In ordinary judgement, where the par value is paid without knowing it intentionally or by negligence by a bank even though it can be known that the par value is forged or altered, the deposit claim of the deposit principal shall not affect.

When the Defendant Bank recognizes a check or a bill as consistent with ordinary change by comparing the seal impression, penbook, or name plate of deposit and paid it at the Defendant Bank, the purport of the agreement that the Defendant Bank shall not be held liable even if damage is inflicted on the account holder, and that the payment shall not be limited to the seal impression, penbook, or name plate, but shall be interpreted as having no effect on the Defendant Bank’s claim for deposit interest.

Article 35 of the Check Act

Plaintiff

Jeju Bank, Inc.

Seoul High Court Decision 68Na1917 delivered on June 11, 1969

The appeal is dismissed.

The costs of appeal shall be borne by the defendant.

The defendant's attorney's grounds of appeal are examined.

In a case where the defendant bank under Article 12 of the No. 2 (Agreement on Current Accounts) provides that the payment of a check or a bill shall be effective against the deposit owner, regardless of forgery, alteration, theft, or any other circumstances, and even if damage is incurred as a result, the defendant bank shall not be held liable for the payment of the check or the bill. The purport of the provision is that the payment of the forged or altered face value shall not be limited only to the non-printed seal imprint, but also to the ordinary identification of the forged or altered face value without knowing it by intention or negligence, if it pays the forged or altered face value without knowing it, it shall be deemed reasonable to regard it as the damage of the defendant bank and shall not affect the deposit claim. Therefore, the reasoning of the judgment of the court below to the same purport is without merit.

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

Justices of the Supreme Court (Presiding Judge) Park Jae-dong (Presiding Judge)