Circular No. 28/2012/TT-NHNN dated October 10, 2012 of the State Bank promulgates regulations on bank guaranty applicable to credit institutions and branches of foreign banks.
In respect of scope of guaranty, Circular specifies the following obligations that can be guaranted in whole or in part:
- Payment of principal, interest and other expenses relating to loans;
- Payment for paybles in related of procurement of materials, goods, equipment, machinery and other expenses for their clients to implement investment, production, business projects or for living;
- Payment for taxation, fee and other financial obligations to the State;
- Guaranty for tendering;
- Contractual execution, product quality assurance, advanced money return;
- Other legal obligations agreed by parties.
This Circular shall effect from the date of December 02, 2012 and replace Decision No. 26/2006/QD-NHNN dated June 26, 2006 of the State Bank on promulgation of Regulation of Bank Guaranty.