Section 25. Upon the request of a competent officer, a finance company shall
cause its directors, officers, employees or auditors to testify or produce books of accounts,
documents and other evidence relating to its affairs as required by the competent officer.
Section 26. There the Bank of Thailand considers that a finance company:
(1) does not keep its books of accounts in orderly manner or reasonably un to
(2) sets an inappropriate match in maturity of money borrowed from the public
and repayment of loans or investments; or
(3) lends money to or invests funds in an enterprise in which such finance
company, and of its directors, managers, or officers or persons with power of management of
such finance company has certain interest, or lends money to a shareholder of such finance
company in an excessive amount or with unusually special conditions or provisions;
(4) has done or failed to do any act such that may cause damage to the public in
general as follows:
(a) frequently fails to maintain liquid assets at the prescribed ratio;
(b) lends money in excess of the prescribed ratio and/or without security in a
(c) fails to write off from the account worthless or irrecoverable assets in
such amount which will adversely affect the condition of the finance company;
(d) fails to make provision for doubtful assets, in such amount which will
adversely affect the condition of the finance company;
(e) violates or fails to do any act in accordance with the prescriptions
prescribed by the Bank of Thailand with the approval of the Minister; the Bank of Thailand
shall have power to order such finance company to rectify the said acts or to take or to omit
actions as deemed appropriate by the Bank of Thailand within the prescribed period of time.
If the finance company does not comply with the order of the Bank of Thailand
issued in the case of Subsection (4), the Bank of Thailand shall report to the Minister and the
Minister shall have power to order such company to be placed under control or order the
withdrawal of its license. The provision of the Chapter V shall be applied mutates mutants.
Section 26 bis. Where a finance company has incurred losses to the extent
which its capital funds has been reduced to three-fourths of its paid up capital, whether such
fact has been found by the finance company itself or as the result of an audit undertaken by the
auditor, or the examination conducted by the Bank of Thailand, the finance company shall no
longer borrow or receive money from the public unless prior approval has been granted by the
Bank of Thailand. In granting such approval, the Bank of Thailand may prescribe any
condition concerning the lending money, the making investment or any other matter.
If the losses under the first paragraph are to the extent that its capital funds has
been reduced to half of its paid-up capital or less, the finance company shall submit a project
for rectification of its condition and operation to the Bank of Thailand for approval within
fourteen days from the date that the finance company or the auditor finds such fact, or the date
on which the Bank of Thailand notifies the finance company of such fact. In granting such approval, the Bank of Thailand may also prescribe any dateline or any condition, and shall
notify the finance company without delay.
If the Bank of Thailand does not approve the project under the second paragraph,
the finance company may appeal to the Minister within fourteen days from the date of
receiving of the decision. The decision of the Minister shall be final.
The finance company that incurred losses pursuant to the second paragraph shall
immediately cease operation until the Bank of Thailand approves the project for rectification
of its condition and operation, or until the Minister has made a decision allowing the finance
company to proceed as outlined in the project, unless permission of the Bank of Thailand to
undertake any part of its operation is granted.
Where a finance company has to reduce or increase its capital or amalgamate or
merge its business with another company according to the project approved under the second
paragraph or the decision under the third paragraph, the provisions of this Act which requires
it to be a limited public company, the prescription of the minimum amount of registered
capital and paid-up capital of a finance company, Section 1225, Section 1226 and Section
1240 of the Civil and Commercial Code and Section 154 and Section 167 of the Limited
Public Companies Act, B.E. 2521, as the case may be, shall not apply.
Section 26 ter Any finance company that suspends repayment of its due
obligations shall immediately notify the Minister and the Bank of Thailand, and shall not
transact any business unless an authorization in writing is granted by the Minister. The
finance company shall, within seven days from the date of such suspension, submit an
additional report stating the reasons of the suspension of repayment in detail.
Where the Minister has received the notification under the first paragraph, the
Minister shall have power to appoint competent officers to make an investigation thereof, and
upon receipt of the investigation report there from, the Minister is empowered to order such
finance company to be placed under control or order the withdrawal of its license as he deems
appropriate. The provisions of the Chapter V shall be applied mutates mutants.
Section 26 quarter. For the purpose of rectifying the condition or operation of a
company or maintaining the financial stability or financial institution system, the Minister
with the recommendation of the Bank of Thailand shall have power to order such finance
company to suspend its operation entirely or partially for a temporary period of time as
prescribed, and in such case. The Minister may also prescribe rules, procedures and
Section 27. The Bank of Thailand, with the approval of the Minister, has power
to require that a finance company, in borrowing or receiving money from the public, complies
with the prescriptions regulating the following matters:
(1) the Minimum amount of money;
(2) the period of time for repayment;
(3) the rules and procedures in borrowing or receiving money form the public.
The prescriptions under this Section may be made according to any type of
finance business, and type of enterprises or any type of persons.
Section 27 bis. A finance company may accept deposits of money subject to
withdrawal at the end of a specified period by issuing a certificate of deposit.
A certificate of deposit shall contain the following particulars:
(1) the designation of it as a certificate of deposit;
(2) the name of the finance company which draws the certificate of deposit;
(3) the date on which the certificate of deposit is issued;
(4) the province where the certificate of deposit is issued;
(5) an unconditional agreement to pay a sum certain in money including interest
(6) a day of maturity;
(7) the place of payment;
(8) the name of the depositor, or a mention that it is payable to bearer;
(9) the signature of the person authorized to sign on behalf of the finance
company which issues the certificate of deposit.