Decree No. 65/2005/ND-CP on amendment of and addition to a number of articles of Decree 16/2001/ND-CP of the Government Dated May 02, 2001 on organization and operation of finance leasing companies

THE GOVERNMENT	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom- Happiness
No. 65/2005/ND-CP	Hanoi, May 19^th, 2005

DECREE

ON AMENDMENT OF AND ADDITION TO A NUMBER OF ARTICLES OF DECREE 16-2001-ND-CP OF THE GOVERNMENT DATED 2 MAY 2001 ON ORGANIZATION AND OPERATION OF FINANCE LEASING COMPANIES

THE GOVERNMENT

Pursuant totheLawonOrganizationofthe Government dated 25 December 2001; Pursuant to the Law on the State BankofVietnam01-1997-QH10dated12December

^{1997 as amended by Law 10-2003-QH11 dated 17 June 2003;}

Pursuant totheLawonCreditInstitutions 02-1997-QH10 dated 12 December 1997 as amendedbyLaw 20-2004-QH11dated15June2004;

On theproposaloftheGovernorof the State Bank of Vietnam:

DECREES:

Article 1. To amendandaddtoanumberofarticlesof Decree 16/2001/ND-CP ofthe Government dated 2 May 2001 on organization and operation offinanceleasingcompaniesasfollows:

1. Toamendarticle1.2asfollows:

"A financeleasingtransactionmustsatisfy one of the following conditions:

(a) Upon expiry of the lease duration under the contract, ownership of the leased assets is transferred to the lessee or the lessee continues to lease the assets as agreed by the two parties;

(b) Upon expiry of the lease duration under the contract, the lessee has the preferential right to purchase the leased assets at a par price lessthantheactualvalueatthetimeof [such]acquisition;

(c) Theleasedurationofeachleasedassetmust be at least sixty (60)percentofthe periodrequiredforamortizationoftheleasedasset;

(d) The total lease payments for each asset set outinthefinanceleasingcontractmustbe atleast equivalenttothevalueofsuchasset at the time of signingofthecontract1."

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