Amend­ments to Guar­an­tee and Mort­gage Pro­vi­sions of Civil and Com­mer­cial Code

Thai-American Business (T-AB) Magazine - - Legal Updates -

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.

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