Effects of the borrowing of funds without a resolution of the Credit Union Council;

In full view of the provisions of subparagraph 2 of Article 29 of the Credit Unions Act, the loans required by a credit union must necessarily undergo a resolution of the board of directors of the union, so the loans shall be null and void without a resolution of the board of directors, and the loans refer to legal acts to borrow funds.

Article 29 subparagraph 2 of the Credit Unions Act

[Defendant-Appellee] Defendant 1 et al., Counsel for defendant-appellee

Choung Bank Co., Ltd., Counsel for the defendant-appellee and two others

Daegu High Court Decision 85Na1712 delivered on August 26, 1986

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

As to the Grounds of Appeal:

In full review of the provisions of Articles 1, 2(1), 9, 11, 12, 19, 29(2), 31(2), and 31(1)5 of the Credit Unions Act, the loans required by a credit union must necessarily be subject to the resolution of the board of directors of the same union, and the borrowing of funds without the resolution of the board of directors shall be deemed null and void. Here, the borrowing of funds refers to legal acts for the borrowing of funds. From this point of view, it is reasonable for the court below to reject the plaintiff's claim on the same ground. Accordingly, it cannot be said that the court below erred by misapprehending the legal principles as to the legal nature of the credit union, such as novels, and the legal nature of the borrowing of funds by the union, or as to the scope of secured claims by a comprehensive mortgage.

Therefore, this appeal is dismissed, and it is so decided as per Disposition by the assent of all participating judges.

Justices Yoon Il-young (Presiding Justice)