Limitations on Thai Law Regarding Using a Private Vehicle as Security for the Performance of an Obligation

Abstract

Many Thai people nowadays need a revolving fund to pay for their everyday living costs. One of the ways to get a needed revolving fund is borrowing. Normally, a creditor often requires security to ensure the performance of a debtor. However, security in some cases does not secure the performance of an obligation. For this reason, a creditor is not treated as a secured creditor under Thai law. This study is therefore designed in an attempt to examine and analyze the fact and legal provisions in relation to limitations on Thai law regarding using a private vehicle as security for the performance of an obligation. Overall, this study aims to explore the ways that lead to an amendment to Thai law. Thus, a private vehicle can be properly used by the general public as security for the performance of an obligation.

The study reveals that according to Thai legal provisions set forth in the Civil and Commercial Code (CCC) and the Business Security Act (BSA) B.E. 2558 (2015), a private vehicle is not properly considered to be security for the performance of an obligation to be used by the general public. It is therefore suggested that there should be an amendment to the Thai Civil and Commercial Code (CCC) for a private vehicle to be properly accepted as security for the performance of an obligation. This also helps assure the creditor of the payment. An amendment therefore helps lead to a more effective and systematic approach to using a private vehicle as security for the performance of an obligation.