What are regulations on the request form for the exchange of financial instruments of the member in Vietnam?

What are financial instruments?

Pursuant to Clause 1 Article 3 of the Circular 16/2022/TT-NHNN stipulating as follows:

Definitions

1. “financial instrument” means an evidence of the issuer’s debt repayment obligation to the holder for a specified period of time that also indicates interest payment conditions and other terms and conditions. Financial instruments include book-entry financial instruments (in the form of book entries or electronic data) and certificated financial instruments.

As regulations above, financial instrument means an evidence of the issuer’s debt repayment obligation to the holder for a specified period of time that also indicates interest payment conditions and other terms and conditions.

What are regulations on refinancing based on pledged financial instruments in Vietnam?

Pursuant to Article 15 of the Circular 16/2022/TT-NHNN stipulating refinancing based on pledged financial instruments as follows:

Refinancing based on pledged financial instruments

1. After a member’s application for a refinanced loan based on pledged financial instruments has been submitted to and accepted by the SBV, the member shall transfer the financial instruments pledged as collateral to the SBV. The SBV (the SBV’s Operations Center) shall transfer such financial instruments from the member's account on financial instruments deposited by clients to its account on financial instruments deposited for pledging opened at the SBV.

If the loan amount is disbursed at the SBV's Operations Center, the SBV's Operations Center shall transfer the loan amount to the member's deposit account opened at the SBV after procedures for pledge of financial instruments have been completed.

If the loan amount is disbursed at a SBV’s provincial branch, the SBV's Operations Center shall give a notification to the SBV’s provincial branch in charge of the disbursement after procedures for pledge of financial instruments have been completed.

2. If a member wishes to change the pledged financial instrument, the SBV (the SBV’s Operations Center) shall, based on the application for change of pledged financial instrument made according to Appendix 2b/LK enclosed herewith, examine and record the change according to regulations, provided that the current collateral shall be only released after new collateral has been provided.

3. After the principal and interest have been paid in full, the SBV (the SBV’s Operations Center) shall, based on the member’s application for approval of debt repayment and payment receipts, release and transfer financial instruments from the member’s account on financial instruments deposited for pledging to its account on financial instruments deposited by clients.

As regulations above, if a member wishes to change the pledged financial instrument, the SBV (the SBV’s Operations Center) shall, based on the application for change of pledged financial instrument made according to Appendix 2b/LK enclosed herewith, examine and record the change according to regulations, provided that the current collateral shall be only released after new collateral has been provided.

After the principal and interest have been paid in full, the SBV (the SBV’s Operations Center) shall, based on the member’s application for approval of debt repayment and payment receipts, release and transfer financial instruments from the member’s account on financial instruments deposited for pledging to its account on financial instruments deposited by clients.

What are regulations on the request form for the exchange of financial instruments of the member in Vietnam?

Pursuant to Appendix 2b/LK of the Circular 16/2022/TT-NHNN stipulating the request form for the exchange of financial instruments of the member in Vietnam as follows:

APPLICATION FOR EXCHANGE OF FINANCIAL INSTRUMENTS

To: State Bank Transaction Office

Name of entity (Account holder) ………………………………………………………………………….

Address ………………………………………………………………………………………………

Name of account for depositing financial instruments ……………………

Financial instruments depository account number ………………………………………………………………………….

...........

___________________

¹ Being the legal representative or the authorized representative of the legal representative. In case of being an authorized representative, a Power of Attorney must be attached

Circular 16/2022/TT-NHNN takes effect from January 17, 2023.

Best regards!