Busan Metropolitan City Ordinance on the Issuance of Indemnity Bond for the Land of Public Use
- Article 1 (Purpose)
- The purpose of this Ordinance is to prescribe such matters as the issuance of Busan Metropolitan City Indemnity Bond for the Land of Public Use (hereinafter referred to as the "Indemnity Bond") to compensate the loss of land and etc. owners resulting from the acquisition or usage of land for public works executed by Busan Metropolitan City.
- Article 2(Businesses Subject to the Issuance of Indemnity Bond) Businesses subject to the issuance of Indemnity Bond shall be any of the subparagraphs.
- 1. Road, parking lot, bridge, river, water supply, sewerage and works related to disaster prevention that the Mayor of Busan Metropolitan City(hereinafter referred to as the "Mayor") establishes
- 2. Government building, plant, research institute, laboratory, public health center, culture center, park, square, sports ground, city cemetery, crematorium, slaughterhouseand other public facilities that the Mayor establishes
- 3. Housing constructionand housing site development that the Mayor establishes Article 3(Limitations to the Issuance of Indemnity Bond) The line of credit for the Indemnity Bond shall be set in the Municipal Rule after obtaining the favorable vote of the Busan Metropolitan Council (hereinafter referred to as the "Council") within the range the Minister of Government Administration and Home Affairs approved.
- Article 4(Types and Face Value of Indemnity Bond)
- ① Indemnity Bond shall be issued as either a registered bond or a bearer bond.
- ② Types and amount of face value of Indemnity Bond prescribed in Paragraph 1 shall be determined by the Municipal Rule.
- Article 5(Issuing Price of Indemnity Bond) The issuing price of the Indemnity Bond shall be the face value.
- Article 6(Method of Issuance and Terms of Indemnity Bond)
- ① The Indemnity Bond is issued to the owner of land and etc. instead of compensation payment.
- ② The issuing term of the Indemnity Bond shall be determined by the Municipal Rule.
- Article 7(Repayment of Principal and Interest of Indemnity Bond)
- ① The period of redemption and the interest rate according to the repayment of principal and interest of Indemnity Bond shall be set in the Municipal Rule within the range the Council approves of. In this case, the period of redemption shall be no more than 5 years and the interest rate shall be more than the one-year fixed deposit interest rate at the time of issuance.
- ②bond, and the interest shall be paid with the principal. Interest shall not accrue after the date of redemption. Early redemption of the principal
- ③Early redemption of the principal and interest of the Indemnity Bond may be ③ permitted when necessary.
- Article 8(Entrustment of Issuing Indemnity Bond and Redemption Business)
- Businesses concerning the issuance of Indemnity Bond and redemption of the principal and interest of the Indemnity Bond may be entrusted to financial institutions located in Busan Metropolitan City.
- Article 9(Re-issuance of Indemnity Bond)
- ① Lost Indemnity Bonds due to destruction or theft shall not be reissued. However, re-issuance is allowed when there is evident reason such as damage, defacement and other equivalent reason.
- ② Indemnity Bonds that are not reissuable pursuant to Paragraph1 may become ineffective by public summons.
- ③The creditors of Indemnity Bonds pursuant to Paragraph 2 shall not demand the redemption of the principal and interest of the Indemnity Bond if they do not have a nullification judgment from the court.
- Article 10(Usage of Indemnity Bond as Deposit Money, etc.) Indemnity Bond may be used as deposit money or collateral before the maturity of redemption date.
- Article 11(Issuance of Exchange Ticket for Indemnity Bond)
- ① The Mayor may issue exchange tickets for Indemnity Bonds that can substitute the bonds until they are printed if there exists inevitable reason.
- ② The exchange ticketspursuant to Paragraph 1 shall be exchanged within the stated exchange period printed on those tickets and such period shall be no more than 4 months from the issuance date of tickets.
- Article 12(Extinctive Prescription) The extinctive prescription of the claim for principal and interest of the Indemnity Bond shall comply with Article 8, Paragraph 2 of the Local Finance Act.
- Article 13(Municipal Rule) Necessary matters for the enforcement of this Ordinance shall be prescribed in a Municipal Rule.
