Thailand Law Library

by Thailand Lawyer

Chapter 2: Rights and Duties of Pledger and Pledgee

The pledge is entitled to retain all the pledged property until he has received full performance of the obligation and accessories.

The pledge is bound to keep the pledged property in safe custody and take as much care of it as a person of ordinary prudence would take of his own property.

If, without the consent of the pledger, the pledgee uses the pledged property or lets a third person have custody over it, he is liable for any loss or damage to the pledged property, even caused by force majeure, unless he proves that the loss or damage would have happened in any case.

Unless otherwise provided by the contract, if the pledged property procedures legal fruits, the pledgee shall appropriate them in payment of any interest that may be due to him, and, if no interest is due, in payment of the principal of the obligation secured.

The pledger is bound to reimburse the pledgee for any expenses which were necessary for the preservation or maintenance of the pledged property unless otherwise provided in the contract.

The following actions cannot be entered later than six months after the return or sale by auction of the pledged property:

1. An action for compensation for damage caused to the pledged property by the pledge.
2. An action for reimbursement of expenses incurred for the preservation or maintenance of the pledged property.
3. An action for compensation for injury caused to the pledge by non-apparent defects in the pledged property.