Details of Payment Order for Debt Collection from Collateral Disposal

17:48, 10/07/2024

The Ministry of Finance issued Circular 209/2015/TT-BTC providing guidance on accounting applied to local development investment funds, promulgated by the Ministry of Finance on December 28, 2015. Accordingly, the Circular stipulates the order of debt repayment from handling secured assets.

According to the provisions of Circular 209/2015/TT-BTC, the repayment of debts from the disposal of secured assets is prioritized in the following order:

- Necessary costs for handling secured assets such as storage, management, valuation, advertising for sale, commissions, auction fees, and other reasonable and necessary costs directly related to the disposal of secured assets.- Taxes and fees payable to the state (if any).- Principal debt, loan interest, overdue interest up to the date when the secured party hands over the asset to the Fund for disposal.

Additionally, in the event that the proceeds from selling the assets and revenues from exploiting secured assets exceed the amount to be repaid, the surplus difference is returned to the borrower. The borrower is obliged to continue repaying the debt if the proceeds are insufficient to cover the outstanding debt.

More details can be found in Circular 209/2015/TT-BTC effective from February 11, 2016.

- Khanh Chi-

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