What is registration of security interests? Principles for registration of security interests in Vietnam

What is registration of security interests? Principles for registration of security interests in Vietnam (Internet image)

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. Principles of registration of security interests in Vietnam

Principles of registration of and provision of information in Vietnam are specified in Article 5 of Decree 99/2022/ND-CP 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 Decree 99/2022/ND-CP;

The registry must not require submission of any additional documents or request to declare any additional information that Decree 99/2022/ND-CP 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;

The registry 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 this Article, 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 this Clause 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.

Nguyen Thi Diem My

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