The capital source mobilized by issuing bank bonds is long-term one of credit organizations for mainly investment according to plan for the projects. Credit organizations are not compulsory to make reserve on the fund mobilized from issuing bank bonds. Article 10 Credit organizations can both directly issue bank bonds and conduct the services of storing, opening accounts, making payment, bank bond brokering and bank bond buying or selling. Article 11 3A bank bond has a term of at least one year. Specific terms for bank bonds are determined by credit organizations depending on the plan for using fund mobilized from issuing bank bonds.
Bank bonds issued on one occasion have the same terms and are liquidated at the same time.
The interest rate of bank bond is determined by credit organizations on the basis of relationship between the demand for and supply of funds on financial market, so that it can encourage clients to deposit long-term capital, the borrowers can accept and credit organizations assure their business efficiency. Paying interests periodically on the basis of every six months or a year depending on the interest rates defined on the interests - withdrawal sheets accompanying bank bonds. Credit organizations can pay bank bond interests on the basis of periodically adjusted interests rates according to a base rate approved by the Governor of the State Bank of Vietnam. Article 14 Bank bond denomination is the amount of money defined on the bond when it is issued and it has a minimum value of VND 500,000. Higher denominations are identified by the multiple of minimum denominations.