Circular 06: Rights and obligations of principal debtors in Vietnam

23:57, 09/07/2024

This is the main content stipulated in Circular 06/2011/TT-BKHCN on the management and use of the loan guarantee fund for projects utilizing energy efficiently and effectively in small and medium-sized enterprises issued by the Minister of Science and Technology of Vietnam on May 18, 2011.

loan guarantee, Circular 06/2011/TT-BKHCN

Circular 06: Rights and obligations of principal debtors in Vietnam (illustrative image)

Article 18 of Circular 06/2011/TT-BKHCN stipulates the rights and obligations of principal debtors for loans used for the execution of projects utilizing energy efficiently and effectively in small and medium-sized enterprises in Vietnam as follows:

1. The principal debtor in Vietnam has the right to:

- Request the guarantor to sign a guarantee contract, issue a guarantee certificate; amend, supplement, extend, or cancel the guarantee when there are changes to the terms of the credit contract.

- Request the guarantor to fulfill the guarantee commitments and agreements in the guarantee contract.

- Initiate legal proceedings as per the law when related parties violate the committed obligations in the guarantee contract, credit contract, or guarantee certificate.

2. The principal debtor in Vietnam has the obligation to:

- Provide complete, accurate, and honest documents and information as requested by the National Science and Technology Development Fund, the guarantor, and the creditor, and bear responsibility for the accuracy of the provided information and documents.

- Fulfill all commitments promptly to the guarantor and the creditor.

- Pay the guarantee fee fully and on time.

- Use the loaned capital and the assets formed from such capital for the correct purposes and ensure efficiency.

- Acknowledge the debt to the guarantor and repay the National Science and Technology Development Fund the amount that the Fund has paid on their behalf, including principal and interest arising from the guarantee obligation.

- Undergo inspection, supervision, and report the operational status related to the loan guarantee transaction to the guarantor and the creditor.

- Repay the debt ahead of schedule to the creditor if requested by the parties.

More details can be found in Circular 06/2011/TT-BKHCN effective from July 01, 2011.

Thuy Tram

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