Decision 185/2004/QD-NHNN amending Clauses 1, 2, 3, Article 5 Regulations on overdraft and overnight lending applied in inter-bank electronic payments attached to Decision 1085/2002/QD-NHNN issued by the Governor of the State Bank

DECISION

ON THE AMENDMENT, SUPPLEMENT OF PARAGRAPH 1, 2, 3 ARTICLE 5 OF THE REGULATION ON THE OVERDRAFT AND OVERNIGHT LENDING APPLICABLE TO THE INTER-BANK ELECTRONIC PAYMENT ISSUED IN CONJUNCTION WITH THE DECISION NO. 1085/2002/QD-NHNN DATED 7 OCTOBER, 2002 OF THE GOVERNOR OF THE STATE BANK

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam No. 01/2997/QH10 dated 12 December, 1997; the Law on the amendment, supplement of several Articles of the Law on the State Bank of Vietnam No. 10/2003/QH11 dated 17 June, 2003; the Law on the Credit Institutions No. 02/1997/QH10 dated 12 December, 1997;
- Pursuant to the Decree No. 86/2002/ND-CP dated 05 November, 2002 of the Government providing for the function, assignment, authority and organizational structure of the ministries and ministerial level agencies;
- Pursuant to the Decree No. 141/2003/ND-CP dated 20 November, 2003 of the Government on the issuance of Government Bonds, Bonds guaranteed by the Government and Bonds of local Governments;
- Upon the proposal of the Director of the Monetary Policy Department,

DECIDES:

Article 1. To amend, supplement Paragraph 1, 2, 3 Article 5 of the Regulation on the overdraft and overnight lending applicable to inter-bank electronic payment issued in conjunction with the Decision No. 1085/2002/QD-NHNN dated 7 October, 2002 of the State Bank's Governor as follows:

"Article 5. Mortgaged assets for the overdraft, overnight borrowings

1. Mortgaged assets for the overdraft, overnight borrowing of banks shall include:

a. The State Treasury Bills;

b. The State Bank Bills;

c. The State Treasury Bonds;

d. Bonds for Central Government's projects

dd. Government Bonds for the construction of the Motherland.

e. Other valuable paper provided for by the Governor of the State Bank of Vietnam from time to time.

2. Conditions for the acceptance of mortgaged assets:

Valuable paper shall be accepted by the State Bank of Vietnam as mortgaged assets when satisfying following conditions:

a. Banks are the beneficiary (in respect of non-bearer valuable paper) or are legal holders (in respect of bearer valuable paper);

b. The minimum remaining term of valuable paper mortgaged in accordance with provisions in paragraph 1 of this Article is 10 days;

c. Valuable paper is permitted for use in transactions with and payment to the State Bank of Vietnam as a third person in accordance with provisions of applicable laws and commitments of the beneficiary;

d. In case where valuable paper is issued in form of a book-entry, it must have a confirmation and assurance of organizations, which are responsible for the payment of that valuable paper, to the extent that they shall make payment to the State Bank of Vietnam if banks fail to pay their debts at the due date.

3. The value of mortgaged valuable paper shall be determined in form of a discount at the time of its valuation by the Banking Operation Department. Formula of the valuation of valuable paper shall be as follows:

In which:

- G: The value of valuable paper at the time of valuation;

- GT: The value of valuable paper at maturity:

+ In respect of valuable paper, which is issued in form of face value parity, the value shall be the payment amount of valuable paper at maturity (including principals and interests),

+ In respect of valuable paper, which is issued in form of a discount, the value shall be the face value of valuable paper,

- Ls: Discount interest rate (calculated under %/annual) announced for application by the State Bank at the time of valuation.

- n: The remaining term (calculated on the daily basis) of valuable paper from the date of valuation to the maturity date of those valuable paper."

Article 2.

This Decision shall be effective after 15 days from its publication in the Official Gazette.

Article 3. Heads of units of the State Bank, General Managers of the State Bank branches in provinces, cities under the central Governments management, Chairperson of the Board of Directors and General Managers (Managers) of banks being direct members of the inter-bank electronic payment system shall be responsible for the implementation of this Decision.

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