Article 1(Purpose) #
The purpose of this Act is to contribute to the sound development of aviation by promoting use of movable property as credit through the mortgage of aircrafts.
Article 2(Definition) #
"Aircraft" mentioned in this Act means airplanes and/or helicopters which are registered in accordance with the Aviation Act.
Article 3(Objects) #
Aircraft may be used as the objects for establishing mortgages.
Article 4(Contents of Mortgage) #
Mortgages shall have priority rights over other creditors covering aircraft which debtors or third parties have an existing security interest without altering the possession of the aircraft (hereinafter referred to as the "mortgaged aircraft").
Article 5(Effect of Registration of Mortgage) #
(1) The acquisition, loss or change of mortgage shall not come into effect if registration thereof is not made in the registration book of aircraft under the Aviation Act.
(2) Matters concerning the registration under the preceding paragraph shall be determined by the Presidential Decree. <Amended by Act No. 5454, Dec. 13, 1997>
Article 6(Notification to Mortgagees) #
In case the Minister of Construction and Transportation receives an application for the removal of a registration on the ground that a mortgaged aircraft falls under Article 12 (1) 3 of the Aviation Act or in case the owner of the aircraft fails to apply for the removal of the registration within the specified period after a notice is served in accordance with the provision of paragraph (2) of the same Article of the same Act, the Minister of Construction and Transportation shall without delay notify the mortgagee thereof. <Amended by Act No. 4435, Dec. 14, 1991; Act No. 5454, Dec. 13, 1997>
Article 7(Enforcement of Mortgage) #
(1) In case a mortgagee receives the notification pursuant to the preceding Article, he may immediately enforce his mortgage on the relevant aircraft.
(2) In case a mortgagee desires to enforce his mortgage pursuant to the preceding paragraph, he shall take the necessary procedures for such enforcement within three months after the date of the receipt of the notification as provided in the preceding Article.
(3) During the period during which the procedures for enforcing the mortgage may be taken under the preceding paragraph and until the enforcement thereof, the Minister of Construction and Transportation shall not take step to remove the registration on the relevant aircraft under the provisions of the Aviation Act. <Amended by Act No. 5454, Dec. 13, 1997>
(4) When a successful bidder at an auction becomes final, for those aircrafts under paragraph (1), the causes under Article 10 (1) 3 of the Aviation Act shall be deemed to have not taken place. <Amended by Act No. 4435, Dec. 14, 1991>
Article 8(Ban of Establishing Pledge) #
Aircraft shall not be the objects for establishing the right of pledge.
Article 9(Application of Civil Act) #
The provisions concerning mortgage in the Civil Act shall apply mutatis mutandis to the mortgage on aircraft except for those provided in this Act.