On June 06, 2014, the Joint-ministries of Justice, Natural resources and Environment, the State Bank of Vietnam issued the Joint Circular No. 16/2014/TTLT-BTP-BTNMT-NHNN guiding a number of matters on disposal of security assets.
Prescribing that the mortgagee shall send directly or by post to the transferee of asset ownership or use rights a written notice of the recovery of assets, enclosed with one (1) original of the lawfully notarized security contract or one (1) copy of the security contract certified by the commune-level People’s Committee or issued by a notarization practice organization from the original or one (1) copy of the secured transaction registration certificate issued by the secured transaction registration agency.
At least 7 working days before taking security assets into custody, security asset disposers may send a written notice of the custody of security assets to commune-level People’s Committees of localities where security assets are taken into custody.
Besides, disposal of mortgaged assets being land use rights and land-attached assets in case the mortgage contract is registered before a competent state agency recovers land or assets under law. During the formulation of a compensation, support and resettlement plan under the land law, the organization performing compensation tasks shall seek information on land use rights and land-attached assets subject to recovery at the land use rights registration office. On the basis of mortgage registration contents provided by the land use rights registration office, the organization performing compensation tasks shall notify in writing the mortgagee and mortgagor of the compensation amount, and the time and place for payment of such amount.
In case security assets cannot be sold at the prices determined by the price appraisal agency or organization, within fifteen (15) days from the date of failure to sell the assets, the secured party may reduce the sale prices of assets. Such reduction may be made three (3) times, with each reduction not exceeding ten percent (10%) of the determined prices and the interval between two reductions being at least thirty (30) days, for immovable assets, or at least fifteen (15) days, for movable assets. The secured party shall notify the securing party of the reduction of the sale prices of security assets.
This Circular takes effect on July 22, 2014.
