Regulations on payment methods in borrowing, lending and mutual loan repayment transactions between businesses that are not credit institutions

How is the form of payment in loan, lending and mutual loan repayment transactions between businesses that are not credit institutions regulated by law?

1. What is the form of payment in borrowing, lending and mutual loan repayment transactions between businesses that are not credit institutions?

Pursuant to Article 4 of Circular 09/2015/TT-BTC stipulating the form of payment in borrowing, lending and mutual loan repayment transactions between businesses that are not credit institutions as follows:

– The Enterprises that are not credit institutions (are enterprises that are not established, organized and operate under the provisions of the Law on Credit Institutions) when carrying out borrowing, lending and mutual loan repayment transactions use the forms of payment specified in Clause 2, Article 3 of this Circular.

– Enterprises that are not credit institutions when carrying out mutual borrowing, lending and loan repayment transactions using assets (not in money), except Debt and transfer of debt obligations shall comply with the provisions of law on enterprises.

2. How is the form of payment in capital contribution transactions and the purchase, sale, and transfer of capital contributions to other enterprises regulated by law?

Pursuant to Article 3 of Circular 09/2015/TT-BTC regulating the form of payment in capital contribution transactions and the purchase, sale, and transfer of capital contributions to other enterprises as follows:

– Enterprises do not use cash (money). paper, metal money issued by the State Bank) to pay when performing capital contribution transactions and buying, selling, and transferring capital contributions to other enterprises.

– When performing capital contribution transactions and buying, selling, and transferring capital contributions to other enterprises, businesses use the following forms:

+ Payment by Check;

+ Payment by proxy payment – money transfer;

+ Other appropriate non-cash payment forms according to current regulations.

– Enterprises when carrying out capital contribution transactions and buying, selling, transferring capital contributions to other enterprises using assets (not money) shall comply with the provisions of law on enterprises.

Thus, borrowing, lending and debt repayment transactions Mutual loans between enterprises (if not covered by Clause 2, Article 4) must be paid in the forms determined in Clause 2, Article 3 of this circular.

3. Cases in which credit is not granted according to the law

Pursuant to Article 126 of the Law on Credit Institutions 2010 (amended by Clause 19, Article 1 of the Law on Credit Institutions Amended 2017) stipulates the cases in which credit is not granted as follows:

– Credit institutions and foreign bank branches are not permitted to grant credit for the following organizations and individuals:

+ Members of the Board of Directors, members of the Board of Members, members of the Supervisory Board, General Director (Director), Deputy General Director (Deputy Director) and equivalent positions of credit institutions, foreign bank branches, legal entities that are shareholders whose capital representative is a member of the Board of Directors, member of the Supervisory Board of credit institutions that are joint stock companies, legal entities An individual is a capital contributing member or owner of a credit institution that is a limited liability company;

+ Father, mother, wife, husband, children of members of the Board of Directors, members of the Board of Members, members of the Supervisory Board, General Director (Director), Deputy General Director (Deputy Director) and equivalent positions.

– The provisions of Clause 1 of this Article do not apply to funds people’s credit and the case of granting credit in the form of issuing credit cards to individuals.

– Credit institutions and foreign bank branches are not allowed to grant credit to customers on the basis of guarantees of the subjects specified in Clause 1 of this Article. Credit institutions and foreign bank branches are not guaranteed in any form for other credit institutions to grant credit to the subjects specified in Clause 1 of this Article.

– Credit institutions are not allowed to grant credit to enterprises operating in the field of securities business over which the credit institution has control.

– Credit institutions are not allowed to grant credit on the basis of receiving security in shares. of the credit institution itself or a subsidiary of the credit institution.

– Credit institutions and foreign bank branches are not allowed to grant credit to contribute capital or purchase shares of the credit institution.

– The credit granting specified in Clauses 1, 3, 4, 5 and 6 of this Article includes activities of purchasing and investing in corporate bonds.