Prime Minister directs to strengthen the effectiveness of law enforcement on secured transactions

Yesterday (November 13), the Prime Minister issuedDirectiveStrengthening the effectiveness of law enforcement on secured transactions. The Prime Minister's direction aims to promptly remove difficulties and obstacles in the enforcement of law on secured transactions and registration of secured transactions, serving the sustainable development of the economy and social order and safety.

Must strengthen the effectiveness of law enforcement on secured transactions

In recent years, the law on secured transactions has been gradually improved and effectively implemented in practice, contributing to creating a safe legal corridor for capital circulation, thereby limiting disputes, helping to improve the quality of the business environment and maintain economic stability.

However, there are some problems in this field such as the increasing number of risky cases in secured lending, causing economic damage, affecting security and order in some localities and negatively impacting the healthy operation and development of the credit market and capital market in our country.

Therefore, the Prime Minister requested the Ministry of Justice to preside over and coordinate with the State Bank of Vietnam and relevant ministries and branches to regularly review legal documents on secured transactions and registration of secured transactions to promptly amend, supplement, and issue new ones under its authority or recommend competent state agencies to amend, supplement, and issue new ones; study and propose the development of a draft Law on registration of secured transactions and a Law on real estate registration to clarify the legal status of transactions and assets.

Complete online registration system

The Ministry of Justice is in charge of researching and perfecting the online registration system for secured transactions in a way that is both strict and safe, while also helping individuals and organizations easily look up information and register secured transactions.

The Prime Minister also requested the Ministry of Justice to preside over and coordinate with the Ministry of Natural Resources and Environment, the Ministry of Transport, and relevant ministries and branches to urgently research and develop a pilot project for centralized registration of secured transactions, a project for organizing, managing and operating the national data system on secured transactions, and submit it to the Prime Minister for consideration and decision in accordance with the program for developing documents and projects of the Government and the Prime Minister in 2012.

Annually, the Ministry of Justice organizes a Dialogue Forum on secured transaction registration between state management agencies, competent agencies for secured transaction registration, and the business community, in order to promptly remove difficulties and obstacles for the business community.

Urgent guidance on unified application of regulations on land use rights mortgage

Under the direction of the Prime Minister, the Ministry of Justice will preside over and coordinate with the Supreme People's Court and the Ministry of Natural Resources and Environment to study and promptly guide the unified application of legal provisions on mortgage of land use rights and assets attached to land to ensure the performance of obligations of others and mortgage of land use rights and assets attached to land to ensure guarantee obligations in order to create conditions for People's Courts at all levels, organizations and individuals to uniformly apply the law.

The Ministry of Justice shall coordinate with the State Bank of Vietnam and the Ministry of Natural Resources and Environment to study and develop a Joint Circular guiding the handling of secured assets to help the secured party promptly seize secured assets in case the secured party does not cooperate or deliberately evades.

At the same time, it is necessary to strengthen the coordination and support of local authorities for the secured party in seizing secured assets and carrying out procedures for transferring the right to use and ownership of secured assets to overcome the current difficulties and obstacles in handling secured assets.

Inspect the management and use of Land Use Right Certificate blanks; handle counterfeiting acts.

In addition, the Ministry of Natural Resources and Environment shall strengthen guidance and inspection of the system of state management agencies on land in the management and use of blank certificates of land use rights, house ownership rights and other assets attached to land to avoid loss of blank certificates.

At the same time, the Ministry of Public Security needs to proactively coordinate with the Ministry of Natural Resources and Environment to prevent and promptly handle acts of forging land use right certificates, house ownership rights and other assets attached to land to commit fraud and credit appropriation.

Prevent violations that lead to risks and instability in secured lending

The Prime Minister's Directive clearly states that the People's Committees of provinces and centrally-run cities must take the responsibility to preside over and coordinate with the Ministry of Justice to regularly organize training and professional development for officials of land use right registration offices, notary organizations, credit institutions and the business community to improve capacity and awareness of law compliance on secured transactions and registration of secured transactions, contributing to promoting economic growth and stabilizing security and order in the locality.

The People's Committees of provinces and cities shall direct the Department of Justice, the Department of Natural Resources and Environment, the State Bank branches and relevant departments and branches to strengthen inspection of the implementation of legal provisions on secured transactions and registration of secured transactions in the localities in order to promptly detect and prevent violations of the law leading to risks and instability in secured lending activities; direct the People's Committees at all levels in the localities within their management scope to actively coordinate and support the secured party to promptly and lawfully recover and handle secured assets.

According to (Chinhphu.vn) – LT