On February 19, 2019, the Government issued Decree No. 19/2019/ND-CP stipulating on loan club. This Decree takes effect from April 5, 2019.
Accordingly, Decree No. 19/2019 / ND-CP has the following remarkable contents:
1. The organization of them must comply with the basic principles of civil law prescribed in Article 3 of the Civil Code; their organization is only done for the purpose of mutual assistance among those involved in their relations; they must not organize them to lend heavy interests, deceive assets, abuse the trust in appropriating property, illegally mobilizing capital or other law-breaking acts.
2. Conditions on members: A person who is aged full 18 or older and does not fall into the case of losing civil act capacity, limiting civil act capacity or having difficulties in perceiving and mastering acts according to stipulated in the Civil Code; People from full 15 years to under 18 years of age who have their own assets may be members of their families; in case of using private property, real estate and real estate must be registered to join the family line, they must be represented by a great person. agreed by law; Other conditions as agreed by the participants of their cords.
3. Conditions for ownership of a family: Being a person of full 18 years or older and not in the case of losing civil act capacity, limiting civil act capacity or having difficulties in perceiving and mastering acts according to stipulated in the Civil Code; in case the members organize their own lines, an owner is a person elected by more than half of the total members, unless otherwise agreed by the members; Other conditions as agreed by the participants of their cords.
The owner must make and keep the tontine unless there is an agreement that a member makes and keeps a register. In case their line has no owner, the members agree to assign a member to make and keep the family book.
The owner must notify in writing to the People’s Committee of the commune where he or she resides about the organization of the household line in one of the following cases: Organizing the wire they value the sections at a period of opening them from 100 million dongs or more; held from two lines or more.
4. Line agreement: Must be made in writing and can be notarized or authenticated if required by the participants. In case the wire agreement is amended or supplemented, the amended and supplemented documents must be made according to the above provisions.
5. Procedures for contributing them or receiving annuities: When contributing them, receiving annuities, receiving interests, paying interests or performing other related transactions, the members may request their owners or persons to make and keep their books to grant borderlines. got it.
6. Interest rate: The interest rate in the interest rate shall be agreed upon by the members of the wire or given by each member to be entitled to receive the annuity at each tontine opening but not exceed 20% / year of the total value of the parts they must deduct the value of the parts they contributed over the remaining time of their line. Where the aforementioned limited interest rate is regulated by the competent authority as stipulated in Clause 1, Article 468 of the Civil Code, the adjusted interest rate limit shall apply. In case the interest rate agreed or given by each member to receive them at each period to open them beyond the above limit interest rate, the excess interest rate is not effective.
It can be seen that the Decree No. 19/2019/ND-CP clearly stipulates the legal framework for the activities of families, families, villagers, and wards, thus contributing to eliminating the “black credit” in rural areas. protecting the legitimate rights and interests of participants.