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Case law No. 08/2016/AL regarding determination and adjustment of interest, interest rate in the credit facility agreement since the day following the first-instance hearing

October 15, 2020 Case Law

This case law was approved by the Judicial Council of the Supreme People’s Court on October 17, 2016 and promulgated under Decision No. 698/QD-CA dated October 17, 2016 by the Chief Justice of the Supreme People’s Court.

Source of this case law: Cassasion Decision No. 12/2013/KDTM-GDT dated May 16, 2013 issued by Judicial Council of the Supreme People’s Court regarding the case of “Dispute over credit facility agreement” in Hanoi between Joint Stock Commercial Bank for Foreign Trade of Vietnam (“Vietcombank”) as the plaintiff and Kaoli Pharmaceutical Joint Stock Company as the defendant; people with related interests and obligations are Mr. and Ms. Nguyen Thi Lan, Nguyen Thi Hay, To Thi Lam, Nguyen Dinh Uan, Nguyen Thi Phuong, Nguyen Dang Duyen, Do Thi Loan.

In the case of “Dispute over the credit facility agreement”, the parties agreed with the loan interest rate, including: the interest rate on loan, the late payment interest rate, the adjustment of loan interest rate of the lending Bank or a credit institution appropriate to each term of the bank or the credit institution, but, at the time of the first-instance hearing onwards, the borrower hasn’t repaid the debt or hasn’t fully repaid the principal debt plus interest under the credit facility agreement .  In this case, the borrower must continue repaying the unpaid principal plus interest on the principal amount (if any), the late payment interest on the unpaid principal debt according to the interest rate recognized in the mutual credit facility agreement until fully repaying the principal.  In case of having a mutual agreement on the adjustment of interest rate appropriate to each term of the bank, credit institution, the interest rate that the borrower shall continue repaying under the court’s judgement shall be adjusted in accordance with the adjustment of interest rate of the lending Bank, credit institution. 

For Vietnamese: Please click Precedent No.08/2016/AL on the determining interest and adjustment to the interest rate in credit contracts from the next day of the first-instance trial date.
For English version: Please contact us via info@letranlaw.com
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