| THE GOVERNMENT ------ | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ---------- |
| No: 32/2001/ND-CP | Hanoi, July 05, 2001 |
DECREE
DETAILING THE IMPLEMENTATION OF THE ORDINANCE ON NEGOTIABLE INSTRUMENTS
THE GOVERNMENT
Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Ordinance on Negotiable Instruments of December 24, 1999;
At the proposal of the Governor of the Vietnam State Bank,
DECREES:
Chapter I
GENERAL PROVISIONS
Article 1.- Scope of regulation
1. This Decree details and guides the implementation of the Ordinance on Negotiable Instruments.
2. The provisions of the Ordinance on Negotiable Instruments and this Decree govern negotiable instrument relations arising from trade activities, which involve one or a number of credit institutions in its/their capacity as the acceptor(s) of loan provision for the payment of negotiable instruments or the guarantor(s) for the drawees and issuers of negotiable instruments in the Socialist Republic of Vietnam.
Article 2.- Subjects of application
Subjects of application of this Decree include:
1. Participants in negotiable instrument relations in their capacity as drawers, issuers, drawees, transferors, payees, guarantors or pledgees that must be enterprises defined in Article 2 of the Ordinance on Negotiable Instruments, except for cases where foreigners participate in negotiable instrument relations in their capacity as payees.
2. Credit institutions must not take part in negotiable instrument relations in their capacity as issuers or drawers.
Article 3.- Time limits for payment of negotiable instruments
The time limits for payment of negotiable instruments shall be agreed upon by the goods sellers or the trade service providers and the goods buyers or the trade service receivers, and inscribed on negotiable instruments, which, however, must not exceed 180 days, for negotiable instruments used in domestic trade activities and 364 days, for negotiable instruments used in import and export activities of Vietnamese enterprises and foreign traders, except for negotiable instruments drawn for immediate payment upon their presentation. Where the payment of negotiable instruments is made beyond the above-said time limits, Vietnam State Bank’s written approval is required.
Article 4.- Negotiable instruments inscribed with payment in foreign currencies
1. Negotiable instruments shall be inscribed with payment in foreign currencies only when they arise from trade activities, in which one participant is a non-resident.
2. Negotiable instruments inscribed with payment in foreign currencies prescribed in Clause 1 of this Article shall be paid in foreign currencies when the ultimate payees are allowed to collect foreign currencies according to the law provisions on foreign exchange management.
3. For negotiable instruments inscribed with payment in foreign currencies at variance with the provisions of this Decree and the law provisions on foreign exchange management, the sums of money inscribed thereon shall be paid in Vietnam dong at the exchange rates announced by Vietnam State Bank at the time of payment.
Article 5.- Forms of negotiable instrument, language used in negotiable instruments
1. Vietnam State Bank shall design and organize the printing of negotiable instrument forms. The supply of negotiable instrument forms for enterprises shall comply with the regulations of Vietnam State Bank.
2. Negotiable instruments issued by enterprises must be made in Vietnamese language on the pre-printed forms of the Vietnam State Bank. In cases where negotiable instrument relations involve foreign elements, those issued in Vietnam must be made in Vietnamese and English languages.
Article 6.- Term interpretation
In this Decree, the following expressions shall be construed as follows:
1. "Negotiable instrument relations arising from trade activities" mean the negotiable instrument relations arising on the basis of a negotiable instrument issued to pay for a goods sale and purchase transaction or trade service provision;
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