Section Code: 0747 - 0757
Thai Civil and Commercial Code
Chapter 1: General Provisions
Section 747. Pledge
A pledge is a contract whereby a person, called the pledger, delivers to another person, called the pledge, a movable property as a security for the performance of an obligation.
Section 748. Security for Performance
The pledge is a security for the performance of the obligation and for the following accessories:
- Compensation in case of non-performance of the obligation.
- Costs of enforcement of the pledge.
- Expenses for the preservation of the pledged property.
- Compensation for injury caused by non-apparent defects of the pledged property.
Section 749. Escrow
The parties to a pledge may agree that the pledged property shall be kept by a third person. (Escrow)
Section 750. Written Notice Required
If the pledged property is a right represented by a written instrument, the pledge is void unless such instrument is delivered to the pledge and the pledge is notified in writing to the debtor of the right.
Section 751. Cannot be set up against 3rd Person with endorsement
If an instrument to order is pledged, such pledge cannot be set up against third persons unless its creation is endorsed upon the instrument.
No notification to the debtor under such instrument id necessary.
Section 752. Debtor Notification Required
If an instrument issued to a named person and not transferable by endorsement is pledged, the pledge must be stated on such instrument, and cannot be set up against the debtor under such instrument or third persons, unless it is notified to such debtor.
Section 753. Pledged Share or Debenture
If a named certificate for share or debenture is pledged, such pledge cannot be set up against the company or other third person, unless the creation of the pledge is entered in the company's book in accordance with the provisions of Title XXII relating to the transfer of shares or debentures.
Section 754. Pledge Right Due before Obligation is Due
If the pledged right becomes due before the obligation for which it is security is due, the debtor of such right must deliver to the pledge the property which is the subject of the right and it becomes pledged in lieu of the pledged right.
If the pledged right is an obligation to pay a sum of money and becomes due before the obligation secured, the payment must be made jointly to the pledge and pledger; if they cannot come to an agreement, each of them is entitled to demand that such sum be deposited in Deposited Office for their common benefit.
Section 755. If Right is Pledge, cannot extinguish or modify
If a right is pledged, it cannot be extinguished or modified to the injury of the pledge without the consent of the pledgee.
Section 756. Any modification to ownership of the obligation is invalid until the obligation is due
Before the obligation is due, any agreement that the pledge shall, in case of non-performance, become the owner of the pledged property or disposed of it otherwise than in accordance with the provisions concerning Enforcement of Pledge, shall be invalid.
Section 757. Pawnbrokers
The provisions of this Title XIII apply to contracts of pledge entered into with licensed pawnbrokers only in so far as they are not contrary to the Laws or Regulations concerning Pawnbrokers.