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Laws of the Republic of Korea |
1
ACT ON CREDIT GUARANTEES FOR AGRICULTURAL, FORESTRY AND FISHERY ENTERPRISERS
Act No. 2277, Jan. 13, 1971
Amended by Act No. 2953, Dec. 31, 1976
Act No. 3298, Dec. 31, 1980
Act No. 4228, Apr. 7, 1990
Act No. 4788, Nov. 11, 1994
Act No. 4954, Aug. 4, 1995
Act No. 5454, Dec. 13, 1997
Act No. 5505, Jan. 13, 1998
Act No. 5744, Feb. 5, 1999
Act No. 6326, Dec. 30, 2000
Act No. 7311, Dec. 31, 2004
Act No. 8377, Apr. 11, 2007
Act No. 8852, Feb. 29, 2008
Act No. 8863, Feb. 29, 2008
Article 1 (Purpose)
The purposes of this Act is to enable agricultural, forestry and fishery
enterprisers to smoothly raise the funds required for agriculture,
forestry
and fisheries and to contribute to the balanced development of the economy
of the farming and fishing communities by guaranteeing
credit for the
agricultural, forestry and fishery enterprisers, etc. who have minimal to
provide.
Article 2 (Definitions)
(1) The term "agricultural, forestry and fishery enterprisers, etc." in this
Act means persons falling under any of the following
subparagraphs:
1. Farmers, as prescribed by Articles 19 (1) and 105 (1) of the Agricultural
Cooperatives Act;
2. Deleted.
2-3. Deleted.
ACT ON CREDIT GUARANTEE FOR AGRICULTURAL, FORESTRY AND
FISHERY ENTERPRISERS
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3. Fishermen, as prescribed by subparagraph 3 of Article 2 of the Fisheries
Cooperatives Act;
4. Deleted;
5. Persons engaged in forestry as prescribed by subparagraph 10 of Article
2 of the Forestry Cooperatives Act;
5-2. Deleted.
6. Agricultural machinery after service establishments under the
provisions of Article 11 of the Agricultural Mechanization Promotion
Act;
7. Persons, as prescribed by Presidential Decree as the agriculture, forestry
and fishery organizations;
8. Persons, as prescribed by Presidential Decree as the distributors and
processors of agricultural, forestry and fishery products;
9. Persons, who export agricultural, forestry and fishery products or their
processed products as small and medium enterprises (hereinafter
referred to as "small and medium enterprises") under the provisions
of Article 2 of the Framework Act on Small and Medium Enterprises;
and
10. Persons as prescribed by Presidential Decree as small and medium
enterprises manufacturing the machinery and materials necessary
for
the production of agriculture, forestry and fisheries.
(2) The term "financial institutions" in this Act means items falling
under
any of the following subparagraphs:
1. District agricultural cooperatives, district livestock industry
cooperatives, cooperatives classified by item and by type of business
and National Agricultural Cooperative Federation established under
the provisions of the Agricultural Cooperatives Act;
1-2. Deleted;
2. District fisheries cooperatives, fisheries cooperatives classified by type
of business, fishery products processing fisheries
cooperatives and the
National Federation of Fisheries Cooperatives established under the
ACT ON CREDIT GUARANTEE FOR AGRICULTURAL,
FORESTRY AND
FISHERY ENTERPRISERS
3
provisions of the Fisheries Cooperatives Act;
2-2. District forestry cooperatives, forestry cooperatives classified by item
and by type of business, and National Federation of
Forestry
Cooperatives established under the Forestry Cooperatives Act;
2-3. Deleted;
3. Financial institutions as prescribed by Article 2 (1) 2 of the Banking
Act; and
4. Persons, as prescribed by Presidential Decree as persons who engage
in business of financing funds to the agricultural, forestry
and fishery
enterprisers, etc.
(3) The term "agricultural, forestry and fishery funds" in this Act means
the fund as prescribed by Presidential Decree out of the
funds financed
to agricultural, forestry and fishery enterprisers by method of loan, payment,
etc. for the development of agriculture,
forestry and fisheries, such as
for the economic stability of farming and fishing households and the
improvement of management
of the agriculture, forestry and fishery, etc..
Article 3 (Credit Guarantee Council for Agricultural, Forestry and Fishery
Enterprisers)
(1) The credit guarantee council for agricultural, forestry and fishery
enterprisers (hereinafter referred to as the "Council")
shall be established
in the National Agricultural Cooperative Federation to deliberate and
determine important matters concerning
credit guarantees under the
provisions of this Act.
(2) The Council shall be composed of the following 11 members: 1. A person designated by the chairperson of the National Agricultural
Cooperative Federation from among the executives under his/her
control;
2. A person designated by the Financial Services Commission from among
public officials under its control;
3. A person designated by the Minister for Food, Agriculture, Forestry
and Fisheries from among public officials under his/her control;
4. Deleted; 5. A person designated by the Minister of Strategy and Finance from
among public officials under his/her control;
ACT ON CREDIT GUARANTEE FOR AGRICULTURAL, FORESTRY AND
FISHERY ENTERPRISERS
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6. A person designated by the governor of the Bank of Korea from among
executives under his/her control;
7. A person designated by the chairperson of the National Federation
of Fisheries Cooperatives from among executives under his/her
control;
8. A person designated by the chairperson of the National Forestry
Cooperatives Federation from among executives under his/her control;
and
9. Four persons representing the agricultural, forestry and fishery business
circles.
(3) Members under paragraph (2) 9 shall be commissioned by the Financial
Services Commission in consultation with the Minister for
Food, Agriculture,
Forestry and Fisheries from among the persons, including four persons
recommended by the chairperson of the
National Agricultural Cooperative
Federation, two persons recommended by the chairperson of the National
Federation of Fisheries
Cooperatives and two persons recommended by
the chairperson of the National Forestry Cooperatives Federation. Their
term of office
shall be two years.
(6) Matters necessary for the operation of the Council shall be prescribed
by Presidential Decree.
Article 4 (Credit Guarantee Fund for Agricultural, Forestry and Fishery
Enterprisers)
(1) The credit guarantee fund for agricultural, forestry and fishery
enterprisers (hereinafter referred to as the "Fund") shall
be established
in the National Agricultural Cooperative Federation to guarantee credit
for agricultural, forestry and fishery enterprisers,
etc.
(2) The fund of the following subparagraphs shall be the financial resources
of the Fund. 1. Contributions of the Government and local governments;
ACT ON CREDIT GUARANTEE FOR AGRICULTURAL, FORESTRY AND
FISHERY ENTERPRISERS
5
2. Contributions of the financial institutions;
3. Contributions of the agricultural, forestry and fishery organizations;
and
4. Net profit obtained by means of the management and operation of
the Fund.
(3) The scope of the obligations which the Fund may guarantee shall be
the obligations falling under any of the following subparagraphs
as the
obligations concerning agricultural, forestry and fishery funds:
1. Monetary obligations to the financial institutions as the agricultural,
forestry and fishery enterprisers, etc. have borrowed
the money from
the financial institutions;
2. Monetary obligation, as prescribed by Presidential Decree from among
the money payment obligations of the contract related to
the business
transactions of agricultural, forestry and fishery enterprisers, etc.;
and
3. Monetary obligation, as prescribed by Presidential Decree from among
other obligations of the agricultural, forestry and fishery
enterprisers,
etc,.
(4) Financial institutions shall contribute to the Fund the amount of money
according to the rate prescribed by Ordinance of the
Prime Minister, within
the extent not exceeding the annual rate, 5/1,000 for the money loaned.
(5) The scope of financial institutions, the scope of the loaned money,
the method and time of the contribution, and other matters
necessary
for the contribution under paragraph (4) shall be prescribed by Ordinance
of the Prime Minister.
(1) The operation of the Fund and other business concerning credit
guarantees under the provisions of this Act shall be managed
by the National
Agricultural Cooperative Federation.
(2) The institution managing the credit business (hereinafter referred to
as the "management institution") under the provisions
of paragraph (1)
shall settle the accounts of the Fund separately from other accounts of
the institution.
6
Article 5-2 (Business of Management Institution)
The management institution shall conduct the businesses of the following
subparagraphs: 1. Management of the Fund;
2. Credit guarantees;
3. Credit investigations related to business under subparagraph 2;
4. Exercise of claims for reimbursement related to business under
subparagraph 2;
5. Investigation and research of the credit guarantee system; and
6. Business approved by the Financial Services Commission as business
incidental to the businesses of subparagraphs 1 through 5.
[This Article Newly Inserted by Act No. 6326, Dec. 30, 2000>
Article 6 (Accounting of Fund)
(1) The fiscal year of the Fund shall coincide with the fiscal year of the
Government.
(2) The management institution shall make up the budget with the total
revenue and total expenditure of the Fund each fiscal year
and obtain
the resolution of the Council one month prior to the commencement of
the relevant fiscal year, and obtain the resolution
of the Council in advance
whenever it is added to or modified.
(3) The management institution shall draw up a statement of accounts,
balance sheet and profit and loss statement concerning the
Fund within
two months after the end of each business year and submit them to the
Financial Services Commission through the resolution
of the Council, and
make a public announcement of the balance sheet without delay.
Article 7 (Use of Fund)
(1) The Fund shall not be used for any purpose other than the fulfillment
of the relevant guaranteed and the appropriation for the
expenses necessary
for the operation of the Fund.
(2) The surplus of the Fund shall be managed by means of the following
subparagraphs: 1. Deposit in the management institution and the financial institutions
ACT ON CREDIT GUARANTEE FOR AGRICULTURAL, FORESTRY AND
FISHERY
ENTERPRISERS
7
which have contributed to the Fund;
2. Purchasing of national bonds, local government bonds and the bonds
the payment for which is guaranteed by the Government; and
3. Purchasing of bonds issued or guaranteed for payment by financial
institutions, as prescribed by Presidential Decree.
Article
8 (Guarantee Relations on Monetary Obligation related to Loan
of Financial Institution
(2) The guarantee relations between the management institution and the
financial institution concerned shall be materialized when
the management
institution has received an application for credit guarantee from the
agricultural, forestry and fishery enterprisers,
etc. and, after examination
thereof, has notified the contracted financial institution as prescribed by
paragraph (1) of the credit
guarantee: Provided, That the guarantee
relations shall be deemed to come into effect when the financial institution
concerned
has paid the loan proceeds.
(3) The provisions of paragraphs (1) and (2) shall also apply to credit
guarantees concerning loans of the agricultural, forestry
and fishery funds
of the National Agricultural Cooperative Federation.
(4) The management institution shall, when it intends to enter into a
contract as prescribed by paragraph (1), obtain the resolution
of the Council
in advance. The same shall apply when it intends to amend the terms
of such contract.
(5) In cases where the financial institution has appropriated the loan
proceeds under the guarantee by the management institution
for the
collection of other credit for agricultural, forestry and fishery enterprisers,
etc., the guarantee relations with respect
to the relevant appropriated
amount of money shall be deemed to expire: Provided, that the same shall
not apply to loan proceeds
approved in advance by the management
institution. In such cases, the management institution shall obtain the
resolution of the
Council for its approval.
8
Article 8-2 (Guarantee Relations for other Monetary Obligations)
(1) The management institution shall, when it has determined to
guarantee
the obligations of agricultural, forestry and fishery enterprisers, etc. under
the provisions of Article 4 (3) 2 and
3 by the Fund, notify agricultural,
forestry and fishery enterprisers, etc. and the person who will be the creditor
thereof under
such determination.
(2) The guarantee relations between the management institution and the
creditor of agricultural, forestry and fishery enterprisers
shall be
materialized for the obligation notified under the provisions of paragraph
(1): Provided, That the guarantee relations
shall be deemed to come into
effect when the principal credit and obligation relations between the relevant
agricultural, forestry
and fishery enterprisers, etc. and their creditor has
been materialized.
[This Article Newly Inserted by Act No. 5744, Feb. 5, 1999]
Article 9 (Duty to Notify)
The creditor of the obligations guaranteed by the Fund shall, when the
principal credit and obligation relations has been materialized
or the whole
or part of the credit has expired, notify the management institution of
it without delay. The same shall also apply
when the relevant obligor
has lost the benefit of time.
(1) The limit on the total amount of credit guarantee by the management
institution shall be prescribed by Presidential Decree within
the extent
not exceeding 20 times the Fund.
(3) The limit on guarantees by the management institution for agricultural,
forestry and fishery enterprisers shall pass a resolution
of the Council.
Article 10-2 (Entrustment of Business)
(1) The management institution may entrust a part of its business to
a financial institution, Korea Asset Management Corporation
under the
Act on the Efficient Disposal of Non-Performing Assets, etc. of Financial
Institutions and the Establishment of Korea
Asset Management Corporation
ACT ON CREDIT GUARANTEE FOR AGRICULTURAL, FORESTRY AND
FISHERY ENTERPRISERS
9
or a credit information business operator (hereinafter referred to as a "credit
information business operator") under the Use and
Protection of Credit
Information Act: Provided, That in cases of the credit information business
operators, the business which
can be entrusted shall be limited to business
permitted under the Use and Protection of Credit Information Act.
(2) A person who
has been entrusted with business under the provisions
of paragraph (1) may conduct all the judicial or non-judicial acts concerning
the business concerned in lieu of the management institution: Provided,
That in cases of credit information business operators,
it is limited to
non-judicial acts only.
[This Article Newly Inserted by Act No. 6326, Dec. 30, 2000]
Article 11 (Fees for Guarantee)
The management institution may receive fees for guarantee as prescribed
by Presidential Decree from the agricultural, forestry and
fishery
enterprisers who are guaranteed taking the credit degree thereof and the
operational circumstances of the Fund, etc. into
consideration.
[This Article Wholly Amended by Act No. 5744, Feb. 5, 1999]
Article 11-2 (Penalty for Breach of Contract)
The management institution may, when the liability for fulfillment of
guaranteed obligations have not been released because the
agricultural,
forestry and fishery enterprisers who have received such credit guarantees
have not fulfilled the relevant obligation
within the period, collect the
penalty for breach of contract from the relevant agricultural, forestry and
fishery enterprisers,
etc. as prescribed by Presidential Decree for the unpaid
amount of money of the guaranteed obligation.
[This Article Newly Inserted by Act No. 5744, Feb. 5, 1999]
Article 12 (Fulfillment of Guaranteed Obligations)
(1) The creditor
of obligations guaranteed by the Fund may, when the
irrevocable debt of the relevant amount of credit has been determined
as prescribed
by Presidential Decree, claim for fulfillment of the guaranteed
obligation to the management institution.
(2) The management institution shall, when a claim has been made for
fulfillment of the guaranteed obligation under the provisions
of paragraph
(1), fulfill the relevant amount of irrevocable debt and the amount of
obligation incidental to it from the Fund.
[This Article Wholly Amended by Act No. 6326, Dec. 30, 2000]
Article 13 (Exercise of Claims for Reimbursement)
ACT ON CREDIT GUARANTEE
FOR AGRICULTURAL, FORESTRY AND
FISHERY ENTERPRISERS
10
(1) When the management institution has fulfilled a guaranteed obligation,
the creditor shall, without delay, send the management
institution all
the documents necessary for its exercise of claim for reimbursement and
cooperate positively with its exercise
of claim for reimbursement.
(2) The management institution may, in cases where the agricultural,
forestry and fishery enterprisers,
whom the management institution has
subrogated for, fall under any of the following subparagraphs, postpone
its exercise of claim
for reimbursement from such agricultural, forestry
and fishery enterprisers:
1. In cases where it is deemed that the property of the agricultural, forestry
and fishery enterprisers, etc. is not possible to
leave the remainder
after the appropriation for expenses incurred in the exercise of claims
for reimbursement;
2. In cases where it is deemed that the ability to repay the debts of
agricultural, forestry and fishery enterprisers, etc. is likely
to increase
in the future due to postponement of the exercise of claims for
reimbursement.
[This Article Wholly Amended by Act No. 6326, Dec.30, 2000]
Article 13-2 (Amount of Loss)
The management institution may, when it has fulfilled guaranteed
obligation, collect the amount of loss according to the rate not
exceeding
the annual rate, 20/100, for the fulfilled amount of money from the
agricultural, forestry and fishery, etc. concerned.
[This Article Newly Inserted by Act No. 5744, Feb. 5, 1999]
Article 14 (Supervision)
(1) The Financial Services Commission may supervise the management
institution concerning the business under the provisions of this
Act and
issue orders necessary for supervision.
(3) The public official who examines under the provisions of paragraph
(2), shall carry a voucher indicating such authority and
present it to related
ACT ON CREDIT GUARANTEE FOR AGRICULTURAL, FORESTRY AND
FISHERY ENTERPRISERS
11
persons.
Matters necessary for the enforcement of this Act shall be prescribed by
Presidential Decree.
ADDENDUM
This Act shall enter into force on the date of its promulgation.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force one month after the
date of its promulgation.
(2) (Contribution Period of Financial Institutions) The contributions of the
financial institutions under the provisions of Article
4 (3) shall be limited
to December 31, 1985 from the date of enforcement of this Act.
ADDENDUM
This Act shall enter into force on January 1, 1981.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 5 Omitted.
ACT ON CREDIT GUARANTEE FOR AGRICULTURAL, FORESTRY AND
FISHERY ENTERPRISERS
12
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on the date of its
promulgation.
(2) Deleted.
ADDENDUM
This Act shall enter into force on January 1, 1998.
(1) (Enforcement Date) This Act shall enter into force on April 1, 1998.
(2) (Transitional Measure concerning Disposal, etc.) The authorization and
other acts conducted by the administrative agency, etc.
or various kinds
of report and other acts conducted in relation to the administrative agency,
etc. under the former provisions
at the time when this Act enters into force,
shall be deemed acts conducted by the administrative agency, etc. or acts
conducted
in relation to the administrative agency, etc. under this Act.
(3) through (5) Omitted
ADDENDA
(1) (Enforcement Date) This Act shall enter into force three months after
the date of its promulgation.
(2) (Applicability Concerning Fees for Guarantees) The amended provisions
of Article 11 shall apply from the fee for guaranty of
which payment date
falls after this Act enters into force.
ADDENDUM
This Act shall enter into force on the date of its promulgation.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
ACT ON CREDIT GUARANTEE FOR AGRICULTURAL, FORESTRY
AND
FISHERY ENTERPRISERS
13
Articles 2 through 16 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 16 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 7 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 through 5 Omitted.
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