Today, the growing society leads to increasing civil transactions. Pawnshop is also a field that is being interested by a lot of people, especially motorbike pawn. So about the matter “What is the content of the motorbike pawn law in Vietnam?” Let’s find out with LSX in the article below.
Legal grounds
- Decree 96/2016/ND-CP
What are the characteristics of pawn operations?
According to Clause 4, Article 3 of Decree No. 96/2016/ND-CP: “Pawn service business, including: Money lending service business where the borrower must have legal assets to bring to the service business establishment for a pledge.”
Pawnshop can be understood as a type of conditional business in which the borrower must have legal assets to bring to the pawn shop to enter into a loan contract.
Pawn operations have the following characteristics:
A pawnbroker is a method of securing the performance of an obligation, whereby a pawnbroker hands over property to a pawnbroker (the pawnbroker) to borrow a certain amount of money. The pawnbroker must be a registered pawnbroker, must comply with the provisions of the law on lending interest rates, preservation and handling of pawn property…
Within the specified time limit, the pawnbroker pays back the loan amount and gets back the pawn property. Upon the expiration of the agreement to redeem the pawn property, the pawnbroker automatically becomes the owner of that property.
The parties agree on the amount to be paid depending on the loan amount of the pawnbroker and the term of the pawnbroker.
The purpose of a pawnbroker is to secure the debt repayment obligation of the borrower to the pawnbroker.
What is the content of the motorbike pawn law in Vietnam?
Necessary conditions for motorcycle pawn shop business
According to the provisions of Clause 4, Article 3 of Decree No. 96/2016/ND-CP, the pawnshop business is a money lending service business in which the borrower must have lawful assets to bring to the business establishment of pawn service business to pledge.
The holder of a motorcycle pawn shop business must meet the following conditions:
Firstly, the subject is entitled to register, license or establish a pawn shop in accordance with current Vietnamese law.
Accordingly, the subject of this service business must be a registered trader. It can be an enterprise, a business cooperative or an individual business household.
To be able to operate a motorbike pawn shop, the subjects must be granted one of the following documents by the competent authority:
• Certificate of business registration.
• Certificate of business registration of the branch or affiliated unit of the enterprise.
• Certificate of registration of cooperatives and unions of cooperatives.
• Certificate of registration of branches and business locations of cooperatives and unions of cooperatives.
• Certificate of business registration.
• Certificate of business household registration.
Secondly, on conditions of fire prevention and fighting:
Comply and strictly comply with the provisions on fire prevention and fighting of Vietnamese law.
Conditions on security and order for motorbike pawn shop business
In addition to the general requirements for industries, a motorcycle pawn shop must satisfy the following conditions:
The person responsible for security and order of the pawnshop business establishment must be a person with a permanent residence permit for at least 5 years in the commune, ward or township where the business location is registered.
And in the period of 05 consecutive years before the time of business registration, the competent authorities have not been sanctioned for administrative violations of the following acts: resisting official duty performers, disturbing public order, intentionally causing injury. collecting, lending heavy interest, gambling, organizing gambling or gambling, stealing property, fraudulently appropriating property, illegally appropriating property.
Responsibilities of a motorbike pawn shop
According to Article 29 of Decree 96/2016/ND-CP, the pawnshop law has clear provisions on the responsibilities of specific pawn shops:
In addition to stipulations on general responsibilities, motorbike pawn shops are responsible for:
1. Check the identity papers of the person bringing the property to pledge, including: People’s identity card or citizen’s identity card or Passport or other personal papers with photos attached by state management agencies, still valid for use, and at the same time, photocopy is kept at the business premises.
2. To draw up contracts on pledge of property according to the provisions of law.
3. For mortgaged properties that are required by law to have a certificate of ownership, they may only be pledged when such properties have full ownership papers and the business establishment must keep the originals of the certificate of ownership. such papers during the mortgage period.
4. For mortgaged properties owned by a third party, a valid authorization letter from the owner is required.
5. Do not accept pledge for property of unknown origin or property acquired by illegal acts.
6. The interest rate for lending money when taking a pledge of property must not exceed the interest rate prescribed by the Civil Code.
7. Arrange a warehouse to preserve the pledged property and ensure the safety of the property of the person bringing the pledged property.
The process of applying for a pawn business license
- Register for a pawn business
Business establishments that need to register for the establishment of a company or register as an individual business household with a business line of pawn services are as follows:
6492 – 64920: Other lending activities: Details: Pawn service.
- Dossier to apply for a license to register a pawn business
For Businesses
Depending on the type of company, the company will prepare different document components. But basically need the following documents:
– An application for enterprise registration;
– Charter of the company;
– List of shareholders / founding members / authorized representatives to manage the contributed capital;
– A valid copy of one of the following documents:
+ Citizen’s identity card/ People’s identity card/ Passport or other lawful personal identification of the member being an individual;
+ Establishment decision; Certificate of business registration or other equivalent document of the organization; authorization documents; Other lawful personal papers of authorized representatives of members being organizations.
+ For a member being a foreign organization, a copy of the enterprise registration certificate or equivalent document must be consularly legalized;
+ Certificate of investment registration for foreign investors according to the provisions of the Law on Investment.
+ Power of attorney for the representative to submit the application (if any)
+ Identity card of the representative submitting the application (if any).
For business households
– Application for business registration (According to the form prescribed in Circular No: 02/2019/TT-BKHDT)
– Certificate of eligibility for business registration (under the form prescribed in Circular No. 02/2019/TT-BKHDT) for conditional lines of business.
– A copy of the certificate of ownership of the house (where the business is located) or the lease contract of the premises (certified by the People’s Committee of the commune, ward, township or a state notary agency).
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Please see more
- Conditions for establishing a pawnshop business in Vietnam
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- Motorbike alcohol concentration penalty 2022
Frequently asked questions
Household business: District police.
Enterprise: Police Department for administrative management of social order – Public Security.
There are 3 conditions on pawn service business as follows:
Registered, licensed or established in accordance with the laws of Vietnam
Conditions on the person responsible for security and order of the business establishment:
Conditions on fire prevention and fighting.
Pawn is a pledge of property at a pawn shop to enter into a loan contract.
A method of performance security, whereby the pawnbroker hands over the property to the pawnshop for a loan of a certain amount. The pledge of property at pawn shops shall comply with the provisions of the Civil Code and other legal documents.
The pawn broker repays the loan within the specified time limit and receives the pawn item back. At the end of the agreed redemption period, the pawnshop owner automatically becomes the owner of the item.
Conclusion: So the above is What is the content of the motorbike pawn law in Vietnam?. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
