According to Decree No 19/2019/NĐ-CP, the participation, withdraw and termination of tontine group are stipulated as follows:

v     Regarding to procedure of participation in tontine group:

Unless otherwise agreed, a person may become a new tontine member when:

  • He/she obtains the consent of the tontine holder and all tontine members.
  • He/she has fully contributed annuity shares as agreed until the participation time.

v     Regarding to the procedure of withdraw from tontine group:

A member who receives the annuities may withdraw from the tontine group provided that he/she contributes outstanding annuity shares to the tontine holder or the tontine book-keeper in the absence of the tontine holder in accordance with Clause 1 Article 12 of Decree No. 19/2019/NĐ-CP.

 

If a member who has contributed annuity shares but has not received annuities wishes to withdraw from the tontine group, he/she shall:

  • May receive back annuity shares as agreed. If there is no agreement, the member wishing to withdraw from the tontine group may receive back contributed annuity shares at the completion time of the tontine group; or receive back contributed annuity shares at the withdrawal time if he/she has valid grounds.
  • Must reimburse a part of received interests (if any) and fulfill other obligations as agreed; or make restitution for any damaged caused in accordance with the Civil Code.
  • If a tontine participant dies, his/her rights and obligations established in the tontine shall be settled in accordance with laws and regulations on inheritance. The heir may participate in the tontine as agreed between him/her and tontine participants

v     Regarding to the termination of tontine:

A tontine group shall terminate in any of the following cases:

  • As agreed by the tontine participants;
  • The purpose for participation in the tontine of members has been achieved;
  • Other cases as per the law.

If a tontine terminates, rights and obligations of the tontine participants shall be settled in accordance with the tontine agreement and the Civil Code./.