ASSET-BACKED SECURITIZATION ACT

CHAPTER I GENERAL PROVISIONS

Article 1(Purpose) #

The purpose of this Act is to enhance the soundness of the financial structure of financial institutions and general enterprises, etc. by facilitating their financing activities, and to expand the housing finance infrastructure through stable supply of long-term housing loans with the establishment of a system of asset-backed securitization, as well as to protect investors in asset-backed securities issued through asset-backed securitization, therefore contributing to the sound development of the national economy.

[This Article Wholly Amended on Jul. 11, 2023]

Article 2(Definitions) #

The terms used in this Act are defined as follows:

1. The term "asset-backed securitization" means the following acts:

(a) A series of acts involving issuance of asset-backed securities by a special purpose company (including foreign corporations specialized in the business of asset-backed securitization) using underlying assets transferred from the originator as the basis, and payment of the principal and interest or dividends with respect to the asset-backed securities out of the earnings or loans, etc. accruing from the management, operation, or disposition of the relevant underlying assets;

(b) A series of acts involving issuance of asset-backed securities by a trust business entity under the Financial Investment Services and Capital Markets Act (hereinafter referred to as "trust business entity") using underlying assets entrusted by the originator as the basis, and payment of the proceeds of the asset-backed securities out of the earnings or loans, etc. accruing from the management, operation, or disposition of the relevant underlying assets;

(c) A series of acts involving acquisition by a trust business entity of underlying assets by transfer from the originator, using the funds received in trust through issuance of asset-backed securities, and payment of the proceeds of the asset-backed securities out of the earnings or loans, etc. accruing from the management, operation, or disposition of the underlying assets;

(d) A series of acts involving issuance of asset-backed securities by a special purpose company or a trust business entity using underlying assets, or asset-backed securities issued on the basis of such underlying assets as the basis, which are transferred or entrusted to the special purpose company by another special purpose company or trust business entity, and payment of principal and interest, dividends, or returns of the asset-backed securities issued by itself out of the earnings or loans, etc. accruing from the management, operation, or disposition of the underlying assets or asset-backed securities initially transferred or entrusted;

ASSET-BACKED SECURITIZATION ACT

Article 1(Purpose) #

Article 2(Definitions) #

Article 3(Registration of Asset-Backed Securitization Plan) #

Article 4(Asset-Backed Securitization Plan) #

Article 5(Refusal of Registration) #

Article 6(Registration of Asset Transfer) #

Article 7(Special Cases for Requisite for Setting-up against Transfer of Claims) #

Article 7-2(Confirmation Claims Secured by Right to Open-End Mortgage) #

Article 8(Special Cases concerning Acquisition of Mortgage) #

Article 9(Public Disclosure of Registered Documents) #

Article 10(Entrustment of Asset Management) #

Article 11(Management of Underlying Assets) #

Article 12(Bankruptcy of Servicer) #

Article 13(Method of Transfer) #

Article 14(Amendment to or Termination of Facilities Lease Agreements) #

Article 15(Lease Receivables) #

Article 16(Special Cases for Application of the Financial Investment Services and Capital Markets Act) #

Article 17(Form of Company) #

Article 18 #

Article 19(General Meeting of Shareholders) #

Article 20(Restriction on Concurrently Conducting Other Business) #

Article 21(Prohibition against Use of Similar Names) #

Article 22(Business Affairs) #

Article 23(Entrustment of Business Affairs) #

Article 24(Grounds for Dissolution) #

Article 25(Prohibition of Merger) #

Article 26(Appointment of Liquidator) #

Article 27(Application of the Commercial Act) #

Article 28(Issuance of Subscription Certificates) #

Article 29(Required Information for Subscription Certificates) #

Article 30(Exceptions to Transfer of Subscription Certificates) #

Article 31(Issuance of Bonds) #

Article 32(Issuance of Beneficiary Certificates) #

Article 33(Issuing Limit of Asset-Backed Securities) #

Article 33-2(Disclosure of Issuance Details of Asset-Backed Securities) #

Article 33-3(Compulsory Holding of Asset-Backed Securities) #

Article 34(Investigation) #

Article 35(Order for Business Improvement) #

Article 35-2(Reporting by Special Purpose Company) #

Article 36(Special Cases for Disposal of Non-Performing Assets of Financial Institutions, Support for Self-Rescue Plans of Enterprises with Signs of Insolvency, and Restructuring of Enterprises) #

Article 36-2(Exemption from Duties to Purchase National Housing Bonds) #

Article 37(Provision and Use of Information about Debtors) #

Article 38(Entrustment of Business Affairs) #

Article 38-2(Revocation of Registration of Asset-Backed Securitization Plan) #

Article 38-3(Penalty Surcharges) #

Article 39(Penalty Provisions) #

Article 40(Penalty Provisions) #

Article 41(Joint Penalty Provisions) #

Article 42(Administrative Fines) #