Responsibilities of a Credit Institution Under Special Control When Borrowing
Pursuant to Article 23 of Circular 08/2021/TT-NHNN (Effective from October 27, 2021), the responsibilities of a credit institution under special control when borrowing are as follows:
Provide full, prompt, and accurate documentation to the lender regarding the special loan; bear legal responsibility for the accuracy and legality of the provided documents.
Be responsible for the collateral for the special loan meeting all conditions stipulated in Article 13 of this Circular or in line with the content on collateral in the decision of the Prime Minister of the Government of Vietnam, the approved restructuring plan, or the approved transfer plan (if any). The loan creating a right to claim debts used as collateral for the special loan must comply with the legal provisions on lending activities.
Use the special loan for its intended purpose, repay the special loan according to the regulations in this Circular, the decision of the Prime Minister of the Government of Vietnam, the approved restructuring plan, the approved transfer plan, and the signed special loan contract.
During the period of the special loan, the borrower is responsible to:
a) Safeguard and separately store the loan files creating the right to claim debts being used as collateral for the special loan;
b) Not use the right to claim debts being used as collateral for the special loan for other purposes;
c) Monitor and evaluate the conditions of the collateral for the special loan; supplement or replace the collateral as stipulated in this Circular;
d) Report to the Special Control Board when the collateral does not meet the conditions stipulated in Clause 3, Article 12 of this Circular;
e) Report to the Special Control Board the amount recovered from the rights to claim debts being used as collateral for the special loan within 3 working days from the date of debt recovery.
Handle the collateral according to regulations to repay the special loan to the lender.
Periodically, on a monthly basis, within the first 5 working days of the following month after the reporting month, or when necessary, report in writing on the use of the special loan, sending directly or via postal service to:
a) The State Bank branch in the province or city (in cases where the State Bank provides the special loan);
b) The Vietnam Deposit Insurance (in cases where the Vietnam Deposit Insurance provides the special loan);
c) The Vietnam Cooperative Bank (in cases where the Vietnam Cooperative Bank provides the special loan);
d) The credit institution providing the loan (in cases where another credit institution provides the special loan).
Report to the Special Control Board on the repayment of the special loan within 2 working days from the date of repayment.
Perform other responsibilities as stipulated in this Circular, relevant legal provisions, and the loan contract.
Sincerely!
