Rights of the guarantor in bank guarantees in Vietnam from April 1, 2025

Rights of the guarantor in Vietnam

- Accept or refuse the request for providing a guarantee.

- Request the confirming guarantor to perform the confirmation of the guarantee for their guarantee to the guaranteed party.

- Require customers and relevant parties to provide information and documents related to the appraisal of the guarantee and the collateral (if any).

- Request customers to take measures to secure the guaranteed obligations (if needed).

- Conduct inspection and supervision of the customer's financial status during the validity period of the guarantee.

- Collect guarantee fees, adjust guarantee fees; apply, adjust interest rates, penalty interest rates.

- Refuse to perform guarantee obligations when the request documents to perform the guarantee obligation are invalid or there is evidence proving that the presented documents and materials are falsified.

- Require the counter-guarantor to fulfill the committed obligations.

- Account and record mandatory debt for the customer in the amount paid on behalf of the guaranteed party immediately upon performing the guarantee obligation; require the customer to reimburse the amount the guarantor has paid on their behalf as committed.

- Request other co-guarantors to reimburse the amount paid on behalf of the guaranteed party in accordance with the co-guarantee participation ratio as agreed between the parties in cases where the lead member performs the guarantee obligation in the co-guarantee.

- Handle the collateral as per the agreement and legal regulations.

- Transfer their rights and obligations to another credit institution or foreign bank branch according to the agreement of the parties involved in accordance with legal regulations.

- Initiate legal action in accordance with the law when the customer breaches the committed obligations.

- Other rights as agreed by the parties in compliance with legal regulations.

Circular 61/2024/TT-NHNN takes effect from April 1, 2025.

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