The Validity of the Security Contract
Validity of the Guarantee Contract?
Based on Article 22 of Decree 21/2021/ND-CP, the content is as follows:
The guarantee contract notarized or authenticated according to the provisions of the Civil Code, related laws, or upon request, takes effect from the time it is notarized or authenticated.
The guarantee contract not specified in Clause 1 of this Article takes effect from the time agreed upon by the parties. In the absence of an agreement, it takes effect from the time the contract is concluded.
In case the secured property is partially withdrawn according to the agreement, the part of the guarantee contract related to the withdrawn property ceases to be effective; if the secured property is supplemented or replaced, the amendment and supplementation of the guarantee contract related to this property shall be carried out in accordance with the provisions of the Civil Code and other related laws.
The guarantee measure that has not yet come into force against a third party does not change or terminate the validity of the guarantee contract.
Validity against Third Parties of the Guarantee Measures
Article 23 of Decree 21/2021/ND-CP provides for the validity against third parties of the guarantee measures as follows:
The guarantee measure only takes effect against third parties if the guarantee contract has legal validity.
In cases where the guarantee measure must be registered according to the provisions of the Civil Code, related laws, or is registered by agreement or at the request of the guarantee recipient, the time of such registration at the competent authority according to the provisions of relevant laws is the time when the guarantee measure takes effect against third parties.
In cases not falling under Clause 2 of this Article, the validity against third parties of collateral, deposit, or deposit pledge measures arises from the time the guarantee recipient holds the secured property.
Holding the secured property as stipulated in this clause means the guarantee recipient directly manages, controls, or dominates the secured property, or another person manages the secured property according to agreement or legal provisions, but the guarantee recipient still controls or dominates this property.
In cases where the secured property under the guarantee measure stipulated in Clause 3 of this Article is handed over to another person for management, the validity against third parties of the guarantee measure arises from the time:
a) The pledgee, deposit recipient, or deposit pledge recipient holds the secured property;
b) The property manager receives the secured property directly from the pledgor, depositor, or deposit pledger;
c) The guarantee contract takes effect in case another person is directly managing the property, and this property is used for pledging, depositing, or deposit pledging.
The validity against third parties of the deposit measure arises from the time the deposited property is placed in a blocked account at the credit institution where the deposit is held.
Respectfully!
