New Law for Per­sonal Prop­erty Se­cu­rity In­ter­ests

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

On Au­gust 7, the Na­tional Leg­isla­tive As­sem­bly ( NLA) ap­proved new leg­is­la­tion called the Busi­ness Se­cu­rity Act ( BSA), which will come into force on July 1, 2016.

The BSA is in­tended to pro­vide Thai­land with a form of per­sonal prop­erty se­cu­rity in­ter­est and im­prove ac­cess to credit for the coun­try’s 2.8 mil­lion small and medium- sized en­ter­prises ( SMES). Be­fore the BSA, the only as­sets that could be mort­gaged were im­mov­ables, such as land, reg­is­tered ma­chin­ery, float­ing houses, mo­tor cars, beasts of bur­den and ves­sels of five tons or more. Sig­nif­i­cantly, lenders could not ob­tain se­cu­rity in­ter­ests over in­ven­tory, ac­counts re­ceiv­ables, busi­nesses and in­tel­lec­tual prop­erty.

Un­der the BSA, the types of as­sets that can be sub­ject to a se­cu­rity in­ter­est have been broad­ened con­sid­er­ably to in­clude busi­nesses, claims, mov­able prop­erty used by se­cu­rity providers in busi­ness op­er­a­tions ( such as ma­chin­ery, in­ven­tory or raw ma­te­ri­als used in the pro­duc­tion of goods), real es­tate ( if the se­cu­rity provider is in the real es­tate busi­ness), in­tel­lec­tual prop­erty and any other prop­erty pre­scribed in min­is­te­rial reg­u­la­tions.

For more in­for­ma­tion con­tact Price Sanond Prab­has & Wynne at dman­cill@ price­sanond. com.

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