info@lttlawyers.com
(+84) 28 6270 7278
  • English
  • Tiếng Việt

Single Blog Title

This is a single blog caption

Fining Automobiles On Bank Mortgage – Is It Necessary To Have An Auto Ownership Certificate?

Public opinion is heating up over auto owners being fined by traffic police for not displaying their original auto registration certificates held by banks as a mortgage.

It is a headache for almost everyone – car buyers on instalment plans and car mortgagors, while bankers are facing fear of failure of their car loan service. This scenario has led to multiple ideas and proposals including issuance of an auto ownership certificate besides an existing auto registration certificate.[1] This proposal may sound reasonable but should be considered from many aspects, especially as a matter of law, rather than dealing with this issue in an ad hoc fashion.

What do traffic police need from car owners?

Pursuant to the Law on Land Traffic, traffic police have the right to require car owners to show such papers as an identification card, driver’s license, car insurance and vehicle registration certificate, which all serve the purpose of an administrative check and sanction. Ultimately, this check is aimed at verifying information about car drivers (and other vehicles in general) and other elements associated with the car (type of vehicle, vehicle owner, its traffic eligibility etc.). Is it necessary for car drivers to show an original vehicle registration certificate? For the purpose of obtaining information, it is clear that a copy of a vehicle registration certificate will satisfy the need for information verification. Furthermore, in the age of the internet, traffic police can instantly check all information relating to any vehicle, or their owners.

Technically, it is not requirement for traffic police require further information such as where the car owner sourced the money to buy the car, or if the driver is the car owner because these are civil arrangements are beyond the authority of police forces. The law allows citizens to borrow or rent a car from others, for example.

Is a vehicle ownership certificate necessary?

Before answering this question, we need to understand the nature of vehicle registration certificates. Pursuant to Article 106 of the 2015 Civil Code, a car is a movable asset of which ownership must be registered. A vehicle registration certificate itself confirms the registration that the owner has made for the car. Therefore, as a matter of law, this registration certificate is by its nature the paper which establishes the ownership right to such car. The proposal for splitting the current vehicle registration certificate into vehicle registration and vehicle ownership certificates is redundant and indicates a misunderstanding of the legality of the current vehicle registration certificate.

Economically, this separation, if any, only serves the need of a small number of car owners who have mortgage transactions while the majority of other owners do not have this need.

On the other hand, for cars which have been granted registration certificates, this split into 2 certificates may cause confusion in the establishment of ownership rights prescribed by the 2015 Civil Code.

The idea of splitting the vehicle registration certificate is no different from the previous “green book”, “red book” and “pink book” proposals for land, or the proposal of changing driver’s licenses into PET material. Luckily these proposals were soon protested and “whistleblowed” by the Ministry of Justice.

Respecting the property rights of a citizen under the Civil Code

Mortgaging a car to borrow money from a bank is essentially the exercise of the ownership rights of a citizen as the owner of his own property. Under the Civil Code 2015, owners are entitled to perform all acts in their sole discretion in relation to property unless it is contrary to law or prejudicial to a country, a nation, the general public or others. The agreement between citizens and the bank on handing over the original auto registration certificate to the bank is in full conformity with the Civil Code and does not prejudice anyone, so there is no reason to say this agreement violates the law[2]. The bank’s holding of the original vehicle registration certificate aims to restrict the property disposal of a mortgagor, first ensuring compliance with the agreement of the two parties, and it is reasonable for the bank to control the mortgaged property while citizens (borrowers) are responsible for their loan. To date, this has been not just a professional practice but also a prevention of any risk of bad debts for banks. Depriving owners of the right to exploit their property in the pretext of administrative management is an infringement on the ownership of citizens and exposes the bank’s loan-on-mortgage transactions to risk.

In addition, the law on penalties for administrative offenses in the field of road traffic[3] only stipulate that drivers of cars, tractors and similar vehicles who do not carry their vehicle registration certificate while in control of such a vehicle will suffer a fine. However, the law fails to specify whether this is an original or certified copy of the vehicle registration certificate. Therefore, citizens are entitled to use a certified copy as an ad hoc solution, and this is absolutely not contrary to law.

The said analysis shows that the current legislation is sufficiently detailed and capable of addressing any practical situation. So separating the vehicle ownership certificate from vehicle registration is not necessary. There is no need to amend the relevant legislation or enacting more legislation to address this issue. The concerned parties need to apply the Civil Code – original civil legislation – and respect the ownership of citizens and their freedom to enter into agreements between them and banks. Accordingly, traffic police should accept a certified copy of the Certificate, along with a letter from their bank, if necessary.

Lawyer Le Trong Them- Lawyer Ho Thi Tram

[1] See “Separating vehicle registration certificate from vehicle ownership certificate” at http://www.thesaigontimes.vn/162676/Tach-bach-giay-dang-ky-va-giay-so-huu-o-to.html.

[2] Article 320.1 of the Civil Code 2015

[3] Article 21.3.b of Decree 46/2016/NĐ-CP dated May 26, 2016

82 Responses

  1. I have been surfing online more than 2 hours today, yet
    I never found any interesting article like yours.
    It’s pretty worth enough for me. In my view, if all website owners and
    bloggers made good content as you did, the net will be a lot more useful than ever before.

  2. I will right away snatch your rss as I can’t to find your e-mail subscription link
    or e-newsletter service. Do you have any? Please allow me understand in order that I
    may just subscribe. Thanks.

  3. It is perfect time to make some plans for the future and it is time to be happy.
    I have read this post and if I could I wish to
    suggest you few interesting things or advice. Perhaps you could
    write next articles referring to this article. I desire to read even more things about it!

  4. Pingback : bimatoprost powder

  5. Pingback : hydroxychloroquine coronavirus protocol

  6. I truly love your website.. Great colors & theme. Did you build this website yourself?
    Please reply back as I’m planning to create my own blog and would love to learn where you got this from or just what the theme is called.
    Thanks!

  7. Howdy! Someone in my Myspace group shared this website with
    us so I came to check it out. I’m definitely enjoying the information.
    I’m book-marking and will be tweeting this to my
    followers! Outstanding blog and brilliant design and style.

  8. I’m extremely impressed with your writing skills and also with the layout on your weblog.
    Is this a paid theme or did you customize it yourself? Either way keep up
    the nice quality writing, it’s rare to see a nice blog like this one these days.

  9. Pingback : is hydroxychloroquine available in canada

  10. I love what you guys tend to be up too. This kind of clever work and
    exposure! Keep up the awesome works guys I’ve incorporated you guys to my own blogroll.

  11. I’d also like to say that most individuals who find themselves with no health insurance can be students, self-employed and those that are unemployed. More than half of the uninsured are really under the age of Thirty-five. They do not feel they are in need of health insurance simply because they’re young as well as healthy. Their particular income is often spent on property, food, and also entertainment. Most people that do work either complete or in their free time are not given insurance by means of their work so they move without owing to the rising price of health insurance in the United States. Thanks for the ideas you write about through your blog.

  12. Excellent site you’ve got here.. It’s hard to find good quality writing like yours these days.
    I seriously appreciate individuals like you! Take
    care!!

  13. I was curious if you ever thought of changing the page layout of your website?
    Its very well written; I love what youve got to say.
    But maybe you could a little more in the way of content so people could connect with it better.
    Youve got an awful lot of text for only having one or 2
    pictures. Maybe you could space it out better?

  14. I seriously love your site.. Excellent colors & theme.
    Did you create this website yourself? Please reply back as I’m planning to create
    my own personal site and would like to know where you got this from or what
    the theme is named. Thanks!

  15. Pingback : tadalafil capsule

  16. I have been browsing online more than three hours today, but I never discovered any attention-grabbing
    article like yours. It’s pretty value enough for me. In my opinion, if
    all web owners and bloggers made excellent content
    as you did, the internet will be much more useful than ever before.

  17. Wow! This blog looks just like my old one! It’s on a totally
    different subject but it has pretty much the same layout and design. Wonderful choice of colors!

  18. I have been surfing online more than 2 hours today,
    yet I never found any interesting article like yours. It is
    pretty worth enough for me. In my opinion, if all website owners and bloggers made good content
    as you did, the web will be much more useful than ever before.

  19. It is perfect time to make a few plans for the long
    run and it’s time to be happy. I have learn this post and if
    I could I wish to recommend you few interesting issues or tips.
    Maybe you can write subsequent articles regarding this article.
    I desire to read more issues approximately it!

  20. Wonderful goods from you, man. I’ve understand your stuff previous to and you’re just too excellent. I really like what you’ve acquired here, really like what you’re stating and the way in which you say it. You make it entertaining and you still take care of to keep it sensible. I can not wait to read much more from you. This is actually a tremendous site.

  21. Its such as you learn my mind! You seem to know so
    much about this, such as you wrote the e-book in it or something.

    I feel that you can do with a few % to power the message home a little bit,
    but instead of that, that is excellent blog. An excellent read.
    I will certainly be back.

Leave a Reply