Whether the provisional registration collateral security Act applies in cases where the market price at the time of reservation of the secured real estate falls short of the secured debt amount.

The Provisional Registration Security Act applies only when the value of the property as at the time of the reservation exceeds the sum of the borrowed amount and the interest attached thereto with respect to provisional registration based on the pre-sale of property rights. Therefore, if the market price at the time of the reservation for provisional registration security real estate falls short of the amount of the secured debt, there is no room for implementing the procedures for notification of the appraised value of the liquidation amount and the payment of liquidation amount, etc. under Articles 3 and 4 of the same Act

Articles 1, 3, and 4 of the Provisional Registration Security, etc. Act

[Plaintiff-Appellant-Appellee] Plaintiff 1 and 15 others (Law Firm Gyeong, Attorneys Park Jong-soo et al., Counsel for plaintiff-appellant-appellee)

Plaintiff’s Lee Byung-hun, Counsel for the plaintiff-appellant

Defendant Kim Jong-chul, Counsel for defendant-appellant

Seoul High Court Decision 92Na12584 delivered on April 30, 1993

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

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

The Provisional Registration Security Act applies only when the value of the property at the time of the reservation exceeds the sum of the borrowed amount and the interest attached thereto in a provisional registration based on the pre-sale of property rights. Thus, if the market price at the time of the reservation of provisional registration security real estate falls short of the amount of the secured debt, there is no room for implementing the procedures for notification of the appraised value of liquidation and payment of liquidation amount, etc. under Articles 3 and 4 of the same Act (see Supreme Court Decision 91Da3019, Nov. 22, 1991; Supreme Court Decision 89Da2125, 2132, Nov. 23, 1990).

In light of the fact that the defendant purchased the real estate of this case from the non-party around September 198, 198, the price at the time of the promise to sell and purchase the real estate of this case is 110,000,000 won or less, and it is apparent that the price does not exceed 150,000,000 won as the secured debt, and thus, there is no need to take procedures such as notice of liquidation and payment of liquidation money under the Provisional Registration Security Act in making a provisional registration based on the above provisional registration. In light of the records, the court below's decision is justified and there is no error in the misapprehension of legal principles as to the Provisional Registration Security Act, etc., such as the theory of lawsuit, and there is no error of law by mistake of facts against the rules of evidence. All arguments are without merit.

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

Justices Song Man-man (Presiding Justice)