THE STATE BANK OF VIETNAM

Circular No.  01/2013/TT-NHNN dated January 07, 2013 of the State Bank of Vietnam amending and supplementing some Articles of the Circular No. 21/2012/TT-NHNN of June 18, 2012, regulation on operation of lending, borrowing; term purchase and sale of valuable papers with term among foreign credit institutions and bank branches
Pursuant to the Law on the State bank of Vietnam No.46/2010/QH12, of June 16, 2010;
Pursuant to the Law on credit institutions No.47/2010/QH12, of June 16, 2010;
Pursuant to the Government’s Decree No.96/2008/ND-CP, of August 26, 2008, defining the functions, tasks, powers and organizational structure of the State bank of Vietnam;
At the proposal of Director of Credit Department;
The Governor of the State bank of Vietnam amends and supplements a number of articles of the Circular No. 21/2012/TT-NHNN, of June 18, 2012, regulating on activities of lending, borrowing; purchase and sale with term of valuable papers among credit institutions and branches of foreign banks (hereinafter referred to as Circular 21),
Article 1. To amend and supplement a number of articles of the Circular 21:
1. To amend and supplement Article 1 as follows:
"Article 1. Scope of regulation

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1. This Circular provides for activities of lending, borrowing; purchase and sale with term of valuable papers among credit institutions and branches of foreign banks.
2. Activities of capital balancing between cooperative banks with people’s credit funds; activities of lending, borrowing among people's credit funds; activities of lending, borrowing among branches in Vietnam of a same foreign bank; Overdraft on payment account among credit institutions, branches of foreign banks and activities of lending aiming to ensure solvency of securities transactions on the Stock Exchange between payment banks selected by State Securities Commission and members of Stock Depository Center being credit institutions, branches of foreign banks shall not be adjusted by this Circular."
2. To amend and supplement Article 3 as follows:
a) To amend clause 1 as follows:
“1. Transaction of lending and borrowing is the transaction in which a credit institution or branch of foreign bank (the lender) perform handing over or commit to hand over a sum of money for other credit institution or branch of foreign bank (the borrower) in order to use with a definite purpose in a definite time with the principle of repayment of principal and interest.”
b) To supplement clauses 16, 17, 18 as follows:
“16. The extension for loans means that the lender accepts to prolong a period apart from the loan duration prescribed in loan contract when the borrower has a request for prolong time limit of repayment because the borrower has no ability of punctual payment for all or a part of principal and/or interest and the lender considers, assesses that the borrower has ability to pay debt in the extended time.
17. Adjustment of repayment term means the lender and the borrower may agree on change of debt payment term of principal and/or interest prescribed in the loan contract on the basis of proposal of the borrower and the lender considers and assesses that the borrower has ability to pay debt in according to durations agreed for adjustment by two parties.