New: 04 cases in which security interests are subject to registration in Vietnam

Registration of security interests refers to the recording in a security interest register or entry into a database on security interests by a security interest registry of the use of assets by the grantor to secure the secured party’s performance of an obligation.

According to Decree No. 102/2017/NĐ-CP of Vietnam’s Government, 04 cases in which security interests are subject to registration include: Mortgage of land use rights; Mortgage of property on land whose ownership has been stated in the certificate of rights to use land, ownership of house and property on land; Pledge or mortgage of aircrafts; Mortgage of seagoing ships.

Moreover, Decree No. 102/2017/NĐ-CP also specifies 03 security interests subject to registration upon requests, including: Mortgage of other personal/movable property; Mortgage of off-the-plan property on land; Title retention in case of purchase of property on land, off-the-plan property on land; purchase of aircrafts, seagoing ships; or purchase of other personal/movable property with title retention.

An application for security interest registration shall be filed by any of the following methods: via the online registration system; in person; by post; and via emails in a case where the applicant for registration has been granted a user code for the security interest database.

Authorities competent to register or provide information on security interests include: The Civil Aviation Administration of Vietnam; Vietnam Maritime Administration or Maritime Sub-Administration, Maritime Administration of Vietnam Maritime Administration; Transaction and asset registration centers of the National Registration Agency for Secured Transactions affiliated to the Justice Ministry shall register and provide information about security interests depending on types of collateral, specifically, whether the collateral is an aircraft, seagoing ship or land use right and property on land.

Transaction and asset registration centers of the National Registration Agency for Secured Transactions affiliated to the Justice Ministry shall register and provide information about security interest in personal/movable property and other properties.

The contents of and documents in applications for registration of security interests in land use right, property on land, aircrafts, seagoing ships must be conformable to those kept at the registry.

The registry may not require any document not prescribed in the application by law; and may not require parties to correct the name or content of security agreement unless otherwise made by the applicant.

The security interests in other personal/movable properties shall be registered in the form of self-declaration by application form and the applicant shall take legal responsibility for the lawfulness and accuracy of application form.

Source: Phap Luat Newspaper

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