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ENTERPRISES KEEP LEGAL ISSUES IN MIND WHEN DISPOSALLING COLLATERAL UNDER DECREE NO.21/2021/ND-CP
ENTERPRISES KEEP LEGAL ISSUES IN MIND WHEN DISPOSALLING COLLATERAL UNDER DECREE NO.21/2021/ND-CP
Decree No.21/2021/ND-CP on elaborating to the Civil code regarding security for fulfillment of obligations of the government comes into force from May 15th, 2021, as substitutes for Decree 163/2006/ND-CP. With this Decree, lots of legal regulations have been supplemented or replaced, including the disposal of collateral. The process of disposal of collateral is prescribed from Article 49 to Article 59 of this Decree, in which enterprises should pay attention to the following issues:
Firstly, the disposal of collateral must be carried out in accordance with the agreement of the parties and in accordance with the provisions of law, and when the time limit for the securing parties can handle the security assets, it is not necessary to have written consent of the secured parties but only notify the secured assets within 10 days in advance ( 15 days for real estate).
Secondly, while the collateral of the enterprises under the management of the secured parties, the secured parties must be obliged to protect and preserve the assets, which can be exploited, however, the profits and incomes in which the exploitation must be used to pay for the secured obligations.
Finally, until the completion of the disposal of assets, Secured parties shall receive returned collateral in case:
- The securing party may reclaim the collateral if, before the realization of the collateral, it completely performs its obligations and pay all expenses incurred for the late performance of obligations,or;
-collateral has been replaced or substituted by other properties;
- secured obligations have been paid for by offsetting obligations;
- other cases were collateral is not realized according to agreements, the Civil Code or other regulations and law.
This is GATTACA LAW's advice to businesses on issues to keep in mind when disposal collateral.
For detailed advice and support, please contact:
Gattaca Law Firm
Address: 32 Nguyen Dinh Hoan, Nghia Do, Cau Giay, Ha Noi
Hotline: 0243.204.1777 – 090.1763.379
Manager – Dr., Lawyer Nguyen Thanh Nam
Decree No.21/2021/ND-CP on elaborating to the Civil code regarding security for fulfillment of obligations of the government comes into force from May 15th, 2021, as substitutes for Decree 163/2006/ND-CP. With this Decree, lots of legal regulations have been supplemented or replaced, including the disposal of collateral. The process of disposal of collateral is prescribed from Article 49 to Article 59 of this Decree, in which enterprises should pay attention to the following issues:
Firstly, the disposal of collateral must be carried out in accordance with the agreement of the parties and in accordance with the provisions of law, and when the time limit for the securing parties can handle the security assets, it is not necessary to have written consent of the secured parties but only notify the secured assets within 10 days in advance ( 15 days for real estate).
Secondly, while the collateral of the enterprises under the management of the secured parties, the secured parties must be obliged to protect and preserve the assets, which can be exploited, however, the profits and incomes in which the exploitation must be used to pay for the secured obligations.
Finally, until the completion of the disposal of assets, Secured parties shall receive returned collateral in case:
- The securing party may reclaim the collateral if, before the realization of the collateral, it completely performs its obligations and pay all expenses incurred for the late performance of obligations,or;
-collateral has been replaced or substituted by other properties;
- secured obligations have been paid for by offsetting obligations;
- other cases were collateral is not realized according to agreements, the Civil Code or other regulations and law.
This is GATTACA LAW's advice to businesses on issues to keep in mind when disposal collateral.
For detailed advice and support, please contact:
Gattaca Law Firm
Address: 32 Nguyen Dinh Hoan, Nghia Do, Cau Giay, Ha Noi
Hotline: 0243.204.1777 – 090.1763.379
Manager – Dr., Lawyer Nguyen Thanh Nam
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