Buy car pledge party keep the original documents - Also worried banks legs

Bank representatives said, if not keep the original papers of the mortgage side by the civil agreement, the Bank would hardly dare to take loans to buy cars, because of concerns that may arise under bad debt difficult to control. Decree Law experienced? In recent years, the demand for used cars in living and in the business rising, prompting the automotive loan market developed. The buyer can borrow up to 75% of the value of the car and the loan period to seven years, the Bank will keep the original papers and media owners provide a photocopy certified by the civil agreement.

Buy car pledge party keep the original documents - Also worried banks legs
Recently, however, there are cases of people borrowing to buy automobiles hold the certified papers were TRAFFIC POLICE fines for not bringing the original vehicle registration certificate. According to the Police, the media owners still need to present the original documents when required and the TRAFFIC POLICE under Decree No. 163/2006/ND-CP on trading guarantees and no. 3851/NHNH-PC on the mortgage side of the SBV's 24/5/2017 (car loan) is entitled to hold a certificate of registration of the vehicle within the contract in force.

The Exchange on this issue, representatives of a commercial bank said, present when performing the procedures for buying cars, between the Bank and the mortgage side always has the civil agreement, allows parties to receive a mortgage (the Bank) holding a key and this agreement pursuant to Article 323 of the civil code in the current 2015 asserting the right of mortgage : "Keep papers related to collateral in case the parties have agreed, unless the law otherwise".

It said that, in the case of the said Law, is the legal text in the authority issued by the National Assembly and if there are other provisions, this regulation must comply with the law, not in accordance with other provisions of the Decree. On the other hand, he also said that the provisions of Decree No. 163 is inconsistent with the provisions of the Civil Code 2005 and 2015 the Civil Code currently about the parties can deal on the right keep mortgage papers related to collateral. Base item 2 Article 156 Law promulgated legal documents in 2015, "in case the legal texts have different rules about the same problem, then apply the text of higher legal force".

Pursuant to paragraph 4 to article 154 of law issued legal documents in 2015, "foremost legal texts in force, the legal text detailing the implementation of the text which also expire". With this provision, the civil code in 2005 has expired from the date of 01/01/2015 by replaced by the civil code in 2015. Accordingly, Decree No. 163 (and the text amended and supplemented Decree No. 163) with nature's text detailing the civil enforcement in 2005 about the secured transaction, has also expired.

This Bank representative said that, in terms of the aforesaid provisions of legal Decree No. 163 of inappropriate and difficult obstacles for the credit institution to obtain, manage and process the secured property. "The Decree 11 (amended and supplemented Decree 163) in 2012, the Bank retains a register from which to date that TRAFFIC POLICE are still accepted, how far back the made reasons to penalize drivers in traffic; also next to a copy of the Registration Certificate stamped copy of the Bank rather than medical need certified car inspection Window, there are also original, original insurance Certificate should the determination of car owners have no difficulty, "he added.

Regulations can make it difficult for many parties

Staff of the Legal Department of a Bank suggested the name Mark said, before car purchase loans, whether the Bank investigation very thoroughly the profile of the customer but the customer still makes it difficult for the Bank by bringing the car pledge, even go ... selling handmade paper due to many different causes. "In case the customer keep the original documents, the deal easier, the customers provide collateral at the Bank travels mortgage, or resale can soar, detrimental to the Bank, for the buyer and arising the matters related to the security of society" , this employee said.

Leaders of a commercial bank frankly: "If the original registration Paper delivery vehicles to the media at the request of the Ministry of public security and the SBV, the rate of bad debt for secured property segment is can transport up to 2 numbers , comes from the ease of the client can arbitrarily treats, buy sell, transfer vehicles are collateral ". Exchange with the press, economic expert lawyers-Dr. Bui Quang Tin, also said that the provisions of Decree 163 (amended and supplemented by Decree No. 11) about the transaction guarantees in time through still more difficult to execute in practice and is not yet fully in line with the provisions stipulated in clause 1 Article 320 in 2015 CC about obligations of parties to the mortgage " Delivery of papers related to the collateral in case the parties have agreed, unless the law otherwise ".

"But the law still protect the rights and interests of the banks get mortgages car, however face risks too high, while the collateral is the means of moving around the country so it is not easy to track, manage. On the other hand, with the current rules would make banks minimize getting mortgages, cars, leading to difficulties for this loan type is popular nowadays, from which a negative influence on the business activities of the Bank and the financial intermediary functions of the banking system. Thus, banks are forced to hold the original roasted Parrot cars, "said Credit Analyst.

Fellow lawyers Nguyen Trung Thanh-lawyer of Hanoi lawyers group said the fact upon the mortgage vehicles and keep the originals of the supporting documents to the media, there are still cases of mortgage Party although does not keep the original transportation certificate but still made the pawn , sell to third parties by handwritten paper ... In the event of overdue debt, the Bank suggested the police withdraw support from a third Party to handle debt collection.

However, the police still believe that people buy property with handwritten papers still have rights related to means of transport which the mortgage is the mortgage in the Bank, so the Bank has yet to be guaranteed the rights mortgage contract signed with the mortgage. On the other hand, when the Bank seizure and auction of property made sure the Bank must hand over a key to register vehicles for the acquisition of the assets of that auction to do the procedure name in the police. "as if to make the delivery of the original car papers for parties as stipulated in Decree No. 163 and the requirements of the Public security, banks and credit organizations will encounter many difficulties, "he said.

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