Busan Metropolitan City Ordinance on the Urban Railroad Bond
- Article 1 (Purpose)
- The purpose of this Ordinance is to prescribe the matters necessary for issuing Busan Metropolitan City Railroad Bond for financing the construction and management of urban railroad enforced by Busan Metropolitan City under Article 11 and 12 of the Urban Railroad Act and Article 9 of the Enforcement Decree of the Urban Railroad Act.
- Article 2 (Issuance and Registration of Urban Railroad Bond)(1) The Mayor of Busan Metropolitan City (hereinafter referred to as “the Mayor”) shall issue the Urban Railroad Bond after a resolution by the Busan Metropolitan Counsel.
- (2) Necessary matters concerning the issuance and the registration method of the Urban Railroad Bond and its procedure, etc shall be prescribed by the rule of Busan Metropolitan City.
- Article 3 (Purchase Subject and Amount of the Urban Railroad Bond)(1) The attached Table 2 of the Enforcement Decree of the Urban Railroad Act shall apply to the purchase subject and the amount of the Urban Railroad Bond: Provided, That if the persons newly register nonbusiness passenger cars which the number of persons aboard is under six or conclude a contract for any construction work, any of the following subparagraphs shall be applied:
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- 1. The persons who newly register motor vehicles with engines above 1,000cc among nonbusiness passenger cars which the number of persons aboard is under six(excluding multipurpose motor vehicles) shall purchase 7/100 of the tax base amount of registration tax;
- 2. The person who conclude a contract for urban railroad construction works shall purchase 5/100 of the amount of the contract of such construction work;
- 3. The persons who conclude a contract for any construction work other than the urban railroad construction work shall purchase 2/100 of the amount of contract of such construction work: Provided, That the persons who conclude a contract for any construction work where the amount of contract is under 10 million won and who purchase the local development bond under the Busan Metropolitan City Ordinance on the Local Development Fund shall not purchase the Urban Railroad Bond under this Ordinance; and
- 4. The persons who conclude a contract for service and a contract for the purchase of goods (excluding the unit contract goods managed by the Administrator of Public Procurement Service and the goods purchased through global bidding) shall purchase 2/100 of the amount of contract.
- (2) The attached Table 2 of the Enforcement Decree of the Urban Railroad Act and Article 4 and 5 of the Rule on Handling Purchase Business of the Urban Railroad Bond shall apply mutatis mutandis to the exemption from purchase duty of the Urban Railroad Bond.
- Article 4 (Repayment of the Urban Railroad Bond and its Interest Rate)(1) The principal and interest of the Urban Railroad Bond shall be repaid with a 5-year grace period, and the interest rate shall compound 2.5 percents per year.
- (2) The issuance date shall be the last day of the month belonging to the sale date: Provided, That the interest from the actual sale date to the previous day of the issuance date shall be paid on the sale date.
- Article 5 (Issuance of the Urban Railroad Bond and Vicarious Execution of Repayment Work)
- The Mayor may has the Busan Transportation Corporation execute the issuance of the Urban Railroad Bond and the repayment work on his/her behalf.
