Whether the commodity price claim constitutes a overdue loan under the Act on Special Measures for the Delayed Loans of Financial Institutions (negative)

The overdue loan under the Act on Special Measures for Delayed Loans of Financial Institutions refers to credit transactions handled by financial institutions, i.e., the principal and interest not repaid on the agreed date in transactions that give credit to the other party (such as overdraft, loan, guarantee of payment, etc.) and the total amount of debts related thereto. Therefore, it shall not be included in the same as the debt for price of goods. Therefore, in an auction procedure based on the right to collateral security, the above special measure shall not be applied.

Articles 2(2) and 5-2 of the Act on Special Measures for Delayed Loans of Financial Institutions

Special Appellants

Jeju District Court Order 87 Magi600 dated May 9, 198

The order of the court below is reversed and the case is transferred to Jeju District Court Panel Division.

We examine the grounds for special appeal.

According to the order of the court below, when a special appellant files an appeal against the decision of permission of a successful bid made by the court below, it is clear that the court below dismissed the appeal on the ground that the appeal was not accompanied by documents attesting that the special appellant has deposited a security under Article 5-2 (1) of the Act on Special Measures for Loans in Arrears by Financial Institutions.

However, according to Article 2 (2) of the Act on Special Measures, loans in arrears referred to in the same Act are the principal, interest, and total amount of debts related thereto which have not been paid on the agreed date in credit transactions handled by financial institutions. The term "credit transactions" refers to transactions that give credit to the other party, namely, transactions that give credit to the other party, such as overdraft, loan, guarantee of payment, etc., and thus it does not include the same as commodity price obligations

However, according to the records, since the secured claim of the right to collateral security, which was the cause of the auction of this case, is clear that the secured claim of this case, is the price for the goods under the designated intermediary transaction agreement between Korea Fisheries Cooperatives and the special appellant, which is the debtor, the above claim cannot be deemed to constitute a overdue loan as stipulated in the above Special Measures. Therefore, in the auction procedure of this case, although there is no room for applying the above Special Measures, the court below dismissed the appeal (this is deemed to have expressed a wrong appeal) by applying Article 5-2 of the above Special Measures Act, although the court below did not have any room for applying the above Special Measures.

Therefore, the order of the court below is reversed and the case is transferred to the appellate court. It is so decided as per Disposition by the assent of all participating Justices.

Justices Ansan-man (Presiding Justice)