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Pledge Law Comparison (2006)

 

Country Myanmar Lao PDR Thailand Cambodia Yunnan, China Vietnam
Name See Payment Option See 
Payment
Option
See Payment Option See Payment Option Contract Law, Security Law Circular 07-2003-TT-NHN of State Bank of Vietnam - 'Providing Guidelines for Implementation of a Number of Provisions on Security for Loans from Credit Institutions, 2003; Revises 1999 Decree 178-1999-ND-CP, 'Security for Loans obtained from Credit Institutions
Enacted         Yes Yes
Year           1999, 2003
Limitations         Fixed charges only  
Land         i.e. no floating charges Natural Resource Rights associated with Land use are pledgeable
Leased Items         Likely Likely - equipment is pledgeable
Future Revenue         No No - can include harvest future yield, revenue, property funded by loan, future mortgaged property but future pledge must be registered
Offshore Accounts         Not Stated No - foreign currency accounts, bonds, promissory notes are pledgeable. Also, Intellectual property rights, capital contribution to an enterprise ~ provided exact value is determined/agreed. In case of capital contribution, must be at least 15% of capital contribution
Personal Housing         If legally registered Can be pledged if registered, transferable, mortgage on associated land no longer required
Common Stored Commodity         Pledgeable but may not be seizable Likely - Multiple pledges on single item must be delineated and future involved Credit Institution must be notified. Priority given to Credit Registration first registering such Pledge.
Ceiling on Amount         Not Stated Not Stated
Only for Domestic Transactions         Laws apply to China Laws apply to Vietnam but if pledge is located abroad, can be used and parties agree on relevant foreign law to apply.
Inspection Privileges         Contestable Moveable pledge physically transferred to Credit Institution; Immoveable pledge can remain with Borrower/Guarantor. If the latter, Inspection privileges not specified but likely.
Seizure         Negotiation with party involved required as a first step i.e. no unilateral right to seize See Above - Moveable pledge physically transferred, per practice, to Credit Institution.
Dispute Resolution         Courts Not Stated

 

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