Time limit for processing security interest registration in Vietnam

Time limit for processing security interest registration in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Time limit for processing security interest registration in Vietnam

Time limit for processing security interest registration according to Article 16 of Decree 99/2022/ND-CP is as follows:

- The registry is responsible for processing the registration application within the working day on which it receives the valid application; if the application is received after 15:00 of the same day, the registration can be done in the next working day.

If the registry has a legitimate reason to extend the processing time for the application, the time limit for processing the application shall not exceed 03 working days from the date of receipt of a valid application.

In this case, the registry must send a notice with explanation to the registration applicant in paper or electronic document (hereinafter referred to as electronic version) or in another convenient form to the. registration applicant and in accordance with the conditions of the registry as soon as there is a good reason.

- In case the registration application of land use rights and property on land is filed through the Department of reception and result return of administrative procedures, the provincial-level public administration service center (hereinafter referred to as the single window division), People's Committee of commune, ward, township (hereinafter referred to as commune), the time limit for processing the application shall commence from the time when the land registry receives the valid application.

- Time not included in the time limit specified in Clause 1 of Article 16 of Decree 99/2022/ND-CP includes:

+ Time of occurrence of natural disaster, epidemic, fire, online registration system failure, power grid failure, internet failure or other force majeure events as written or decided by the competent authority that prevent the registry from carrying out the registration according to the procedures and time limit specified in Decree 99/2022/ND-CP.

In this case, the registry must immediately send a notice within the working day of the event or within the same working day that it receives the document or decision of the competent authority in the form of posting it at the head office of the registry and post it on the website of the regulatory body, the registry (if any) or another convenient form to the registration applicant and suitable to the conditions of the registry;

+ The time period for the registry to carry out the procedures specified in Clause 2, Article 35 of Decree 99/2022/ND-CP.

2. Principles of registration of and provision of information when registering security interests in Vietnam

Principles of registration of and provision of information when registering security interests in Vietnam according to Article 5 of Decree 99/2022/ND-CP are as follows:

- The registration applicant must declare truthfully and take legal responsibility for the accuracy of the declared information.

- The registry must strictly comply with its competence, tasks, grounds, procedures and time limit; must not require extra procedures not specified in this Decree; must not require submission of any additional documents or request to declare any additional information that this Decree does not specify in the registration application; must not require modification of the name of the security contract or the content agreed upon in the security contract.

The registry shall take legal responsibility in case of violation of this principle.

The registry shall not be responsible for the name of the security contract or the content agreed upon in the security contract; not be held responsible for the registration, registration cancellation or re-registration after deregistration according to the contents of legally effective judgments or decisions of competent agencies or competent persons; shall not be liable for the registration of collateral being disputed assets or civil judgment enforcement assets but before or at the time of recording or updating the registered information in the Register or on the Database and the registry has not received the acceptance document or the document proving the competent authority's acceptance of dispute settlement or civil judgment enforcement.

- The registration of land use rights and property on land; the right to use the sea area, property on the sea area or for aircraft and seagoing ships must ensure that the declared contents and documents in the registration application are consistent with the information on the Certificate, information kept at the registry office, except for the property specified in Clause 5 of Article 5, Clauses 1 and 3 of Article 36 and Article 37 of Decree 99/2022/ND-CP.

- In case of registration to secure the performance of an obligation of another person or also to secure the performance of an obligation of the grantor and of another person, the grantor must be the person having the land use right or right to use the sea area or is the owner of the collateral, except in the case of title retention.

The security for the performance of an obligation specified in Clause 4 of Article 5 of Decree 99/2022/ND-CP shall be borne by the grantor and the secured party under their own responsibility as agreed upon in the security contract or in accordance with civil law.

- As for registration of off-the-plan property; property on land that are not required by law to be registered for ownership and have not been registered as required; assets being annual trees, temporary works; movable property other than aircraft, seagoing ships, securities which have been centrally registered or in case of registration of notice of realization of collateral, the registry shall make the registration on the basis of the information stated in the application form for registration on the website.

The registration applicant must take legal responsibility for the legality and accuracy of the information declared on the application form for registration.

- Information on registered security interests shall be provided upon request or as prescribed by law.

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