THE STATE BANK OF VIETNAM

Circular No. 09/2015/TT-NHNN dated July 17, 2015 of the Vietnam State Bank on debt purchase and sale by credit institutions, foreign banks’ branches
Pursuant to the Civil Law No. 33/2005/QH11 dated June 14, 2005;
Pursuant to the Law No. 46/2010/QH12 on Vietnam State Bank dated June 16, 2010;
Pursuant to the Law No. 47/2010/QH12 on credit institutions dated June 16, 2010;
Pursuant to the Decree No. 156/2013/ND-CP dated November 11, 2013 of the Government stipulating functions, tasks, rights and organizational structure of the Vietnam State Bank;
At the proposal of the Director of the Department of Credit for all economic sectors;
The State Bank Governor promulgates the Circular on debt purchase and sale by credit institutions, foreign banks’ branches.
Chapter I
GENERAL PROVISIONS
Article 1. Scope of application
1. This Circular stipulates debt purchase and sale arising from lending (including a debt paid on a third party's behalf in guarantee) by credit institutions, foreign banks’ branches; dossiers, orders, procedures for approval of debt purchase by credit institutions, foreign banks’ branches.
2. This Circular is not applied for debt purchase and sale by Asset Management Companies of Vietnamese credit institutions (VAMC); debt purchase and sale arising from loan agreement contract among credit institutions, foreign banks’ branches.
Article 2. Scope of application
1. Credit institutions, foreign banks’ branches that are established and operated according to the Law on credit institutions (hereinafter referred to as credit institutions, foreign banks’ branches).
2. Individuals, organizations related to debt purchase and sale.
Article 3. Interpretation of terms
Under this Circular, the following terms are construed as follows:
1. Debt purchase and sale means agreements in writing on the transfer of rights of the creditor for a debt arising from loan, a debt paid on a third party's behalf in guarantee whereby the debt seller transfers the creditor's right over the debt to the debt purchaser and receives payment from the debt purchaser.
2. Purchased and sold debt means the debt arising from loan, a debt paid on a third party's behalf in guarantee under the credit contract signed by credit institutions, foreign banks’ branches that are being supervised for on-balance sheet, off-balance sheet or put out of balance sheet of the debt seller that are eligible for conditions as stipulated under Article 4 of this Circular and the debtor has obligations to pay for credit institutions, foreign banks’ branches.
3. Debt sellers include credit institutions, foreign banks’ branches that have debts sold as stipulated under Clause 2 of this Article.