| THE GOVERNMENT ------- | SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ------------ |
| No: 85/2002/ND-CP | Hanoi, October 25, 2002 |
DECREE
AMENDING AND SUPPLEMENTING DECREE No. 178/1999/ND-CP OF DECEMBER 29, 1999 ON CREDIT INSTITUTIONS LOAN SECURITY
THE GOVERNMENT
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the December 12, 1997 Vietnam State Bank Law and Credit Institution Law;
At the proposal of the Governor of Vietnam State Bank,
DECREES:
Article 1.- To amend and supplement a number of articles of the Government’s Decree No.178/1999/ND-CP of December 29, 1999 on credit institutions loan security as follows:
1. To add Clause 3 to Article 1 as follows:
"For credit granted by the Development Assistance Fund and other State-run financial institutions, if securing measures therefor are prescribed by law, the provisions of this Decree may also apply."
2. To amend and supplement Clause 3 of Article 2 as follows:
"Loan-security properties mean properties of the borrowers or the guarantors used to secure the performance of the debt-repayment obligations, including: the properties under the ownership and the value of the land use right of the borrowers or the guarantors; the properties under the management or use right of the borrowers or the guarantors being State enterprises; and the properties formed from the loan capital."
3. To amend and supplement Clause 6 of Article 2 as follows:
"Guarantee with the third party�s (called the guarantor) property means the guarantor commits with the credit institution to use the property under his/her/its ownership or the value of his/her/its land use right or, for State enterprises, the property under its management or use right, for the performance of the debt-repayment obligation for the borrower, provided that when the debt turns due the borrower has failed to fulfill the debt-repayment obligation."
