Decree on Guaranteeing Contract Performance
关于合同履行担保的法令
ດຳລັດ ວ່າດ້ວຍການຄ້ຳປະກັນການປະຕິບັດສັນຍາ
Summary
This decree elaborates and interprets certain provisions of the Law on Guarantee of Contract Performance, unifying the implementation of movable property, immovable property, and personal or legal entity guarantees nationwide, covering scope of collateral, security rights and their effect against third parties, priority order, registration, default enforcement, and sale disposal.
Articles
Article 1
Purpose. This Decree is enacted to elaborate and interpret the content of certain provisions of the Law on Guarantees for Contract Performance, making them detailed, clear, correctly understood, and uniform nationwide, in order to ensure the accurate and effective implementation of that law.
Article 2
Definition of Terms. The terms used in this Decree-Law shall have the following meanings: 1. Security Law means the Law on Security for the Performance of Contracts, promulgated on May 20, 2005, under Number 06/National Assembly. 2. Secured creditor means a creditor who holds rights over the collateral under a security contract, including lenders, sellers of goods under hire-purchase contracts, sellers under installment payment arrangements, assignees of receivables, lessors with a lease term exceeding one year, and consignors of goods under consignment contracts. 3. Stored goods means goods deposited in a warehouse for sale or lease, as well as raw materials used for production or materials used in business operations. 4. Rights in collateral means the benefits derived from the collateral, regardless of whether the collateral is in the possession of the secured creditor. 5. Rights in property purchased with borrowed funds means the benefits derived from property purchased with borrowed funds, whereby the borrower uses such purchased property as collateral for the loan, and the creditor is entitled to benefit from such property until the debt is fully repaid or the obligation is performed. 6. Lien means the right of a provider of goods or services to retain possession of such goods until the price for such goods or services is fully paid. 7. Movable property means property that can be moved, including tangible and intangible property, such as vehicles and intellectual property. 8. Immovable property means property that cannot be moved, such as land, houses, and buildings. 9. Consignment contract means a contract whereby one party (referred to as the "consignor") delivers its goods to another party (referred to as the "consignee") for possession and sale of such goods, and receives remuneration in accordance with the contract. 10. Collateral means existing property or property that will necessarily arise in the future, used to secure the performance of a contract or any obligation. 12. Accessory means property that is attached to another thing and, by virtue of such attachment, does not lose its own nature, for example: car air conditioners, in-car audio systems. 13. Fixture means property installed on immovable property that cannot be removed, or whose removal would cause damage or depreciation to such property and the immovable property, for example: elevators, central air conditioning systems, electrical distribution panels. 14. Commingled goods means goods that are used as components or mixed with other goods to produce another type of goods, thereby altering the physical nature of such property such that it cannot be separated from the new property or product, for example: sugar, flour, water used to produce bread. This term also includes property deposited in a warehouse that is not separated from each other, for example: paddy rice, corn, cassava. 15. Debtor means a person obligated under a security contract to repay money, deliver goods, or perform a certain act. 16. Financial instrument means a financial instrument granting the right to demand repayment, for example: checks, bills of exchange, promissory notes, letters of credit. 17. Proceeds of sale means money or goods obtained from leasing, selling, or otherwise disposing of the collateral. 18. Receivables means money receivable from the sale of goods or the provision of services.
Article 3
Scope of Application of this Decree. This Decree shall apply to security interests established over movable property, immovable property, and security interests provided by individuals or other legal persons.
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