(Official) Decree on elaborating Civil Code regarding security for fulfillment of obligations in Vietnam

Decree 21/2021/ND-CP elaborates the adoption of regulations and law, and agreement on security for obligation fulfillment in Vietnam as follows:

• In case regulations and law on land, houses, investment, enterprises, securities, insurance, financial institutions, natural resources, fisheries, forestry, aviation, maritime, Intellectual property, science, technology or other fields prescribe collateral, establishment, implementation of security measures or realization of collateral specifically, these specific regulations shall prevail.

• In case parties to security for fulfillment of obligations have agreements other than those specified under this Decree and conforming to basic principles of civil laws, not violating conditions for effectiveness of civil transaction and not violating limitations on execution of civil rights according to Vietnam's Civil Code and/or other relevant law provisions, conform to agreements of the parties.

• In case property owners and secured parties employ properties to guarantee fulfillment of obligations of other individuals, comply with regulations and law on pledging, mortgaging properties. 

• In case agreements contain details regarding security for obligation fulfillment where parties fail to accurately define security measures which are compatible with the agreements according to Vietnam's Civil Code, comply with regulations on security measures satisfactory to these agreements. 

More details can be found in: Vietnam's Decree 21/2021/ND-CP, effective from May 15, 2021, replacing Vietnam's Decree 163/2006/ND-CP.

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