08 Required Contents in the Regulation on Management and Use of the Preservation Fund

Legal Document Translation:

The Preservation Fund is managed according to the Management and Use Regulations of the Preservation Fund, which are developed and issued by the cooperative bank after being approved by the General Meeting of cooperative bank members for implementation throughout the people's credit fund system. Any amendments or supplements to the Management and Use Regulations of the Preservation Fund must be approved by the General Meeting of cooperative bank members.

To be specific, the Management and Use Regulations of the Preservation Fund must include at a minimum the contents stipulated in Circular 03/2014/TT-NHNN as follows:

- Principles for organizing the management and use of the Preservation Fund, which include lending support with reimbursement to the people's credit fund in case of financial difficulties or payment troubles in order to restore normal operations; not for profit purposes; self-reliant and self-responsible;- Specific regulations on the use of the Preservation Fund, including:- The people's credit fund is eligible for support loans according to Clause 1, Article 6 of this Circular;- The sequence, procedures, and application dossiers for requesting support loans;- The support loan amount; loan term; loan interest rate; and commitments when receiving support loans.- The mechanism for disbursing loan capital for support;- Measures for monitoring, correcting, and strengthening the operations of the people's credit fund that receive support loans; the mechanism for inspecting and supervising the use of support loan funds by the people's credit fund;- Principles, conditions, and authority for handling risks with non-recoverable support loans;- The use of temporarily idle capital of the Preservation Fund;- The financial revenue and expenditure mechanism serving the activities of the Preservation Fund according to relevant legal regulations;- Reporting policies of the people's credit funds that receive support loans.

View the full text of the regulations in Circular 03/2014/TT-NHNN, which came into effect on March 15, 2014.

Thu Ba

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