10 cases of registry refusing to register a security interest in Vietnam

10 cases of registry refusing to register a security interest in Vietnam (Internet image)

Regarding this issue, LawNet responded as follows:

1. What is registration of security interests?

According to Clause 1, Article 3 of Decree 99/2022/ND-CP, registration of security interests refers to the recording in a security interest register or entry into a database on security interests by a security interest registry of the use of assets by the grantor to secure performance of an obligation of their own or another person, or also to secure performance of an obligation of their own or another person with the secured party (hereinafter referred to as registration).

2. 10 cases of registry refusing to register a security interest in Vietnam

According to Clause 1, Article 15 of Decree 99/2022/ND-CP,, the registry may refuse to register a security interest in any of the following cases:

(1) The security interest falls beyond its registration competence;

(2) The registration application is invalid as prescribed in Clause 5, Article 3 of Decree 99/2022/ND-CP,;

(3) The property is ineligible to be used to secure the performance of obligations as prescribed by the Land Law, Housing Law and other relevant laws.

If the property is in dispute, the registry may only refuse the registration when a document accepting or justifying the acceptance of settlement of dispute issued by the court or other dispute settlement authority;

(4)  Information in the registration application is inconsistent with information kept at the registry, except for the cases specified in Clause 8 Article 25, Clause 1 and Clause 3 Article 36 and Article 37 of Decree 99/2022/ND-CP,;

(5) The information described on the application form for registration for the property specified in Clause 3, Article 5 of Decree 99/2022/ND-CP, is inconsistent with the information on the Certificate, unless the information described on the application form for registration is consistent with the information being kept at the registration office due to the establishment of a new cadastral map to replace the documents and measurement data used to issue the Certificate but the land user, owner of property on land that has not yet been granted a replacement certificate according to the new cadastral map;

(6) Information of the grantor or the secured party in the case of registration through the online registration system or the information of the representative in the case of registration specified in Clause 2, Article 24 of Decree 99/2022/ND-CP, does not match the information of the online registration account used;

(7) The request for registration of change or deregistration of information on security interests, or notice of collateral realization is not kept at the registry;

(8) The registry detects by itself that documents, signatures and seals in the registration application are forged as their ones or receives information with certification from a competent authority that documents, signatures and seals in registration application are forged;

(9) Before the time of recording or updating the registered information in the Register or in the Database, the registry:

- Receives a written notice from the civil judgment enforcement agency or the enforcer stating the distraint of the collateral or request the suspension or use of the registration of the property of which the grantor is the judgment debtor in accordance with the law on civil judgment enforcement;

- Receives a written request from a presiding authority or officer or from another competent agency or another competent person requesting not to register in accordance with regulations of law.

The provisions at this point do not apply in cases where the National Assembly's Resolution on handling bad debts of credit institutions or relevant laws stipulate otherwise;

(10) The registration applicant does not pay the registration fee, unless otherwise provided by the law on fees and charges or other relevant laws.

3. What are the cases or registration of security interesst in Vietnam?

 The following security interests are subject to registration:

(i) Registration of mortgage of property, pledge of property, title retention as prescribed in the Civil Code, and relevant laws;

(ii) Registration under the agreement between the grantor and the secured party or at the request of the secured party, except for property lien;

(iii) Registration of notice of realization of collateral in case an asset is used to secure the performance of many obligations but many parties jointly receive the security or in cases where the grantor and the secured party have reached an agreement;

(iv)  Registration of changes to registered information (hereinafter referred to as change registration); deregistration of registered information (hereinafter referred to as deregistration) for the case specified at (i), (ii) and (iii).

(Clause 1, Article 4 of Decree 99/2022/ND-CP,)

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