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Laws of the Republic of Korea |
1
KOREA HOUSING FINANCE CORPORATION
ACT
Act No. 7030, Dec. 31, 2003
Amended by Act No. 7341, Jan. 27, 2005
Act No. 7428, Mar. 31, 2005
Act No. 7837, Dec. 31, 2005
Act No. 7882, Mar. 24, 2006
Act No. 8236, Jan. 11, 2007
Act No. 8372, Apr. 11, 2007
Act No. 8635, Aug. 3, 2007
Act No. 8852, Feb. 29, 2008
Act No. 8863, Feb. 29, 2008
CHAPTER GENERAL PROVISIONS
Article 1 (Purpose)
The purpose of this Act is to contribute to the promotion of national welfare
and the development of the national economy by establishing
the Korea
Housing Finance Corporation for performing the business of securitization
of mortgages, issuance of credit guarantees
for housing finance and guarantees
for reverse annuity mortgages in order to facilitate the supply of housing
funds on a long-term
and stable basis.
The terms used in this Act shall be defined as follows: 1. The term "mortgage securitization" means any of the falling under any
of the following items:
(a) The Korea Housing Finance Corporation (hereinafter referred to the
"Corporation"); issuance of mortgage-backed bonds after offering
mortgages that have been transferred from a financial institution
as security, and pays the principal and interest thereof to the
bearer
thereof;
KOREA HOUSING FINANCE CORPORATION ACT
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(b) The Corporation is issuance of mortgage-backed securities on the
basis of mortgages that has been transferred from a financial
institution
and distributes to the beneficiaries thereof the profits earned from
the management, operation and disposal of such
mortgages; and
(c) The Korea Housing Finance Corporation is issuance of student
loan-backed securities on the basis of Student
Loan-Backed Bonds
that have been transferred from a financial institution, and distributes
to the beneficiaries thereof the profits
earned from the management,
operation and disposal of such Student Loan-Backed Bonds;
2. The term "mortgage holding" means the Corporation is holding of mortgages
acquired by transfer from financial institutions for
the purposes of
mortgage securitization;
3. The term "mortgages" means claims securing loaned amounts falling under
any of the following items and is secured by mortgages
(including fixed
collateral: hereinafter the same shall apply) established over a house
under subparagraph 1 of Article 2 of the
Housing Act (excluding houses
falling under criteria for the high-price house under Article 89 (1) 3
of the Income Tax Act; hereinafter
referred to as "house"):
(a) The loaned money (including loaned money to compensate for the
money needed for the purchase or construction
of a house) needed
for the purchase or construction of the relevant house; or
(b) The loaned money for the redemption of funds
under item (a);
4. The term "mortgage-backed bonds" means bonds issued by the Corporation
by putting up a mortgage as security;
5. The term "mortgage-backed securities" means profit-making securities
issued by the Corporation on the basis of a mortgage;
6. The term "student loan-backed claims" means claims against the funds
loaned by a financial institution to a student of schools
under Article
2 of the Higher Education Act (including universities and university-type
facilities established under other Acts
and subordinate statutes and
lifelong educational facilities in the remote university-type established
under Article 22 of the
Lifelong Education Act) who need funds for tuition
and living expenses a during school period;
7. The term "student loan-backed securities" means profit-making securities
issued by the Corporation on the basis of student loan-backed
claims;
KOREA HOUSING FINANCE CORPORATION ACT
3
8. The term "credit guarantee" means the Corporation is to provision
guarantee services securing a liability arising in cases falling
under any
of the following items, at the expense of the Housing Finance Credit
Guarantee Fund (excluding the Account of Guarantee
for Reverse Annuity
Mortgage (hereinafter referred to as the "Account") under Article 59-2
of the Act: hereinafter the same shall
apply) under Article 55:
(a) A loan (limited to nationals of the Republic of Korea except for persons
who hold the right of permanent
residence in a foreign country under
foreign Laws: hereinafter the same shall apply) from financial
institutions to be used by
a housing consumer for the construction,
purchase or lease (including the lease of a house on a bonded basis)
of houses or home
improvement;
(b) A loan by a housing business operator from a financial institution
in order to construct or purchase a house with an aim to
sell in lots
or to lease it to a housing consumer;
(c) A loan from a financial institution by a business proprietor provided
for in Presidential Decree for the construction or purchase
of houses
in order to sell in lots or to lease (including a lease free of charge)
to workers; or
(d) Other cases necessary for the smooth supplying of housing finance
and provided for in Presidential Decree;
8-2. The term "guarantee for reverse annuity mortgages" means the
guaranteeing of a pecuniary liability occurred when a homeowner
borrows
funds for old-age living in the means of annuity payments as prescribed
by Presidential Decree after the Corporation establishes
a mortgage over
his/her home, by at the expense of the Account. In such cases, the relevant
homeowner (if he/she has a spouse,
including such spouse) shall reach
the age prescribed by Presidential Decree or older;
8-3. The term "reverse annuity mortgage
claims" means claims against the
fund loaned by a financial institution to a person who uses a guarantee
service for reverse annuity
mortgages;
9. The term "housing business operator" means a person who builds or
purchases houses with the business purposes of selling in lots
or leasing
to housing consumers and prescribed by Presidential Decree;
10. The term "business proprietor" shall mean a person who concludes a
KOREA HOUSING FINANCE CORPORATION ACT
4
Article 2 (Definitions of Terms)
The terms used in this Act shall be defined as follows: 11. The term "financial institution" means a fund or institution falling under
any of the following items:
(a) The National Housing Fund under the Housing Act;
(b) Financial institutions established with authorization under the
Banking
Act (including domestic branches and agencies of foreign
financial institutions which are deemed as financial institutions in
accordance
with Article 59 of the said Act);
(c) The Korea Development Bank under the Korea Development Bank
Act;
(d) The Industrial Bank of Korea under the Industrial Bank of Korea
Act;
(e) The Long-Term Credit Bank under the Long-Term Credit Bank Act;
(f) Trust companies under the Trust Business Act (excluding trust
companies which are exclusively specialized in the real estate trust
business);
(g) Insurance companies under the Insurance Business Act;
(h) Mutual savings banks under the Mutual Savings Banks Act;
(i) Specialized
credit financial businesses under the Specialized Credit
Financial Business Act;
(j) The National Agricultural Cooperative Federation under the
Agricultural Cooperatives Act;
(k) The National Federation of Fisheries Cooperatives under the Fisheries
Cooperatives Act;
(l) The Korean Federation of Community Credit Cooperatives under the
Community Credit Cooperatives Act;
(m) The National Credit Union Federation of Korea under the Credit
Unions Act; or
(n) Those who correspond to items (a) through (m) and are prescribed
by Presidential Decree.
KOREA HOUSING FINANCE CORPORATION ACT
5
No. 7837. Dec. 31, 2005; Act No. 8236, Jan. 11, 2007; Act No. 8635, Aug. 3, 2007>
1. The term "mortgage securitization" means the one falling under any
of the following items:
(a) The Korea Housing Finance Corporation (hereinafter referred to
the "Corporation") is issuance of mortgage-backed bonds after
offering mortgages that has been transferred from a financial
institution as security, and pays principal and interest thereof
to the bearer thereof;
(b) The Corporation is issuance of mortgage-backed securities on the
basis of mortgages that has been transferred from a financial
institution and distributes to the beneficiaries thereof the profits
earned from the management, operation and disposal of such
mortgages; and
(c) The Korea Housing Finance Corporation is issuance of student
loan-backed securities on the basis of Student Loan-Backed Bonds
that has been transferred from a financial institution, and
distributes to the beneficiaries thereof the profits earned from
the
management, operation and disposal of such Student
Loan-Backed Bonds;
2. The term "mortgage holding" means the act that the Corporation
holds mortgages acquired by transfer from financial institutions
with
the purposes of mortgage securitization;
3. The term "mortgages" means a claim on the loaned amount which
falls under any of the following items and is secured by mortgages
(including fixed collateral: hereinafter the same shall apply)
established on a house under subparagraph 1 of Article 2 of the
Housing Act (excluding houses falling under criteria for the high-price
house under Article 89 (1) 3 of the Income Tax Act; hereinafter
referred to as the "house");
(a) The loaned money (including loaned money to compensate for
the money needed for the purchase or construction of a house)
needed
for the purchase or construction of the relevant house;
or
(b) The loaned money for the redemption of funds under item (a);
KOREA HOUSING FINANCE CORPORATION ACT
6
4. The term "mortgage-backed bonds" means a bond issued by the
Corporation by putting up a mortgage as security;
5. The term "mortgage-backed securities" means profit-making securities
issued by the Corporation on the basis of a mortgage;
6. The term "student loan-backed claims" means the claims against
the fund loaned by a financial institution to a student of schools
under Article 2 of the Higher Education Act (including universities
and university-type facilities established under other Acts
and
subordinate statutes and lifelong educational facility in the remote
university-type established under Article 22 of the Lifelong
Education
Act) who need money for tuition and living expenses during school
period;
7. The term "student loan-backed securities" means profit-making
securities issued by the Corporation on the basis of student
loan-backed
claims; and
8. The term "credit guarantee" means the act by the Corporation to
provide guarantee services against a liability occurred in cases
falling
under any of the following items at the expenses of the Housing
Finance Credit Guarantee Fund (excluding the Account of
Guarantee
for Reverse Annuity Mortgage (hereinafter referred to as the
"Account") under Article 59-2 of the Act: hereinafter the
same shall
apply) under Article 55:
(a) A loan (limited to nationals of the Republic of Korea except for
the persons who hold the right of permanent residence in a
foreign
country under foreign Acts: hereinafter the same shall apply)
from financial institutions to be used by a housing consumer
for the construction, purchase or lease (including the lease of
a house on a deposit basis) of houses or home improvement;
(b)
A loan by a housing business operator from a financial institution
in order to construct or purchase a house with an aim to sell
in lots or lease it to a housing consumer;
(c) A loan from a financial institution by a business proprietor provided
for in Presidential Decree for the construction or purchase
of
houses in order to sell in lot or lease (including a lease free
KOREA HOUSING FINANCE CORPORATION ACT
7
of charge) to workers; or
(d) Other cases necessary for the smooth supplying of housing finance
and provided for in Presidential Decree;
8-2. The "guarantee for reverse annuity mortgages" means the act of
guaranteeing a pecuniary liability occurred when a homeowner
borrows
the fund for old age living in the means of annuity payments as
prescribed by Presidential Decree after establishing mortgage
in
his/her home, by the Corporation at the expenses of the Account.
In such cases, the relevant homeowner (if he/she has a spouse,
including such spouse) shall reach the age as prescribed by Presidential
Decree or older;
8-3. The term "reverse annuity mortgages claims" means the claims
against the fund loaned by a financial institution to a person
who
use a guarantee service for reverse annuity mortgages;
9. The "housing business operator" means a person who builds or
purchases houses with the business purposes of selling in lot or
leasing
to a housing consumer is and prescribed by Presidential Decree;
10. The "business proprietor" shall mean a person who concludes a
employment contract with employees under subparagraph 8 (c) and
pays remunerations to them, including the state, local governments,
public organizations, and other business entities; and
11. The term "financial institution" means the fund or the institution
falling under any of the following items:
(a) The National Housing Fund under the Housing Act;
(b) The financial institutions established with authorization under
the Banking
Act (including domestic branches and agencies of
foreign financial institutions which are deemed as financial
institutions in accordance
with Article 59 of the said Act);
(c) The Korea Development Bank under the Korea Development Bank
Act;
(d) The Industrial Bank of Korea under the Industrial Bank of Korea
Act;
(e) The Long-Term Credit Bank under the Long-Term Credit Bank
Act;
KOREA HOUSING FINANCE CORPORATION ACT
8
(f) The trust companies under the Trust Business Act (excluding
trust companies which are exclusively specialized in the real estate
trust business);
(g) The insurance companies under the Insurance Business Act;
(h) The mutual savings banks under the Mutual Savings Banks Act;
(i) The specialized credit financial businesses under the Specialized
Credit Financial Business Act;
(j) The National Agricultural Cooperative Federation under the
Agricultural Cooperatives Act;
(k) The National Federation of Fisheries Cooperatives under the
Fisheries Cooperatives Act;
(l) The Korean Federation of Community Credit Cooperatives under
the Community Credit Cooperatives Act;
(m) The National Credit Union Federation of Korea under the Credit
Unions Act; or
(n) Those who correspond to items (a) through (m) and are prescribed
by Presidential Decree.
Enforcement Date of Subparagraph 11 of Article 2: Feb. 4, 2009
Article 3 (Legal Status)
(1) The Corporation shall be a juristic person.
(2) The Corporation shall be operated in accordance with this Act, orders
thereunder, and its articles of incorporation.
Article 4 (Offices)
(1) The main office of the Corporation shall be located in Seoul Special
Metropolitan City.
(2) The Corporation may, when necessary for performing its services, establish
branch offices or business offices as provided in
its articles of incorporation.
Article 5 (Capital)
The capital of the Corporation shall be two trillion won and invested by
the Government and the Bank of Korea.
Article 6 (Articles of Incorporation)
(1) The articles of incorporation of the Corporation shall contain the matters
falling under each of the following subparagraphs:
KOREA HOUSING FINANCE CORPORATION ACT
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1. Purpose;
2. Title;
3. Matters relating to the main office, branches, and business offices;
4. Matters relating to capital;
5. Matters relating to the issuance of bonds;
6. Matters relating to the Housing Finance Management Committee under
Article 9 (hereinafter referred to as the "Committee");
7. Matters relating to the board of directors;
8. Matters relating to executives and employees;
9. Matters relating to services and performance thereof;
10. Matters regarding the Housing Finance Credit Guarantee Fund under
Article 55 (hereinafter referred to as the "Fund");
10-2.
Matters relating to the Account;
11. Matters relating to accounting;
12. Matters relating to the methods of public announcement;
13. Matters relating to amendments to the articles of incorporation; and
14. Other matters as prescribed by Presidential Decree.
(2) The Corporation shall, when it intends to amend its articles of in-
corporation, obtain authorization from the Financial Services Commission
with a resolution of the Committee.
(1) The Corporation shall be registered in accordance with the relevant
Presidential Decree.
(2) The Corporation shall be duly established upon the completion of
establishment registration at the location of its main office.
(3) The matters required to be registered in accordance with paragraph
(1) shall not be established against a third person until
the registration
thereof is completed.
Article 8 (Prohibition on Use of Similar Name)
Any person, other than the Corporation under this Act, shall be prohibited
from using the name, Korea Housing Finance Corporation,
or any name
thereto similar.
CHAPTER HOUSING FINANCE
KOREA HOUSING FINANCE CORPORATION ACT
10
MANAGEMENT COMMITTEE
Article 9 (Establishment and Functions)
(1) The Housing Finance Management Committee shall be established within
the Corporation in order to formulate the basic direction
regarding the
operation of the Corporation and deliberate on the business plan of the
Corporation.
(2) The Committee shall deliberate and resolve the matters falling under
each of the following subparagraphs: 1. Formulation of and amendments to the basic operational policy and
business plan of the Corporation;
2. Amendments to the articles of incorporation;
3. Drawing-up of and amendments to the budget, and the account settlement;
4. Matters on criteria for taking-over of mortgage-backed claims;
4-2. Matters on criteria for guarantees for reverse annuity mortgages;
5. Formulation of and amendment to the operational plan of the Fund;
6. Matters on amortization of rights indemnification; or
7. Other matters to be provided for in the articles of incorporation from
among those related to the operation of the Corporation,
the Fund and
the Account.
(3) The following matters shall be included among the criteria for acquiring
of mortgage-backed claims pursuant to paragraph (2)
4:
1. The ratio of loan amount received from financial institutions by putting
up a house as security for the price of such house;
2. The limit of loans, within 300 million won, for a house offered to a
financial institution as security;
3. The the ability to repay debts of persons who have loaned from a financial
institution by putting up a house as security, in view
of person's income
levels.
4. The number of houses held by the person who has loaned funds from
a financial institution by putting up a house as security;
5. Fees for the early repayment of mortgage-backed claims;
6. Matters on a value appraisal of the house offered to a financial institution
as security; and
KOREA HOUSING FINANCE CORPORATION ACT
11
7. Other matters provided for by Presidential Decree.
(4) The criteria of guarantee for reverse annuity mortgages pursuant to
paragraph
(2) 4-2 shall include matters falling under each of the following
subparagraph: 1. The number of houses owned by a person who uses a guarantee service
for reverse annuity mortgages;
2. The ceiling on reverse annuity mortgage loans;
3. Matters on value appraisal of houses offered as security for guarantees
for reverse annuity mortgages; and
4. The rate of increase in house prices which is necessary for determining
guarantee amount of a guarantee for reverse annuity mortgages
and
other matters provided for by Presidential Decree.
(5) Matters under paragraph (4) 4 shall be recalculated once or more per
year and be reflected as an amount of an annuity of persons who conclude
contracts to use guarantee services for reverse annuity
mortgages after the
date of recalculation.
(1) The Committee shall be comprised of 6 members, including a chairman.
(2) The persons falling under each of the following subparagraphs
shall
be members of the Committee: 1. President of the Corporation;
2. One person nominated by the Financial Services Commission from among
public officials belonging thereto;
3. One person nominated by the Minister of Land, Transport and Maritime
Affairs from among the public officials belonging his/her
Ministry; or
4. One person appointed by the Financial Services Commission and two
persons who are recommended respectively by the Minister of
Land,
Transport and Maritime Affairs and the Governor of the Bank of Korea
and appointed by the Financial Services Commission from
among
executives of financial institutions or persons deemed to have expertise
in respect of housing finance.
(3) The terms of office of members under paragraph (2) 4 shall be two years:
Provided, That the terms of office of a newly appointed
commissioner after
the resignation of a member of the Committee, etc. shall be the remaining
term of his/her predecessor.
KOREA HOUSING FINANCE CORPORATION ACT
12
Article 11 (Operation)
(1) The president of the Corporation shall be the chairman of the Committee.
(2) The chairman shall represent the Committee and
preside over the business
of the Committee.
(3) In cases where the chairman is unable to perform his/her duties due
to unavoidable reasons, the member appointed by the Committee
in advance
shall act for the president.
(4) Meetings of the Committee shall commerce with the attendance of a
majority of its members, and resolutions shall be adopted
by the affirmative
vote of a majority of those present.
(5) Other matters related to the operation of the Committee shall be prescirbed
by Presidential Decree.
CHAPTER EXECUTIVES AND
EMPLOYEES
Article 12 (Executives)
The Corporation shall have as its executives one president, one vice president,
four or fewer directors, two or more outside directors
and one auditor.
Article 13 (Appointment and Dismissal of Executives)
(1) The president of the Corporation, with the recommendation
of the president
of the Financial Services Commission, shall be appointed by the President
of the Republic of Korea, and the vice
president and directors (including
outside directors: hereinafter the same shall apply), with the recommendation
of the president,
shall be appointed by the Financial Services Commission.
(2) The auditor shall be appointed and discharged by the Financial Services
Commission.
(1) The president shall represent the Corporation and exercise general control
over the business thereof.
(2) The vice president shall assist the president and directors shall assist
the president and the vice president and undertake
their respective duties
in such manner as prescribed in the articles of incorporation.
(3) When the president is unable to perform
his/her duties due to unavoidable
KOREA HOUSING FINANCE CORPORATION ACT
13
reasons, directors shall act for him/her in the order provided for in the
articles of incorporation.
(4) The auditor shall audit the business affairs and accounts of the
Corporation.
Article 15 (Terms of Office of Executives)
(1) The terms of office of the executives shall be three years.
(2) In cases where a vacancy for an executive occurs, a new executive
shall
be appointed and the term of office of such successor shall be counted from
the date of his/her appointment.
Article 16 (Qualifications of Executives)
Any person falling under each of the following subparagraphs shall be
disqualified from becoming an executive of the Corporation:
1. Any person who is not a Korean national; or
2. Any person falling under any of subparagraphs of Article 33 of the State
Public Officials Act.
Article 17 (Guarantee of Executives' Status)
No executive shall be discharged from office against his/her own will during
his/her term of office unless he/she falls under any
of the following
subparagraphs:
1. When he/she falls under any subparagraph of Article 16;
2. When he/she violates this Act, the orders thereunder, or the articles
of incorporation; or
3. When he/she is unable to perform the duties on account of mental or
physical disability.
Article 18 (Board of Directors)
(1) The board of directors shall be established with in the Corporation
(2) The board of directors shall consist of the president,
the vice president,
and directors.
(3) The board of directors shall resolve on matters which should be referred
to the Committee and other important matters prescribed
by the articles
of incorporation, concerning the duties of the Corporation.
(4) The president shall call meetings of the board
of directors, and preside
thereover.
(5) Meetings of the board of directors shall be commerce with the attendance
KOREA HOUSING FINANCE CORPORATION ACT
14
of a majority of its members, and resolutions shall be adopted by the affirmative
vote of a majority of those present.
(6) The auditor may attend meetings of the board of directors and present
his/her opinions.
Article 19 (Appointment of Agents)
(1) The president may appoint an agency from among the vice-president,
director or employees to conduct all judicial or extra-judicial
actions pertaining
to the business of the Corporation.
(2) The scope of employees who may be appointed as an agency for judicial
actions pursuant to paragraph (1) shall be prescribed
by Presidential Decree.
Article 20 (Appointment and Dismissal of Employees)
Employees of the Corporation shall be appointed and
discharged by the
president.
Article 21 (Prohibition of Concurrent Holding of Offices)
(1) No executive (excluding outside director) or employee shall be concurrently
engaged in any business other than that of his/her office, for profit-making.
(2) No person who is or has been an executive or
employee of the Corporation
shall reveal any secret that he/she has acquired in the course of performing
his/her duties.
CHAPTER SERVICES
Article 22 (Scope of Services)
(1) The Corporation shall perform the services falling under each of the
following subparagraphs:
1. Mortgage securitization;
2. Mortgage holding; and
3. Payment guarantee services for mortgage-backed securities, student
loan-backed securities and securitization securities issued
by special
purpose companies for assets securitization making mortgage-backed
claims to be the subject matter of assets securitization
in accordance
with Article 3 (1) of the Asset-Backed Securitization Act;
4. Extension of credit for financial institutions;
5. Evaluation and actual survey of mortgage-backed claims or student
KOREA HOUSING FINANCE CORPORATION ACT
15
loan-backed claims;
6. Management and operation of the Fund and the Account;
7. Credit guarantees;
8. The payment of credit guarantee liabilities related to subparagraph 7
and the exercise of right to indemnification;
9. The guarantee for reverse annuity mortgages;
10. The fulfillment of credit guarantee liabilities for the reverse annuity
mortgages and the exercise of rights to indemnification;
11. The acquisition by transfer and the holding of reverse annuity mortgages
claims under Article 43-5 and payment of reverse annuity
mortgages;
12. Credit inquiries, with regard to subparagraphs 7 and 9 and the
comprehensive management of credit information;
13. Investigation, survey, collection and preparation of statistic data,
exchange and cooperation with related institutions; and
14. The businesses incidental to subparagraphs 1 through 13 and approved
by the Financial Services Commission.
(2) When the Corporation performs each of the business under subparagraphs
of paragraph (1), it may primarily support the purchase
of house, etc. of
the common people by taking into account fluctuations in house prices.
(3) The Corporation may contribute the
whole or a part of capital to the
corporation performing each of the business under subparagraphs of
paragraph (1) or similar business
thereto after undergoing the resolution
of the Committee.
Article 22-2 (Prior Agreement on Acquisition by Transfer of
Mortgage-backed Claims)
The redemption period of mortgage-backed claims for which an agreement
for acquisition by transfer of mortgage-backed claims may
be concluded shall
be 10 years or longer.
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
Article 23 (Registration of Mortgage Securitization Plan, etc.)
(1)
The Corporation shall, when it intends to securitize mortgages and to
hold mortgages, register a mortgage securitization plan or
a plan on mortgage
holding (hereinafter referred to as "mortgage securitization plan") with the
Financial Services Commission by
preparing documents prescribed by the
Financial Services Commission. The same shall apply to cases where the
KOREA HOUSING FINANCE
CORPORATION ACT
16
registered mortgage securitization plan, excepting minor matters prescribed
by Presidential Decree, has been amended.
(2) In the mortgage securitization plan, the following matters shall be
included: Provided, That in cases where the mortgage securitization
plan
is to be registered for the purposes of mortgage holding, the appraised amounts
under subparagraph 3 and matters under subparagraph
4 shall be excluded:
1. Title of the Corporation and the location of office;
2. Period of the mortgage securitization plan;
3. Specification of mortgage-backed claims, the total amount and appraised
amounts thereof;
4. Types, total amount, conditions for issuance of mortgage-backed bonds
and mortgage-backed securities to be issued;
5. Matters on the management, operation and disposal of mortgage-backed
claims (including cases where the trust is settled in accordance
with
Article 32 (1));
6. In cases where the business of management, operation and disposal
of mortgage-backed claims is to be entrusted in accordance with
Article
45 (1), the relevant administrator of claims; and
7. Other matters on the mortgage securitization plan and prescribed by
Presidential Decree.
(3) When there exists a ground under any of the following subparagraphs,
the Financial Services Commission may refuse the registration
of a mortgage
securitization plan or demand amendments to the contents thereof.
1. When an application form for registration has been completed falsely
or necessary matters are omitted; or
2. When details that violate Acts and subordinate statutes are included
in the mortgage securitization plan.
(4) When the Financial Services Commission refuses registration under
paragraph (3) or demands an amendment of the mortgage securitization
plan, it shall notify the Corporation in writing by specifying detailed grounds
therefor.
17
(hereinafter referred to as "transfer, etc.") of mortgage-backed claims occurs
under the mortgage securitization plan, register
such fact immediately with
the Financial Services Commission. In such cases, the restitution shall include
the exercise of a prior
purchase right of a financial institution or the
Corporation.
(3) In the application for registration under paragraph (2), the following
matters shall be stated, and the matters under subparagraph
1 shall be
prepared and submitted in the form of electronic data or by other means
equivalent thereto: 1. Specification of mortgage-backed claims;
2. Means and the schedule of transfer, etc. of mortgage-backed claims and
means of repayment;
3. Whether the requirements for setting-up against the transfer of claims
are met;
4. Requites for the cancellation of contract on transfer, etc. of
mortgage-backed claims;
5. Whether financial institutions or the Corporation holds a prior purchase
right, if the transferee of mortgage-backed claims disposes
of the relevant
mortgage-backed claims; and
6. Other matters necessary for the protection of investors and prescribed
by the Financial Services Commission.
(4) In cases where the Corporation requests for the issuance of documents
evidencing the fact on the registration of individual
mortgage-backed claims,
the Financial Services Commission shall issue them without delay.
(5) The Corporation shall keep and manage a contract on transfer of
mortgage-backed claims, etc., certificate of registration, registration
card,
or other kinds of written evidence as prescribed by Presidential Decree,
and comply with the request for perusal by the Financial
Services Commission
or the relevant investor.
18
(6) Matters related to a form of registration application, means of completing
it, processing procedures, etc shall be prescribed
by the Financial Services
Commission.
The transfer of mortgage-backed claims shall be performed pursuant to each
of the following subparagraphs in accordance with the
mortgage securitization
plan. In such cases, this shall be deemed as an establishment of mortgagee
rights.
1. It shall be performed by means of trade or exchange;
2. The beneficial rights and the right of disposal of mortgage-backed claims
shall by held by the transferee. In such cases, if the
transferor has a
prior purchase right on mortgage-backed claims when the transferee
disposes of them, it shall be deemed that the
transferee holds the beneficial
rights and the right of disposal;
3. The transferor shall not hold the right of restitution claim on
mortgage-backed claims, and the transferee shall not hold the
right of
restitution claim on the compensation for mortgage-backed claims; and
4. The transferor shall accept the risks involved in the transferred assets:
Provided, That the forgoing shall not apply to cases
where the transferee
bears the relevant risks involving mortgage-backed claims during a
specific period, or the responsibility
of security for defect (including
cases where the transferee of claims secures the fund-raising ability
of the debtor).
Article 26 (Special Cases for Requisites for Setting-up against Transfer
of Mortgage-backed Claims)
(1) The transfer, etc. of mortgage-backed claims in accordance with the
mortgage securitization plan shall not be effective against
the debtor if a
transferor (including a trustor: hereinafter the same shall apply) or transferee
(including a trustee: hereinafter
the same shall apply) has not notified the
debtor or if the debtor does not agree thereto: Provided, That if the transferor
or
the transferee has issued a notice of transfer of claims (including the
entrusting or return of claims; hereinafter the same shall
apply in this Article)
to either of the addresses of the debtor specified below on not less than
two occasions by content-certified
mail, but such notice was returned to
the transferor or the transferee because of the failure to locate the debtor,
KOREA HOUSING
FINANCE CORPORATION ACT
19
etc., the transferor or the transferee may place a public notice of transfer
in two or more daily newspapers (including at least
one daily newspaper
of nationwide circulation) which cover the area of the address of the debtor
as a main area of circulation
and in such cases the notice shall be deemed
to have been issued to the debtor on the date of such public notice:
1. The address of the debtor stated in the registry (if the address shown
in the registry is not the last address of the debtor and
if the transferor
or transferee knows the last address of the debtor, refers to such last
address of the debtor); or
2. The last address of the debtor if no address is shown in the registry
and if the transferor or transferee knows the last address
of the debtor.
(2) When the transfer, etc. of mortgage-backed claims in accordance with
the mortgage securitization plan a registration
is completed pursuant to
Article 24 (1), the requirements for setting up against under Article 450
(2) of the Civil Act shall be
deemed to have been met by such registration
as of the date of the registration as far as its effectiveness as against any
third
party other than the debtor of the relevant claims, is concerned.
(3) The date of transfer, etc. shall be stated in the notification under paragraph
(1) even before the transfer, etc.: Provided,
That when the transfer, etc.
is made on a date different from the notified date of transfer, etc., the date
when transfer, etc.
has been made shall be notified again.
(4) The consent of the debtor under paragraph (1) may be obtained even
before registration
of the mortgage securitization plan. In such cases, the
debtor may establish against the Corporation due to grounds occurring before
the transfer of relevant mortgage-backed claims.
Article 27 (Fixations of Claims Secured with Fixed Collateral)
(1) In cases where mortgage-backed claims which are to be transferred
in
accordance with the mortgage securitization plan are secured by fixed
collateral, if a contents-certified notice stating the
purport that the financial
institution will transfer all relevant claims without creating additional claims
by fixing the orignal
of claims secured by fixed collateral to the debtor,
has been served, the relevant claims shall be deemed as fixed at the date
following the date of such service of notification: Provided, That in cases
where the debtor raises an objection within 10 days,
the forgoing shall not
KOREA HOUSING FINANCE CORPORATION ACT
20
apply.
(2) Under agreement with the debtor, the financial institution may settle
claims secured by a right of fixed collateral before the
registration of the
mortgage securitization plan with the aim of a mortgage securitization or
mortgage holding.
Article 28 (Special Case on Acquisition of Mortgages, etc.)
(1) The Corporation shall, when the registration is completed in accordance
with Article 24 (1), acquire mortgages established in order to secure
mortgage-backed claims transferred or trusted in accordance
with the
mortgage securitization plan.
(2) In cases where the Corporation is intended to be registered as the right
person on the registration of mortgages acquired in
accordance with paragraph
(1), the Corporation shall be deemed as a public agency and the provisions
of Article 36 of the Registration
of Real Estate Act shall apply mutatis
mutandis. In such cases, the document attesting a cause of registration,
the written acceptance
of the person liable for the registration may be placed
by the document evidencing the fact on mortgage-backed claims by the
Financial
Services Commission under Article 24 (4).
(2) The Corporation shall prepare and keep the documents on particulars
of mortgage-backed claims and the current status thereon
and allow the
public to peruse them.
Article 30 (Management of Mortgage-backed Claims)
(1) The Corporation shall manage mortgage-backed claims (including
property rights,
such as money, etc. acquired following the management,
operation and disposal of mortgage-backed claims; hereinafter the same
shall
apply in this Article and Articles 31 (3), 45 (3) and (4) and 68 (1)
KOREA HOUSING FINANCE CORPORATION ACT
21
3) subject to securitization pursuant to subparagraph 1 of Article 2 by
separating them from other assets. Mortgage-backed claims
shall be
separately managed according to the respective securitization plan.
(2) The mortgage-backed claims managed separately
pursuant to the
provisions of paragraph (1) shall not constitute a bankruptcy of the
Corporation.
(3) No creditor of the Corporation may perform a compulsory execution on
mortgage-backed claims managed separately pursuant to the
provisions of
paragraph (1), and no creditor shall not be subject to the protective disposition
or the order for discontinuation
under the Debtor Rehabilitation and
Bankruptcy Act.
(1) The Corporation may issue mortgage-backed bonds within the scope
not exceeding 50 times of the equity capital (referring to
the sum of the
core capital and the supplementary capital as prescribed by Presidential
Decree pursuant to the standards determined
by the Bank for International
Settlement: hereinafter the same shall apply) by putting mortgage-backed
claims which are classified
and managed by the mortgage securitization
plan in accordance with Article 30 up as security.
(2) The holder of mortgage-backed
bonds has the right to be reimbursed
in priority over the third party from the mortgage-backed claims which are
classified and
managed by the mortgage securitization plan unless other
Acts prescribe otherwise.
(3) The holder of mortgage-backed bonds may, if he/she has not been
reimbursed the whole or part of the principal and interest of
claims by prior
reimbursement under paragraph (2), be reimbursed assets of the Corporation
other than mortgage-backed claims which
are classified and managed by
the mortgage securitization plan in accordance with Article 30.
(4) Mortgage-backed bonds issued
pursuant to paragraph (1) shall be deemed
as bonds under Article 2 (1) 3 of the Securities and Exchange Act.
KOREA HOUSING FINANCE CORPORATION ACT
22
(4) The mortgage-backed bonds issued pursuant to paragraph (1) shall
be deemed as securities of special bonds under Article 4 (3)
of the Capital
Market and Financial Investment Business Act.
(2) The establishment of a trust pursuant paragraph (1) shall come into
effect at the time when it is registered with the Financial
Services Commission.
(3) The mortgage-backed securities shall be in bearer-form: Provided, That
when a beneficiary of mortgage-backed securities requests
demand it, they
may be in registered- form.
(4) The transfer of mortgage-backed securities and other types of exercises
of a right shall be performed by using mortgage-backed
securities: Provided,
That in cases of registered mortgage-backed securities, the provisions of
Articles 337, 338, 340 and 358-2
of the Commercial Act regarding registered
stocks shall apply mutatis mutandis thereto.
(5) Any person who acquires mortgage-backed securities shall succeed to
the rights and obligation of the relevant mortgage-backed
securities.
(6) In mortgage-backed securities, following matters shall be indicated and
the president of the Corporation shall
affix his/her sign and seal thereon:
1. Issuance number;
2. Title of the Corporation;
3. Total sum of issue and types of beneficial interests;
4. Sum of mortgage-backed claims constituting the underlying basis for
the issuance thereof;
5. Details on the settlement of trust; and
6. Other matters prescribed by Presidential Decree.
(7) The Corporation may acquire mortgage-backed securities issued by the
Corporation
with assets which are not subject to the mortgage securitization
as prescribed by Presidential Decree notwithstanding the provisions
of Article
KOREA HOUSING FINANCE CORPORATION ACT
23
(9) When the Corporation issues mortgage-backed securities in accordance
with paragraph (1), authorization under Article 12 of the
Capital Market
and Financial Investment Business Act shall be deemed as having been
obtained with regards to the relevant business.
In such cases, the provisions
of Article 3 of the Trust Act and Articles 30 through 33, 38 (6), 105,
107, 110 (1) through (4),
415, 416, 420 and 422 of the Capital Market
and Financial Investment Business Act shall not apply thereto.
29 of the Trust Act.
Article 33 (Exception to Issuance of Mortgage-backed Securities, etc.)
The Corporation shall be prohibited from issuing mortgage-backed
bonds
or mortgage-backed securities in cases of either of the following subparagraph:
1. Cases where the Committee recognizes that the Corporation is expected
to suffer loss due to a change of economic circumstances,
including
fluctuation of interest rates, etc.; or
2. Cases where grounds prescribed by Presidential Decree, including the
early repayment of loans and insolvency, etc., occur.
Article
34 (Payment Guarantees)
The Corporation may provide payment guarantee services for
mortgage-backed securities, student loan-backed securities and
securitization
securities issued by a special purpose company for assets
KOREA HOUSING FINANCE CORPORATION ACT
24
securitization, etc. by set mortgage-backed claims as the subject of assets
in accordance with the Asset-Backed Securitization Act,
within the scope
not exceeding 50 times the equity capital of the Corporation.
Article 35 (Extension of Credit for Financial Institutions)
(1) The Corporation may extend credit, including lending of funds, etc.,
to financial institutions as prescribed by Presidential Decree. In such cases,
the financial institutions to whom such credit is
extended shall use the
funds for the purposes of loans give rise to long-term mortgage-backed claims.
(2) The Corporation shall,
when it extends credit under paragraph (1),
determine conditions for loans for the purposes of creating long-term
mortgage-backed
claims by financial institutions and inform the public
through daily newspapers or information networks.
Article 36 (Provision
and Use of Information on Debtors)
(1) Financial institutions or the Corporation may provide information on
the debt repayment
capacity of the debtor of mortgage-backed claims in
order to execute the mortgage securitization plan, notwithstanding the
provisions
of Article 4 of the Act on Real Name Financial Transactions and
Guarantee of Secrecy to the investor, transferee of
mortgages·mortgage-backed
bonds or mortgage-backed securities or other
interested person equivalent thereto, as prescribed by Presidential Decree.
(2) No transferee (including person who has been entrusted with the relevant
affairs) of mortgage-backed claims pursuant to the
mortgage securitization
plan shall use information on the ability to repay debts of debtor of
mortgage-backed claims for the purposes
other than the repayment of relevant
claims.
Article 37 (Establishment of Credit Guarantee Relationship)
(1) Where the Corporation has decided to provide a credit guarantee
service,
it shall issue notice to that effect to the person who uses such credit guarantee
service and his/her proposed creditor.
(2) The credit guarantee relationship shall be established when a primary
obligation comes into effect between a credit guarantee
service consumer
and his/her creditor.
(3) In cases where no primary obligation comes into effect within 60 days
KOREA HOUSING FINANCE CORPORATION ACT
25
from the date when the notice under paragraph (1) is issued to the parties
concerned, the relevant credit guarantee relationship
shall not be established.
Article 38 (Fulfillment of Credit Guarantee Liability)
(1) The creditor of a credit guarantee service
consumer, when the grounds
for non-performance of obligations prescribed by Presidential Decree occur,
demand the fulfillment of
the relevant credit guarantee liability to the
Corporation.
(2) In cases where a demand for fulfillment is made pursuant paragraph
(1), the Corporation shall perform, without delay, the primary
obligations
and the subordinate debt obligations as prescribed by Presidential Decree.
Article 39 (Exercise of Right to Indemnity,
etc.)
(1) In cases where the Corporation fulfills a credit guarantee liability, the
relevant creditor shall, without delay, deliver
to the Corporation such
documents as may be necessary to the Corporation in exercising its right
to indemnity arising therefrom,
and fully cooperate with the Corporation
in exercising such right.
(2) The Corporation may take each of the following measures as a follow
up control on a right to indemnity against the debtor, acquired
in accordance
with Article 38:
1. Acquisition of collateral in cases where it is essentially necessary for
the preservation of a right to indemnity; or
2. Depeciation of a right to indemnity in cases where it is impossible to
exercise a right to indemnity by legal procedures and other
means.
(3) The Corporation may, when it has fulfilled a credit guarantee liability
in accordance with Article 38 and if a primary
debtor falls under any of
the following subparagraphs, suspend the exercise of a right to indemnity
against the relevant primary
debtor:
1. Where it is deemed improbable that any balance in property of the relevant
primary debtor will remain after being appropriated
for the expenses
incidental to the exercise of a right to indemnity;
2. Where it is deemed probable that the debt-servicing ability of the relevant
primary debtor will be enhanced in the future by the
suspension of the
exercise of right to indemnity; or
3. Other cases necessary for the increased recovery of claims for indemnity
and provided for in Presidential Decree;
KOREA HOUSING FINANCE CORPORATION ACT
26
(4) When the Corporation deems it necessary for an efficient recovery and
management of a claim for indemnity, it may sell such
claim for indemnity
to a person falling under any of the following subparagraphs, by going through
a resolution of the board of
directors: 1. Corporate restructuring investment companies under the Corporate
Restructuring Investment Companies Act;
2. Specialized corporate restructuring companies or corporate restructuring
associations under the Industrial Development Act; or
3. Other persons specialized in the trade and management of the insolvent
loans, who are prescribed by Presidential Decree.
Article
40 (Duties of Creditors)
In cases falling under any of the following subparagraphs, a creditor who
has been notified in accordance with Article 37 (1) shall
immediately issue
the Corporation with notice to that effect:
1. When a primary obligation comes into effect;
2. Where the primary obligation involved has been in part or wholly
extinguished;
3. Where the relevant debtor has defaulted on any of his/her obligations;
4. Where the relevant debtor has forfeited the benefit of the term; or
5. Where other grounds which may affect the guarantee obligations have
occurred.
Article 41 (Guarantee fees, etc)
(1) The Corporation may charge guarantee fees prescribed by Presidential
Decree within the scope not exceeding 2/100 per annum of
the guaranteed
amount to a person who uses a credit guarantee service by taking into account
the credit rating of the person who
uses a credit guarantee service and
the operation status of the Fund.
(2) The Corporation may, in cases where a person who has used a credit
guarantee service does not perform relevant obligations and
has not been
waved from the responsibility to fulfill the guarantee obligations, charge
the relevant person additional guarantee
fees on the non-performing amount
from among the amount to which the Corporate provides credit guarantee
services as prescribed
by Presidential Decree.
(3) In cases where a person who uses a credit guarantee service has failed
to pay guarantee fees within the payment period of such
guarantee fees,
KOREA HOUSING FINANCE CORPORATION ACT
27
the Corporation may charge the guarantee fees in arrears against the unpaid
guarantee fees under conditions prescribed by Presidential
Decree.
Article 42 (Penalties)
Where the Corporation has paid a credit guarantee liability, it shall collect
from the relevant debtor a penalty calculated at a
rate not exceeding 20/100
per annum of the amount paid by the Corporation as provided for by
Presidential Decree.
Article 43 (Ceiling on Credit Guarantees)
(1) The ceiling of the aggregate of credit guarantees performed by the Fund
shall be prescribed by Presidential Decree, within the
limit of 40 times the
sum of the following amounts: 1. Basic assets (refers to the total amounts of Article 56 (1) 1 and 2)
2. Reserve funds of the Fund; or
3. Deleted.
(1) The Corporation shall explain a person who uses a guarantee service
for reverse annuity mortgages following matters with regards
to the guarantee
for reverse annuity mortgages:
1. Matters on the amount to be paid as a reverse annuity mortgage, time
of repayment and means of repayment.
2. Matters on the establishment of mortgages against the house owned
by it;
3. Matters on the scope of exercise of reverse annuity mortgage claims,
etc. pursuant to Article 43-4;
4. Matters on debtors including the establishment of mortgages in accordance
with Article 43-7; and
5. Matters on fees of guarantee for reverse annuity mortgages under Article
43-8.
(2) The Corporation may, with regards to the house provided by a person
who uses guarantee services for reverse annuity mortgages
register itself
as a mortgages for the purposes of guarantee for reverse annuity mortgages.
(3) Where the Corporation has decided
to provide a guarantee service for
KOREA HOUSING FINANCE CORPORATION ACT
28
reverse annuity mortgages, it shall give notice to that effect to the person
who uses such guarantee services for reverse annuity
mortgages and his/her
proposed creditor.
(4) The guarantee relationship for reverse annuity mortgages shall be
established when a primary obligation comes into effect between
a person
who uses a guarantee service for reverse annuity mortgages and his/her
creditor.
(5) In cases where no primary obligation is put into effect within 60 days
from the date when the notice under paragraph (3) is
issued to the parties
concerned, the relevant relationship of guarantee for reverse annuity
mortgages shall not be established.
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
Article 43-3 (Fulfillment of Credit Guarantee Liabilities for Reverse
Annuity Mortgages)
(1) Financial institutions may, in cases where grounds prescribed by
Presidential Decree occur including the death of the person
who has used
a credit guarantee service and the spouse prescribed by Presidential Decree,
request for the fulfillment of credit
guarantee liabilities for reverse annuity
mortgages.
(2) In cases where the demand for fulfillment is made pursuant paragraph
(1), the Corporation shall perform, without delay, the
primary obligations
and the subordinate obligations prescribed by Presidential Decree.
[This Article Newly Inserted by Act No.
8236, Jan. 11, 2007]
Article 43-4 (Scope of Exercise of Reverse Annuity Mortgage Claims, etc.)
(1) A reverse annuity mortgage claim
and a right to indemnity following
the execution of credit guarantee liabilities for the reverse annuity mortgages
of the Corporation
shall be exercised exclusively against a house (hereinafter
referred to as a "mortgaged house") secured by such reverse annuity
mortgage
claim.
(2) The Corporation and financial institutions may, with regards to the
amount uncollected from mortgaged houses due to any of the
following
subparagraphs, which override mortgages, exercise a reverse annuity
mortgage claim and a right to indemnity against other
properties of the
debtor notwithstanding the provisions of paragraph (1).
1. Tax claims under Article 35 (1) of the Framework Act on National Taxes
KOREA HOUSING FINANCE CORPORATION ACT
29
and Article 31 (1) of the Local Tax Act;
2. Wage claims under Article 38 (2) of the Labor Standards Act;
3. Payments of reverse annuity mortgages paid after the occurrence of reasons
for terminating the contract, including the death of
the person who has
used a credit guarantee service; or
4. The irrecoverable amount because a mortgaged house has been damaged
by the person who has used a credit guarantee service, intentionally
or by gross negligence.
(3) The means of exercising mortgages shall be prescribed by Presidential
Decree.
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
Article 43-5 (Acquisition by Transfer of Reverse Annuity Mortgages
Claims,
etc.)
(1) The Corporation may hold reverse annuity mortgage claims falling under
grounds prescribed by Presidential Decree, including
cases when the already
paid principal and interest of reverse annuity mortgage loans exceeds the
price of a mortgaged house, etc.
at the expense of the Account.
(2) The Corporation shall, when it acquires by transfer reverse annuity
mortgage claims in accordance
with paragraph (1), succeed right and
obligation held by a financial institution against a person who has used
a credit guarantee
service.
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
Article 43-6 (Protection of Persons Using Credit Guarantee Services)
The right to receive annuities from reverse mortgages shall be inalienable
and unattachable and shall not be provided as security.
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
Article 43-7 (Restriction on Establishment of Mortgages)
(1) Any
person who has used a credit guarantee service shall be prohibited
from performing the following acts unless the cases prescribed
by Presidential
Decree as not hamper securing claims against the mortgaged house:
1. Acts of establishing actual rights granted by way of security, such as
mortgages or provisionally-registered security rights,
etc. on a mortgaged
house;
2. Acts of establishing right to lease on a bonded basis on a mortgaged
house; and
3. Acts of leasing a mortgaged house.
KOREA HOUSING FINANCE CORPORATION ACT
30
(2) Any person who has used a credit guarantee service shall make a
supplementary registration to the effect that the relevant properties
shall
not be subject matter for establishing a limited real right, seizure, provisional
seizure, temporary disposition, lease,
etc. without any consent of the
Corporation. In such cases, matters on time, details and cancellation of
the supplementary registration
shall be provided for by Presidential Decree.
(3) In cases where a limited actual right has been established on the mortgaged
house
or it has been subject to seizure, provisional seizure, temporary
disposition, lease, etc. after the date of supplementary registration
under
paragraph (2) it has been invalidated.
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
Article 43-8 (Fees of Guarantee for Reverse Annuity Mortgages, etc.)
(1) The Corporation may, when it concludes a contract of guarantee for
reverse annuity mortgages, charge the person who uses credit
guarantee
services initial guarantee fees prescribed by Presidential Decree within the
scope not exceeding 2/100 of the mortgaged
house.
(2) The Corporation may charge guarantee fees prescribed by Presidential
Decree within the scope not exceeding 2/100 per
annum of the guaranteed
amount to a person who uses credit guarantee services, by taking into account
the operating status of the
Account.
(3) The initial guarantee fees and guarantee fees under the provisions
of paragraphs (1) and (2) shall be paid to the Corporation
by the financial
institution at the expense of the person who has used credit guarantee services
as prescribed by Presidential
Decree.
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
Article 43-9 (Ceiling of Aggregate of Guarantees for Reverse Annuity
Mortgage)
The ceiling of the aggregate of guarantees for reverse annuity mortgage
performed by the Account shall be prescribed by Presidential
Decree, within
the limit of 40 times the sum of the following amounts:
1. Fundamental property (refers to the total amount of contributions under
Article 59-3 (1) 1 through 3); and
2. Reserve funds in the Account.
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
Article 43-10 (Provisions Applicable
Mutatis Mutandis)
KOREA HOUSING FINANCE CORPORATION ACT
31
The provisions of Articles 39, 40 and 42 shall apply mutatis mutandis to
the guarantee services for reverse annuity mortgages. In
such cases the
"credit guarantee liability" shall be deemed as the "liability from guarantee
services for reverse annuity mortgage
credit guarantee liabilities for reverse
annuity mortgages".
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
Article 44 (Entrustment of Business of Financial Services Commission)
The Financial Services Commission may entrust the whole, or a part of
businesses under this Act to the Governor of the Financial
Supervisory Service
as prescribed by Presidential Decree. 1. Financial institutions;
2. The Korea Asset Management Corporation under the Act on the Efficient
Disposal of Non-Performing Assets, etc. of Financial Institutions
and
the Minister of Strategy and Finance of Korea Asset Management
Corporation; or
3. Operators of credit information businesses which have obtained a license
in accordance with the Use and Protection of Credit Information
Act
(hereinafter referred to as an "operator of credit information business").
(2) The Corporation may not set-up against the debtor
of mortgage-backed
claims on the ground that the right of the administrator of claims to receive
payment has ceased to exist because
it terminated the mortgage management
entrustment contract: Provided, That the debtor has known or could have
known that the right
of the administrator of claims to receive payment became
extinct, this shall not apply.
(3) The administrator of claims shall mange the mortgage-backed claims
KOREA HOUSING FINANCE CORPORATION ACT
32
entrusted pursuant to paragraph (1) separately from his/her own property
and shall make prepare and keep books regarding the management
of such
mortgage-backed claims.
(4) Where the administrator of claims goes bankrupt, the mortgage-backed
claims that are managed on entrustment pursuant to the
provisions of
paragraph (1) shall not constitute the administrator of claims' bankruptcy
foundation, the Corporation may request
the delivery of mortgage-backed
claims to the administrator of claims or bankruptcy administrator.
(5) The provisions of paragraph
(4) shall apply mutatis mutandis to cases
where the rehabilitation procedures under the Debtor Rehabilitation and
Bankruptcy Act
are commenced.
(7) The Corporation may entrust the part of businesses falling under Article
22 (1) 7 through 12 and other businesses incidental
thereto, which are
approved by the Financial Services Commission to any person falling under
each subparagraph of paragraph (1)
as prescribed by Presidential Decree.
Article 46 (Issuance of Student Loan-Backed Securities)
(1) The Corporation may issue student loan-backed securities.
(2) The provisions
of Articles 23 through 26, 29, 30, 32, 36, 44 and 45
shall apply mutatis mutandis to student loan-backed securities issued by
the
Corporation. In such cases, "mortgage-backed claims" shall be deemed
as "student loan-backed securities", and "mortgage-backed securities"
as
"student loan-backed securities".
KOREA HOUSING FINANCE CORPORATION ACT
33
CHAPTER FINANCE AND ACCOUNTING
Article 47 (Fiscal Year)
The fiscal year of the Corporation shall be the same as that of the Government.
Article 48 (Business Plans, Budgets, and Closing
of Accounts)
(1) The business plan and budget of the Corporation shall be approved
by the Financial Services Commission after undergoing
resolution of the
Committee before the commencement of each fiscal year. The same shall
apply to cases when the approved plan or
budget are modified.
(2) The Corporation shall prepare a statement of accounts, a balance sheet,
and an income statement with regards to the Corporation,
and submit them
to the Financial Services Committee after undergoing the resolution of the
Committee, within three months following
the end of each business year.
Article 49 (Separate Accounting)
The accounting of the Corporation, the Fund and the Account shall be managed
separately.
[This Article Wholly Amended by Act No. 8236, Jan. 11, 2007]
Article 50 (Disposal of Earnings)
(1) The Corporation shall, when it makes profit as a result of closing its
accounts each fiscal year, appropriate it in the following
order:
1. 20/100 of the profit shall be accumulated in reserve until such reserve
amounts to the total amount of the capital;
2. The earning shall be allotted to investors after obtaining approval from
the Minister of Strategy and Finance as prescribed by
Presidential Decree;
or
3. The reserve under subparagraph 1 and residual earnings, after subtracting
dividends under subparagraph 2, shall be disposed of
by obtaining approval
from the Financial Services Commission after undergoing the resolution
of the Committee.
(2) When the Minister of Strategy and Finance grants approval under
subparagraph 2 of paragraph (1), he/she shall consult with the
Financial
Services Commission in advance with regards to the appropriateness of
allotment by taking into account the sound business
administration of the
KOREA HOUSING FINANCE CORPORATION ACT
34
Corporation, mortgage securitization, forecasted impact on the business
performance, including credit guarantees, etc.
Article 51 (Coverage of Losses)
When any loss has arisen at the closing of books of the Corporation, it shall
be covered by the financial resources reserved in
accordance with the
provisions of subparagraph 1 of Article 50, and when such reserve is
insufficient, the Government shall cover
it.
Article 52 (Issuance of Debentures)
(1) The Corporation may, through resolution of the board of directors, issue
debentures within the scope not exceeding ten times
the equity capital.
In such cases, the total amount of mortgage-backed bonds issued shall not
be included in the issue amount of
debentures.
(2) The extinctive prescription of the debentures shall be five years for
principal, and two years for interest.
Article 53 (Borrowing of Funds)
The Corporation may borrow funds necessary for performing services by
the following means:
1. Borrowings from the Government; or
2. Borrowings from financial institutions or international financial
institutions.
Article 54 (Operation of Surplus Funds)
The Corporation may operate its surplus by the following means : Provided,
That in cases of subparagraphs 3 and 4, approval from
the Financial Services
Commission shall be secured: 1. Deposits in financial institutions;
2. Purchase of state bonds, local government bonds and other bonds
guaranteed by the Government, local governments or financial
institutions;
3. Subscription or purchase of stocks (including investment certificates),
debentures or other securities; or
4. Other means necessary to achieve the purposes of this Act.
CHAPTER HOUSING FINANCE CREDIT
GUARANTEE FUND
KOREA HOUSING FINANCE CORPORATION ACT
35
Article 55 (Establishment of Housing Finance Credit Guarantee Fund)
The Housing Finance Credit Guarantee Fund shall be established
within
the Corporation for the purposes of facilitating finance with regard to housing
by extending credit guarantees.
Article 56 (Creation of Fund)
(1) The Fund shall be raised by each of the following financial resources:
1. Contributions from the Government;
2. Contributions from finance companies;
2-2. Contributions from persons other than prescribed in subparagraphs
1 and 2.
3. Revenues from guarantee fees;
4. Revenues from the exercise of a right to indemnity;
5. Earnings from the operation of the Fund;
6. Borrowings from the funds managed and operated by financial institutions
or the Government;
7. Other financial resources prescribed by Presidential Decree for raising
the Fund.
(2) The Government may contribute a specific amount to the Fund within
the scope of budget each fiscal year.
(3) The financial institutions under Article 2 (11) (a), (b), (d), (j) through
(m) shall contribute to the Fund the amount obtained
by multiplying the
rate prescribed by Ordinance of Prime Minister within the scope not exceeding
3/1000 per annum by such loans.
(4) The scope of loans under paragraph (3), the means of contribution and
the timing thereof, and other matters necessary for the
contribution shall
be prescribed by Ordinance of Prime Minister.
Article 57 (Uses of Fund)
The Fund shall be used for the uses falling under any of the following
subparagraphs:
1. Fulfillments of credit guarantee liabilities;
2. Reimbursement of principal and interest borrowed;
3. Expenses for the creation, operation and management of the Fund;
KOREA HOUSING FINANCE CORPORATION ACT
36
4. Research and development for fostering of the Fund; and
5. Other cases necessary to achieve the purposes of establishing the Fund
and prescribed by Presidential Decree.
Article 58 (Management and Operation of Fund)
(1) The Fund shall be managed by the Corporation.
(2) The Fund shall be operated by means under any of the following
subparagraphs.
1. Deposit in financial institutions under subparagraph 11 (b) through
(f), (j), and (k) of Article 2;
2. Other means necessary to achieve the purposes of establishing the Fund
and prescribed by Presidential Decree.
Article 59 (Budgeting and Settlement of Accounts of Fund)
(1) The fiscal year of the Fund (including the Account; hereafter in this
Article the same shall apply) shall correspond to that of the Government.
(2) The Corporation shall compile the draft plan for operation of the Fund
regarding the total income and total expenditure for
each business year,
and obtain the approval thereof from the Financial Services Committee before
the commencement of the relevant
business year, and the same shall apply
when it alters the approved plan.
(3) The Corporation shall prepare a statement of accounts, a balance sheet,
and an income statement with regards to the Fund, and
submit them to
the Financial Services Committee, within three months following the end
of each business year.
(5) When any loss has arisen at the closing of books of the Fund, it shall
be compensated by the reserve under paragraph (4), and
when such reserve
is insufficient, the Government may compensate such loss.
CHAPTER -2 ACCOUNT FOR
GUARANTEE OF REVERSE
ANNUITY MORTGAGES
KOREA HOUSING FINANCE CORPORATION ACT
37
Article 59-2 (Establishment of Account of Guarantee for Reverse Annuity
Mortgage)
The Account for Guarantee of Reverse Annuity Mortgages shall be established
within the Fund with the purposes of smooth supply of
funds for livelihood
of senior citizens by providing guarantee services for reverse annuity
mortgages.
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
Article 59-3 (Creation of Account)
(1) The Account shall be created from the financial resources falling under
one of the following subparagraphs:
1. Contributions by the Government;
2. Contributions by financial institutions;
3. Contributions by persons other than those mentioned in subparagraphs
1 and 2;
4. Revenues from guarantee fees;
5. Revenues from the exercise of a right to indemnity;
6. Earnings from the operation of revenues from the Account;
7. Borrowings from the funds managed or operated by financial institutions
or the Government; and
8. Other types of financial resources as prescribed by Presidential Decree
in order to create the Account.
(2) The Government may contribute a specific amount to the Account within
the scope of budgets in each fiscal year.
(3) The financial institutions shall contribute to the Account the amount
obtained by multiplying the rate prescribed by Ordinance
of the Prime Minister
within the scope not exceeding 3/1000 per annum by such loans.
(4) The scope of loans under paragraph (3), the means of contribution and
its time, and other matters necessary for the contribution
shall be prescribed
by Ordinance of Prime Minister.
The Account shall be used for the uses falling under any of the following
subparagraphs:
1. Fulfillments of credit guarantee liabilities for the reverse annuity
KOREA HOUSING FINANCE CORPORATION ACT
38
mortgages;
2. Reimbursement of principal and interest borrowed;
3. Acquisition by transfer of claims for reverse annuity mortgages under
Article 43-5 and payments of reverse annuity mortgages;
4. Expenses for the creation, operation and management of the Account;
5. Research and development for fostering the reverse annuity mortgages
system; and
6. Other cases necessary to achieve the purposes establishing the Account
and as prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
Article 59-5 (Provisions Applicable Mutatis Mutandis Concerning Fund)
The provisions of Article 58 shall apply mutatis mutandis to the management
and operation of the Account. In such cases the "Fund"
shall be deemed
as the "Account".
[This Article Newly Inserted by Act No. 8236, Jan. 11, 2007]
CHAPTER SUPPLEMENTARY
PROVISIONS
Article 60 (Supervision)
(1) The Financial Services Commission may supervise the Corporation with
regards to affairs falling under any of the following subparagraphs
as
prescribed by Presidential Decree in order to secure the soundness of business
administration and issue orders necessary for
such supervision.
1. Businesses under Article 22 (1) 1 through 5; or
2. Incidental businesses related to subparagraph 1 and approved by the
Financial Services Commission:
(2) Deleted.
39
take any measure under any of the following subparagraphs:
1. An order for correction of relevant violations;
2. Partial suspension of business not exceeding six months; or
3. The suspension of relevant violations, warnings, etc.
(5) In cases where an executive of the Corporation has intentionally violated
any order under paragraph (1) or done great harm to the sound management
of the Corporation, the Financial Services Commission
may issue a proper
censure, including dismissal, suspension of duty, caution, etc against the
relevant executive.
(7) In cases where an executive or an employee has retired or resigned
from the Corporation and if he/she still works for the Corporation
he/she
would have been subject to the measure taken in accordance with paragraph
(5) or (6), the Financial Services Commission
may inform the details of
such measures.
Article 61 (Submission of Report and Inspection of Documents)
(1) The Financial Services Commission may, if it is deemed necessary
in
performing the business of supervision pursuant to Article 60, request the
Corporation, persons entrusted by the Corporation
with the duties (hereafter
referred to as the "trustee" in this Article) in accordance with Article 45,
or finance companies making
contributions to the Fund (including the
Account; hereafter in this Article the same shall apply), to submit reports,
or instruct
public officials belonging to the Financial Services Commission
or employees belonging to the Financial Supervisory Services to
examine
the status of operations, books and documents or other necessary matters:
KOREA HOUSING FINANCE CORPORATION ACT
40
Provided, That with regard to the trustees, it shall be limited only to the
entrusted duties, and with regard to finance companies
making contributions
to the Fund, such reporting or inspection shall be limited only to matters
relating to the contribution.
(2) In cases where the Financial Services Commission deems it is necessary,
it may entrust inspections under paragraph (1) to the
Governor of the Financial
Supervisory Service as prescribed by Presidential decree.
(3) Any person who inspects according to paragraphs (1) and (2) shall carry
a certificate as evidence of his/her authority to inspect,
and shall display
such certificate to the relevant persons.
Article 62 (Consultation of Matters on Housing Policy)
The Financial Services Commission shall hold counsel with the Minister
of
Land, Transport and Maritime Affairs in advance, with regards to matters
on business of the Corporation which are deemed as affecting
on the
performance of housing policy.
(1) A notice of the auction procedures (limited to auction procedures exercised
in executing a security right) or the delivery of
such notice provided for
in the Civil Execution Act, which is proceeded by the court upon an application
filed by the Corporation
shall be deemed to be delivered to the domicile
(in case where the domicile is differs from the domicile entered in the resident
registration table provided for in the Citizen Registration Act, the domicile
entered in the resident registration table shall
be included and when the
domicile is reported to the court, such notice shall be delivered to the reported
domicile) entered in
the register of the relevant real estate by mailing it
out to such domicile at the time when an application is filed for its auction.
In cases where the domicile is not entered in the register and the resident
registration table or the domicile is not reported
to the court, such notice
shall be delivered by means of public notice.
(2) In the auction procedures referred to in the provisions of paragraph
(1), the Corporation shall notify the relevant debtor or
relevant owner of
the planned auction and such notification shall be delivered to the domicile
KOREA HOUSING FINANCE CORPORATION
ACT
41
(in cases where the domicile is differs from the domicile that is entered
on the resident registration table provided for in the
Citizen Registration
Act, the domicile that is entered on the resident registration table shall
be included) that is entered on
the registry of the real estate. In such cases,
the delivery of such notification shall be deemed to have been made to the
relevant
debtor or the relevant owner.
(1) The Corporation may request the State, local governments, financial
institutions, the National Pension Service under the National
Pension Act,
the National Health Insurance Corporation under the National Health
Insurance Act, and other public organizations
to furnish data necessary
for performing its business.
(1) If an executive of the Corporation has caused any damage to the Corporation
due to contravention of any Act or subordinate statute
or its articles of
incorporation, or neglect of duties, he/she shall be jointly and severally
liable to the Corporation for the
resultant damage.
(2) If an executive engaged in guarantee business of the Corporation has
intentionally or by gross negligence
inflicted damage on the Corporation
in connection with his/her business conduct, he/she shall be liable for such
damage. In such
cases, the liability may be reduced unless the damage is
caused intentionally.
Article 66 (Special Cases of Mortgage Loans for Smooth Securitization)
The National Credit Union Federation of Korea under subparagraph
11 (m)
of Article 2 may provide mortgage loans in cases where satisfying the criteria
for acquiring by transfer of mortgage-backed
claims under Article 9 (2) 4
with the purpose of smooth securitization of loan claims (limited to cases
prescribed by Presidential
Decree).
CHAPTER PENAL PROVISIONS
Article 67 (Penal Provisions)
KOREA HOUSING FINANCE CORPORATION ACT
42
(1) Any person who uses information on the payment capacity of a debtor
for the purposes other than the redemption of relevant claims
in violation
of Article 36 (2) shall be punished by imprisonment for not more than 3
years or by a fine not exceeding 30 million
won.
(2) Any person who releases secret information in violation of Article 21
(2) shall be punished by imprisonment for not more than
2 years or by
a fine not exceeding 10 million won.
Article 68 (Fines for Negligence)
(1) Any person falling under any of the following subparagraphs shall be
punished by a fine for negligence not exceeding 5 million
won:
1. A person who has used letters of "Korea Housing Finance Corporation"
or similar letters in his/her firm name in violation of Article
8;
2. A person who has used the amount provided by the Corporation as a
credit extended for the purposes other than for loan which has
created
long-term mortgage-backed claims in violation of Article 35 (1);
3. A person who fails to operate mortgage-backed claims with which he/she
has been entrusted for the management separately from his/her
own
property in violation of Article 45 (3) or fails to separately prepare and
keep books on the management, operation and disposal
of
mortgage-backed claims; or
4. A person who has failed to submit a report under Article 61 (1) or submit
a false report or has rejected, impeded or dodged any
inspection under
the same paragraph.
(2) The fine for negligence referred to in paragraph (1) shall be imposed
and collected by the Financial Supervisory Commission
under the conditions
as prescribed by Presidential Decree.
(4) When any person who is subject to a disposition taken to impose a fine
for negligence on him/her under paragraph (2) raises
an objection in
accordance with paragraph (3), the Financial Supervisory Commission shall
notify the competent court without delay
of the fact and the competent court
KOREA HOUSING FINANCE CORPORATION ACT
43
shall, upon receiving the notification, put the case on trial in accordance
with the Non-Contentious Case Litigation Procedure Act.
Article 69 (Legal Fiction as Public Officials in Application of Penal
Provisions)
Members provided in Article 10 (2) 4, the executives of the Corporation
and the employees prescribed by Presidential Decree shall
be deemed public
officials for the purpose of Articles 129 through 132 of the Criminal Act.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on March 1, 2004: Provided, That the provisions
of Article 3 of the Addenda shall enter into force
on the date of its promulgation.
Article 2 (Abrogation of Other Act)
The Act on the Assistance to Residential Stability and Lump Sum-raising
Savings of Workers shall be repealed.
Article 3 (Establishment Committee)
(1) The Minister of Finance and Economy shall organize an establishment
committee by commissioning members for establishment, and
have them
perform the affairs relating to the preparation for establishment of the
Corporation. In such cases, he/she shall consult
with the Minister of
Construction and Transportation.
(2) The establishment committee shall formulate the articles of incorporation
of the Corporation, and obtain authorization thereof
from the Minister of
Finance and Economy.
(3) The establishment committee shall make a registration of establishment
of the Corporation under joint signature of members for
establishment when
the establishment committee obtains authorization pursuant to paragraph
(2).
(4) The establishment committee shall, when it completes the establishment
KOREA HOUSING FINANCE CORPORATION ACT
44
registration of the Corporation pursuant to paragraph (3), transfer its affairs
and assets to the president of the Corporation.
(5) The members of the establishment committee shall be deemed to be
discharged from the committee when they completely transfer
affairs and
assets pursuant to paragraph (4).
(6) The Corporation shall bear the expenses of its establishment.
Article 4 (Employment of Employees at Establishment)
When the
Corporation employees experienced employees at the time of its
establishment, it shall give prior consideration to a career in housing
finance-related field for efficient performance of the Corporation and to secure
the expertise.
Article 5 (Transitional Measures on Previous Mortgage-backed Claims)
The claims falling under any of the following subparagraphs
shall be deemed
as mortgage-backed claims under this Act:
1. Claims for loaned money whose redemption period is ten years or longer
and secured by the mortgages established on the house at
the time when
this Act enters into force; or
2. If claims have converted the claims for loaned funds of the redemption
period is ten years or longer until December 31, 2009,
from among the
claims for loaned money secured by the mortgages established over the
house at the time when this Act enters into
force, such claims.
Article 6 (Transitional Measures regarding Housing Finance Credit
Guarantee Fund)
(1) The Housing Finance Credit Guarantee Fund under the Act on the
Assistance to Residential Stability and Lump Sum-raising Savings
of Workers
prior to the enforcement of this Act shall be deemed the Housing Finance
Credit Guarantee Fund under Article 55.
(2) The contribution, credit guarantee and other legal acts performed by
the Housing Finance Credit Guarantee Fund under the Act
on the Assistance
to Residential Stability and Lump Sum-raising Savings of Workers at the
time when this Act enters into force
shall be deemed as having been performed
under the provisions of this Act.
Article 7 (Changing Title of Succeed of Properties)
The title of "Credit Guarantee Fund which is a managing agency of the Housing
Finance Credit Guarantee Fund" or "Credit Guarantee Fund" indicated on
KOREA HOUSING FINANCE CORPORATION ACT
45
the register on properties of the Housing Finance Credit Guarantee Fund
which is managed by the Credit Guarantee Fund under the
Credit Guarantee
Fund Act, and succeeded by the Corporation and on other types of official
record, shall be deemed the title of
the Corporation.
Article 8 (Matters on Merger with Special Purpose Companies for
Securitization of Mortgage-backed Claims and Acquisition
of Business
by Transfer)
(1) The Corporation may absorb any special purpose company for
mortgage-backed bonds under the Special Purpose Companies for
Mortgage-Backed
Bonds Act (hereinafter referred to as the "company for
securitization") by merger with or take over of the business of securitization
from a company for securitization in order to perform efficiently the business
of securitization.
(2) When the Corporation intends to merger or acquire a business by transfer,
it shall prepare a merger contract or contract on
acquisition of business
by transfer and obtain approval of Minister of Finance and Economy thereon.
(3) When the Corporation completes
the procedures for merger or acquisition
of business by transfer, it shall report the matters on the merger or acquisition
of business
by transfer to Minister of Finance and Economy without delay.
Article 9 (Effect of Merger with Special Purpose Companies for
Mortgage-backed
Bonds)
(1) The Corporation shall complete registration of changes within two weeks
at the location of head office, and within three weeks
at the location of
branch from the date when the report on matters of merger is made to the
Minister of Finance and Economy pursuant
to Article 8 (3) of the Addenda.
(2) The merger of the Corporation shall be effective at the time when the
matters under paragraph
(1) register at the location of head office.
(3) In cases where the Corporation merges, the property, rights and duties
vested
in the company for securitization shall be taken over as a whole
by the Corporation. In such cases, the trust established on the
company
for securitization shall be deemed the trust established on the Corporation
under this Act, and the Corporation shall succeed
the status as a trustee.
(4) The title of company for securitization indicated on the register on property
of the company for securitization
which is managed by the Corporation and
on other type of official record, shall be deemed the title of the Corporation.
KOREA HOUSING
FINANCE CORPORATION ACT
46
(5) The securitization and other legal acts performed by a company for
securitization which merges with the Corporation in accordance
with the
Special Purpose Companies for Mortgage-Backed Bonds Act at the time of
such merger, shall be deemed as having been performed
pursuant to this
Act.
(6) The merger with a company for securitization shall be governed by the
provisions of the Commercial Act except as otherwise prescribed
by this
Act.
Article 10 (Effect of Acquisition of Business by Transfer with Special
Purpose Companies for Mortgage-backed Bonds, etc.)
(1) The
Corporation shall publish a public notice in two or more daily
newspapers of nationwide circulation within two weeks from the date
of
a report on the takeover of business is made to the Minister of Finance
and Economy in accordance with Article 8 (3) of the
Addenda, by prescribing
matters on a company for securitization which has transferred the business
and a securitization which is
subject of the takeover of business.
(2) In cases where the Corporation takes over the business, the property,
rights and duties
with regards to a securitization (including the payment
guarantee; hereafter in this Article the same shall apply) vested in the
company for securitization shall be deemed as having been taken over by
the Corporation on the date following the date of publication
under paragraph
(1). In such cases, the trust established on the company for securitization
shall be deemed a trust established
on the Corporation pursuant to this
Act, and the Corporation shall succeed the status as a trustee.
(3) A company for securitization
shall be waived from the duty, with regards
to the securitization within the limit of those succeeded to the Corporation
pursuant
to paragraph (2).
(4) With regards to mortgage-backed claims which are subject to
securitization, succeeded by the Corporation, where an announcement
referred to in paragraph (1) has been made, requirements for setting up
against under Article 450 (2) of the Civil Act shall be
deemed to have been
met by such announcement: Provided, That the requirements for setting
up against the debtor of mortgage-backed
claims shall be governed by the
provisions of Article 26 (1) and (3).
(5) The title of a company for securitization on the register on mortgage-backed
KOREA HOUSING FINANCE CORPORATION ACT
47
claims, mortgages and other rights which are subject to securitization to
be succeeded by the Corporation and on other type of official
record, shall
be deemed the title of the Corporation.
(6) The securitization and other legal acts performed by a company for
securitization which transfers the business to the Corporation
at the time
of business transfer in accordance with the Special Purpose Companies for
Mortgage-Backed Bonds Act shall be deemed
as one performed by this Act
within the limit of property related to securitization, and right and duty
succeeded by the Corporation.
(7) The government shall, in cases where the Corporation may not perform
the succeeded liability under paragraph (2) due to loss
in occurred by the
Corporation, replenish loss of the Corporation in accordance with Article
51 in order to assist the Corporation
to perform its liabilities.
(8) The provisions of the Special Purpose Companies for Mortgages-backed
Bonds Act and the Commercial
Act shall apply to the transfer of business
of a company for securitization except those prescribed by this Act otherwise.
Article
11 Omitted.
Article 12 (Relation with Other Acts)
(1) When the former Act on the Assistance to Residential Stability and
Lump Sum-raising Savings of Workers or any provisions of
such former Act
cited by other Acts at the time when this Act enters into force, and there
exist provisions corresponding thereto
in this Act, it shall be deemed as
citing this Act or the corresponding provisions in this Act in lieu of the
former provisions.
(2) The Housing Finance Credit Guarantee Fund cited by other Acts at
the time of enforcement of this Act shall be deemed the Housing
Finance
Credit Guarantee Fund under this Act in lieu thereof.
ADDENDUM
This Act shall enter into force on the date of its promulgation.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
KOREA HOUSING FINANCE CORPORATION ACT
48
Articles 2 through 6 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2006. (Proviso Omitted.)
Articles 2 through 22 Omitted.
ADDENDA
(1) (Enforcement Date) This Act shall enter into force on the date of its
promulgation.
(2) (Transitional Measures on Ceiling of Aggregate of Credit Guarantee) When
the Fund sums up the amount subleased by sublessee
under subparagraph
9 of Article 2 of the Introduction and Management of Public Loans Act and
the amounts under Article 43 (1) 1
and 2 at the time when this Act enters
into force, it shall be governed by the former provisions until the subleased
amount is
refunded.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
Article 2 (Special Cases on Amendment of Plan for
Operation of Fund of
2007)
(1) When the Account has been established, the president of the Corporation
shall immediately prepare the draft plan for operation
of the Fund for the
year 2007, and submit it to the Minister of Finance and Economy by undergoing
the resolution of the Committee,
and the Minister of Finance and Economy
shall consult with the Minister of Planning and Budget thereon.
(2) The Minister of Finance
and Economy shall submit the draft plan for
operation of the Fund for the year 2007 under paragraph (1) to the National
Assembly
by undergoing the deliberation of the State Council and obtaining
approval from the President of the Republic of Korea. In such
cases, the
alternation to the draft plan for operation of the Fund for the year 2007
shall be deemed to have been confirmed notwithstanding
the provisions of
the State Finance Act and the National Assembly Act.
Article 3 Omitted.
KOREA HOUSING FINANCE CORPORATION ACT
49
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation : Provided,
That,...
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force one year and six months elapse after the
date of its promulgation. (Proviso Omitted.)
Articles 2 through 44 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso
Omitted.)
Articles 2 through 7 Omitted.
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
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