Whether it is the exercise of a security right that a mortgagee constructed a building on the mortgaged real estate or set up a mortgage to a third party.

In the case of transfer for security, the exercise of security rights by the creditor shall be liquidated or evaluated and settled in accordance with an agreement between the parties, and the circumstances that the creditor newly constructed a building on the mortgaged real estate or created a mortgage to a third party on the mortgaged real estate are merely the use or utilization of his/her security right, unless there are special circumstances, and it shall not be deemed a conversion disposition as the exercise of security right.

Article 372 of the Civil Act / [Security for Transfer or Provisional Registration]

[Plaintiff-Appellant] Plaintiff 1 and 1138 (Gong1981, 13644) (Gong1981, 13644) and 81Da257 (Gong1981, 14208)

[Judgment of the court below]

Defendant 1 and one other, Defendants Kim Hong-pon, Counsel for the defendant-appellant-appellee)

Daegu High Court Decision 91Na6895 delivered on June 25, 1992

All appeals are dismissed.

The costs of appeal shall be assessed against the defendants.

We examine the grounds of appeal.

According to the reasoning of the judgment below, the plaintiff, who is the non-party 1 and the non-party 2, purchased the above real estate from the non-party 1 and the non-party 2 as collateral and had the non-party 1 gain a loan to the non-party 1 as indicated in its judgment, and the auction procedure for the non-party 1 was commenced for the above real estate under the circumstances stated in its judgment. However, if the real estate is sold through the auction procedure, the successful bid price for the above Daegu Bank and the debt to the non-party 1 for the real estate was not clearly lower than the market price, the remaining amount cannot be paid for the above real estate, and the above real estate was sold to the non-party 1 and the non-party 2 for the purpose of the sale of the above real estate at the non-party 1 and the non-party 2 to whom the above real estate was sold by the non-party 1 and the non-party 1 for the purpose of avoiding the sale of the above real estate at the price of the above real estate by auction.

In addition, in the case of transfer for security, the creditor's exercise of security right is a disposition of realization or evaluation and settlement in accordance with an agreement between the parties. Thus, the court below's decision that Defendant 1, the creditor, had the right to claim the return of the real estate in this case, which was provided as security by paying debt to Defendant 1 and the above non-party 2 and the return of the real estate in this case, is just and there are no errors in the misapprehension of legal principles as to the disposition of transfer for security right, except in special circumstances. (See, e.g., Supreme Court Decisions 80Da1138, Jan. 27, 1981; 81Da257, Jul. 28, 1981).

All arguments are groundless.

Therefore, all appeals are dismissed, and the costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Chocheon-sung (Presiding Justice)