Decision 19/2015/QD-UBND promulgating regulations on security deposit for the implementation of investment projects using land in Quang Binh province

DECISION

ISSUANCE OF REGULATION ON DEPOSIT FOR ASSURANCE OF EXECUTION OF LAND-USING PROJECTS IN QUANG BINH PROVINCE

THE PEOPLE’S COMMITTEE OF QUANG BINH PROVINCE

Pursuant to the Law on Organization of the People’s Councils and the People’s Committees dated November 26, 2003;

Pursuant to the Law on Investment dated November 29, 2005;

Pursuant to the Law on Land 2013;

Pursuant to the Government's Decree No. 108/2006/NĐ-CP dated September 22, 2006 providing instructions on the implementation the Law on Investment;

Pursuant to the Government's Decree No. 43/2014/NĐ-CP dated May 15, 2014 detailing the implementation of the Law on Land;

Pursuant to Circular No. 03/2009/TT-BKH dated April 16, 2009 of the Ministry of Planning and Investment providing instructions on selection of investors in land-using projects;

At the request of Director of the Department of Planning and Investment of Quang Binh Province in Report No. 514/KHĐT-KTTTTN dated April 17,2015,

DECIDES:

Article 1. The Regulation on deposit for assurance of execution of land-using projects in Quang Binh province is promulgated together with this Decision

Article 2. This Decision comes into force after 10 days from the day on which it is signed.

Article 3. Chief of Office of the People’s Committee of Quang Binh province, Directors of Department of Planning and Investment, Department of Finance, Department of Natural Resources and Environment, Department of Construction, Management Boards of Economic Zones; heads of provincial agencies; Presidents of the People’s Committees of districts in Quang Binh province, and relevant entities are responsible for the implementation of this Decision./.

REGULATION

DEPOSIT FOR ASSURANCE OF EXECUTION OF LAND-USING PROJECTS IN QUANG BINH PROVINCE
(Promulgated together with Decision No. 19/2015/QĐ-UBND dated June 03, 2015 of the People’s Committee of Quang Binh province)

Chapter I

GENERAL PROVISIONS

Article 1. Regulated entities

1. Regulations on deposit for assurance of execution of projects of investment (hereinafter referred to as projects) using land in Clause 3 Article 58 of the Law on Land 2013, Clause 1 Article 14 of the Government's Decree No. 43/2014/NĐ-CP dated May 15, 2014 on guidelines for the Law on land are applied to the following projects: Projects of investment in building housing for sale or for lease or both according to regulations of law on housing; projects of investment in trading of real estate associated with land use right (LUR) according to regulations of law on real estate trading; and manufacturing or trading projects not funded by state budget. Every investor must pay a deposit before the State allocates land, leases out land, or permits land repurposing to execute the project.

2. The following entities are not regulated by this Regulation:

- Investors that receive land allocated, leased out by the State, or are permitted to repurpose land in the form of bidding;

- Investors that receive land allocated or leased by the State upon receipt of transferred projects and have paid deposits; investors that receive LUR from other land users;

- Investors that receive land allocated or leased by the State and have paid a deposit for land clearance, relocation higher than the deposit levels prescribed in Article 4 of this Regulation.

Article 2. Interpretation of terms

1. Payment of deposit for assurance of execution of a project means the investor paying an amount of money to the account of the Department of Finance of Quang Binh province opened at a commercial bank or submitting the guarantee certificate issued by a commercial bank permitted to operate in Vietnam to the Department of Finance in order to ensure execution of the project on schedule as agreed (hereinafter referred to as deposit payment).

2. Bank guarantee certificate means an irrevocable guarantee certificate which specifies the amount of deposit, deposit duration that match the project schedule, and promise of the guaranteeing bank to transfer the deposit to the account given by the People’s Committee of Quang Binh province (after receiving the written request from the People’s Committee of Quang Binh province) without any further conditions.

3. Project schedule is the duration of project execution promised by the investor which is stated on the written request for permission to execute the project and the Decision on approval for investment policies.

Article 3. General provisions

1. When executing a land-using project in Quang Binh province, the investor must make a commitment to stick to the project schedule and take measures to ensure execution of the project in accordance with this Regulation.

2. The investor will have the deposit and interest over the deposit period refunded when the project is finished on schedule.

3. The certification of deposit issued by the Department of Finance is part of the application for land allocation, land lease, or permission for land repurposing.

Chapter II

DEPOSIT PAYMENT AND MANAGEMENT OF DEPOSITS

Article 4. Deposit levels and procedures for deposit payment

1. The deposit level is expressed as percentage of capital of the project on the written request for permission to execute the project. In consideration of the scale, characteristics, and schedule of the project, the investment registration authority (Department of Planning and Investment, Management Boards of Economic Zones of Quang Binh province) shall decide the deposit level as follows:

- Deposit on the amount of capital up to VND 300 billion will be 3%.

- Deposit on the amount of capital in excess of VND 300 billion will be 1%.

With regard to projects that use land allocated or leased by the State and are divided into multiple phases, the deposit level depends on the capital of the project in each phase during which land is allocated or leased.

2. Time limit for deposit payment

The deposit must be paid within 05 days from the day on which the Decision on approval for investment policies is issued.

3. The deposit shall be paid to the account opened by Department of Finance at a commercial bank in Quang Binh province in the form of demand deposit. The Department of Finance shall provide the deposit contract form that complies with this Regulation.

4. Procedures for deposit payment

a. Based on the contents of investment registration, responsible authorities shall notify the investor of the deposit level. To be specific:

- Department of Planning and Investment shall notify projects outside industrial parks, economic zones, and checkpoint economic zones.

- Management boards of Economic Zones of Quang Binh province shall notify projects within industrial parks, economic zones, and checkpoint economic zones.

b. According to the notification of deposit level sent by the competent authority, the investor shall pay the deposit and send the certification of deposit payment issued by the Department of Finance to the authority in charge of procedures for land allocation, land lease, or land repurposing together with relevant documents prescribed by law.

Article 5. Refund of deposit

1. If the investor executes the project on schedule, the deposit and interest thereon will be refunded to the investor according to the following timetable:

a. 50% will be refunded after the investor completes the procedures for land use and initiation of project construction.

b. The remaining amount of deposit shall be refunded after the investment and construction phase is completed and the project is put into operation.

c. If the investor fails to stick to the promised schedule, the deposit will be handled in accordance with Article 6 of this Regulation.

2. If the investor is not able to execute the project in the event of a natural disaster, hostilities, conflagration, environmental emergency, epidemic, and other force majeure events prescribed by the Prime Minister, the President of the People’s Committee of Quang Binh province will consider refunding the deposit and interest thereon in part or in full.

3. Department of Finance shall take charge and cooperate with Department of Planning and Investment and Economic Zone Management Board (with regard to projects in economic zones, industrial parks, checkpoint economic zones), Department of Natural Resources and Environment, and relevant agencies in advising the People’s Committee of Quang Binh province about refunding deposits and interest thereon to investors in accordance with Point (a) and Point (b) of this Article within 05 working days from the day on which sufficient and satisfactory documents are received by Department of Finance.

In case of deposit in the form of bank guarantee, the People’s Committee of Quang Binh province shall authorize Department of Finance to send a written notification to the guaranteeing bank of the termination or 50% reduction of the deposit guarantee amount.

4. Application for refund of deposit

4.1. An application for refund of 50% of deposit after the investor completes procedures for land use and initiation of project construction consists of:

a. A written request for refund of deposit made by the investor.

b. An authenticated or notarized copy of land allocation record.

c. A report on result of project execution up to the time of initiating the project construction.

d. Documents proving completion of procedures for land use and initiation of project construction.

dd. The person that directly submits the application must have the investor’s power of attorney (in case the investor does not come) and ID card.

4.2. An application for refund of remaining deposit consists of:

a. A written request for refund of deposit made by the investor.

b. A report on result of project execution.

c. The acceptance record.

d. The record on project inauguration.

dd. The person that directly submits the application must have the investor’s power of attorney (in case the investor does not come) and ID card.

Article 6. Actions against violations

After the deadline for project execution, if the investor fails to or is not able to sticks to the project execution schedule and is not permitted to extend the schedule, the deposit and interest thereon will be forfeited and transferred to the provincial budget under the decision of the People’s Committee of Quang Binh province, and the project execution will be terminated. The People’s Committee of Quang Binh province is not responsible for compensation for any damage incurred by the investor because of the project execution. The forfeited deposits will be used for social security and welfare in the areas affected by the project as the top priority.

Chapter III

IMPLEMENTATION

Article 7. Transition

With regard to the land-using projects whose investment policies have been approved and those granted certificates of investment before the effective date of this Regulation, if extension of schedule is requested, the investors must make a commitment to stick to the schedule and pay deposits to ensure project execution in accordance with this Regulation in order to obtain permission for schedule extension.

Article 8. Responsibilities of provincial departments and the People’s Committees of districts

1. Department of Planning and Investment shall:

a. Advise the People’s Committee of Quang Binh province about approval for investment policies, schedule extension, and requesting investors to pay deposits in accordance with this Regulation with regard to the projects in the fields under the management of Department of Planning and Investment.

b. Take charge and cooperate with other agencies in monitoring the execution and completion of projects; propose revocation or renewal of investment policies in case investors fall behind schedule.

c. Take charge and cooperate with other agencies in making and submitting annual reports on implementation of this Regulation to the People’s Committee of Quang Binh province.

2. Department of Finance shall:

a. Open accounts at commercial banks in the province to receive and manage deposits paid by investors in accordance with this Regulation.

b. Publish the procedures, forms for deposit payment of the website of Department of Finance after the procedures are established by the People’s Committee of Quang Binh province.

c. Monitor, manage deposits according to applicable regulations; refund deposits to investors; forfeit deposits in case of violations and transfer them to state budget as prescribed.

d. Submit biannual reports to the People’s Committee of Quang Binh province on payment of deposit for assurance of project execution, send them to Department of Planning and Investment, Department of Natural Resources and Environment, and Economic Zone Management Board for implementation in cooperation.

3. Economic Zone Management Board shall:

a. Advise the People’s Committee of Quang Binh province about approval for investment policies, schedule extension, and requesting investors to pay deposits in accordance with this Regulation with regard to the projects in the fields under the management of Economic Zone Management Board.

b. Take charge and cooperate with other agencies in monitoring the execution and completion of projects under the management of Economic Zone Management Board; propose revocation or renewal of investment policies in case investors fall behind schedule.

4. Relevant agencies, the People’s Committees of districts shall provide guidance and inspect the implementation of this Regulation within the ambit of their competence.

5. Investors have the responsibility to execute their projects in accordance with law, stick to the promised schedule, and pay deposits in accordance with the Regulation; comply with decisions on actions against violations issued by the People’s Committee of Quang Binh province in case of failure to adhere to the promised schedule and targets against the Law on Investment, the Law on Land, this Regulation, and relevant legislative documents.

Article 9. Difficulties that arise during the implementation of this Regulation should be reported in writing to the Department of Planning and Investment for reporting to the People’s Committee of Quang Binh province for consideration./.

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