1. All appeals by the Defendants are dismissed.

2. The costs of appeal are assessed against the Defendants.

Purport of claim and appeal

1.

1. Basic facts

A. The rehabilitation debtor, Gyeongnam-gu, Inc. (hereinafter referred to as "Gyeongnam-do,") is a company specialized in construction business, etc., and the defendant AB Housing Redevelopment and Improvement Project Association (hereinafter referred to as "the defendant union") is a housing redevelopment and improvement project partnership with approval for the establishment of a housing redevelopment and improvement project (hereinafter referred to as "the head of the Nam-gu, Incheon Metropolitan City") under the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents (hereinafter referred to as the "Urban Improvement Act") on March 9, 2009 in order to implement housing redevelopment and improvement projects (hereinafter referred to as "the improvement project in this case") with the project implementation district consisting of 14,803 square meters wide in Nam-gu, Incheon Metropolitan City. The defendant AC is

(hereinafter referred to as “the Defendants’ officers” when only the remaining Defendants except the Defendant partnership observe.

On August 14, 2009, Gyeongnam Company entered into a contract with the Defendant Cooperative for the construction of new construction facilities (hereinafter “instant contract”). On the same day, the Defendants jointly and severally guaranteed the Defendant Cooperative’s obligation (including the performance of the contract and the obligation to repay the loan) to the Gyeongnam Company in accordance with the instant contract.

The main contents of the instant contract are as follows.

Article 3 (Methods of Implementing Projects) (2) “A” (Defendant Association) may lend the project promotion expenses to “A” to “B,” and in such cases “A” shall reimburse the principal and interest of the loan, such as the principal and interest of the project promotion expenses borrowed from “B” (hereinafter referred to as “principal and interest”) pursuant to Article 4.

Provided, That in accordance with the consultation between "A" and "B", the promotion expenses for various projects, such as relocation expenses, may be directly procured through financial institutions, etc.

Article 4 (Project Promotion Expenses) (1) “A” shall be separately from “B”.