Vietnam: 08 cases of refusal to register security interests

The registry may refuse to register a security interest in any of the following cases:

- The security interest falls beyond its registration competence;

- When an application for registration is found inconsistent with the information kept at the registry or forging documents;

- The applicant for registration failed to pay charge for registration, except for the case of exemption as per the law;

- The collateral is land use right or house ineligible for mortgage as prescribed in law on land and housing. If the collateral is land use right or house under dispute, the registry may only refuse the registration when a document accepting or justifying the acceptance of settlement of dispute issued by the dispute settlement authority;

- The registration is declared not in accordance with regulations of law;

- An application for modification, a written notice of intention to dispose of collateral or correction of nonconformity is submitted in case the security has been deregistered;

- When the registry receives a request for temporary suspension or suspension of collateral registration to which grantor is a person obliged to execute the judgment from an executor of civil enforcement agency or bailiff of bailiff office as prescribed in law on civil judgment enforcement;

- When the registry receives a notice of intention to dispose of collateral related to judgment enforcement from the enforcement authority or bailiff office.

If the ground for refusing registration is evident as prescribed in Clause 1 of this Article, the recipient of application must issue a written refusal stating reasons for refusal and guidelines for implementation as per the law.

The refusal shall be made within the date of receipt; if the application is received after 15 hours, the refusal shall be made within the next working day.

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