LEGAL PROBLEMS CONCERNING PREMIUM SAVINGS BONDS

Abstract

Premium savings bonds are issued following Section 7 (2) of the Government Savings Bank Act B.E. 2489 (1946; The Act) stipulating the establishment of a Government Savings Bank (GSB) to negotiate premium savings bonds. In 2004, Article 2 of a Ministerial Regulation on depositing special premium savings bonds was implemented, defining premium savings bond as a book of instruments issued by the GSB to depositors, with a contract that if the instrument has a number that has been assigned to the lottery, GSB will reimburse depositors a specified amount. When the instrument matures, GSB will reimburse the principal plus interest (if any) to the depositor. Article 4 of the Ministerial Regulation provides that depositors have the right to transfer ownership of Premium savings bond to other people. Therefore, premium savings bonds appear to be negotiable instruments, it involves good faith legal protection of transferees. That is, if transferees are unaware of defects in their rights, they will be protected in negotiable instrument. The aforementioned rule is an exception to the general law that transferees “have no better rights than the transferor.”

However, the law relating to the issuance of Premium savings bonds retains a lack of clarity in many matters. Therefore this research examined the following issues: Who has superior rights with good faith problems with Premium savings bonds lost or stolen between the original Premium savings bond owner and transferee? The problem of using Premium savings bond as collateral for debt repayment. The problem of statute of limitations. The problem of issuing Premium savings bonds specifying the use of money by Premium savings bonds holders and money laundering laws.