What is a Negotiable Instrument?

What are valuable papers? (Illustrative image)

The Civil Code 2015 does not specifically define what valuable papers are but only mentions them as a type of asset. According to Clause 8 Article 6 of the Law on the State Bank of Vietnam 2010; Clause 1 Article 3 of Circular 04/2016/TT-NHNN and Clause 1 Article 2 of Circular 01/2012/TT-NHNN, it is stipulated that: "Valuable papers are evidence confirming the debt repayment obligation between the issuing organization and the holder of the valuable papers within a certain period, with conditions on interest payment and other conditions."

Based on the explanation of valuable papers in Official Dispatch 141/TANDTC-KHXX, some types of valuable papers can be listed as follows:

- Bills of exchange, promissory notes, checks, and other negotiable instruments as regulated in Article 1 of the Law on Negotiable Instruments 2005;- Government bonds, corporate bonds, promissory notes, and shares as regulated in Point c, Clause 1, Article 4 of the Foreign Exchange Ordinance 2005;- Treasury bills, bills of exchange, bonds, debentures, and other instruments creating debt repayment obligations as regulated in Point 16, Article 3 of the Public Debt Management Law 2009;- Types of securities (shares, bonds, fund certificates; share purchase rights, warrants, call options, put options, futures contracts, groups of securities or security indexes; investment cooperation contracts; other types of securities as prescribed by the Ministry of Finance) as regulated in Clause 1, Article 6 of the Securities Law 2006 (amended, supplemented by the Amended Securities Law 2010);- Corporate bonds as regulated in Article 2 of Decree 52/2006/ND-CP on Issuance of Corporate Bonds.

Thus, ownership certificates of assets such as land use right certificates, house ownership certificates, motorcycle registration certificates, car registration certificates, etc., are not valuable papers.

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