Amendments to Guarantee and Mortgage Provisions of Civil and Commercial Code
New amendments to the guarantee and mortgage provisions of the Civil and Commercial Code will soon come into effect. This includes the Civil and Commercial Code Amendment Act ( No. 20) B. E. 2557 ( Amendment No. 20), which became effective on February 11, 2015, and another recent draft amendment ( New Amendment) approved by the National Leg- islative Assembly on May 14, which is currently pending publication in the Government Gazette. Amendment No. 20 aims to provide greater protection of rights and fair treatment to guarantors who are not primary debtors.
However, local lenders have expressed discontent with the amendment because it offers the same level of pro- tection to individual and corporate guarantors. In response to the outcry, the New Amendment will change the provisions that relate to guarantors and mortgagors who are juristic persons, financial institutions, or in the business of providing guarantees for remuneration.
For more information contact Tilleke & Gibbins at charunun. s@ tilleke. com.