Decree No. 144/2006/ND-CP dated November 27, 2006 of the Government on tontine
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Hanoi, November 27, 2006
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the June 14, 2005 Civil Code;
At the proposal of the Minister of Justice,
Article 1.- Governing scope
This Decree provides the forms of tontine, the rights, obligations and responsibilities of tontine participants.
Article 2.- The State policies on tontine
1. The legitimate rights and interests of persons participating in tontine for the purpose of mutual assistance among people under the provisions of this Decree and other relevant legal documents are protected by law.
2. It is strictly forbidden to organize tontine to practice usury, commit swindling, trust abuse or other illegal acts in order to appropriate properties of other people.
Article 3.- Interpretation of terms
In this Decree, the terms below are construed as follows:
1. Annuity share means a determined sum of money or another asset which, as agreed upon, a member must contribute in a tontine opening. Annuities must be the negotiable properties.
2. Tontine opening time means a time when a member receives the total annuities as agreed upon by all the members.
Article 4.- Types of tontine
Tontine covers interest-free tontine and interest-bearing tontine. Interest-bearing tontine includes interest-bidding tontine and commission tontine.
Article 5.- Tontine holder
Tontine holder means a person who organizes and manages a tontine, collects annuity shares and hands those shares to the member entitled to receive them in each tontine opening till the last one, unless otherwise agreed upon. Tontine holders must have full civil act capacity.
Article 6.- Members
Members are persons who participate in a tontine, contribute annuity shares and receive the tontine. A member may contribute one or many annuity shares for a tontine.
Article 7.- Forms of tontine agreement
Tontine agreement can be expressed verbally or in writing. Written agreements on tontine may be notarized or authenticated if so requested by members.
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