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State Bank steps in amidst controversial rule about vehicles’s original documents

Update: July, 14/2017 - 18:07
It is suggested that traffic police accept vehicles’ notarised registration papers if presented by owners who bought the vehicles by borrowing from banks.— Photo
Viet Nam News

HÀ NỘI — The Governor of the State Bank of Việt Nam Lê Minh Hưng has requested the Government allow banks to keep the original registration papers of vehicles bought via installments.

The SBV also suggested that traffic police accept notarised registration papers from owners who bought vehicles by borrowing from banks.

Before that, commercial banks and enterprises made similar recommendation.

The current law stipulates that clients can keep the original registration papers when borrowing from banks and credit institutions. However, banks said that this has caused difficulties and risks for them.

The issue could result in banks refusing to provide loans to buy vehicles, which could affect business activities nationwide.

In addition, the Civil Code 2015 specifies that the mortgage has the right to keep documents relating to the mortgaged property if the involved parties agree. The State Bank believes that the regulations are no longer appropriate in the current context. —VNS

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