Speaking at the opening of the workshop, Chairman of the Council of Vietnam Banks Association and General Director of Agribank Pham Toan Vuong said: Recently, the activities of credit institutions in general and the handling of bad debts in particular have achieved many encouraging results, bad debts have been handled more effectively and substantially, contributing to the healthy operation of credit institutions.
“To achieve such results, in addition to the drastic and close direction of the Government , the State Bank, competent state agencies and the active efforts of credit institutions, there is also a great contribution from the Court sector in the adjudication and settlement of disputes related to credit institutions,” Mr. Pham Toan Vuong emphasized.
According to Mr. Pham Toan Vuong, in 2019, the Vietnam Banking Association coordinated with the Supreme People's Court to organize the Workshop "Practice of resolving disputes related to bank credit at the People's Court". The workshop was a great success, creating opportunities for banks to exchange and reflect on difficulties and obstacles in the practice of resolving credit contract disputes at the Court, thereby having a more comprehensive and in-depth view of the operations of the banking system.
However, from 2020 to present, the socio-economy in general and the banking system in particular have changed a lot, the activities of credit institutions have grown strongly, their scale has been expanding, therefore, the number of disputes has also increased continuously.
Currently, the Banking Association has received many comments from credit institutions regarding the process of resolving cases at the Court, which has caused many problems and shortcomings such as: The time to resolve cases, the process of accepting lawsuits is still slow (Agribank, Vietcombank, TPBank, SHB, HDBank); some cases related to property disputes are land use rights that are mortgaged at credit institutions, but credit institutions have not received notice from the Court about participating in the proceedings in the case; or problems with regulations on protecting third parties in good faith; disputes over secured assets of households using land, assets that have been legally transacted with credit institutions (third parties in good faith) but are still declared invalid, canceled...
“In the above-mentioned difficulties, some of the causes originate from credit institutions, some of them are due to the viewpoints on the application of legal regulations, and the way of evaluating evidence of the litigants. Therefore, the prosecuting agencies need to have guidelines to uniformly apply the above-mentioned situations so that courts at all levels can apply them to resolve practical situations that arise,” a representative of the Vietnam Banking Association stated.
Deputy Director of the Legal Department of the State Bank Vu Ngoc Lan also pointed out the following outstanding legal issues that need to be resolved: determining lending interest rates when handling collateral assets such as savings books in lending and mortgage activities of credit institutions for customers; applying the method of calculating interest rates according to the lending agreement of credit institutions; and the People's Court not recording the calculation of interest rates for banks after the time of initiating criminal proceedings.
Notably, with the regulation of “a bona fide third party”, Ms. Vu Ngoc Lan said: many credit institutions lost their security rights due to mortgage transactions being invalidated because the land use right certificate was canceled or forged. While banks fully implemented the appraisal process and were not at fault, they still faced great legal risks. Banks requested the Supreme People's Court to provide additional guidance, ensuring the right to handle assets if the transaction was legal. “In the coming time, the Court needs to consider providing additional guidance on the credit institution (the secured party) having the right to handle the secured assets after the Court declares the land use right certificate canceled when the credit institution receives the security in accordance with the provisions of law on secured transactions”, the representative of the State Bank suggested.
Sharing more about the problems related to "third parties in good faith", Ms. Nguyen Thi Phuong, Head of the Legal Club of the Banking Association, said: One of the major problems related to credit institutions in the Court is that the legal concept of "third parties in good faith" is relatively complicated, with many different views on understanding, applying, and applying in practice of dispute settlement.
For example, in Official Dispatch No. 207/TANDTC-PC, the Supreme People's Court affirmed: "When there is a basis to determine that the land use right certificate is clearly illegal, the Court must declare the land use right certificate null and void" but did not continue to give its opinion to resolve the Bank's legitimate rights and interests.
Or Official Dispatch No. 02/2021/TANDTC-PC Guidance: "The Bank is not a bona fide third party as prescribed in Clause 2, Article 133 of the 2015 Civil Code and Section 1, Part II of Official Dispatch No. 64/TANDTC-PC, therefore, the property mortgage contract is also invalid." The Court applied Clause 2, Article 129 of the 2015 Civil Code to determine that the real estate transfer transaction of the Mortgagee to a third party is valid, the Bank is not a bona fide third party and declared the Mortgage Contract invalid...
At the workshop, some representatives of credit institutions also recommended that the Supreme People's Court issue clear guidelines for law enforcement, promote training for judges, and create an inter-sectoral exchange mechanism with the Procuracy, enforcement agencies, and the Banking Association to shorten the time for trial and enforcement. Credit institutions also proposed that the Court allow credit institutions to seize and auction secured assets when the judgment comes into effect; issue regulations for handling cases where the parties do not cooperate; apply simplified procedures for disputes that meet the criteria; build a database of disputed assets; and provide unified guidance on handling evidence in criminal cases, so that legal assets can be returned to banks as soon as possible.
Commenting that credit disputes are extremely complicated, not only about debt but also about common property, inheritance, and many other legal relationships, Deputy Chief Justice of the Supreme People's Court Nguyen Van Tien also stated: the core issue of credit disputes often lies in the collateral, requiring precise handling to reduce risks. Mr. Nguyen Van Tien also emphasized the importance of signing in practice a three-party credit contract: the borrower, the guarantor and the bank, which needs to be transparent and strictly comply with regulations.
In particular, in order to remove difficulties and ensure legitimate rights for credit institutions, while protecting the transparency and stability of the financial system, it is necessary to continue close coordination between the banking sector, the court and relevant agencies.
Source: https://nhandan.vn/nang-cao-hieu-qua-giai-quyet-cac-tranh-chap-tin-dung-post894551.html
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