What are the cases the cancellation of security interest registration using assets in Vietnam?

What are the cases the cancellation of security interest registration using assets in Vietnam? (Internet image)

On November 30, 2022, the Government of Vietnam issued Decree 99/2022/ND-CP on registration of security interests. Thus, regulations on the case of cancellation of security interest registration using assests are as follows:

1. What are the cases the cancellation of security interest registration using assets in Vietnam?

According to Clause 1, Article 21 of Decree 99/2022/ND-CP, the registration cancellation is done in the following cases:

- The security interest was registered but the registry receives a legally effective court judgment or decision that the registration must be deregistered in whole or in part;

- The registered security interest is found by the registry to be in the case of registration refusal specified at Point a or h, Clause 1, Article 15 of Decree 99/2022/ND-CP.

In the case specified at Point h, Clause 1, Article 15 of Decree 99/2022/ND-CP, the registry shall cancel all registered information;

- Handling of duplicate registration specified in Article 49 of Decree 99/2022/ND-CP.

2. Guidelines for cancellation of security interest registration in Vietnam

Article 21 of Decree 99/2022/ND-CP guides the cancellation of registration of security interests in Vietnam as follows:

Right within the working day with grounds in Section 1, the registry shall:

- Record and update the cancelled information in the Register or in the Database;

- Send a written notice of registration cancellation according to Form No. 07a, Form No. 07d, Form No. 10b or Form No. 10c in the Appendix to the Court specified at Point a, Clause 1 of Article 21 of Decree 99/2022/ND-CP and to the grantor, the secured party, and another Certificate holder (if any).

The written notice must clearly state the grounds for registration cancellation and the non-recognition of registration results on the issued registration certification document (if any) or on the application form for registration certified by the registry.

In case of registration cancellation at the land registry, the written notice must request the Certificate holder to return this paper for the land registry to write on the Certificate the registration cancellation.  In case the Certificate is not returned, the registration cancellation will still be valid.

Note:

- In case the registration has been cancelled according to Clause 2 of Article 21 of Decree 99/2022/ND-CP and the registry receives a legally effective judgment or decision from the Court or another competent agency on the re-registration, the registry shall record and update the registered information in the Register or in the Database.

- In case of re-registration after registration cancellation at the land registry, this agency shall notify the Certificate holder in writing of returning this Certificate so that the land registry writes on the Certificate the re-registration. In case the Certificate is not returned, the re-registration after registration cancellation will still be valid.

- In case the registration cancellation is carried out as prescribed in Clause 2 of this Article but the cancelled information has not been recorded on the Certificate, after the registration cancellation is re-registered, the land registry shall send a written notice to the holder of the Certificate that the registration results stated in the Certificate have not been changed or the validity of the registration has not been terminated.

- In case the collateral is an aircraft with the grounds specified at Point a, Clause 1 of Article 21 of Decree 99/2022/ND-CP, the registration shall be cancelled according to the Civil Aviation Law of Vietnam.

(Decree 102/2017/ND-CP currently does not provide guidance on the cancellation of security interest registration using assests)

Decree 99/2022/ND-CP takes effect from January 15, 2023 and replaces Decree 102/2017/ND-CP.

Regulations on implementing online procedures in Clause 2, Article 56 of Decree 99/2022/ND-CP take effect from January 1, 2024; regulations on registration with real estate take effect from the time specified in the law on real estate.

Nhu Mai

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE