Whether it is valid for fisheries cooperatives to borrow funds from the National Federation or other private persons who are not financial institutions.

Fisheries cooperatives' borrowing of funds from the National Federation or other individuals who are not financial institutions are invalid because they violate the provisions of Article 65 (1) 4 of the Fisheries Cooperatives Act.

Plaintiff

Supo Fisheries Cooperatives (Attorney Lee Jae-won, Counsel for the plaintiff-appellant)

Gwangju High Court Decision 75Na273 delivered on March 25, 1976

The original judgment is reversed, and the case is remanded to the Gwangju High Court.

The grounds of appeal Nos. 1 and 3 of the defendant's attorney are also examined.

According to the reasoning of the judgment of the court below, the court below acknowledged that the plaintiff lent 1,00,000 won to the defendant association on June 29, 1972 under the name of the non-party who was not the former non-party to the defendant association at the time as collateral and lent 4% interest rate of 1,00,000 to 7.29 per year, and that the plaintiff reported the bonds to the defendant association as the debtor company of the above loan in accordance with the emergency order on economic stability and growth of August 3 of the same year, and the issuance of the above check was arbitrarily issued by the non-party who was not the former non-party to the defendant association without any relation to the business of the defendant association. Thus, the court below rejected the defendant's defense that the defendant association was not responsible

However, according to Article 65 (1) 4 (f) of the Fisheries Cooperatives Act, a fisheries cooperative can borrow funds necessary to achieve its business objectives from the National Federation of Fisheries Cooperatives or other financial institutions, and it is not permitted to borrow funds from the outside. Thus, a fisheries cooperative's act of borrowing funds in violation of the provisions of the Fisheries Cooperatives Act cannot be deemed null and void. As determined by the court below, if the defendant cooperative borrowed funds from the National Federation or other financial institutions, it shall be deemed null and void in violation of the above Fisheries Cooperatives Act. Therefore, the judgment accepting the plaintiff's claim for the principal loan against the defendant cooperative shall not be reversed on the premise that the act of borrowing funds is valid.

Therefore, without further proceeding to decide on the remainder of the grounds of appeal, the case shall be remanded to the Gwangju High Court which is the original judgment, and it is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Lee Young-young (Presiding Justice)