4 TYPES OF PROPERTIES USED TO SECURE THE PERFORMANCE OF CIVIL OBLIGATIONS
The Government issues the Decree No. 21/2021/ND-CP detailing the implementation of the Civil Code’s provisions on security for performance of obligations on March 19, 2021.
Specifically, properties used to secure the performance of an obligation include: Existing properties or future properties, unless the sale, purchase, transfer or other transfers of ownership rights of them are prohibited in the Civil Code or other relevant law provisions at the time of the security contract and security measures are established; Properties sold in property sale and purchase contracts with retention of title; Properties which are objects of the breached obligations in the bilateral contract in case of lien on property; Properties belonging to all people, as prescribed by relevant law provisions.
Besides, the description of the collateral shall be agreed upon by the securing party and the securing party as prescribed by law. In cases where the collateral is immovable or movable which, in accordance with law provisions, shall be registered, the agreed description shall be consistent with the information on the certificate. In cases where the collateral is a property right, the agreed description shall include the name and legal grounds in which the property right arises.
The realization of collateral shall be carried out in accordance with the parties' agreements, provisions of this Decree and relevant law provisions. In cases where the collateral is the right to exploit minerals or other natural resources, the realization of the collateral shall comply with the law provisions on minerals and other natural resources, and relevant law provisions.
This Decree takes effect from May 15, 2021.
