The judgment of the court below is reversed, and the case is remanded to Daejeon District Court.

The grounds of appeal are examined (to the extent of supplement in case of supplemental appellate briefs not timely filed).

1. Article 3 of the Provisional Registration Security Act (hereinafter referred to as the "Provisional Registration Security Act") provides that in order for a creditor to acquire ownership of real estate for the purpose of security by exercising a security right under a security contract, the creditor shall notify the obligor, etc. of the appraised value of the liquidation money under Article 4 of the same Act after the due date for payment of such obligation, and such notification shall specify the appraised value of the real estate as at the time of notification and the amount of the claim under Article 360 of the Civil Act, and the period for liquidation shall expire two months from the date of receipt of the notification. Article 4 of the Provisional Registration Security Act provides that the obligee shall pay liquidation money after deducting the value of the secured claim from the value of the real estate as at the time of notification, and if the ownership of the real estate is acquired and the registration of the real estate is completed after the due date, the principal registration according to the provisional registration may be requested if a special agreement contrary thereto

Where a principal registration based on a provisional registration for security is made in violation of the provisions which constitute mandatory regulations, the principal registration shall not be effective.

(2) In a case where a person holding a provisional registration notifies an obligor, etc. of the appraised value of the liquidation money according to the procedures prescribed in Articles 3 and 4 of the Provisional Registration Security Act, and there is no liquidation money to pay the liquidation money or pay it to the obligor, etc., then the person holding a provisional registration can only be deemed a valid registration that conforms to the substantive legal relations, if the period of liquidation expires two months from the date the obligor is notified of such notification.

Supreme Court Decision 9Da41657 delivered on June 11, 2002