Simple transfer security and reservation of return of substitutes under Article 607 of the Civil Act

This section applies only to a case in which a borrower promises to transfer other property rights in lieu of a borrowed object in accordance with a loan for consumption, and it is not applicable to a case in which the borrower transfers the leased object to a lender of the collateral in order to secure the obligation to return the leased object, such as the transfer for security, in order to secure the obligation to return the leased object.

Article 607 of the Civil Act

Goido Daido

Kim Hong-chul

Jeonju area in the first instance, Gwangju High Court Decision 61No172 delivered on July 13, 1961

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

The ground of appeal No. 1 by the Plaintiff’s attorney is examined.

Article 607 of the Civil Act applies only to cases where a person who borrows the object in place of a loan for consumption promises to transfer other property rights in order to secure the return of the object borrowed by such person, and the original decision does not apply to cases where the ownership of the object of the security is transferred to the person who lends the object of the security in order to secure the obligation to return the object borrowed as such in the contract for security. If the defendant transfers the object of the security to such person by evidence for the purpose of collateral for the obligation of 680,000 U.S. obligation, then the person who lends the object of the security at a reasonable price determined by him/her, and if he/she fails to perform his/her obligation, the object of the security is occupied by the defendant but delivered by the alteration of possession, and the person, who was ordered to sell the object of the security to the plaintiff on August 17, 1960, and the court below's decision that the transfer of the object of the security to such person without the consent of the court below to sell it in excess of a certain amount of interest imposed upon the contract for sale of this case.

Judge Lee Young-young (Presiding Judge) of the Supreme Court