Thailand Law Library

by Thailand Lawyer

Chapter 2: Warehouse receipt and warrant

If required by the deposit, the warehouseman must deliver to him a document taken out from a special counterfoil Register and including a warehouse receipt and a warrant.

The warehouse receipt entitles the depositor to transfer the ownership of the goods to another person by endorsement.

The warrant entitles the depositor to pledge the goods mentioned in it by endorsement and without delivering such goods to the endorsee.

Provided that when the depositor wants to pledge the goods, he must separate the warrant from the warehouse receipt and deliver the former to the endorsee.

The warehouse receipt and the warrant must each bear the same serial number as mentioned in the counterfoil, and be signed by the warehouseman.

They shall contain the following particulars:

1. The name or trade name and the address of the depositor.
2. The place of storage.
3. The remuneration for storage.
4. The nature of the goods stored, their weight or bulk and the nature, number and marking or the packages.
5. The place where, and the time when, the receipt and the warrant are made out.
6. The period for which the goods are stored, if that has been fixed.
7. If the goods stored are insured, the amount of the insurance, the period for which the goods are insured and the name or trade name of the insurer.

The warehouseman must enter the same particulars in the counterfoil.

The warehouse receipt and the warrant cannot be made or endorsed to bearer.

When the depositor endorses the warrant to a pledgee, the parties must mention such endorsement upon the warehouse receipt.

If such mention is not made, the pledge cannot be set up against a further buyer of the goods.

When the warrant is endorsed and delivered to the pledgee, the depositor and the pledgee shall certify on the warrant that they have made on the warehouse receipt the mention provided in the foregoing section.

When the depositor pledges the goods and delivers the warrant to an endorsee, such endorsee must notify in writing to the warehouseman the amount of the obligation for the security of which the goods are pledged, the interest to be paid and the day of maturity of the obligation; and upon such notification the warehouseman must enter such particulars in the counterfoil.

If such entry is not made in the counterfoil, the pledge cannot be set up against the creditors of the depositor.

The holder of the document including the warehouse receipt and the warrant may require the warehouseman to divide the goods stored and to deliver to him a separate document for each part. In such case, the holder must return the original document to the warehouseman.

The expenses for such division and for the delivery of the new documents must be borne by the holder.

The ownership of the goods stored can be transferred only by endorsement on the warehouse receipt.

The goods stored can be pledged only by endorsement of the warrant. After the warrant has been endorsed, the goods may be pledged to a second pledgee by endorsing the warehouse receipt in the same way as a warrant.

As long as the goods stored are not pledged, the warehouse receipt and the warrant may not be transferred separately.

The first endorsement on a warrant must mention the amount of the obligation for the security of which the goods are pledged, the interest to be paid and the day of maturity of the obligation.

The delivery of the goods stored may be obtained only on surrender of the warehouse receipt.

If a warrant has been separated and endorsed to a pledgee, the delivery of the goods may be obtained only on surrender of both the warehouse receipt and the warrant.

However, the holder of the warehouse receipt can at any time have the goods returned to him on depositing with the warehouseman the whole amount of the obligation entered in the warrant, with interest up to the date when the obligation is due.

The amount so deposited must be paid by the warehouseman to the holder of the warrant upon surrender of such warrant.

If the obligation for which the goods have been pledged is not performed on the day of its maturity, the holder of the warrant is entitled after protest duly made to have the goods sold by public auction by the warehouseman, provided that the public auction shall not be held less than eight days after the day of protest.

The holder of the warrant must notify the depositor in writing of the time and place of the auction.

The warehouseman must deduct from the net proceeds of the public auction the sums due to him in connection with the storage, and out of the balance he must, on surrender of the warrant, pay to the holder thereof the amount due to him.

Any surplus must be paid to the second pledgee on surrender of the warehouse receipt of, if there is no second pledgee or after he has been satisfied, to the holder of the warehouse receipt.

If the net proceeds of the public auction are not sufficient to satisfy the holder of the warrant, the warehouseman must return the warrant to the holder stating thereon the amount paid, and make an entry thereof in his books.

The holder of the warrant has a right of recourse for the amount unpaid against all or any of the prior endorsers, provided that the public auction has been held within one month after the day of protest.

No action for recourse can be entered later than one year after the day of the auction.

The provisions of this Code concerning Bills apply to warrants and warehouse receipts endorsed as warrants in so far as they are not contrary to the provisions of this Title.

If the documents including the warehouse receipt and the warrant, or one of them, have been lost, the holder on giving proper security may require the warehouseman to deliver him a new title.

In such case the warehouseman must enter the fact in the counterfoil.