Article 1(Purpose) #
The purpose of this Act is to secure capital by prescribing matters concerning the mortgage of an automobile and to equally protect the rights of the mortgagee of an automobile (hereinafter referred to as "mortgagee") and owner of an automobile.
Article 2(Object of Mortgage) #
Any automobile which is registered in accordance with the Automobile Management Act may be made the object of mortgage under this Act.
<Amended by Act No. 5981, May 24, 1999>
Article 3(Contents of Mortgage) #
Mortgagees shall have the right to obtain performance of obligation with priority to the other creditors on automobiles which debtors or the third parties give as security for the obligation without moving their possession of the automobiles.
Article 4(Effect of Registration of Mortgage) #
(1) The acquisition, loss, or change of the mortgage of automobiles (hereinafter referred to as "mortgage") shall come into effect when registration thereof is made in the register of automobiles under the Automobile Management Act.
(2) Registration of mortgage shall be classified into the registration of establishment, change, transfer, and cancellation.
(3) The matters necessary for the procedures and the methods of registration of mortgage shall be prescribed by the Presidential Decree.
Article 5(Notice to Mortgagees) #
In case the automobile Registration Authority intends to make a registration of cancellation of a mortgaged automobile under the Automobile Management Act, it shall give the mortgagee an advance notice of it: Provided, That the foregoing shall not apply when the mortgagee agrees with the registration of cancellation.
Article 6(Enforcement of Mortgage, etc.) #
(1) In case where a mortgagee receives the notice under Article 5, he may immediately exercise his mortgage on the automobile concerned.
(2) In case where a mortgagee intends to exercise his mortgage in accordance with the provisions of paragraph (1), he shall commence procedures for the exercise of the mortgage within one month from the date of the receipt of the notice under Article 5.
(3) The Automobile Registration Authority may make the registration of cancellation of automobiles concerned, in case where one month has passed since the date of notice under paragraph (2): Provided, That in case where a mortgagee has commenced procedures for the enforcement of the mortgage within that period of time, it shall not make the registration of cancellation until procedures for the enforcement of the mortgage are completed.
(4) In case where a mortgagee has exercised the mortgage and where a successful bidder has acquired the ownership of an automobile concerned, the Automobile Registration Authority may not make the registration of cancellation.
Article 6-2(Special Case for Method of Realization by Transfer Order) #
(1) In the process of an auction for the execution of a mortgage for the purpose of an automobile, the court may, when it is deemed appropriate, upon a request from a mortgagee, realize such mortgage without resorting to any auction or bid in a manner that a transfer order permitting such mortgagee to sell the seized automobile is issued.
(2) Necessary matters concerning procedures for the transfer order referred to in paragraph (1) shall be prescribed by the Regulations of the Supreme Court.
[This Article Newly Inserted by Act No. 5981, May 24, 1999]
Article 7(Ban on Establishing Pledge) #
Automobiles shall not be objects for establishing the right of pledge.
Article 8(Delivery of Papers for Registration of Cancellation of Mortgage etc.) #
In case where causes for the registration of cancellation or for the registration of transfer of automobiles occur through lapse of mortgage obligation, caused by performance of obligation or the other reason, the mortgagee shall without delay deliver documents necessary for the registration of cancellation or for the registration of transfer of mortgage of an automobile concerned to the person who has the right to registration.
Article 9(Fee) #
The person who intends to register the mortgage shall pay a fee as prescribed by the Presidential Decree.
Article 10(Application of Civil Act) #
The provisions concerning the mortgage in the Civil Act shall apply mutatis mutandis to the mortgage on automobiles, except as otherwise provided in this Act.