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State Bank of Vietnam Socialist Republic of Vietnam
htmlhtml Independence-freedom-Happiness
No. : 15 QD/NH1 htmlhtmlhtml
Hanoi, 2 february 1994
- Pursuant to Decree 15-CP on 2 March 1993 of the Government on the tasks, power and state management responsibilities of Ministries and Ministerial Agencies;
- At the recommendation of the Director of the Economic Research Department.
Decides
Article 1:
- To issue with this attached decision "the Regulations on Savings for Housing Construction".
Article 2:
- This decision takes effect on the signing date.
Article 3:
- The Director of the Governor's Office; the chief of the departments, services and units of the State Bank Head Office; the Directors of the provincial and municipal S.B.V. branches; the General-Directors of the commercial banks and the Bank for Investme nt and Development are obliged to implement this decision.
for The State Bank Governor of the State Bank of Vietnam
CAO SI KIEM (Signed)
Article 1:
- Savings for Housing Construction is a form of medium and long-term savings of the public to be combined with loans of credit institutions with the aim of shortening the duration of the generation of adequate capital resources for the purchase, construct ion, renovation or upgrading of houses of households.
Article 2:
- Savings for Housing Construction constitutes a banking service transacted by the state-owned commercial banks, the share-holding banks, the Bank for Investment and Development (herein referred as the Bank) with the permission of the Governor of the Stat e Bank. Those banks which are involved in this service shall have a specialized section or a company under its guidance which shall be free from other banking services.
Article 3:
- The service of the Savings for Housing Construction aims mainly at generating capital resources and mobilizing savings for housing construction, and using these resources to extend credit to those people, who have been involved in this savings service, for the purchase, construction, renovation or upgrading of their houses.
Article 4:
- All Vietnamese individuals who are aged over 18, without insanity nor legal offense, wish to purchase, construct, renovate or upgrade houses for shelter and have resident registration in the location where the Bank is based may take part in this form o f savings. Those who deposit their money in the Savings for Housing Construction (herein referred as the Depositor) shall sign with the Bank a Savings for Housing Construction contract, may have the right to borrow a loan for the purpose of purchase, cons truction, renovation or upgrading of his, her house.
Article 5:
- The Savings for Housing Construction contract includes the following requirements :
5.1. The total capital for the purchase, construction, renovation, upgrading of houses.
5.2. The required total deposit, maturity and periodical depository level of the Depositor.
5.3. The borrowing level, the date of disbursement and the date of repayment.
5.4. The saving and lending interest rate.
5.5. The forms of loan guarantee
5.6. The legal measures taken when any party in fringes upon the contract.
Other terms of the contract shall be agreed upon between the Bank and the Depositor.
Article 6:
- The Savings for Housing Construction shall comply with the following principles :
6.1. The depositor may only get the loan after having deposited his/her savings for at least one year (minimum savings duration).
6.2. The depositor may get the maximum loan equivalent to his/her savings balance at the date when loan request is made.
6.3. The saving and lending interest rates shall remain stable under the contract throughout the duration of savings, borrowing and repayment.
6.4. The loan guarantee shall be implemented in compliance with the existing regulations on collateralization.
II/ Specific procedures and stipulation
Article 7:
- Those individuals taking part in the Savings for Housing Construction shall register by filling the Bank's printed form.
Article 8:
- After consideration, the Bank and the Depositor may sign a Savings for Housing Construction contract. The Bank will open a separate account for the Depositor for the purpose of savings accounting.
Article 9:
- Savings mode
9.1. Based on the required capital amount, the Bank and the Depositor shall reach specific agreement on the required savings by the Depositor and the required loan by the Bank, providing the principle in Article 6.2 shall be adhered.
9.2. Based on the principle of Article 6.1 the Bank and Depositor shall reach agreement on the procedures and dates or deposits. The first deposit may be bigger than the following ones, depending on the savings position of the Depositor (aimed at decreasi ng the times of depositing). The deposit amount for the following periods shall be fixed.
9.3. If the Depositor fails to deposit savings at one point due to unexpected reason, he/she shall add it up to the next deposit of savings. If he/she fail to deposit his/her savings three times in the process, the Bank may have the right to terminate the signed contract.
9.4. In the process of savings, the Depositor may transfer his/her contract to other people provided that the inheritor shall undertaken to accomplish all obligations contained in the contract and accepted by the Bank.
9.5. If the depositor wishes to terminate the contract due to proper reasons and request to make the withdrawal before maturity, he/she shall submit a request in writing. The bank may consider to pay the principal and interest and the payment will be made two or three times for the period of one month.
9.6. During the savings process, should the depositor pass away, the legal inheritor may carry on the contract; if he/she wishes to make withdrawal, the transaction will comply with Article 9.5. Should legal inheritor not be available, the treatment of th e deposited savings shall comply with existing laws.
Article 10:
- The Depositor may receive interest based on his/her savings balance. At fixed times, the Bank shall calculate the interest on his/her savings balance and automatically add it up to his/her principal.
Article 11:
- Procedures for withdrawal and borrowing :
11.1 - Having met the required duration and amount of savings under the contract, if the Depositor wishes to withdraw his/her savings and make the borrowing, he/she shall submit his/her application in writing to the Bank.
11.2. Within three working days from the date the bank receives the legitimate loan request, it summons the Depositor to do the withdrawal and loan proceedings.
11.3. Upon the arrival of the Depositor for withdrawal and loan proceedings, the Bank shall calculate the legitimate withdrawal and loan amount, prepare loan contract and ask the Depositor to make necessary collateral procedures for the loan. The Bank may ask the Depositor to present relevant papers (e.i. land distribution certificate, construction permit, house purchase contract). During the loan period, the Bank shall supervise the utilization of the loan; if the findings show that the loan has been use d by the Depositor for unlegitimate purposes, the bank may have the right to stop making additional disbursement (if the loan has not been fully disbursed) and collect the repayment ahead of time.
11.4 - The forms of loan guarantees
In principle, the collateral asset savings as the loan guarantee is equivalent to the investment asset in terms of the loan. The bank shall temporarily hold the original ownership certificate of this asset until the complete repayment collection. In addit ion, the Depositor may collateralize other similar valuable assets, including the valuable papers accepted by the Bank or the guarantee of economic entities or individuals as accepted by the Bank.
Article 12:
- Borrowing modes :
12.1. If the house is a newly-built one, the Bank will make disbursement on the basis of the progress of the project construction in line with the terms of the construction contract (if any) which the Depositor has signed with the developer.
12.2. If the house is purchased, the Bank shall make disbursement on the basis of the tripartite formality : the disbursement shall be made directly to the seller on the basis of the actual price which the two sides have reached agreement in their purcha se contract attached with the certificate of the notary public.
12.3. If the house is renovated and repaired, the disbursement may be made in a single time or several times at the request of the Depositor.
Article 13:
- Repayment measure
13.1. The loan maturity and repayment date shall be fixed by the General Director (Director) of the state-owned commercial banks, the Bank for Investment and Development and the share-holding banks.
13.2. The Bank shall commence repayment collection three months following the final disbursement. The actual amount of repayment at each period shall be agreed upon by the Bank and the Depositor. The Depositor may make repayment ahead of the time as set i n the loan contract. If the depositor shall make complete repayment ahead of time, the Bank shall reduce his/her loan interest rate at the maximum level of 1% per annum.
13.3. The loan interest rate shall be calculated on the basis of the balance and collected alongside with the amortization.
Article 14:
14.1. While the Bank loan balance remains, the Depositor shall not use his/her house built with the Bank loan to collateralize other loan, nor transfer it to other people or provide guarantee for other obligation.
14.2. In special case, he/she may transfer the house to other people with the consent of the Bank. The transferee shall owe the remaining debt to the Bank and undertake to accomplish all the obligations in the agreement contract which the transferor signe d with the Bank.
14.3. During the repayment process, should the Depositor pass away, the legal inheritor shall be responsible for the left-behind assets under the inheritance law.
Article 15:
- On the basis of the maturity written down in the agreement contract, the Depositor shall be obliged to make repayment of both principal and interest in a timely manner. Should the Depositor not be able to make repayment at the fixed date, the Bank may c alculate the interest and add it up to the principal to be repaid and then transfer both the interest and principal of that period to the areas, and at the same time notify the Depositor and set a date for his/her repayment.
Should the Depositor let repayment become arrears three times, the bank shall proceed with the sale of the collateralized assets or use other guarantee forms to collect repayment.
Article 16:
- The bank shall be obliged to generate and prepare capital resources to timely meet the needs of the Depositor. Should the Bank not be able to make money available to the Depositor. When the withdrawal and loan date comes and after the Depositor complete s all required procedures, the Bank shall comply with the terms of penalty as applied to delayed payment on both the savings and the loan.
Article 17:
- While the generated capital resources are awaiting the lending date, the Bank may use these resources to :
- Extend credit the economic institutions specialized in housing construction.
- Make contribution to joint-venture, with the economic units specialized in housing construction under the permitted regulations.
Article 18:
- In case of the shortage of capital resources, the Bank may make the borrowings from the interbank market or apply to the State Bank for the issuance of bills and bonds for the purpose of providing loans to the Depositors.
Article 19:
- All disputes between the Bank and the Depositor shall be settled under the civil contract law. In critical cases, legal proceedings may be required.
Article 20:
- The General Director, Director of the commercial banks and the Bank for Investment and Development shall provide advice and institution the implementation of these regulations.
Article 21:
- All changes and amendments to these regulations shall be decided by the Governor of the State Bank of Vietnam.
for The State Bank The Governor
CAO SI KIEM