Cross-Border Loan / ISDA / Syndicated Facility Notarisation for Foreigners — Borrowers, Offshore Lenders and Project / Real-Estate / EPC Finance

**Why a cross-border facility agreement requires notarisation** — loans above USD 10M expose five risks that notarisation + apostille resolve: (1) **capacity** — the borrower / guarantor's foreign director must prove signing authority under articles + board resolution; (2) **authentication of signatures** — defeats the forged-signature defence common on default; (3) **date certainty** — the notary's date stamp blocks the argument that the document was signed post-insolvency (voidable preference under Bankruptcy Act § 115); (4) **cross-border enforceability** — HCCH Apostille makes the document directly usable in foreclosure abroad; (5) **notarial protest** — mandatory under CCC §§ 959–960 for promissory note / bill of exchange default. Every project-finance closing with JBIC / IFC / ADB / SMBC / MUFG / Mizuho treats notarisation as a closing CP.

**LMA vs APLMA vs bilateral — pick the right form and the notary work that follows** — **LMA** (Loan Market Association, London) is the European / UK standard, English-law default, used on syndicated deals above USD 50M, with 350+ pages of standard wording → the notary certifies the facility agreement + fee letter + mandate letter + CP pack for every lender. **APLMA** (Asia-Pacific LMA, Hong Kong) is the Asian adaptation, Hong Kong / Singapore law, used for Asian cross-border deals, with a Singapore Convention mediation clause. **Bilateral** = borrower vs single lender, custom form, usually Thai or Singapore law → less notary work but the security pack is the same. **Club deals** (3–5 lenders, no agent) are hybrid. Each format has a different mechanic — our notary + banking lawyer screens it before drawdown.

**ISDA 2002 Master + Schedule + CSA — hedging that has to be notarised** — borrowers drawing in foreign currency must hedge FX / interest risk via **ISDA**: (1) **Master Agreement** (standard 28 pages, unchanged); (2) **Schedule** (custom — governing law, threshold, termination events, cross-default); (3) **Credit Support Annex (CSA)** — collateral posting (cash / bond, threshold, MTA, IM); (4) **Confirmation** for each trade (IRS, CCS, FX forward, cap, floor, collar). The notary certifies the schedule + CSA + the confirmation signer's authority. **SEC Notification ThorThor. 16/2561** prohibits hedging for speculation — a real underlying exposure is required (BoT SorNorChor 11/2561). We verify the underlying before notarising.

**Security pack — five layers offshore lenders require** — (1) **mortgage on land / condo** — CCC §§ 702–746, registered at the Land Office, uses Tor Dor 21 POA, stamp duty THB 1 per 2,000 (cap THB 200K), registration fee 1% (cap THB 200K); (2) **business collateral agreement** (BCA 2558) — registered at DBD, covers receivables / inventory / going concern / future assets, no delivery required, self-help enforcement; (3) **share pledge** — CCC § 747, requires delivery of share certificate + blank transfer form + notarised power; (4) **account charge** (cash collateral) — account-bank acknowledgement + blocking; (5) **assignment of insurance / contract rights** — notice to counterparty + acknowledgement. The notary certifies every signature + Apostille for offshore security providers.

**Business Collateral Act 2558 — game-changer for project finance** — before 2015 Thailand had no floating charge → now the **Business Collateral Agreement** registered at DBD covers (a) the **going concern**; (b) machinery; (c) inventory; (d) **present and future receivables**; (e) intellectual property; (f) bank accounts. Advantages: no delivery, self-help enforcement (appoint a receiver + sell within 30 days), priority above unsecured creditors, **stamp duty THB 1,000 cap** (not %). The notary certifies the signer's authority + notice to account debtors. Offshore lenders (HSBC, SC, Citi) mandate it on every deal above USD 5M.

**Conditions Precedent (CP) pack — what the borrower delivers before drawdown** — the LMA standard CP pack has **15–25 items**: (1) constitutional documents + good-standing; (2) board + shareholder resolutions; (3) POA + specimen signature; (4) process-agent appointment (Law Debenture / Cogency); (5) **legal opinion** from Thai counsel (capacity / authorisation / enforceability / stamp / tax / FX); (6) **legal opinion** from lender's counsel; (7) registered security documents; (8) insurance policy + loss-payee endorsement; (9) environmental & social action plan (Equator Principles); (10) **KYC / AMLA / sanctions clearance** for borrower + UBO at every layer (BoT SorNorSor 8/2562); (11) **MFA Apostille** for every document. The notary certifies the CP closing certificate — signed by directors + wet signature + date stamp.

**Legal opinion — the notary's role in certifying counsel's signature** — lenders require a Thai-counsel legal opinion covering (a) **due incorporation** of the borrower; (b) **corporate power** to borrow + guarantee + mortgage; (c) **due authorisation** (board + shareholder resos); (d) **enforceability** of the facility agreement under Thai law; (e) **no conflict** with law / constitution / material contract; (f) **no outstanding consents** (BoT, SEC, Foreign Business); (g) **stamp duty paid**; (h) **valid choice of foreign law** (recognised under the PIL Act B.E. 2481); (i) **foreign-judgment enforceability** (via re-litigation — Thailand has not joined the HCCH Choice-of-Court Convention). The notary certifies counsel's signature + bar association number + Apostille.

**Stamp duty + withholding tax — the trap that bites on default** — Thai-law loans require **stamp duty of THB 1 per 2,000 of principal** (cap THB 10,000) paid within 15 days of execution — late = **6× surcharge** + the instrument is **inadmissible in court** until cured. Mortgage: THB 1 per 2,000 (cap THB 200K) + 1% registration fee (cap THB 200K). **Withholding tax on interest**: 15% (reduced to 0–10% under DTAs — JP / SG / NL / UK). The **gross-up clause** in the LMA puts the tax on the borrower, who must calculate + notarise the certificate. Our tax counsel runs the numbers before drawdown.

**FX control + foreign-loan reporting (BoT)** — Thai borrowers drawing in foreign currency above USD 50K must file **Form FT.1** with an authorised bank within 30 days + a **monthly outstanding report** to BoT (Notification SorNorChor 11/2561). Hedging requires a real **underlying exposure** (no speculation). Drawdowns must move through an authorised bank (designated account). Default = notice to BoT within 7 days + no foreign debt payment without FX approval. The notary certifies the FX declaration + underlying documentation + hedging authority.

**AMLA + UBO + sanctions screening — the compliance layer lenders mandate** — lenders perform KYC on (a) the **borrower entity** + articles + director list; (b) the **ultimate beneficial owner (UBO)** at every layer above 25% (BoT SorNorSor 8/2562 + FATF Rec 24); (c) **source of funds + source of wealth**; (d) **OFAC / EU / UK / UN sanctions screening** (Russia / Iran / Myanmar / NK / DPRK); (e) **PEP check** (politically exposed person); (f) adverse media. The notary certifies the **UBO declaration + director SD + source-of-funds SD** — a CP on every deal. AMLA § 5 breach = THB 1M fine + 10 years' imprisonment.

**HCCH (in force for Thailand 28 February 2027) effect — cross-border loan closing 60% faster** — from 28 February 2027, constitutional documents / board resos / POAs / CP certificates from 127 HCCH states are directly usable in Thailand after Apostille — no Thai-embassy step (previously 6–10 weeks per document). Borrowers from JP (Mitsui, Sumitomo, Marubeni), SG (Olam, Wilmar), HK (CK Hutchison, Swire), DE (Henkel, BASF), KR (Samsung, LG) use the apostille path 100%. Closing time falls from 8–12 weeks to 3–4 weeks.

**Intercreditor & subordination deed — for multi-tranche / mezzanine deals** — project-finance deals with senior + mezzanine + shareholder loan need an **intercreditor deed** setting out (a) **payment waterfall**; (b) **voting mechanic**; (c) **standstill period** (mezz waits 90–180 days behind senior); (d) **turnover provision**; (e) **enforcement coordination**; (f) **common security trustee**. The notary certifies every party (senior agent + mezz agent + subordinated creditor + borrower + security trustee) + Apostille. The common security trustee is often offshore (HSBC Trustee SG / Madison Pacific HK) — Apostille + sworn Thai translation required.

**Notarial protest of negotiable instruments — CCC §§ 959–960** — on default of a cross-border promissory note / bill of exchange / cheque, **notarial protest** is mandatory to preserve recourse against endorser / drawer / guarantor. The notary must (1) present the instrument to the drawee on the due date; (2) issue a protest certificate the next business day; (3) notify the holder + endorser within 4 days. Procedural breach = loss of recourse. Offshore lenders holding Thai-borrower notes must use a Thai notary.

**Cost and turnaround**: **standard bilateral pack** (const docs + board reso + POA + facility + 1 security) THB 45,000 / 48 h. **Syndicated pack** (LMA + intercreditor + 5 security + multi-lender CP) THB 120,000–250,000 / 5–7 business days. **ISDA add-on** THB 25,000–50,000. Apostille THB 800 per document. Sworn translation THB 600–1,200 per page. Stamp duty + registration fee per Revenue Code rates. **No % of facility** — Lawyers Council Code § 11. **PI insurance** Lloyd's THB 100M per occurrence.

**Retention + PDPA**: file retained **15–25 years** (AMLA § 22 + Revenue Code § 19 + CCC § 193/30 + loan tenor 5–15 years + 5-year limitation post-payment). PDPA § 26 purpose-limitation. ISO 27001 + AES-256. Disclosure only to client + lender + agent + security trustee + regulators (BoT / AMLO / RD / DBD / SEC) + court order.

Frequently asked questions