Section 747 — Pledge — definition
Statutory text (Thai original)
อันว่าจำนำนั้น คือสัญญาซึ่งบุคคลหนึ่ง เรียกว่าผู้จำนำ ส่งมอบสังหาริมทรัพย์สิ่งหนึ่งให้แก่บุคคลอีกคนหนึ่ง เรียกว่าผู้รับจำนำ เพื่อเป็นประกันการชำระหนี้
Verbatim from the Royal Gazette / Office of the Council of State
English translation
A pledge is a contract whereby a person, called the pledgor, delivers to another person, called the pledge, a movable property as a security for the performance of an obligation.
This English translation is provided for reference only and has not yet been firm-verified — always rely on the Thai original.
Firm annotation
Section 747 governs pledges — security with delivery, contrasting with mortgages (without delivery, §702). Pledges work primarily for jewellery, gold, securities, machinery — anything movable. The pledgee has possession and a right of retention until the secured debt is paid; on default, the pledgee can sell at public auction after 30 days' notice (§764). Thailand's traditional pawnshops operate under a special Pawnshop Act, but commercial pledges (e.g., share-pledge financing) operate under §747+.
Why this matters in practice
Lawyers: A pledge requires actual physical delivery — a mere agreement to pledge without delivery is unenforceable as a pledge (though it may constitute a different security arrangement governed by contract). Courts distinguish a genuine pledge from other forms of security (e.g. assignment of deposit passbooks) based on whether the arrangement matches the statutory definition. Laypeople: When you pledge an item (e.g. jewellery, savings passbook) to secure a loan, the item must actually be handed over to the lender — otherwise it is not legally a pledge.
Legislative history
Part of the original Civil and Commercial Code codification; no major subsequent amendment.
Supreme Court decisions interpreting this section
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Supreme Court Judgment No. 3486/2554 (2011) ★ Landmark
A pledge of rights (such as the right to receive a bank deposit) does not qualify as a pledge under Section 747, which requires physical delivery of a movable thing, but may be valid as a contractual security arrangement.
An agreement to pledge the right to receive back a bank deposit was not a pledge under Section 747 (which requires delivery of movable property) but rather a valid contractual security arrangement entered into by agreement of the parties.
Curated decisions with case numbers verified against the Supreme Court database. English renderings are the firm's editorial translation for study.