Home | Databases | WorldLII | Search | Feedback Laws of the Republic of Korea

ENFORCEMENT RULE OF THE SECURED BOND TRUST ACT

1

ENFORCEMENT RULE OF THE SECURED BOND TRUST ACT

Ordinance of the Ministry of Finance No. 543, Aug. 12, 1968 Amended by Ordinance of the Ministry of Finance No. 699, Aug. 11, 1969 Ordinance of the Ministry of Finance and Economy No. 17, Apr. 24, 1998 Amended by Ordinance of the Prime Minister No. 875, Mar. 3, 2008 Article 1 (Application for Authorization)

A person who desires to obtain an authorization for the trust business concerning secured bonds in accordance with the provision of Article 5 (2) of the Secured Bond Trust Act (hereinafter referred to as the "Act") shall submit to the Financial Services Commission an application for authorization along with the following documents attached thereto:

1. Business plan; and

2. Estimated income statement. Article 2 (Application for Authorization for Collateralization of Stocks) (1) If stocks are to be offered as collateral for bonds in accordance with the provision of Article 4 (2) of the Act, the following documents shall be submitted to the Financial Services Commission along with the application for authorization:

1. A written statement describing the class, quantity, and value of the stocks offered as collateral and the type and value of other collateral, if any, offered in addition to the stocks; and

2. A written statement describing the ground of the calculation of the values set forth in subparagraph 1.

(2) If stocks are to be offered as an additional collateral in accordance with Article 64 of the Act, a written statement describing the outstanding amount of bonds to be redeemed shall be attached in addition to the documents specified in paragraph (1). 2

Economy No. 17, Apr. 24, 1998>

(3) If stocks are to be offered as a replacement of collateral in accordance with Article 64 of the Act, the minutes of meeting of the assembly of bondholders (hereinafter referred to as the "assembly") shall be attached in addition to the documents specified in paragraph (2). Article 3 (Trust Contract with Foreign Company)

A person who intends to enter into a trust contract with a foreign company in accordance with the provisions of Article 11 of the Act shall submit to the Financial Services Commission an application along with the following documents attached thereto:

1. Draft trust deed;

2. Statement describing the type, quantity and value of the collateral to be offered to the bonds;

3. Financial statements of the trustor; and

4. Articles of Incorporation and financial statements of the foreign trust company, and a statement describing the name, nationality, and address of its director.

Article 4 (Application for Authorization for Calling Meeting) A person who desires to obtain an authorization for calling a meeting in accordance with the provision of Article 42 (2) of the Act shall submit to the Financial Services Commission an application for authorization along with the following documents attached thereto:

1. Statement describing the purpose of the meeting and the reason for calling the meeting; and

2. Statement certifying that the applicant is a bondholder who holds at least ten percent of total amount of the bonds, if it is the case. In this case, a bondholder of bearer bonds shall deposit his/her bonds first and attach a statement certifying the fact that the bonds are duly deposited. Article 5 (Application for Appointment of Special Representative) In applying for appointment of the special representative in accordance with the provision of Article 78 (1) of the Act, the following documents shall be ENFORCEMENT RULE OF THE SECURED BOND TRUST ACT

3

submitted to the Financial Services Commission along with the application.

1. Minutes of meeting of the assembly; and

2. Statement describing the facts supporting the reason for application. Article 6 (Application for Deposit)

The trustor or the assembly that intends to apply for deposit in accordance with the provision of Article 83 of the Act shall submit to the Financial Services Commission the application along with the document evidencing the fact that the collateral has been extinguished or its value has been reduced. Article 7 (Application for Resignation from Trustee) The trust company that intends to resign from trustee in accordance with the last sentence of Article 86 (1) of the Act shall submit to the Financial Services Commission an application along with the following documents attached thereto:

1. Statement describing the reason for resignation; and

2. Statement describing the status of its business since the commencement of its trust service for the issuance of the relevant bonds. Article 8 (Application for Removal of Trustee)

In filing an application for removal of the trustee in accordance with the provision of Article 87 of the Act, a statement describing the reason shall be submitted to the Financial Services Commission along with the application. Article 9 (Report on Succession)

In submitting a report on succession to the trust service in accordance with the provision of Article 89 (2) of the Act, the following documents shall be submitted to the Financial Services Commission along with the application:

1. A copy of succession agreement; and

2. Settlement statement concerning the trust service. Article 10 (Submission of Business Report, etc.)

The provision of Article 5 of the Enforcement Rule of the Trust Act shall apply mutatis mutandis to the submission of sales report and business report ENFORCEMENT RULE OF THE SECURED BOND TRUST ACT

4

by the trust company: Provided, That the list of bonds shall be attached thereto.

Article 11 (Procedure for Collection of Fine for Negligence) The Rule on Process of Tax Collection Officer's Works shall apply mutatis mutandis to the procedure for collection of a fine for negligence under the provision of Article 2 (4) of the Decree. In this case, the demand for payment notice shall contain the information about the method and time limit for filing an objection.

[This Article Newly Inserted by Ordinance of the Ministry of Finance and Economy No. 17, Apr. 24, 1998]

ADDENDUM This Rule shall enter into force on the date of its promulgation. ADDENDUM

This Rule shall enter into force on the date of its promulgation. ADDENDA

Article 1 (Enforcement Date)

This Decree shall enter into force on the date of its promulgation. Articles 2 through 5 Omitted.