THE STATE BANK OF VIETNAM

Circular No. 34/2013/TT-NHNN dated December 31, 2013 of the State Bank of Vietnam providing for domestic issuance of promissory notes, bills, deposit certificates, and bonds by credit institutions, foreign bank branches
PursuanttotheLawonStateBankofVietnam No.46/2010/QH12dated16June 2010;
Pursuant to the Law on Credit institutions No. 47/2010/QH12 dated 16 June 2010;
Pursuant to the Law on Enterprises No. 60/2005/QH11 dated 29 November 2005;
Pursuant to the Law on SecuritiesNo. 70/2006/QH11 dated 29 June 2006 and the Law on amendment of, supplement to several Articles of the Law on Securities No. 62/2010/QH12 dated 24 November 2010;
Pursuant to the Ordinance on foreign exchanges No. 28/2005/PL-UBTVQH11 dated 13 December 2005;
Pursuant to the Decree No. 90/2011/ND-CP dated 14 October 2011 of the Governmenton issuance of corporate bonds;
Pursuant to the Decree No. 156/2013/ND-CP dated 11 November 2013 of the Governmentproviding for the functions, duties, authorities and organizational structureoftheStateBankofVietnam(hereinafter shortly referred to as the State Bank);
Upon proposal of the Director ofMonetary Policies Department,

>> See also:  Banks do not depreciate real estate's held temporarily

TheGovernoroftheStateBankherebyissues the Circular providing for the domestic issuance of promissory notes, bills, deposit certificates, bonds by credit institutions, foreign bank branches.
Chapter I
GENERAL PROVISIONS
Article 1. Governing scope
1. This Circular provides for the domestic issuance of promissory notes, bills, deposit certificates, bonds by credit institutions, foreign bank branches for fund mobilization within the territory of Vietnam.
2. The public offer of bonds, deposit, listing and trading of bonds by credit institutions, foreign bank branches in securities market shall be subject to this Circular and regulations on securities.
Article 2. Interpretation
In this Circular, following terms shall be construed as follows:
1. Promissory notes, bills, deposit certificates, bonds (hereinafter called valuable papers) shall be an evidence that confirms the debt repayment obligation between the issuing credit institution, foreign bank branch and the buyer of valuable paper in a certain period of time, interest payment conditions and other conditions.
2. Non-bearer valuable paper shall mean the valuable paper that is issued in the form of a certificate or book entry with name of the owner.
3. Bearer valuable paper means the valuable paper that is issued in the form of a certificate without name of the owner. Bearer valuable paper is subject to the ownership of the person who holds the valuable paper.
4. Term of valuable paper means the period of time commencing from the date of issue to the date of maturity. Short-term valuable papers shall have term of less than one year, long- term valuable paper shall have term of two years or more, bonds shall have term of one year or more.
5. Fixed interest rate shall be the interest rate that is unchanged and applied during the term of the valuable paper.
6. Periodically adjusted interest rate shall be the interest rate that is changed regularly according to the market and agreed by and between the credit institution, foreign bank branch and the buyer upon the issuance.
7. Interest prepayment shall be the sale of value papers at the price lower than their face value and the buyer shall be paid an amount equivalent to the face value of valuable papers at their maturity.
8. One-off payment of interest at maturity shall be the one-off payment of interest at maturity together with the principal amount.