ENFORCEMENT DECREE OF THE KOREA HOUSING FINANCE CORPORATION ACT
Presidential Decree No. 18297, Feb. 28, 2004
Amended by Presidential Decree No. 18803, Apr. 27, 2005
Presidential Decree No. 18832, May 26, 2005
Presidential Decree No. 19327, Feb. 9, 2006
Presidential Decree No. 20002, Apr. 11, 2007
Presidential Decree No. 20653, Feb. 29, 2008
Presidential Decree No. 20947, Jul. 29, 2008
Presidential Decree No. 21172, Dec. 17, 2008
Presidential Decree No. 21315, Feb. 6, 2009
Presidential Decree No. 21420, Apr. 6, 2009
Presidential Decree No. 21765, Oct. 1, 2009
Presidential Decree No. 23282, Nov. 1, 2011
Presidential Decree No. 23488, Jan. 6, 2012
Presidential Decree No. 23873, jun. 22, 2012
Presidential Decree No. 24572, May 31, 2013
Presidential Decree No. 26177, Mar. 30, 2015
Presidential Decree No. 26487, Aug. 11, 2015
Presidential Decree No. 26763, Dec. 28, 2015
Presidential Decree No. 27101, Apr. 25, 2016
Presidential Decree No. 27444, Aug. 11, 2016
Presidential Decree No. 28627, Feb. 9, 2018
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 1-2 (Scope of Quasi-Housing) |
[This Article Newly Inserted by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 2 (Scope of Workers) |
| (1) | "Workers prescribed by Presidential Decree" in subparagraph 8 (d) of Article 2 of the Act means nationals of the Republic of Korea falling under any of the following subparagraphs: Provided, That persons who hold the right of permanent residence in a foreign country under foreign Acts shall be excluded: |
| 1. | Persons employed by and working for the State, local governments, public organizations, profit-making or non-profit corporations and organizations and other business entities, with the combined total annual income of whom and whose spouse being 25 million won or less; |
| 5. | Persons employed by foreign governments, international organizations or foreign corporations and working in offices located in the Republic of Korea, with the combined total annual income of whom and whose spouse being 25 million won or less. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 3 (Credit Guarantee) |
“Cases prescribed by Presidential Decree" in subparagraph 8 (e) of Article 2 of the Act means any of the following cases: | 1. | Where any of the following persons recognized by the President (hereinafter referred to as the "president") of the Korea Housing Finance Corporation (hereinafter referred to as the "Corporation") as the one potentially capable of improving his/her ability to repay his/her obligations in the future borrows a loan from a financial institution in order to fulfill a liability for reimbursement (referring to a liability for reimbursement to which the Corporation acquired the right by subrogation as a result of its performance of the person's liability on his/her behalf; hereinafter the same shall apply): |
| (a) | The primary obligor of such liability for reimbursement; |
| (b) | Any person who assumed such liability for reimbursement; |
| (c) | Other persons related to such liability for reimbursement; |
| (a) | Issuance of asset-backed securities; |
| (b) | Credit extension by a financial institution to the specialized securitization company; |
| 3. | Where a lessor, who has leased a house as referred to in the part other than each item of subparagraph 3 of Article 2 of the Act (including a lease on a deposit basis, but excluding a sublease; hereafter the same shall apply in this subparagraph), takes out a loan from a financial institution to pay a deposit back to the lessee for any of the following reasons: |
| (a) | Expiration of the term of a lease; |
| (b) | Termination of the lease contract upon agreement between the lessor and lessee; |
| (d) | Termination of a lease for reasons attributable to the lessee. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 3-2 (Means of Annuity Payments, etc.) |
| (1) | “Means of annuity payment prescribed by Presidential Decree" in the former part of subparagraph 8-2 of Article 2 of the Act means any of the following means: <Amended by Presidential Decree No. 24572, May 31, 2013; Presidential Decree No. 27010, Apr. 25, 2016> |
| 1. | Monthly payments for living expenses of senior citizens during the lifetime of a homeowner; |
| 2. | Monthly payments for living expenses of senior citizens during the period of time chosen by a homeowner; |
| 3. | Combination of subparagraph 1 and one of the following: |
| (a) | Payment of a specific amount of money as needed to a homeowner for the following purposes within 50/100 of the limit on reverse annuity mortgage loans under Article 9 (4) 2 of the Act: |
| (i) | Paying the unpaid balance of a loan taken out on the relevant house; |
| (ii) | Paying a deposit money for lease back to the lessee of the relevant house in accordance with the lease contract under subparagraph 3 of Article 3; |
| (iii) | Public announcement determined by the president of the Corporation and posted on its website, including expenses for medical treatment, education and house maintenance; |
| (b) | Payment of a specific amount of money to a homeowner for paying the unpaid balance of a loan taken out on the relevant house within 70/100 of the limit on reverse annuity mortgage loans under Article 9 (4) 2 of the Act; |
| 4. | Combination of subparagraph 2 and subparagraph 3 (a); |
| 5. | Payments where a homeowner is paid a certain amount of money within the ceiling on reverse annuity mortgage loans under Article 9 (4) 2 of the Act for the purpose of using it for the repayment of the balance of a loan taken out on the house concerned, and he/she is started to be paid from the balance of the ceiling on reverse annuity mortgage loans from the age of 60 based on the means prescribed in subparagraph 1 or 2. |
| (2) | "Age prescribed by Presidential Decree" in the latter part of subparagraph 8-2 of Article 2 of the Act means 60 years old: Provided, That it means 50 years old in the case of the purchase, which was made between June 1 of 2013 and May 31 of 2014 under the means of paragraph (1) 5, based on a house prescribed by the Housing Finance Management Committee under Article 9 (1) of the Act. <Amended by Presidential Decree No. 24572, May 31, 2013> |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 4 (Housing Business Entity) |
"Person prescribed by Presidential Decree" in subparagraph 9 of Article 2 of the Act means any of the following persons: <Amended by Presidential Decree No. 26487, Aug. 11, 2015; Presidential Decree No. 26763, Dec. 28, 2015; Presidential Decree No. 27444, Aug. 11, 2016> | 1. | Any of the following persons: |
| (d) | A trust business entity (referring to a trust business entity under the Article 8 (7) of the Financial Investment Services and Capital Market Act) which has acquired the ownership of or hold title to the relevant housing construction site and actually carries on housing construction projects by raising fund to develop the site, and any person who has concluded a trust contract to develop the site; |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 5 (Financial Institutions) |
"Person prescribed by Presidential Decree" in subparagraph 11 (m) of Article 2 of the Act means any of the following persons: [This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 6 (Establishment Registration) |
| (1) | The establishment registration of the Corporation under Article 7 of the Act shall be made within two weeks from the date when the capital is first paid-in. |
| (2) | Matters for the establishment registration under paragraph (1) shall be set out under each of the following subparagraphs: |
| 3. | Location of the main office; |
| 5. | Means of contribution and the amount of paid-in capital; |
| 6. | Branch offices or business offices; |
| 7. | The name, resident registration number and address of the president; |
| 8. | The names, and addresses of the vice president, directors (including outside directors; hereinafter the same shall apply) and the auditor; |
| 9. | Methods of public announcement. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 7 (Establishment Registration of Branch Offices, etc.) |
When the Corporation establishes branch offices or business offices, it shall register matters according to the following classification:
| 1. | The seat of the main office: The location of a branch or sub-branch office and the date of the establishment shall be registered within two weeks; |
| 2. | The seat of the relevant branch or sub-branch office: Matters under Article 6 (2) 1 through 3, 7 and 9 shall be registered within three weeks. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 8 (Registration of Relocation) |
| (1) | When the Corporation moves its main office to the jurisdiction of another registry office, it shall register the fact of the move within two weeks in the former location and shall register matters falling under each subparagraph of Article 6 (2) within three weeks in the new location. |
| (2) | When the Corporation moves its branch offices or business offices to the jurisdiction of another registry office, it shall register its new location and date of transfer within three weeks at the main office and former location, and matters under Article 6 (2) 1 through 3, 7 and 9 shall be registered in the new location. |
| (3) | When the main office, branch offices or business offices are moved within the jurisdiction of the same registry office, only the fact of such relocation shall be registered within two weeks. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 9 (Registration for Changes) |
Where any matter falling under any subparagraph of Article 6 (2) has changed, the changed matter shall be registered at the seat of the main office within two weeks from the date of such change: Provided, That where any matter referred to in Article 6 (2) 1 through 3, 7 and 9 has changed, the changed matter shall also be registered at the seat of the branch or sub-branch office within three weeks from the date of such change. [This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 10 (Appointment of Agent) |
| (1) | When the president appoints an agent under Article 19 (1) of the Act, he/she shall register the following matters within two weeks thereafter at the seat of the main office or the branch or sub-branch for which the agent has been appointed. The same shall also apply to any change of registered matters: |
| 1. | The name, resident registration number and address of the agent; |
| 2. | Details on restriction, in the case of restricting the authority of the agent. |
| (2) | An employee who can be appointed as a juridical agent of the president in accordance with Article 19 (2) of the Act shall have at least two years of experience in trial-related affairs. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 11 (Calculation of Registration Period) |
Where any of the matters on the Corporation to be registered under this Decree requires authorization or approval of the Financial Services Commission, the registration period shall be calculated from the date on which documents on such authorization or approval arrive.
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 12 (Applicants, etc. for Registration) |
| (1) | The registration for establishment under Article 6 shall be made by the joint request of members for establishment and the registration under Articles 7 through 10 shall be made upon request of the president. |
| (2) | The written application for registration under Articles 6 through 10 shall be accompanied by documents evidencing the respective grounds. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 12-2 (Limitation on Loan Amount) |
"Amount prescribed by Presidential Decree" under Article 9 (3) 2 means 500 million won. [This Article Newly Inserted by Presidential Decree No. 21420, Apr. 6, 2009]
| Article 12-3 (Criteria for Guarantee of Reverse Annuity Mortgage) |
| 1. | The interest rates required to calculate the amount (hereinafter referred to as "reverse annuity mortgage"), which is paid monthly or occasionally to the homeowner in accordance with each subparagraph of Article 3-2 (1); |
| 2. | The probability of death of a prospective user of guarantee services for reverse annuity mortgages and his/her spouse. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 13 (Operation of Housing Finance Management Committee) |
| (1) | The meeting of the Housing Finance Management Committee (hereinafter referred to as the "Committee") shall be convened by the chairperson pursuant to its articles of incorporation in accordance with Article 11 (5) of the Act. |
| (2) | The vice president, directors and auditor of the Corporation may attend the meetings of the Committee and state their opinions. |
| (3) | Members who are present at any meeting of the Committee may be paid allowances within budgetary limits: Provided, That the forgoing shall not apply where the relevant public officials have attended any meeting of the Committee directly in connection with their official duties. |
| (4) | Other matters necessary for the operation of the Committee other than those prescribed by this Decree shall be determined by the chairperson of the Committee after resolution of the Committee. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 14 (Mortgage Securitization Plan) |
| 1. | Matters on the financial institution which has transferred mortgage-backed claims; |
| 2. | Matters on the protection of investors of mortgage-backed bonds or mortgage-backed securities; |
| 3. | Where the Corporation intends to borrow or manage financial resources with regards to mortgage securitization, the plan thereon. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 15 (Registration on Transfer, etc. of Mortgage-Backed Claims) |
| (1) | The Corporation shall appoint a person in charge of keeping and managing a contract on transfer, trust or return (hereinafter referred to as "transfer, etc.") of and certificate of registration, notification of information on registration or registration card, or other kinds of documentary evidence of mortgage-backed claims, in accordance with Article 24 (5) of the Act. |
| (2) | Where the Corporation appoints a person other than its executive officers or employees to be in charge of management in accordance with paragraph (1), it shall designate a person other than a financial institution who has transferred such mortgage-backed claims thereto: Provided, That the forgoing shall not apply where the relevant financial institution, which has transferred such mortgage-backed claims, keeps and manages the original document and a person, other than such financial institution, or the Corporation keeps and manages a copy thereof (including electronic documents) so that the Financial Services Commission or investors can inspect it. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 16 (Equity Capital) |
"Core capital and supplementary capital prescribed by Presidential Decree" in Article 31 (1) of the Act means each of the following determined by the Financial Services Commission: Provided, That those which do not contribute to substantial replenishment of the capital, including the Corporation's goodwill, and are prescribed by the Financial Services Commission shall be excluded: | 1. | Core capital: Actual net assets of the Corporation, such as capital and retained earnings, which have the characteristic of permanency; |
| 2. | Supplementary capital: Capital having characteristics corresponding to those stated subparagraph 1, such as subordinated claims, which is usable to make up for the loss arising from business activities of the Corporation. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 17 (Matters to be Entered in Mortgage-Backed Securities) |
| 1. | Names or titles of beneficiaries, in the case of registered type; |
| 2. | Time and place for distributing profits; |
| 3. | Where the agreement on the preservation of the principal or interest is concluded, the details thereof; |
| 4. | Details of a payment guarantee, if any; |
| 5. | Where the means of operating mortgage-backed claims are determined, the details thereof. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 18 (Acquisition of Mortgage-Backed Securities) |
| (1) | The Corporation may acquire mortgage-backed securities by using assets which are not subject to mortgage securitization for the smooth issuance of mortgage-backed securities and stable operation of surplus funds in accordance with Article 32 (7) of the Act. |
| (2) | Where the Corporation acquires mortgage-backed securities in accordance with paragraph (1), the acquisition value shall be based on the transaction price on the securities market or on KOSDAQ under the Financial Investment Services and Capital Markets Act: Provided, That where the relevant mortgage-backed securities have not been listed on the securities market or on KOSDAQ, the acquisition value shall be the value obtained by dividing the total amount of mortgage-backed claims constituting the underlying basis for the issuance thereof (referring to the appraised amount of such mortgage-backed securities as at the time of acquisition) by the total number of mortgage-backed securities (excluding those already repaid as at the time of acquisition of mortgage-backed securities). |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 19 (Exceptions to Issuance of Mortgage-Backed Securities, etc.) |
"Any reason prescribed by Presidential Decree" in subparagraph 2 of Article 33 of the Act means any of the following reasons: | 1. | Where the mortgage-backed claims are extinguished due to the repayment by debtor prior to maturity or for any other reason; |
| 2. | Where the creditor exercises mortgages (including a right of fixed collateral; hereinafter the same shall apply) due to the non-performance of liabilities by the debtor, or the mortgages concerned have been extinguished due to the destruction or loss, etc. of the mortgaged house; |
| 3. | Where the debtor of mortgage-backed claims has not repaid liabilities within the maturity date in commercial transaction, including financial transactions and is prescribed by the Financial Services Commission; |
| 4. | Where the decision of seizure, provisional seizure, disposition on default or temporary disposition is made with regard to mortgage-backed claims or the mortgaged house which secures them. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 20 (Granting of Credit for Financial Institutions) |
| (1) | The Corporation may lend funds to financial institutions so that they use them for loans giving rise to long-term mortgage-backed claims with a maturity of ten years or longer or may purchase securities issued by financial institutions in accordance with the former part of Article 35 (1) of the Act. |
| (2) | The Corporation shall be prohibited from extending credit exceeding 25/100 of its equity capital to the same financial institution: Provided, That the forgoing shall not apply where the limit has been exceeded due to a change in equity capital of the Corporation, merger of the financial institutions, or transfer and acquisition of business thereof, etc., even if the Corporation has not extended additional credit. |
| (3) | Where the limit under the main sentence of paragraph (2) has been exceeded pursuant to the proviso to the same paragraph, it shall be brought within the limit under the main sentence of paragraph (2) within one year from the date when such limit has been exceeded: Provided, That where an unavoidable cause exists, including non-arrival of the term for redemption of extended credit which has already been provided, the Committee may extend the term by prescribing it. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 21 (Provision and Use of Information on Debtors) |
When a financial institution or the Corporation provides information on the capacity of the debtor to repay debts in accordance with Article 36 (1) of the Act, it shall use electronic data or other means equivalent thereto: Provided, That information on the capacity of the debtor to repay debts, which includes personal identification information, including name and resident registration number (in the case of foreigners, the relevant alien registration number or passport number) of the debtor, shall not be provided to any person other than transferee. [This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 22 (Fulfillment of Credit Guarantee Liability) |
| (1) | "Ground for not fulfilling obligations prescribed by Presidential Decree" in Article 38 (1) of the Act means cases where the period determined by the president within the scope of three months to one year and six months has passed since the date of default (including cases where the benefit of the term has been forfeited) by the primary debtor as to his/her obligation to a creditor. |
| (2) | A creditor may, where the primary debtor falls under any of the following subparagraphs, may demand payment of a credit guarantee liability to the Corporation, notwithstanding paragraph (1): |
| 1. | When the primary debtor has become bankrupt or been dissolved; |
| 2. | When the primary debtor has discontinued his/her business for at least six months; |
| 3. | When it is deemed that the recovery of loan claims is impossible due to grounds, other than those referred to in subparagraphs 1 and 2. |
| (3) | When a creditor demands payment of a credit guarantee liability to the Corporation, he/she shall verify the facts which give rise to such obligation. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 23 (Scope of Subordinate Debt Obligations) |
"Subordinate debt obligations prescribed by Presidential Decree" in Article 38 (2) of the Act means the total amount of the following amounts: | 1. | The interest on the principal obligation calculated at the interest rate applicable to the original contract period, until the date on which the Corporation fulfills its credit guarantee obligations; |
| 2. | The expenses prescribed by the president from among those paid by a creditor for the recovery of claims. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 24 Deleted. <by Presidential Decree No. 26177, Mar. 30, 2015> |
| Article 25 (Selling of Claim for Reimbursement) |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 26 (Guarantee Fees, etc.) |
| (1) | "Guarantee fees prescribed by Presidential Decree" in Article 41 (1) of the Act means the amount calculated by multiplying the amount of credit guarantee service which the Corporate provides by the rate of guarantee fees determined by the board of directors of the Corporate (hereinafter referred to as the "board of directors"). |
| (2) | In the case of collecting guarantee fees in accordance with Article 41 (1) of the Act, different rates of guarantee fees may be applied in consideration of each of the following matters: |
| 1. | Credit rating of the person who intends to use credit guarantee services; |
| 2. | Scale of the amount subject to credit guarantee; |
| 3. | Period of credit guarantee. |
| (3) | The additional guarantee fees under Article 41 (2) of the Act shall be the amount calculated by multiplying the non-performing amount from among the amount for which the Corporate provides credit guarantee services, by the rate determined by the board of directors within the scope not exceeding 25/1000 per annum. |
| (4) | The guarantee fees in arrears under Article 41 (3) of the Act shall be the amount calculated by multiplying the unpaid guarantee fees by 10/100 per annum. |
| (5) | Detailed matters necessary to collect guarantee fees, additional guarantee fees, guarantee fees in arrears under paragraphs (1) through (4) shall be prescribed by the president after the resolution of the board of directors. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
Penalties levied under Article 42 of the Act shall be the amount calculated by multiplying the amount whose credit guarantee obligation is discharged by the Corporation by the rate prescribed by the board of directors within the scope not exceeding 20/100 per annum in consideration of the interest rates for loans in arrears applied by financial institutions. [This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 28 (Ceiling on Credit Guarantees) |
| (1) | The ceiling on the aggregate of credit guarantees of the Housing Finance Credit Guarantee Fund under Article 43 (1) of the Act (excluding the Account of Guarantee for Reverse Annuity Mortgages under Article 59-2 of the Act; hereinafter referred to as the "Fund") shall be 30 times the aggregate amount of the subparagraphs of Article 43 (1) of the Act (hereinafter referred to as "financial resources for the aggregate of credit guarantees"). |
| (2) | The maximum limit of credit guarantees provided by the Corporation to identical persons or enterprises under Article 43 (2) of the Act shall be determined by the following classification: <Amended by Presidential Decree No. 26487, Aug. 11, 2015> |
| 1. | Credit guarantees for the identical person shall be 300 million won: Provided, That in the case of a credit guarantee for intermediate payment loans of newly built houses which are sold in lots for the purpose of mortgage securitization, it shall be 500 million won; |
| 2. | Credit guarantees for an identical rental business entity under subparagraph 2 of Article 4 shall be as follows: |
| (a) | Where the rental business entity is a private individual: 1 billion won; |
| (b) | Where the rental business entity is a corporation: 50 billion won; |
| 3. | Credit guarantees for an identical enterprise (a person under subparagraph 2 shall be excluded herefrom, but an individual housing business entity who issues bonds (including a contractor under subparagraph 13 of Article 2 of the Framework Act on the Construction Industry) shall be deemed the identical enterprise where credit guarantee is provided to guarantee the performance of obligations arising in the cases under subparagraph 2 of Article 3): 5/100 of financial resources for the aggregate of credit guarantees. Provided, That where the Financial Services Commission recognizes that it is unavoidable due to drastic and significant changes in the economic conditions at home and abroad, or that it is particularly necessary for the national economy, credit guarantees may be provided within the scope not exceeding 15/100 of financial resources for the aggregate of credit guarantees. |
| (3) | The Corporation shall determine the ceiling on each type of guarantee in detail within the maximum limit under subparagraphs of paragraph (2), after the deliberation and resolution of the Committee. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 28-2 (Grounds, etc., for Requesting Performance of Credit Guarantee Liabilities for Reverse Annuity Mortgages) |
| (1) | "Spouse prescribed by Presidential Decree" in Article 43-3 (1) of the Act means any spouse who has been in a continuous marital relationship with a person using credit guarantee services since the contract of guarantee for reverse annuity mortgages was concluded. |
| (2) | "Any cause prescribed by Presidential Decree" in Article 43-3 (1) of the Act means any the following: <Amended by Presidential Decree No. 26487, Aug. 11, 2015; Presidential Decree No. 27444, Aug. 11, 2016; Presidential Decree No. 28627, Feb. 9, 2018> |
| 1. | Where the person who has used credit guarantee service and the spouse under paragraph (1) are all deceased; |
| 2. | Where the spouse under paragraph (1) has failed to complete the registration for transfer of ownership of a mortgaged house (hereinafter referred to as "mortgaged house") under Article 43-4 (1) of the Act and the acception of a pecuniary liability of the fund for livelihood of senior citizens against financial institutions within six months from the death of the person who has used credit guarantee service: Provided, That where he/she has taken part in or joined an association established to carry out any of the following projects or acts, or gave consent for remodelling under Article 66 (1) or (2) of the Housing Act and acts under Article 35 (1) of the Multi-Family Housing Management Act (hereinafter referred to as "join an association, etc." in this paragraph) before his/her death, this shall not apply if the spouse has failed to complete the registration for transfer of ownership and the acception of a pecuniary liability for the period determined by the president: |
| 3. | Where the person who has used credit guarantee services and the spouse under paragraph (1) have moved from the mortgaged house into another place: Provided, That any of the following cases shall be excluded: |
| (a) | Where the house into which they moved is offered as the replacement of the mortgaged house; |
| (b) | Where the person who has used credit guarantee service has joined an association, etc. established to carry out a project or an act falling under any of the items of subparagraph 2 and moved out within the period determined by the president; |
| 4. | Where the person who has used credit guarantee services and the spouse under paragraph (1) do not reside in the mortgaged house continuously for one year or more: Provided, That any of the following cases shall be excluded: |
| (a) | Where they do not reside in the mortgaged house due to inevitable causes, including hospitalization, prescribed by the president and publicly notified on the website of the Corporation; |
| (b) | Where the person who has used credit guarantee service has joined an association, etc. established to carry out a project or an act falling under any of the items of subparagraph 2 and has not continuously resided in the mortgaged house with his/her spouse for the period determined by the president; |
| 5. | Where the person who has used credit guarantee services has lost the ownership of the mortgaged house: Provided, That this shall not apply where he/she lost the ownership due to joining an association, etc. established to carry out a project or an act falling under any of the items of subparagraph 2; |
| 6. | Where the principal and interest of the reverse annuity mortgage loans is expected to exceed the ceiling for prior repayment of mortgages, and the person who has used credit guarantee services does not comply with a request by a financial institution or the Corporation to alter the ceiling for prior repayment: Provided, That this shall not apply where he/she has joined an association, etc. established to carry out a project or an act falling under any of the items of subparagraph 2 and does not comply with the request for alteration for the period determined by the president; |
| 7. | Where specific grounds prescribed by the Committee, other than those under the provisions of subparagraph 1 through 6, occur. |
| (3) | When a financial institution requests the fulfillment of credit guarantee liabilities for the reverse annuity mortgages, it shall verify the fact constituting the ground thereof. |
| (4) | "Subordinate obligations prescribed by Presidential Decree" in Article 43-3 (2) of the Act means the aggregate of the following amounts: |
| 1. | The interest on the principal obligation calculated at the interest rate applicable during the original contract period, until the date on which the Corporation fulfills its credit guarantee liabilities for reverse annuity mortgages; |
| 2. | Expenses determined by the president from among those paid by financial institutions in order to recover claims for reverse annuity mortgages. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 28-3 (Means of Executing Mortgages) |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 28-4 (Acquisition by Transfer of Claims for Reverse Annuity Mortgages) |
| 1. | Where the principal and interest of reverse annuity mortgage loans already paid exceeds the value of the mortgaged house; |
| 2. | Where a financial institution is unable to pay reverse annuity mortgages to any person who has used credit guarantee services due to the bankruptcy of the relevant financial institution under the Debtor Rehabilitation and Bankruptcy Act or other grounds. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 28-5 (Grounds for Exceptional Establishment of Mortgages) |
| 1. | Where any person who has used credit guarantee services performs acts under Article 43-7 (1) 1 of the Act after establishing a mortgage against a financial institution or the Corporation by setting the amount exceeding the estimated total of the principal and interest of the reverse annuity mortgage loans as the ceiling for prior repayment; |
| 2. | Where any person who has used credit guarantee services resides in a mortgaged house and leases part of it to charge monthly rental payments without a deposit. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 28-6 (Supplementary Registration) |
| (1) | The supplementary registration under Article 43-7 (2) of the Act shall be effected simultaneously at the time when the establishment registration of mortgages on the mortgaged house is completed. |
| (2) | In the supplementary registration under Article 43-7 (2) of the Act, the phrases of "No restricted real right shall be established over this house and this house shall not be subject to any act that restricts the ownership, including seizure, provisional seizure, temporary disposition, lease, without consent of the Korea Housing Finance Corporation under the Korea Housing Finance Corporation Act" shall be stated. |
| (3) | A person who has used credit guarantees services shall, when he/she intends to cancel the supplementary registration under Article 43-7 (2) of the Act, obtain consent therefor from the Corporation: Provided, That where the principal and interests of the reverse annuity mortgage loans are fully repaid, he/she may cancel the supplementary registration without obtaining consent from the Corporation. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 28-7 (Guarantee fees, etc. for Reverse Annuity Mortgages) |
| (1) | "Rates prescribed by Presidential Decree" in Article 43-8 (1) of the Act means the rate of guarantee fees determined by the board of directors, considering the housing inflation rate, the interest rate for computation of annuity, death expectancy, and other relevant factors. |
| (2) | The "rates provided for by Presidential Decree" in Article 43-8 (2) of the Act means the rate of guarantee fees determined by the board of directors, considering the housing inflation rate, the interest rate for computation of annuity, death probability, and other relevant factors. |
| (3) | Where the board of directors determines the rate of initial guarantee fees and the rate of guarantee fees pursuant to paragraphs (1) and (2), it shall ensure that equity is maintained between the persons to whom the guarantee for reverse annuity mortgage is provided. |
| (4) | The initial guarantee fees and guarantee fees under Article 43-8 (1) and (2) of the Act shall be paid by the financial institution at the expense of the person who has used a credit guarantee service on the date prescribed by the contract of guarantee for reverse annuity mortgages to the Corporation. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 28-8 (Ceiling on Aggregate of Guarantee for Reverse Annuity Mortgages) |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 29 (Issuance of Student Loan-Backed Securities) |
Articles 14, 15, 17, 18 and 21 shall apply mutatis mutandis to student loan-backed securities issued by the Corporation. In such cases, "mortgage-backed claims" shall be construed as "student loan-backed claims," and "mortgage-backed securities" as "student loan-backed securities.“ [This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 30 (Entrustment of Business of Financial Services Commission) |
The Financial Services Commission may, in accordance with Article 44 of the Act, entrust all or part of any of the following business to the Governor of the Financial Supervisory Service: [This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 31 (Entrustment of Business of Corporation) |
| (1) | In accordance with Article 45 (7) of the Act, the Corporation may entrust business according to any of the following classifications to any person prescribed in the subparagraphs of paragraph (1) of the same Article: |
| (2) | Where the Corporation intends to entrust businesses pursuant to paragraph (1), it shall make a prior report to the Financial Services Commission. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 32 (Distribution of Earnings) |
Where the Minister of Strategy and Finance grants approval on the allotment of earnings for investors pursuant to Article 50 (1) 2 of the Act, the ratio of such distribution shall not exceed 15/100. [This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 33 (Methods of Creating Fund) |
| 1. | Borrowings from the Government; |
| 2. | Borrowings from foreign governments, international institutions, etc. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 34 (Uses of Fund) |
"Uses prescribed by Presidential Decree" in subparagraph 5 of Article 57 of the Act means any of the following subparagraphs: | 1. | Projects for advising and providing information on houses; |
| 2. | Projects for advising on business administration or techniques for a housing business entity, etc. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 35 (Management and Operation of Fund) |
| 1. | Purchasing state bonds, public bonds or other bonds whose payment is guaranteed by the Government; |
| 2. | Subscribing or purchasing stocks (including investment certificates), debentures or other securities: Provided, That this shall be limited to those approved by the Financial Services Commission. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 35-2 (Methods of Creating Accounts for Guarantee of Reverse Annuity Mortgages) |
| 1. | Borrowings from the Government; |
| 2. | Borrowings from foreign governments, international institutions, etc. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 35-3 (Uses of Account for Guarantee of Reverse Annuity Mortgage) |
"Uses prescribed by Presidential Decree" in subparagraph 6 of Article 59-4 of the Act means any of the following subparagraphs: | 1. | Providing counselling and support for a guarantee for reverse annuity mortgages; |
| 2. | Providing information on the safe use of reverse annuity mortgages and offering counselling and support for the stabilization of livelihood of persons who have used credit guarantee services. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 36 (Supervision for Sound Administration) |
| (2) | The Financial Services Commission may prescribe details necessary for the supervision under paragraph (1), including guidelines for business supervision. In such cases, the following matters shall be included in the guidelines for business supervision: |
| 1. | Matters on the appropriateness of capital; |
| 2. | Matters on the soundness of assets; |
| 3. | Matters on the securing of liquidity; |
| 4. | Other matters deemed necessary for securing soundness in business adminstration. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 37 (Inspection of Documents) |
When the Financial Services Commission entrusts affairs regarding inspection to the Governor of the Financial Supervisory Service in accordance with Article 61 (2) of the Act, such entrustment shall be made by documents stating the purposes and scope of inspection, etc. in detail. [This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 37-2 (Handling Personally Identifiable Information) |
The Financial Services Commission (including a person entrusted with duties of the Financial Services Commission pursuant to Article 61 (2) of the Act and Article 37 of this Decree) and the Corporation (including a person entrusted with duties of the Corporation pursuant to Article 45 of the Act and Article 31 of this Decree) may handle documents which include resident registration numbers, passport numbers, driver's license numbers, or alien registration numbers, pursuant to Article 19 of the Enforcement Decree of the Personal Information Protection Act, where it is inevitable to perform the following business: | 1. | Business concerning mortgage securitization and holding of bonds under Articles 22 (1) 1 and 2, 22-2, 23 through 25 (including cases applied mutatis mutandis under Article 46 (2) of the Act), 27, 29 and 30 (including cases applied mutatis mutandis under Article 46 (2) of the Act) and 36 (1) 1 of the Act; |
| 2. | Business concerning assessment and actual examination on housing mortgage-backed claims or student loan-backed claims under Article 22 (1) 5 of the Act; |
| 3. | Business concerning credit guarantee under Articles 22 (1) 7 and 37 of the Act; |
| 4. | Business concerning performance of credit guarantee obligations and exercise of the right to demand a reimbursement under Articles 22 (1) 8, 38 and 39 of the Act; |
| 5. | Business concerning guarantee of the reverse annuity mortgages under Articles 22 (1) 9 and 43-2 of the Act; |
| 6. | Business concerning performance of credit guarantee obligations for the reverse annuity mortgages and exercise of the right to demand a reimbursement under Articles 22 (1) 10, 43-3, 43-4, and 43-10 of the Act; |
| 7. | Business concerning takeover and holding of reverse annuity mortgages claims, and payment, etc. of annuities under Articles 22 (1) 11 and 43-5 of the Act; |
| 8. | Business concerning credit surveys and comprehensive management of credit information under Article 22 (1) 12 of the Act; |
| 9. | Business concerning investigation and research of housing finance, and collection and preparation of statistical data under Article 22 (1) 13 of the Act; |
| 10. | Business subject to that approved by the Financial Services Commission under the provisions of Article 22 (1) 1, 2, 5 and 7 through 13 of the Act; |
| 11. | Business concerning management, operation and disposal of mortgage-backed claims under Article 45 (1) of the Act (including cases applied mutatis mutandis under Article 46 (2) of the Act); |
| 12. | Business concerning issuance of student loan-backed securities under Article 46 (1) of the Act; |
| 13. | Business concerning supervision under Article 60 of the Act; |
| 14. | Business concerning submission of reports and examination on documents under Article 61 of the Act; |
| 15. | Business concerning requests for the provision of documents under Article 64 of the Act. |
[This Article Newly Inserted by Presidential Decree No. 23488, Jan. 6, 2012]
| Article 38 (Special Cases concerning Mortgage Loans for Smooth Securitization, etc.) |
"Cases prescribed by Presidential Decree" in Article 66 of the Act means cases where each of the following criteria might be satisfied even if the National Credit Union Federation of Korea under the Credit Unions Act provides the relevant mortgage loans: | 1. | The ratio of the loan amount received from a financial institution by putting up a house as a security to the price of such house; |
| 2. | The limit of loan, within 300 million won, for the house offered to a financial institution as a security; |
| 3. | The capacity of a person to repay debts who has loaned from a financial institution by putting up a house as a security, in view of his/her income level. |
[This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
| Article 39 Deleted. <by Presidential Decree No. 21172, Dec. 17, 2008> |
| Article 40 (Scope of Employees Deemed Public Officials in Application of Penalty Provisions) |
"Employees of the Corporation prescribed by Presidential Decree" in subparagraph 3 of Article 69 of the Act means employees of the Corporation who are deputy managers or higher in ranking. [This Article Wholly Amended by Presidential Decree No. 23873, Jun. 22, 2012]
ADDENDA
Article 1 (Enforcement Date)
This Decree shall enter into force on March 1, 2004.
Article 2 (Abrogation of Other Statutes)
The Enforcement Decree of the Act on the Assistance to Residential Stability and Lump Sum-Raising Savings of Workers shall be abrogated
Article 3 (Transitional Measures concerning Maximum Limit on Credit Guarantee)
| (1) | Where the sum of amount guaranteed or to be guaranteed by the Housing Finance Credit Guarantee Fund for the same person or the same corporation in accordance with Article 2 (1) of Addenda of the Amendment to the former Enforcement Decree of Act on the Assistance to Residential Stability and Lump Sum-Raising Savings of Workers, Presidential Decree No. 17225, exceeds the maximum limit of credit guarantee under Article 28 (2) 1 or 3 as at the time when this Decree enters into force, the sum guaranteed or to be guaranteed by the Housing Finance Credit Guarantee Fund in accordance with Article 24 (3) of the Enforcement Decree of the Act on Assistance to Residential Stability and Lump Sum-Raising Savings of Workers, prior to amendment by Presidential Decree No. 17225, shall be deemed the upper limit of credit guarantee, notwithstanding the provisions Article 28 (2) 1 or 3. |
| (2) | The same person or the same company that exceeds the ceiling on credit guarantees in accordance with paragraph (1), shall remove the excess ceiling for credit guarantee by Dec. 31, 2011 by reducing the amount for which credit guarantee services are provided, equivalent to 10/100 of the excess ceiling on credit guarantee every year, in order to conform to the ceiling on credit guarantees under Article 28 (2) 1 and 3. |
Article 4 Omitted.
Article 5 (Relation with Other Statutes)
| (1) | Any citation of the previous Enforcement Decree of the Act on the Assistance to Residential Stability and Lump Sum-Raising Savings of Workers or any provisions thereof by other Acts and subordinate statutes as at the time this Decree enters into force shall be deemed a citation of this Decree or the relevant provisions hereof in lieu of the previsous provisions, if such relevant provisions exist in this Decree. |
| (2) | Any citation of the Housing Finance Credit Guarantee Fund by other statutes as at the time this Decree enters into force shall be deemed a citation of the Housing Finance Credit Guarantee Fund under this Decree. |
ADDENDUM <Presidential Decree No. 18803, Apr. 27, 2005>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 18832, May 26, 2005>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 19327, Feb. 9, 2006>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 32 Omitted.
ADDENDUM <Presidential Decree No. 20002, Apr. 11, 2007>
This Decree shall enter into force on April 12, 2007.
ADDENDA <Presidential Decree No. 20653, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation: Provided, That of Presidential Decree which is amended under Article 2 of the Addenda, the amended part of Presidential Decree promulgated prior to this Decree enters into force, but its enforcement date has not arrived, shall enter into force on the relevant Presidential Decree respectively.
Article 2 Omitted.
ADDENDA <Presidential Decree No. 20947, Jul. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on February 4, 2009. (Proviso Omitted.)
Articles 2 through 28 Omitted.
ADDENDA <Presidential Decree No. 21172, Dec. 17, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures)
Notwithstanding the amended provisions of Article 28-7 (1) and (2), the previous provisions shall remain effective until the rate of guarantee fee is determined by the board of director pursuant to the amended provisions.
ADDENDUM <Presidential Decree No. 21315, Feb. 6, 2009>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 21420, Apr. 6, 2009>
This Decree shall enter into force on May 7, 2009: Provided, That the amended provision of Article 3-2 shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 21765, Oct. 1, 2009>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 23282, Nov. 1, 2011>
Article 1 (Enforcement Date)
This Decree shall enter into force on November 25, 2011. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Presidential Decree No. 23488, Jan. 6, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Article 2 Omitted.
ADDENDA <Presidential Decree No. 23873, Jun. 22, 2012>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability of Occasional Withdrawal Limit of Reverse Annuity Mortgage)
The amended provision of Article 3-2 (1) 3 shall also apply to guarantees for reverse annuity mortgages which have been provided in accordance with the previous provisions as at the time this Decree enters into force.
Article 3 (Special Cases concerning Maximum Limit on Credit Guarantee)
| (1) | Notwithstanding the amended provision of Article 28 (2) 3, the maximum limit for the total sum of credit guarantees provided and credit guarantees approved to be provided to an identical enterprise shall be 10/100 of financial resources for the aggregate of credit guarantees until December 31, 2012. |
| (2) | Where the total sum of credit guarantees provided and credit guarantees approved to be provided by the Corporation to an identical enterprise until December 31, 2012, within the maximum limit under paragraph (1) exceeds the maximum limit for credit guarantees under the amended provision of Article 28 (2) 3, the total sum of credit guarantees provided and credit guarantees approved to be provided by the Corporation under paragraph (1) shall be deemed the maximum limit of credit guarantees, notwithstanding the amended provision of Article 28 (2) 3. |
Article 4 (Transitional Measures concerning Maximum Limit on Credit Guarantee)
Where the amount of credit guarantee provided to an identical enterprise exceeds the maximum limit of credit guarantee under the amended provision of Article 28 (2) 3 as at the time this Decree enters into force, the amount of credit guarantee provided by the corporation in accordance with the previous provisions shall be deemed the maximum limit of credit guarantee, notwithstanding the amended provision of Article 28 (2) 3.
ADDENDA <Presidential Decree No. 24572, May 31, 2013>
Article 1 (Enforcement Date)
This Decree shall enter into force on June 1, 2013.
Article 2 (Period of Validity)
The amended provisions of Article 3-2 (1) 5 and the proviso to paragraph (2) of the same Article shall be effective until May 31, 2014.
Article 3 (Transitional Measures concerning Reverse Annuity Mortgage after Period of Validity)
The amended provisions of Article 3-2 (1) 5 and the proviso to paragraph (2) of the same Article shall apply to the reverse annuity mortgage which was purchased under the amended provisions of Article 3-2 (1) 5 and the proviso to paragraph (2) of the same Article until the termination of the contract of guarantee for reverse annuity mortgages even after the period of validity prescribed in Article 2 of the Addenda.
ADDENDUM <Presidential Decree No. 26177, Mar. 30, 2015>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 26487, Aug. 11, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Article 2 (Applicability to Exceptions to Credit Guarantee Liabilities for Reverse Annuity Mortgages)
The amended provisions of Article 28-2 (2) 2 through 6 shall also apply to guarantee for reverse annuity mortgages provided before this Decree enters into force.
ADDENDA <Presidential Decree No. 26763, Dec. 28, 2015>
Article 1 (Enforcement Date)
This Decree shall enter into force on Dec. 29, 2015.
Articles 2 through 10 Omitted
ADDENDUM <Presidential Decree No. 27101, Apr. 25, 2016>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 27444, Aug. 11, 2016>
Article 1 (Enforcement Date)
This Decree shall enter into force on Aug. 12, 2016.
Articles 2 through 8 Omitted
ADDENDA <Presidential Decree No. 28627, Feb. 9, 2018>
Article 1 (Enforcement Date)
This Decree shall enter into force on Feb. 9, 2018.
Articles 2 through 5 Omitted