Decision No. 04/2007/QD-NHNN dated January 22, 2007 of the State Bank on overdraft and overnight lending applicable in the inter-bank electronic payment
THE STATE BANK OF VIETNAM
SOCIALIST REPUBLIC OF VIETNAM
Independence- Freedom Happiness
Hanoi, January 22, 2007
ON OVERDRAFT AND OVERNIGHT LENDING APPLICABLE IN THE INTER-BANK ELECTRONIC PAYMENT
THE GOVERNOR OF THE STATE BANK
- Pursuant to the Law on the State Bank of Vietnam issued in 1997; the Law on the amendment, supplement of several Articles of the Law on the State Bank of Vietnam issued in 2003;
- Pursuant to the Decree No. 64/2001/ND-CP dated 20 September 2001 of the Government on the payment activities through payment services suppliers;
- Pursuant to the Decree No. 141/2003/ND-CP dated 20 November 2003 of the Government on the issuance of Governments Bonds, Bonds guaranteed by the Government and Bonds of local governments;
- Pursuant to the Decree No. 151/2006/ND-CP dated 20 December 2006 of the Government on investment credit and export credit of the State Bank;
- Pursuant to the Decree No. 52/2003/ND-CP dated 19 May 2003 of the Government providing for the function, assignments, authorities and organizational structure of the State Bank of Vietnam;
- Upon the proposal of the Director of the Monetary -Policy Department,
Article 1. Governed scope and subjects of application
This Decision provides for the overdraft and overnight lending by the State Bank of Vietnam to banks which are set up and operate in accordance with the Law on Credit Institutions, are direct participants to the inter-bank electronic payment system (hereinafter referred to as banks) in order to satisfy the deficit on the clearance account in the inter-bank electronic payment.
Article 2. Interpretation
1. Overdraft in the inter-bank electronic payment means banks are entitled to make payment in excess of the credit balance in their clearance account opened at the Banking Operation Department of the State Bank of Vietnam during the payment date.
2. Overnight lending in the inter-bank electronic payment means the State Bank of Vietnam extends loans secured by the mortgage of valuable papers to the banks within the period of time commencing from the previous working day to 8h30 of the following working day.
Article 3. Purposes of the overdraft and overnight lending
1. Banks shall be entitled to make overdraft to cover the temporary deficit of payment funds during a day of the inter-bank electronic payment.
2. Bank shall be extended an overnight loan by the State Bank of Vietnam to settle the overdraft at the end of a working day.
Article 4. Conditions of the overdraft and overnight lending
In order to be entitled to receive the overdraft and overnight loan, banks must satisfy following conditions:
1. Availability of an application for the overdraft and overnight borrowing, which is accepted by the State Bank of Vietnam;
2. Accepting and complying with provisions of this Decision;
3. Availability of mortgaged assets for the implementation of the loan security.
Article 5. Assets mortgaged for the overdraft, overnight loan
1. Assets mortgaged for the overdraft, overnight loan of banks shall include:
a. The State Treasury Bills;
b. The State Bank Bills;
c. The State Treasury Bonds;
d. Bonds for Central Government's projects
dd. Government Bonds for the construction of Mother Land
e. Governments bonds issued by the Fund for Development Support before the Fund for Development Support was reorganized as Vietnam Development Bank, Governments Bonds issued by Vietnam Development Bank under the designation of the Prime Minister and bonds issued by Vietnam Development Bank of which the payment of interest, principal is guaranteed by the Government;
g. Local governments bonds issued by Hanoi Peoples Committee and Hochiminh Peoples Committee;
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