Determining the guarantee for payment obligation of lottery agents in Vietnam

11:56, 09/06/2013

Recently, the Minister of Finance of Vietnam issued Circular No. 75/2013/TT-BTC guiding in details on lottery business operation.

According to Vietnam’s current regulations, lottery agents must pay full for lottery tickets received for sale to lottery companies when receiving lottery tickets of lottery companies. In cases where a lottery company allows a lottery agent to be in debt from sale of lottery tickets, the maximum time for debt of lottery agent does not exceed time limit specified in Article 19 of Circular No. 75/2013/TT-BTC of the Ministry of Finance of Vietnam and it is required for lottery agent to have property to guarantee for its payment obligation.

muc dam bao nghia vu thanh toan cua dai ly ve so, Thong tu 75/2013/TT-BTC

Measures to guarantee the payment obligation of lottery agents to lottery companies comply with provision in Article 13 of the Decree No. 30/2007/NĐ-CP of Vietnam’s Government and provisions of law on guaranteed transactions. The guaranteed levels for payment obligation of lottery agent to lottery company are specified as follows:

First: For quantity of tickets that lottery agent has received but date of issuing lottery ticket has not yet come, the minimum guaranteed level for payment obligation is defined as follows:

The minimum guaranteed level for payment obligation

Quantity of lottery tickets received for sale

Par value of lottery tickets

Commission of lottery agent enjoyed

Second: For the quantity of tickets that lottery agent has received and defined that they have been sold in period, the guaranteed level for payment obligation is equal to 100% of total value of the sold lottery tickets deducting commission the lottery agent enjoyed as prescribed.

Moreover, lottery companies must assess the value of properties used for guarantee of payment obligations at time of receiving properties; periodically, re-assess or implement re-assessment as necessary. For properties as real estate, movable properties used in guarantee for payment obligation but lottery companies fail to have sufficient capability for valuation, lottery companies may hire organizations having function on evaluation to define value of properties used in guarantee for payment. Expenses for evaluation are calculated into the business operational expenses of lottery companies.

Notably, ottery companies and agents may agree and unify the rate of value to receive guarantee for payment in comparison with value of properties, but capability of debt recovery must be ensured if contract is broken.

View other provisions at Circular No. 75/2013/TT-BTC of the Ministry of Finance of Vietnam, effective from October 01, 2013.

Thu Ba

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