as agreed or prescribed by law.

3. Other cases as agreed by the parties or prescribed by law.

Thus, when the debt repayment obligation is due and you do not pay the full amount borrowed from Mr. Thanh, Mr. Thanh has right to handle the mortgaged property. Regarding method of handling mortgaged assets specified in Article 303 of the 2015 Civil Code, the methods are as follows:

1. The securing party and the secured party may agree any of the following methods of realizing collateral:

a) Put collateral up for an auction;

b) The secured party sells collateral itself;

c) The secured party accepts the collateral as substitutions for the performance of obligations of the securing party;

d) Other methods.

2. If there is no agreement on methods of realizing collateral as prescribed in Clause 1 of this Article, the collateral shall be put up for auction, unless otherwise prescribed by law.

According to the information you provided, you and Mr. auction (Clause 2, Article 303 of the 2015 Civil Code). So the fact that Mr. T brought your mortgaged land use rights to auction is in accordance with the law in Vietnam.

If there is no agreement on handling of mortgaged assets, what is settlement for mortgaged assets in Vietnam? (Image from the Internet)

Can a mortgaged house be donated in Vietnam?

I have a house mortgaged at the bank. Can I give it to someone else? Do I need the bank's approval?

Reply:

Mortgage is one of nine measures to ensure the performance of obligations in the 2015 Civil Code.

Article 317 of the 2015 Civil Code stipulates:

1. Mortgage of property means the use by one party (hereinafter referred to as the mortgagor) of property under the ownership of the obligor as security for the performance of an obligation to the other party (hereinafter referred to as the mortgagee) without transferring such property to the mortgagee.

2. The mortgaged property shall be held by the mortgagor. The parties may agree to deliver the mortgaged property to a third person to hold.

The rights of the mortgagor are regulated in detail in Article 321 of the 2015 Civil Code. Accordingly:

5. Sell, exchange or give mortgaged property not being goods rotating during the production and business process with the consent of the mortgagee or as prescribed by law.

At the same time, the mortgagor is allowed to lease or lend the mortgaged property but must notify the lessee or borrower that the leased or loaned property is being used as mortgage and must notify the mortgagee.

In short, people who are mortgaging their red books at the bank still have the right to sell, exchange, or donate part or all of that house or land if approved by the bank in Vietnam. In case of leasing or lending a house or land that is mortgaged, the mortgagor must notify the bank and the lessee or borrower.

Can I mortgage a property at multiple banks in Vietnam?

I know that there are a few cases where a company mortgaged a piece of land to 3 banks. Can I ask if I have the right to mortgage a piece of land to 3 banks at the same time? If so, what should be done if this person fails to pay when the payment is due? Thank.

Reply:

Pursuant to Article 296 and Article 308 of the 2015 Civil Code, resolve your case as follows:

Article 296. Single item of property used as security for performance of several obligations

1. A single item of property may be used as security for performance of several obligations if, at the time of establishment of the security transaction, the value of such property is greater than the total aggregate value of the secured obligations, unless otherwise agreed or otherwise provided by law.

=> With this regulation, it is completely possible for a company to mortgage a piece of land to 3 banks in Vietnam.

Article 308. Order of priority for payment between joint secured parties

1. When an asset is used to secure the performance of many obligations, payment priority order between the joint secured parties shall be determined as follows:

a) If all types of security take effect against a third party, the order of priority for payment shall be determined according to the order of effect against the third party;

b) If there are some types of security take effect against a third party while some types of security do not take effect against the third party, the payment of obligations with security taking effect against the third party shall be given priority;

c) If all types of security do not take effect against a third party, the order of priority for payment shall be determined according to the order of establishment of types of security.

Thus, it is completely possible for the company to mortgage a piece of land to 3 banks, and handle the due obligations according to the above regulations in Vietnam.

Best regards!