| STATE BANK OF VIETNAM ----------- No. 01/2012/TT-NHNN | SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness -------------------------- Hanoi, 16 February 2012 |
CIRCULAR
PROVIDING FOR THE DISCOUNT OF VALUABLE PAPERS BY THE STATE BANK OF VIETNAM
TO CREDIT INSTITUTIONS, FOREIGN BANK'S BRANCHES
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- Pursuant to the Law on the State Bank of Vietnam No. 46/2010/QH12 dated 16 June 2010;
- Pursuant to the Law on Credit Institutions No. 47/2010/QH12 dated 16 June 2010;
- Pursuant to the Decree No. 96/2008/ND-CP dated 26 August 2008 of the Government providing for the functions, duties, authorities and organizational structure of State Bank of Vietnam;
The State Bank Vietnam (hereinafter referred to as the State Bank) hereby provides for the discount of valuable papers by the State Bank to credit institutions, foreign bank’s branches as follows:
Chapter I
GENERAL PROVISIONS
Article 1. Governing scope and subjects of application
1. Governing scope
This Circular provides for the performance of discount of valuable papers by the State Bank to credit institutions, foreign bank’s branches.
2. Subjects of application
a) Banks, non-banking credit institutions and foreign bank’s branches;
b) Central People's credit fund during the time when it has not been transformed into Cooperative bank in accordance with provisions of the Law on Credit Institutions.
Article 2 Interpretation
In this Circular, following terms shall be construed as follows:
1. Valuable paper shall mean an evidence that confirms the payment obligation of the valuable paper issuer to the holder of the valuable paper for a certain period of time, interest payment condition and other conditions.
2. Long-term valuable papers shall mean valuable papers with term of one year and more since its issuance to maturity.
3. Short-term valuable papers shall mean valuable papers with term of less than one year since its issuance to maturity.
4. Discount of valuable papers shall be operation of State Bank to buy, in short term, valuable papers remaining in payment effectiveness from credit institutions, from foreign bank's branches before their maturity (herein shortly referred to as the discount).
