Since the statute of limitation of the right to collateral security has expired, the right to collateral security should also be cancelled.

Although the Defendant has priority over the Plaintiff, the right to collateral security has not been exercised for ten years from the time it was possible to exercise the right to collateral security, and the extinctive prescription has expired, so the right to collateral security should also be cancelled.

[Extinctive Prescription of Claim] Article 162 of the Civil Act

Gwangju District Court 2017Kadan510879

Korea

KimA

Pleadings without Oral Proceedings

on 19, 2017

1. The defendant will implement the registration procedure for cancellation of the registration of the establishment of a neighboring mortgage completed by the receipt No. 00000 on July 21, 1997 with respect to the real estate listed in the attached list to the non-party KimB.

2. The costs of the lawsuit are assessed against the defendant.

1. The Plaintiff was seized on October 19, 198 with respect to the real estate listed in the separate sheet as a tax claim against Nonparty KimB. The Defendant is a person who set up the right to collateral security on the instant real estate before the Plaintiff’s seizure, and on April 2017, at the time of Nonparty KimB’s failure to pay national taxes amounting to KRW 751,534,380 (see, e.g., Supreme Court Decision 751,534,380).

2. Request for cancellation of registration of creation of a collateral security by subrogation of creditor;

A. Establishment of a collateral security between Nonparty KimB and the Defendant

On July 16, 1997, Non-party KimB made the defendant as a mortgagee with respect to the real estate indicated in the attached list with the defendant and the attached list, and made a mortgage contract with the debtor as a non-party KimB with the maximum debt amount of 20 million won, and completed the registration of establishment of a neighboring mortgage as of July 21, 1997 by the Gwangju District Court 000 registry office and 0000 registry office.

B. Extinctive prescription of the secured claim

As the above right to collateral security was established on July 16, 1997, ten years after the expiration of the extinctive prescription period of civil claims as of April 2017, the right to collateral security has expired in accordance with Article 162 of the Civil Act. The right to collateral security under Article 369 of the Civil Act also ceased to exist. Thus, the right to collateral security under the name of the defendant should be cancelled.

3. Conclusion

Therefore, the Plaintiff is obligated to implement the registration procedure for cancellation of the registration of the right to collateral security on the ground that the secured debt in the registration of the establishment of the right to collateral security for the instant real estate has expired based on the creditor subrogation.