Section 34. A finance company shall comply with the rules and procedures
prescribed by the Bank of Thailand with the approval of the Minister regulation the following
matters:
(1) the making of investment in securities to be owned by the finance company
itself;
(2) the lending of money for the purchase of securities or against securities.
Section 35. No finance company shall lend money, invest in the business of any
person, undertake contingent liabilities or pay money under contingent liabilities for any
person, either one or several transactions in combination, at the end of any one day in excess
of the amount of money or the ratio to all capital funds or any or several types of capital funds
stipulated in the rules, procedures and conditions prescribed by the Bank of Thailand with the
approval of the Minister, except with the permission of the Bank of Thailand. Such
permission may be granted with any condition.
Lending of money or investing in the business of the following person or
partnership, or undertaking contingent liabilities or paying money under contingent liabilities
for the following person or partnership, shall be deemed to be lending of money, investing,
undertaking Contingent liabilities or paying money under contingent liabilities for the person
under the first paragraph:
(1) the spouse of the person under the first paragraph;
(2) a minor child of the person under the first paragraph;
(3) an ordinary partnership in which the person under the first paragraph or the
person under (1) or (2) is a partner;
(4) a limited partnership in which the person under the first paragraph or the
person under (1), (2) or (3) is a partner with unlimited liability or in which one or more of such
persons is a partner or are partners with limited liability in an aggregate amount exceeding
thirty per cent of the total capital of such limited partnership;
(5) a limited company in which the person under the first paragraph or the
person under (1) or (2) or the partnership under (3) or (4) holds shares, separately or in
combination, in an aggregate amount exceeding thirty per cent of the total amount of such
limited company’s shares sold.
In the cases of lending of money, undertaking contingent liabilities or paying
money under contingent liabilities under the first paragraph, if the person under the first
paragraph is a partnership or a limited company, the amount of money to be lent, undertaken
contingent liabilities or paid under contingent liabilities shall not, in an aggregate amount,
exceed the ratio to capital or capital funds of such person as prescribed by the Bank of
Thailand, except with the permission of the Bank of Thailand. In granting such permission,
the Bank of Thailand may grant it only in relation to some type of finance business and may
also prescribe any condition.
The prescriptions under this Section Amy relate to each type of finance business.
Section 36. The provisions of Section 35 shall not apply in the case where a
finance company:
(a) lends money or makes investment by buying Thai Government securities of
other securities prescribed by the Bank of Thailand;
(b) lends money on the security of Thai Government securities or other property
prescribed by the Bank of Thailand, but only to the extent of the amount not exceeding the
Value of the security. In computation of the value of the security, if the security is value; if
the security is in the form of other securities or other property, the value to be computed shall
be the market value, but if there is no market value, the value to be computed shall be as
prescribed by the Bank of Thailand.
Section 37. A finance company shall open its office to the public for business
during the working hours and close its office on the holidays as prescribed by the Bank of
Thailand, unless permission has been granted by the Bank of Thailand to open or close its
office any other hours or days. Such permission may be granted with any condition to be
complied with.
Section 38. The prescriptions under Section 20 (2) (c) and (11), Section 27,
Section 28, Section 29, Section 30, Section 31, Section 32, Section 34, Section 35, Section 36
and Section 37, prescription of condition in the permissions granted, shall be published in the
Government Gazette.
CHAPTER III
Securities Companies32
Section 39 to Section 49. (Repealed)
CHAPTER IV
Credit Foncier Companies
Section 50. No person other than a credit foncier company shall engage in credit
foncier business.
Section 51. A credit foncier company shall use a name which includes the words “credit foncier company” at the beginning and the word “limited” at the end.
Section 52. No person other than a credit foncier company shall, in the conduct of
its business, make use of the name of description of a “credit foncier company” or any other
word or words having the same meaning.
Section 53. A credit foncier company shall have a registered capital and a paid-up
capital in such amounts as prescribed by the Minister each of which amounts shall not be less
than thirty million bath.
Section 54. No credit foncier company shall :
(1) reduce or increase its capital without an authorization of the Minister, such
authorization may be granted with any condition as the Minister may prescribe ;
(2) lend money except on the security of property as a first mortgage ;
(3) lend money to any of its directors, and the provisions of the second paragraph of
Section 20 (7) shall apply mutates mutandis ;
(4) engage in any business other than the type of credit foncier business authorized,
except with an authorization of the Minister; such authorization may be granted with any
condition as the Minister may prescribe.
The letting to the public under a hire-purchase agreement of an immovable property
for which ownership has been transferred from the seller of such immovable property after another person has agreed to hire-purchase such property, as well as the letting under a hirepurchase
agreement of an immovable property of which a credit foncier company has taken
repossession as a result of a breach of contract by the hire-purchaser, may be undertaken by a
credit foncier company in accordance with the rules, procedures and conditions prescribed by
the Bank of Thailand with the approval of the Minister; such prescription shall be published in
the Government Gazette;
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