The validity of issuance of promissory notes made by a military agricultural cooperative for the borrowing of funds from persons other than the National Agricultural Cooperative Federation.

01 As the business capacity of a military agricultural cooperative is interpreted to be limited to the borrowing of funds from the Federation, the issuance of promissory notes for the borrowing of funds from persons other than the Agricultural Cooperatives Federation is invalid because it exceeds the scope of business capacity of the agricultural cooperative.

Agricultural Cooperatives Articles 58(2), 11(1)4(f), and 153(1)5(f) of the Agricultural Cooperatives Act

Kim Jong-ju et al.

An agricultural cooperative in Eastern-gun

Busan District Court Decision 61No817 delivered on March 8, 1962

The original judgment shall be reversed.

The case shall be remanded to the Daegu High Court.

According to the reasoning of the judgment of the court below, since the defendant cooperative can purchase or sell goods necessary for its business purposes under Article 111 of the Agricultural Cooperatives Act, and can carry on financial business such as receipt of deposits for loans necessary for its members as credit business, the issuance of bills also belongs to the extent of its original purpose, and the non-party Kim Jong-il, who was the head of Busan branch of the defendant cooperative, expressed that the defendant cooperative should bear obligations due to the bill of this case in order to alleviate the shortage of funds at the beginning of the defendant cooperative. According to Article 111 of the Agricultural Cooperatives Act, it is clear that the defendant cooperative can carry on purchase business and sales business as a type of business, but according to Article 58 (2) of the same Act, it is reasonable to interpret that the mobile agricultural cooperative is not a loan from the military cooperative for its business purpose, and it is not reasonable to interpret that the loan from the defendant cooperative's own ability to issue a promissory note as a loan from the National Federation of Korea to the non-party 15 (1) 4 of the same Act.

Therefore, this decision is delivered with the assent of all Justices of the Supreme Court who participated in accordance with Article 406 of the Civil Procedure Act.

The judge of the Supreme Court (Presiding Judge) of the Red Magsan (Presiding Judge) of the Republic of Korea is a Mag-bunbun Mag-man