DECISION

ON THE EXCHANGE OF EXPIRED PAYMENT NOTES

THE GOVERNOR OF THE STATE BANK

- Pursuant to the Law on the State Bank of Vietnam issued in 1997; the Law on the amendment, supplement of several articles of the Law on the State Bank of Vietnam issued in 2003;
- Pursuant to the Decree No. 86/2002/ND-CP dated 05 November 2002 of the Government providing for the function, assignment, authority and the organizational structure of Ministries, ministerial level agencies;
- Pursuant to the Decree No. 52/2003/ND-CP dated 19 May 2003 of the Government providing for the function, assignment, authority and the organizational structure of the State Bank of Vietnam;
- Pursuant to the Decree No. 64/2001/ND-CP dated 20 September 2001 of the Government on the payment activity through payment services suppliers;
- Upon the proposal of the Director of Issuing and Vault Department,

DECICES:

Article 1. Governing scope

This Decision provides for the exchange of the expired payment notes (PN) of the State Bank for organizations and individuals (hereinafter referred to as customers).

Article 2. Conditions for the expired PN to be considered for exchange

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2. The shape and size of the PN must remain intact. In case where the PN is ruined, torn to pieces, conditions under current provisions of the State Bank for the exchange of paper notes which are not qualified for circulation must be ensured;

3. In case where the PN is broadened, stuck, only PN which is broadened, stuck from the two pieces of the same note and has area of more than 90% against the PN of the same type shall be considered for exchange.

Article 3. Procedures for the exchange of the expired PNs

1. Customers who have a demand for the exchange of the expired PNs should submit an application (Appendix attached to this Decision) and the expired PNs to the State Bank branches in provinces, cities under the Central Governments management or the Banking Operation Department (hereinafter referred to as exchanging unit).

2. The exchanging unit shall be responsible for the inspection of the expired PNs of the customers, if they satisfy the conditions provided for in Article 2 of this Decision, the exchanging unit shall temporarily accept those PNs and confirm in the application of the customers (drawn in two copies with the same validity, one kept by the exchanging unit and one kept by the customer); on the monthly basis, consolidate and make a report to the State Bank of Vietnam (the Issuing and Vault Department) in accordance with the Statistic Reporting Regime of the State Bank. In case where a customer does not satisfy the conditions provided for in Article 2 of this Decision, the exchanging unit shall immediately return the PN to the customer and clearly state the reason thereof.

3. Within the period of 07 working days since the receipt of the report from the exchanging unit, the Issuing and Vault Department shall be responsible for the verification, reconciliation of the number of PNs which has been issued, then revoke them and decide on the payment acceptance (or non-acceptance) for the expired PNs of the customers and give a written notice of the result to the exchanging unit.

4. Within the period of 05 working days since the receipt of the notice of the Issuing and Vault Department, the exchanging unit must inform the customer to perform the exchange of the expired PNs against a fee in accordance with provisions in Article 5 of this Decision or inform the reason for not exchange.

Article 4. Dealing with the PNs which are counterfeit, or suspected to be counterfeit

In case where a PN applied for exchange is detected to be counterfeit or suspected to be counterfeit, the exchanging unit shall deal with it in accordance with current provisions of the State Bank like dealing with the counterfeit money or money which is suspected to be counterfeit

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Fee for the exchange of the expired PNs shall be 5% (five percent) of the total value of the expired PNs which are accepted for exchange and shall be recorded to the operational income of the exchanging unit.

Article 6. Package, delivery and receipt of the expired PNs

The post-exchange counting, package, delivery, receipt and preservation of the expired PNs shall be implemented in compliance with current provisions of the State Bank on the delivery, receipt, preservation, transportation of cash, precious assets, valuable papers.

Article 7. The period for terminating the exchange of the expired PNs

Provisions on the exchange of the expired PNs under this decision shall be implemented till the end of 31st December 2007; from 01 January 2008 onwards, the State Bank of Vietnam shall terminate the exchange of the expired PNs.

Article 8. Effectiveness and responsibility for implementation

1. This Decision shall be effective after 15 days since its publication in the Official Gazette and replace the Decision No. 324/1999/QD-NHNN6 dated 15/9/1999 of the Governor of the State Bank on the issuance of the Regulation on the exchange of the expired payment notes; the Decision No.1345/2001/QD-NHNN dated 29/10/2001 of the Governor of the State Bank on the amendment, supplement of several articles in the Regulation on exchange of the expired payment notes issued in conjunction with the Decision No. 324/1999/QD-NHNN6 dated 15/9/1999.

2. The Director of the Administrative Department, the Director of the Issuing and Vault Department, Heads of related units of the State Bank, the Director of the Banking Operation Department, General Managers of the State Bank branches in provinces, cities under the Central Governments management shall be responsible for the implementation of this Decision.

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FOR THE GOVERNOR OF THE STATE BANK
DEPUTY GOVERNOR




Nguyen Thi Kim Phung

APPENDIX

APPLICATION FOR THE EXCHANGE OF THE EXPIRED PAYMENT NOTES

To:...................................................................

Name of the customer:...........................................................................................................

Number of Identity Card (or other valid personal papers):............................................................

Address:...............................................................................................................................

Phone number:......................................................................................................................

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Order

Type of PNs

Expiry date

Quantity

Value

Series

1

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2

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Total

Value in word:........................................................................................................................

Request the State Bank ..................................................................... to consider for exchange

Date ,.......................

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APPLICANT
(Customer signs and states clearly full name)

GENERAL MANAGER
(sign, clearly state full name and seal)

(Note: The application shall be drawn in two copies, one kept by the customer and one kept by the Bank for the reconciliation. After 60 days at the maximum since the receipt of the application and the PNs, the Bank shall be responsible for the exchange or giving a notice of the reasons for not exchanging to the customer. After the exchange, the Bank must revoke the application of the customer)