Mortgage of land use rights in many banks in Vietnam

BichNgoc March 28, 2022

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Mortgage of a red book at many banks is a matter of concern to many people today. Mortgage is one of the relatively common security measures to fulfill obligations with assets. Accordingly, the obligor uses the property under its ownership to secure the performance of the obligation towards the obligee. Currently, the use of red books (land use right certificates) by people as collateral for bank loans is happening more and more because of its advantages and advantages. However, many people wonder if a red book can be mortgaged many times at many banks? LSX Lawfirm will give you an article about: “Mortgage of land use rights in many banks in Vietnam”, as follows:

Legal grounds

– Land Law No. 45/2013/QH13

– Civil Code No. 91/2015/QH13

What is a red book mortgage for a bank loan?

Regarding the concept of red book mortgage, understood that mortgage of land use rights is the use of land use rights by a land user to secure the performance of obligations and not to assign land to the mortgagee. In this case, the mortgagor will deliver the Certificate to the mortgagee.

Regarding the conditions for mortgage of red books, Article 188 of the Land Law stipulates that land users may mortgage land use rights when meeting the following conditions:

Have a certificate of land use rights, ownership of houses and other land-attached assets. For the case of conversion of agricultural land use right; the land users may exercise their mortgage rights after the State’s decision on land allocation; or land lease is issued; In case of inheriting land use rights; land users may exercise their mortgage rights; when fully meeting the conditions for issuance of certificates of land use rights and ownership of houses and other land-attached assets.

In case the land user is late to fulfill its financial obligations or allowed to owe its financial obligations to the State; the financial obligation fulfilled before the mortgage is made.

The land is not in dispute;

The land use right is not distrained to secure judgment enforcement;
During the land use period.

Is it possible to mortgage a red book at many banks?

Article 296 of the 2015 Civil Code stipulates that a property used to secure the performance of many obligations as follows:

– The security property has a value at the time of establishment of the security transaction that is greater than the total value of the secured obligations; unless otherwise agreed upon or otherwise provided by law.

The securing party must notify the latter of the security property used to secure the performance of other obligations. Each warrant must be in writing.

– Where property disposed of to perform a due obligation; other obligations that do not due considered due ; and all parties jointly secured entitled to participate in the disposal of the property. The secured party which has notified about the disposal of the property shall be responsible for the disposal of the property; unless otherwise agreed upon by the jointly secured parties. In case the parties wish to continue to perform undue obligations; they may agree on the use of other assets by the securing party to secure the performance of undue obligations.

In addition

According to the above regulations, a red book mortgaged at many banks when the following conditions met:

First, the red book at the time of establishing the mortgage transaction is larger than the total value of the obligations secured at the mortgage-receiving banks. For example; you have a red book valued at VND 5 billion; you use this paper as collateral for the loan repayment obligation at bank A; is 2 billion and at bank B is 1 billion.

Second, there is no agreement on restricting or disallowing the use of the mortgaged red book to continue the mortgage. For example, if there is a clause in the mortgage contract at bank A that does not allow the mortgagor to continue using the red book to mortgage another bank;, it will not be able to mortgage the red book for the second time.

Third, the mortgagor must notify the mortgage-receiving bank that his red book used as a mortgage at another bank. Each mortgage made in writing, notarized and authenticated in accordance with current law. At the same time; the mortgage of land use rights registered at the land registration agency and take effect from the time of registration in the cadastral book.

Note:

– In case the red book processed to perform a due obligation at one bank; the other obligations at the remaining banks that do not due considered due and all banks accept the mortgage. involved in the handling of assets.

– The bank that has notified about the disposal of the property is responsible for handling the property; if there is no other agreement between the banks.

– In case banks want to continue to perform undue obligations; they may agree to require the mortgagor to use other assets to establish an alternative mortgage relationship to secure the performance of the obligations. undue service.

Contact LSX Lawfirm

Finally, hope this article is useful for you to answer the question about: “Mortgage of land use rights in many banks in Vietnam”. If you need any further information, please contact LSX Law firm : +84846175333 or Email: [email protected]