Tiếng Việt| THE STATE BANK OF VIETNAM | SOCIALIST REPUBLIC OF VIET NAM |
| No. 212/QD-NH1 | Hanoi, September 22, 1994 |
THE GOVERNOR OF THE STATE BANK
Pursuant to the Ordinance on the State Bank of Vietnam and the Ordinance on Banks, Credit Cooperatives and Financial Corporations issued in accordance with Order No. 37 LCT-HDNN8 and Order No. 38/LCT-HDNN8 dated may 24, 1990 of the President of State Council.
Pursuant to the Decree No. 15/CP dated March 2nd, 1993 of the Government on the tasks, powers and responsibilities for state management of the Ministries and Ministerial-ranking bodies.
Aiming to meet the demand on mid-term and long-term capital for the economy.
On the proposal of the Director of the Department for Economic Research.
DECIDES
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FOR THE STATE BANK OF VIETNAM
THE GOVERNOR
Cao Sy Kiem
ON THE ISSUANCE OF THE BONDS OF COMMERCIAL BANK, INVESTMENT AND DEVELOPMENT BANK
(Promulgated in Connection with Decision No. 212/QD-NH1 dated September 22nd, 1994 of the Governor of the State Bank)
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Bank bonds can be issued in either of two forms : bond with a name and bond without a name :
3.1. For the bond with a name on its : The credit organization issuing the bank bond has to open a book to register its ownership and where there is a request for transferring its ownership to conduct again the registration. The procedure for transferring the ownership of bank bond is conducted in accordance with Article 26 of this Regulation.
3.2. Bank bon without a name on its belongs to the person who processes it and can be freely transferred.
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- State commercial banks, investment and development banks.
- Commercial stock banks, joint-venture banks, branches of foreign banks in Vietnam and financial corporations.
1. Regular issuance of bank bonds : This form of issuance is carried out by credit organizations which operate mainly in the field of offering long-term investment loans, not mobilizing short-term deposits or very little, if any, from inhabitants.
2. Irregular issuance of bank bonds : This form of issuance is carried out by other credit organizations on the basis of occasion by occasion according to the demand of investment capital for long-term projects.
The permission granted to credit organizations for regular or irregular issuance of bank bonds shall be decided by the Governor of the State Bank and is prescribed in operation license or in document of supplementary permission.
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Bank bonds are issued in Vietnamese dong (VND) and on nation-wide scale.
In the case that, bank bonds are issued for mobilizing capital from abroad, there will be a separate regulation for them in accordance with the Law on Foreign Investment in Vietnam.
Each bank bond has a term of at least one year.
Credit organizations are not compulsory to make reserve on the fund mobilized from issuing bank bonds.
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Bank bonds issued on one occasion have the same terms and are liquidated at the same time.
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1. Paying interests in advance : This means that bank bonds shall be sold at prices lower than their denominations, when the bank bonds reach their maturity, bank bond buyers shall get back the amount of money as defined by the denominations and an interest as much as the gap between the denominations and their selling prices.
2. Paying interests later : Bank bonds are sold at prices of their denominations, when bank bonds reach their maturity the bond buyers shall be paid both principals (denominations) and the interests as announced when issuing bank bonds.
3. Paying interests periodically on the basis of every six months or a year depending on the interest rates defined on the interests - withdrawal sheets accompanying bank bonds.
13.2. Credit organizations can pay bank bond interests on the basis of periodically adjusted interests rates according to a base rate approved by the Governor of the State Bank of Vietnam.
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16.1. On the front side of a bank bond :
- Name of the credit organization which issues the bank bond.
- A group of words : "BANK BOND"
- Term of the bank bond
- Denomination of the bank bond
- Interest rate of the bank bond
- Way of paying interests, time and place of paying interests
- Date of selling bank bond
- Date of maturity, place of cashing - in bond
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Apart from that the bank bond has to include other legal factors on its front side such as : Issuing code and series, signatures of the General Director or his trustee , the accountant, the treasurer of the credit organization which issues the bond.
16.2. On the back side of a bank bond : The back side is used for recording those factors arising in case of transferring the ownership of bank bond with a name on it, due to the practices of buying, selling, giving, awarding and inheriting of bank bonds. Those factors should include : The name, address, ID number, signature of the person who sells, buys, gives, awards, transfers his inheritance right and those of the new owner of the bond; the contents necessary to be noted by the credit organization when registering again its ownership.
Bank bond owner may authorize another person or a credit organization to withdraw bond interests on his behalf.
If the date for withdrawing interests coincides with a holiday as defined by the State, the withdrawal of interests shall be conducted in the next working day.
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1. Having operated stablely for at least three years, with profit including business, healthy financial situation, a good prospect for development, a good machine of management and having complied strictly with the state laws and regulations of the State Bank.
2. Having legal stock capital or prescribed capital of at least VND 50 billion.
3. Having been granted permission in writing by the Governor of the State Bank.
4. Having completed all the procedures for bank bond issuance prescribed by the Governor of State Bank in this Regulation.
20.1 - For the credit organizations which don't issue bank bonds regularly : Each time they wish to issue bank bonds, they have to send to the State Bank the following documents :
1. Reports on results of their operations for the latest two years (reports on situations of their business activities and the results of losses and profits), reports on financial situations of the units. The financial reports must be ratified by an auditing organization recognized by the State Bank or inspection office of the State Bank.
2. Application for issuing bank bonds. In the application, there should be an explanation for the purpose of bank bond issuance, the total value of bank bonds to be issued, terms of different denominations, interests rates, the areas for bank bond issuance, ways and places of paying interests, principals.
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3. Content of the public announcement on bank bond issuance. The announcement on bank bond issuance has to include the contents mentioned in item 1.2 above.
4. Forms of bank bonds to be issued
Within 20 working days, the State Bank has to inform the bank which submit application for issuing bank bonds, of the results of the consideration and approval, and to let it know if its application for issuing bank bonds have met all conditions defined by the State Bank.
20.2. For the credit organizations which issue bank bonds regularly :
The procedures for approval prescribed in item 20.1 above are only applied for the first time to issue bank bonds. For the following occasions of the bank bond issuance, credit organizations should send the above-mentioned documents to the State Bank for announcement 5 days before the registered time for issuing bank bonds.
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To organize the issuance of bank bonds :
23.1. After being approved in writing by the Governor of the State Bank to issue bank bonds, the credit organizations have to make public the announcements of bank bond issuance on mass media in at least 5 consecutive days.
23.2. Credit organizations can organize the bank bond issuance itself or do it through mediating organizations being their issuing agents or trustees. With the bank bond being issued by the issuing agents or trustees, the credit organizations have to pay commission fees at a ratio agreed upon by two sides.
23.3. The credit organizations which don't issue bank bonds regularly are only allowed to issue bank bonds within a period of not more than 60 days for each occasion. After that period of time, if they have not sold all bank bonds and want to sell of them, they have to obtain permission from the State Bank.
Cashing - in bank bonds when they reach their maturity :
25.1. The credit organizations issuing bank bonds have to assure the paying of both the principals and interests in time.
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Procedures for transferring ownership :
26.1. For bank bond with a name : The owner of the bank bond write down the name, address and ID number of the endorsee or heir then sign on the back of the bank bond. The endorsee or heir shall come to the credit organization where issued the bank bond to ask it to change the owner whose name has been registered at the credit organization.
26.2. For the bank bond without a name on it. Person who processes it is its owner and is free to transfer it.
The credit organizations which issue bank bonds can conduct the following services :
27.1. Services of keeping and preserving bank bonds (to open bond accounts for each individual who wants and to preserve bank bonds on his behalf).
27.2. Services of transfer brokering, and of calculating the transfer payment for the clients who buy and leave their bonds at the office of credit organizations.
27.3. To rebuy the bank bonds which were issued but have not reached their maturity for making payment.
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28.1. Credit organizations violating the provisions of this Regulation, shall, depending on the seriousness of the violations, be subject to one of the following penalties :
- Reprimand
- Paying a fine
- Restriction or prohibition on the issuance of bank bonds
- Withdrawal of license for banking operations.
28.2. Any individuals having acts of making fraudulent bank bonds shall be charged in accordance with the existing laws.
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- 1 Decision No. 1287/2002/QD-NHNN of November 22, 2003, on the issuance of the regulation on issue of valuable papers by credit institutions to mobilize domestic funds
- 2 Decision No. 1287/2002/QD-NHNN of November 22, 2003, on the issuance of the regulation on issue of valuable papers by credit institutions to mobilize domestic funds