Problems Concerning Secured Transaction in Rail Transportation Financing

Main Article Content

Paramaporn Weeraphan

Abstract

The loan for rail transport development in Thailand is, currently, facing a problem of high cost in financing since the creditors do not have confident whether they can execute their rights in the securities. Such problems arise due to the concerns in using assets in rail transport as the securities for loan which, in practice, cannot fully protect the creditors’ rights as the secured creditor. In order to solve the problems, using the business of rail transport as the securities for loan is allowed under the Business Securities Act B.E. 2558. However, the Act has not ensured the confidence for creditor to accept the rail transport business as the securities in rail transport financing since there are problems and considerations regarding the registration of rail transport business as securities as well as concerns regarding the execution of securities. The researcher argues that there should be the legal rules relating to using the rail transport business as the securities that are suitable for the rail transport’s unique characteristic. There should also be the business securities contract that protects all related parties’ rights which will later establishes the creditors’ confidence in accepting the rail transport business as the securities for financing. The proposed suggestions will decrease risks in legal aspect resulting in a reduction of financing cost from finance institute.

Downloads

Download data is not yet available.

Article Details

How to Cite
Weeraphan, Paramaporn. “Problems Concerning Secured Transaction in Rail Transportation Financing”. Naresuan University Law Journal 12, no. 1 (June 24, 2019): 91-114. Accessed March 9, 2021. https://so04.tci-thaijo.org/index.php/lawnujournal/article/view/169558.
Section
Research Articles

References

Bridge, Michael, and Robert Stevens. Cross-Border Security and Insolvency. Oxford: Oxford University, 2001.

Jareon Jesadaval. Property Valuation Guide: Concepts and Procedures Integrated. Nontaburee: Pordee, 2005. [In Thai]

R.M., Good. Commercial Law. Milddlesex: Penquin Book/Allen Lane, 1982.

R.M., Goode. Legal Problems of Credit and Security. 2nd ed. London: Sweet & Maxwell, 1988.

Secretariat of the Cabinet. “Data Processing the Cabinet Resolutio: Bangkok Elevated Road and Train System in Bangkok and suburbs or Hopewell.” Accessed April 1, 2017. https://www.soc.go.th/acrobat/hopewell.pdf. [In Thai]

Sophon Ratanakorn. The Explanation of Civil and Commercial Code on Obligations: General Provisions. 2nd ed. Bangkok: Sahamritt Offset, 1990. [In Thai]

Transport for NSW. “Rail Crop Deed Charge.” Last modified December 3, 2006. Accessed June 13, 2016. https://www.transport.nsw.gov.au/sites/default/files/.media/documents/2017/RailCorp%20Deed%20of%20Charge%20-%203%20Dec%202006%281%29.pdf.