Legal basis
- Law on Credit Institutions 2010
- Decree No. 39/2014/ND/CP
Content
Financial leasing is a medium and long term credit extension on the basis of a financial leasing contract between a financial lessor and a finance lessee. The finance lessor commits to purchase the finance lease asset at the request of the finance lessee and holds the ownership rights to the finance lease asset throughout the lease term. The finance lessee uses the finance leased asset and pays the rent during the lease term specified in the finance lease contract.
Financial lease assets (hereinafter referred to as leased assets for short) are machinery, equipment or other assets as prescribed by the State Bank. The State Bank shall provide specific guidance on types of leased properties in each period.
Financial lessor (hereinafter referred to as lessor for short) means a finance leasing company or a finance company.
Financial lessee (hereinafter referred to as lessee) is an organization or individual operating in Vietnam that directly uses the leased asset for its operational purposes.
Rent is the amount that the lessee must pay to the lessor as agreed in the financial leasing contract.
Financial leasing contract is an irrevocable contract signed between the lessor and the lessee for the financial leasing of one or several leased assets.
Financial leasing activities of a finance company must satisfy the following conditions:
Firstly, having a team of qualified staff, professional capacity, facilities, technology, means, equipment and internal regulations in accordance with the law to carry out the leasing activities. as stated in the License.
Second, fully meet the professional conditions for financial leasing activities prescribed by the State Bank.
Third, there are internal regulations on processes, procedures and principles of customer identification to closely monitor and prevent abuse for the purposes of money laundering, terrorist financing and other crimes. .
Fourth, Finance companies established and operating before the effective date of Decree 39/2014/ND-CP may supplement financial leasing activities when fully satisfying the conditions specified above and the following conditions:
a. Complying with regulations on prudential ratios in banking operations, debt classification and provisioning for risks continuously in all quarters of the year preceding the year in which additional operations are requested;
b. NPL ratio below the level prescribed by the State Bank;
c. Not be sanctioned for administrative violations in the field of currency and banking within 01 consecutive year from the time of request for additional activities.
d. Business activities with continuous profit for at least 02 consecutive years preceding the year of request for additional operations.
Above is our consultancy about this issue. If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nguyen Duc Trong via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: info@hongbanglawfirm.com hoặc lienheluathongbang@gmail.com
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