The 5-chapter and 74-article Decree, issued by the Government on December 29, 2006, details the implementation of a number of articles of the Civil Code regarding the establishment and making of security transactions for the performance of civil obligations and the handling of security assets.
The 5-chapter and 74-article Decree, issued by the Government on
Under the Decree, security assets shall, as agreed by the parties, belong to the obligor or a third person who commits to use those assets to assure the performance of the obligor’s obligations towards the obligee. Security assets may be existing assets or future assets permitted for transaction.
Unless otherwise provided for by law, state enterprises may use assets under their management to assure the performance of their civil obligations.
Lawful security transactions will come into force from the time the transactions are made unless otherwise agreed by concerned parties and except the following cases: the pledge of assets comes into force from the time the assets are transferred to the pledgee; the mortgage of the right to use land or forests or the ownership over planted production forests, craft or ships comes into force from the time of mortgage registration; or the security transactions come into force from the time they are notarized or authenticated in accordance with law.
This Decree replaces Government Decree No. 165/1999/ND-CP of November 19, 1999, and annuls Decree No. 178/1999/ND-CP of December 29, 1999; Decree No. 85/2002/ND-CP of October 25, 2002; and Clause 2, Article 2 of Decree No. 08/2000/ND-CP of March 10, 2000.
Security transactions made under the 1995 Civil Code, Decrees No. 165/1999/ND-CP, No. 178/1999/ND-CP and No. 85/2002/ND-CP or other legal documents, which have not expired yet after the effective date of this Decree, remain valid.
(Source: VietnamLaw)
