What is negotiable instruments eligible for rediscount of credit institutions and foreign bank branches in Vietnam?

What is negotiable instruments eligible for rediscount of credit institutions and foreign bank branches in Vietnam?

Pursuant to Article 4 of Circular 18/2021/TT-NHNN regulating negotiable instruments eligible for rediscount of credit institutions and foreign bank branches are regulated as follows:

1. Negotiable instruments shall be eligible for rediscount when:

a) The instruments have been discounted for customers by the beneficiaries in accordance with regulations of SBV on rediscounting of negotiable instruments of credit institutions and FBB;

b) The instruments are legally owned by the beneficiaries, allowed to be traded in accordance with the law, free of disputes, and not being used as security for other obligations;

c) The instrument payment is not mature;

d) The instruments are intact, not modified or fabricated.

2. The rediscounting party has the right to request the beneficiary to provide information and documents to prove rediscounted negotiable instruments in accordance with Clause 1 of this Article. The beneficiary is responsible for providing information and documents on negotiable instruments at request of the rediscounting party and assuming accountability for accuracy and adequacy of the information and documents.

Best Regards!