Section Code: 0764 - 0769
Thai Civil and Commercial Code
Chapter 3: Enforcement of Pledge
Section 764. Enforcement of Pledge requires Notification
On enforcement of the pledge the pledgee must first notify the debtor in writing to perform the obligation and accessories within a reasonable time to be fixed in the notice.
The pledgee must notify the pledger in writing of the time and place of the auction.
Section 765. Without notification, can wait 30 days
If notification is impracticable, the pledge may sell the pledged property by public auction after one month from the time the obligation became due.
Section 766. Notification Not Required for Bill
The pledgee of a bill shall, without previous notification being necessary, collect it on the day of its maturity.
Section 767. Return of Surplus
On enforcement of the pledge the pledgee must appropriate the net proceeds to extinction of the obligation and accessories and must return the surplus to the pledger or any person entitled to it.
If the proceeds are less than amount due, the debtor of the obligation remains liable for the difference.
Section 768. Sale of Multiple Properties
If several properties are pledged as security for one obligation, the pledgee may sell such of them as he may select, but he may not sell more than is necessary for the satisfaction of his right.
Chapter 4: Extinction of Pledge
Section 769. A pledge is extinguished:
- When the obligation secured is extinguished otherwise than by prescription, or
- When the pledgee allows the pledged property to return into the possession of the pledger.