The guarantee of payment under Article 53 of the Check Act should be interpreted as a kind of mineral credit business.

The guarantee of payment made by agricultural cooperatives under Article 53 of the Check Act is not a bearing of debt but a broad loan.

Article 53 of the Check Act

Plaintiff

Mine-gun Agricultural Cooperatives

Gwangju High Court Decision 69Na129 delivered on November 17, 1970

We reverse the original judgment.

The case is remanded to the Gwangju High Court.

We examine the Plaintiff’s grounds of appeal Nos. 1, 2, and 3.

According to the reasoning of the judgment of the court below, the court below held that the defendant's act of payment guarantee of this case can not be considered as a kind of loan which is a kind of credit act, and rather, it constitutes an invalid legal act in violation of Article 111 (1) 4 (f) of the Agricultural Cooperatives Act. However, the defendant's payment guarantee under Article 53 of the Check Act is a legal act in violation of Article 111 (1) 4 (f) of the Agricultural Cooperatives Act. However, for the purpose of promoting smooth economic distribution by offering the credit to the State, foreign institutions, and institutions with public nature, the defendant's payment guarantee under Article 53 of the Check Act guarantees the payment of the current or future obligations to the third party at the request of the above institutions, and it is hard to say that the above institutions, etc. requesting the credit of the financial institution without directly delivering the funds, and it is not accompanied by the provision of funds at the time of payment guarantee, and it is not accompanied by the provision of funds, and it is reasonable to interpret it as a payment guarantee guarantee bond of the Bank's Act.

The issue is with merit in this point, and therefore it is unnecessary to explain the debate on other appeal, and the original judgment shall not be relieved of reversal. Therefore, it is so decided as per Disposition by the assent of all participating Justices in accordance with Article 406(1) of the Civil Procedure Act.

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