신탁법

Article 1Purpose

The purpose of this Act is to provide for the legal relations on the trust in private laws.

Article 2Definition of Trust

The term "trust" used in this Act means a legal relation that a person who creates a trust (hereinafter referred to as "truster") transfers a specific piece of property (including part of business or an intellectual property right) to a person who accepts the trust (hereinafter referred to as "trustee"), establishes a security right or makes any other disposition, and requires the trustee to manage, dispose of, operate, or develop such property or engage in other necessary conduct to fulfill the purpose of the trust, for the benefit of a specific person (hereinafter referred to as "beneficiary") or for a specific purpose, based on a confidence relation between the truster and the trustee.

Article 3Creation of Trust

(1) A trust may be created in any of the following manners: Provided, That a trust for a specific purpose without any beneficiary (hereinafter referred to as "purpose trust"), shall not be created in the manner prescribed in subparagraph 3, except for public trusts prescribed in the Public Trust Act: <Amended by Act No. 12420, Mar. 18, 2014>1. A contract between the truster and the trustee;

2. The will of the truster;

3. Declaration of the truster in which the truster has specified the purpose of the trust, trust property, beneficiary (referring to a trust administrator under Article 67 (1) in cases of a public trust prescribed in the Public Trust Act), etc. and has designated himself/herself as the trustee.

(2) A trust under paragraph (1) 3 shall be created by means of a notarial deed except for public trusts prescribed in the Public Trust Act, and no right to cancel the trust may be withheld. <Amended by Act No. 12420, Mar. 18, 2014>(3) Where a truster creates a trust under paragraph (1) 3 for the evasion of execution or for any other fraudulent purpose, an interested person may request the court for the termination of the trust.

(4) A truster may specify, by means of a deed of trust, the trust property by granting the authority to designate trust property to the trustee or beneficiary.

(5) Unless otherwise prescribed in the deed of trust, a trustee may create a trust on trust property for another person upon obtaining the consent from the beneficiary if necessary to fulfill the purpose of the trust.

Article 4Public Notification of, and Opposition to, Trust

(1) With respect to any property right that can be registered, the fact that the property belongs to trust property may contest against a third person by completing a registration thereof.

(2) With respect to any property right that cannot be registered, the fact that the property belongs to trust property may contest against a third person upon indicating that such property right is the trust property by means of the management, etc. of such property right separately from other property.

(3) When no registry of a property right referred to in paragraph (1) exists, such property right shall be deemed a property right that cannot be registered.

(4) In indicating that a piece of property is the trust property pursuant to paragraph (2), such indication may be also made by indicating such fact on a book prescribed by Presidential Decree.

Article 5Restrictions on Purposes

(1) A trust shall be null and void if its purpose is contrary to the good public morals or other social order.

(2) A trust shall be null and void if its purpose is illegal or cannot be fulfilled.

(3) Where a part of the purpose of a trust falls under paragraph (1) or (2), such trust shall be effective only for the remaining part that does not fall under paragraph (1) or (2): Provided, That if it is impossible to separate the part of the purpose that falls under paragraph (1) or (2) from the part other than that, or if maintaining the trust only for the remaining purpose is obviously contrary to the intention of the truster even if the purpose of the trust is separable, the trust shall become null and void in whole.

Article 6Prohibition of Trust Aimed at Lawsuit

Any trust, the main purpose of which is to have the trustee to proceed with litigation, shall be null and void.

Article 7Prohibition of Trusts Aimed at Evasion of Law

Anyone who is not entitled to enjoy a specified property right pursuant to statutes shall not enjoy, as a beneficiary, the same benefit as he/she has such right.

Article 8Fraudulent Trusts

(1) If an obligor has created a trust knowing that it would be prejudicial to an obligee, the obligee may claim for the cancellation and reinstatement, as prescribed in Article 406 (1) of the Civil Act, against the trustee or beneficiary, even if the trustee has acted in good faith: Provided, That the same shall not apply where the beneficiary has not been aware of prejudicing the obligee as at the time he/she acquired the right to benefit.

(2) In cases falling under the proviso to paragraph (1), where some beneficiaries have not been aware of prejudicing an obligee as at the time they acquired the right to benefit, the obligee may claim for the cancellation and reinstatement as prescribed in the main sentence of paragraph (1) only against the beneficiaries in bad faith.

(3) In cases falling under the main sentence of paragraph (1), the obligee may claim for reinstatement against beneficiaries in good faith to the extent of existing trust property.

(4) Where a trust is canceled and the trust property is reinstated, the truster shall, with respect to the cancelled trust, be responsible to the third person in good faith who has conducted a transaction with the trustee of the relevant trust to the extent of the trust property so reinstated.

(5) An obligee may request a beneficiary in bad faith to transfer the right to benefit he/she has acquired to the truster. In such cases, Article 406 (2) of the Civil Act shall apply mutatis mutandis.

(6) A beneficiary or trustee who has colluded in a fraudulent trust or abetted or aided the truster in creating a fraudulent trust in cases falling under paragraph (1) shall, jointly and severally with the truster, be liable for the compensation for the loss suffered by the obligee therefrom.

Article 9Rights of Trusters

(1) By a deed of trust, the purport that all or some of trusters would not have all or some of the rights of trusters under this Act may be prescribed.

(2) In cases of a purpose trust, no right of a truster under this Act may be restricted by a deed of trust, notwithstanding paragraph (1).

Article 10Transfer of Status of Truster

(1) The status of a truster may be transferred to a third person by the method prescribed by a deed of trust.

(2) Where no method of transfer under paragraph (1) has been prescribed, the status of a truster may be transferred to a third person upon obtaining consent from the trustee and beneficiary. In such cases, if a number of trusters exist, consent from other trusters shall be also obtained.

(3) Where a trust is created pursuant to Article 3 (1) 2, the heir of a truster shall not inherit the status of the truster: Provided, That the deed of trust shall govern if it prescribes otherwise.

Article 11Fiduciary Capacity

No minor, incompetent or quasi-incompetent, or no one declared bankrupt, shall be a trustee.

Article 12Termination of Duties of Trustees

(1) The duties of a trustee shall be terminated, if:

1. The trustee dies;

2. The trustee is declared incompetent or quasi-incompetent;

3. The trustee is declared bankrupt;

4. The corporate trustee is dissolved on the grounds, other than the merger.

(2) Where the duties of a trustee are terminated pursuant to paragraph (1) 1, 2 or 4, the heir, legal representative or liquidator of the trustee shall immediately notify the beneficiary of such termination.

(3) Where the duties of a trustee are terminated pursuant to paragraph (1) 3, the trustee shall notify the relevant fact as follows:

1. To the beneficiary: The fact that the duties of the trustee have been terminated;

2. To the administrator in bankruptcy: Matters concerning the trust property.

(4) Where the duties of a trustee are terminated pursuant to paragraph (1) 1, 2 or 4, the heir, legal representative or liquidator of the trustee shall take custody of the trust property and engage in conduct necessary for handing over the trust affairs, until a new trustee or administrator of trust property becomes able to perform the trust affairs, and immediately notify the beneficiary of such fact.

(5) Where a corporate trustee merges with another corporation, a corporation established in the course of the merger or a corporation surviving the merger shall continue to have the rights and duties of the trustee. Where a corporate trustee is split-off, the same shall also apply to a corporation designated as the trustee by the split-off.

Article 13Termination of Duties of Trustee Prescribed by Deed of Trust

(1) The duties of a trustee shall be terminated, if a ground for termination of his/her duties prescribed by the deed of trust arises or if he/she loses a specified qualification prescribed by the deed of trust arises.

(2) A trustee whose duties are terminated pursuant to paragraph (1) shall immediately notify the beneficiary of such termination.

Article 14Termination of Duties of Trustee by Resignation

(1) No trustee may resign his/her post without the consent of the beneficiary and the truster, unless otherwise prescribed by the deed of trust.

(2) Notwithstanding paragraph (1), a trustee may resign his/her post with approval from the court for a justified ground.

(3) A trustee who has resigned his/her post shall immediately notify the beneficiary of such resignation.

Article 15Status of Trustee whose Duties are Terminated

A trustee whose duties are terminated pursuant to Article 13 (1) or 14 (1) shall continue to have the rights and obligations of the trustee until a new trustee or administrator of trust property becomes able to perform the trust affairs.

Article 16Termination of Duties of Trustee by Dismissal

(1) The truster and the beneficiary may, by agreement or at the sole discretion of the beneficiary if no truster exists, dismiss the trustee at any time: Provided, That the deed of trust shall govern if it prescribes otherwise.

(2) A person who dismisses a trustee pursuant to paragraph (1) without any justified ground at the time disadvantageous to the trustee shall compensate for losses.

(3) Where a trustee engages in a conduct in violation of his/her duties or where any other gross cause arises, the truster or beneficiary may request the court to dismiss the trustee.

(4) A trustee who is dismissed at the request made pursuant to paragraph (3) shall immediately notify the beneficiary of such dismissal.

(5) A trustee who is dismissed shall take custody of the trust property and engage in conduct necessary for handing over the trust affairs, until a new trustee or administrator of trust property becomes able to perform the trust affairs: Provided, That the same shall not apply to a trustee who has been dismissed for a violation of his/her duties.

Article 17Disposition for Appointment, etc. of Administrator of Trust Property

(1) Where the duties of a trustee are terminated or where it is inappropriate for a trustee to perform the trust affairs due to a conflict of interests between the trustee and the beneficiary, the court may order the appointment of an administrator of trust property or other necessary dispositions upon request of an interested person. The same shall also apply where another trustee exists.

(2) Where an administrator of trust property is appointed under paragraph (1), the court may decide on the matters that he/she is obliged to obtain permission from the court.

(3) An administrator of trust property appointed under paragraph (1) shall immediately notify the beneficiary of such appointment.

(4) An administrator of trust property shall have the same rights and duties with the trustee within the extent for which he/she is appointed: Provided, That the same shall not apply to the matters subjected to permission of the court under paragraph (2).

(5) Where an administrator of trust property is appointed under paragraph (1), he/she shall be a party to a litigation concerning the trust property.

(6) The court may, if necessary, pay from the trust property reasonable remuneration to an administrator of trust property appointed under paragraph (1).

Article 18Appointment of Indispensable Administrator of Trust Property

(1) Where a new trustee has not been appointed or no other trustee exists in any of the following cases, the court shall appoint an administrator of trust property to take custody of the trust property and engage in conduct necessary for handing over the trust affairs:

1. Where an administrator of inherited property has been appointed under Article 1053 (1) of the Civil Act following the death of the trustee;

2. Where the trustee has been declared bankrupt;

3. Where the trustee has resigned from his/her post with permission from the court or has been dismissed by the court for a violation of his/her duties.

(2) Where adjudication on the appointment of an administrator of inherited property, declaration of bankruptcy, permission for resignation or dismissal of a trustee is made in cases falling under any subparagraph of paragraph (1), the court shall appoint an administrator of trust property simultaneously with such adjudication.

(3) Article 17 (3), (5) and (6) shall apply mutatis mutandis to the duty to give notice, qualifications and remuneration for an appointed administrator of trust property.

Article 19Termination of Duties of Administrator of Trust Property

(1) The duties of an administrator of trust property shall terminate, if a new trustee is appointed or if no interests of the trustee and the beneficiary conflict any longer.

(2) An administrator of trust property may resign from his/her post with permission from the court.

(3) The court may dismiss an administrator of trust property upon request of an interested person.

(4) The court shall appoint a new administrator of trust property simultaneously with making the decision referred to in paragraph (2) or (3).

Article 20Public Announcement and Registration of Administrator of Trust Property

(1) In any of the following cases, the court shall publicly announce its intent and request ex officio without delay the registration of such intent concerning the registered trust property:

1. Where an administrator of trust property is appointed or any other necessary disposition is ordered under Article 17 (1);

2. Where an administrator of trust property is appointed under Article 18 (1);

3. Where the resignation of an administrator of trust property is determined under Article 19 (2);

4. Where the dismissal of an administrator of trust property is determined under Article 19 (3).

(2) Where the duties of an administrator of trust property are terminated under Article 19 (1), the court shall request the cancellation of registration under paragraph (1) upon request of the new trustee or the trustee who no longer has conflicting interest.

(3) Where the registration under paragraph (1) or (2) is completed differently from the truth intentionally or by negligence, the relevant administrator of trust property or trustee shall not contest against any third person in good faith with the fact that is different from the registration.

Article 21Appointment of New Trustee

(1) Where the duties of a trustee have been terminated, the truster and the beneficiary may, by agreement or at the sole discretion of the beneficiary if no truster exists, appoint a new trustee: Provided, That the deed of trust shall govern if it prescribes otherwise.

(2) Where no agreement has been reached between the truster and the beneficiary on the appointment of a new trustee, an interested person may request the court to appoint a new trustee.

(3) Paragraph (1) and (2) shall apply mutatis mutandis where a person designated as a trustee by a will fails to, or is unable to, take charge of the trust.

(4) The court may, if necessary, pay from the trust property reasonable remuneration to a trustee appointed under paragraph (2) (including cases applicable mutatis mutandis under paragraph (3)).

Article 22Prohibition of Compulsory Execution

(1) No compulsory execution or auction for exercise, etc. of security rights, conservative measure (hereinafter referred to as "compulsory execution, etc.") or disposition of default on national taxes, etc. may be made against any trust property: Provided, That the same shall not apply where it is based on any right arisen by a cause existing prior to the creation of a trust, or in the course of performing trust affairs.

(2) A truster, beneficiary or trustee may raise an objection against any compulsory execution, etc. made in violation of paragraph (1). In such cases, Article 48 of the Civil Execution Act shall apply mutatis mutandis.

(3) A truster, beneficiary or trustee may raise an objection against the disposition of default on national taxes, etc. made in violation of paragraph (1). In such cases, procedures for raising an objection against the disposition of default on national taxes, etc. shall apply mutatis mutandis.

Article 23Death of Trustee and Trust Property

No trust property shall belong to the inherited property of a trustee, nor becomes an object of division of property following divorce of a trustee.

Article 24Bankruptcy of Trustee and Trust Property

No trust property shall constitute the bankruptcy foundation for the trustee, or obligor's property or personal rehabilitation foundation for obligor, the authority of management or disposal of which is held by the administrator of rehabilitation procedure.

Article 25Prohibition of Set-Off

(1) A claim belonging to the trust property and a debt not belonging to the trust property shall not offset each other: Provided, That the same shall not apply where a third person has been in good faith and has not been negligent in that both the claim and the debt do not belong to the same trust property.

(2) Where any liability for a debt belonging to trust property is limited to the trust property, a claim not belonging to the trust property and a debt belonging to the trust property shall not offset each other: Provided, That the same shall not apply where a third person has been in good faith and has not been negligent in that both the claim and the debt do not belong to the same trust property.

Article 26Special Provisions concerning Confusion over Trust Property

No rights shall be extinguished by confusion, if:

1. The ownership and any other real right to one and the same thing devolves respectively on the trust property and the inherent property, or to each different piece of trust property;

2. A real right, other than ownership, and a right aimed thereat devolves respectively on the trust property and the inherent property, or to each different piece of trust property;

3. A debt against the trust property devolves on the trustee or where a claim against the trustee devolves on the trust property.

Article 27Scope of Trust Property

Property acquired by a trustee by the management, disposal, operation, development, or demolition of the trust property or other grounds shall belong to the trust property.

Article 28Adjunction to Trust Property

@Articles 256 through 261 of the Civil Act shall apply mutatis mutandis to any adjunction, mixture or fabrication among things belonging to the trust property, inherent property or each different piece of trust property deeming that it belongs respectively to each different owners: Provided, That if a fabricator is in bad faith, the court may devolve the thing created by the fabrication on the owner of the raw materials, even if the increment of the value by such fabrication exceeds the value of the raw materials.

Article 29Presumption of Devolvement of Trust Property

(1) Where the relationship of devolvement between trust property and inherent property is indistinguishable, the relevant property shall be presumed to belong to the trust property.

(2) Where the relationship of devolvement between each different piece of trust property is indistinguishable, the relevant property shall be presumed to devolve equally on each trust property.

Article 30Succession of Fault in Possession

The trustee shall succeed to any fault in possession of the truster with respect to the possession of trust property.

Article 31Authority of Trustee

A trustee shall, as the subject to whom the rights and duties concerning the trust property belongs, have the authority to perform the management, disposal, etc. of trust property and to engage in all conduct necessary to fulfill the purpose of the trust: Provided, That such authority may be restricted by the deed of trust.

Article 32Duty of Trustee for Due Fiduciary Care

A trustee shall perform trust affairs with due fiduciary care as required of a good administrator: Provided, That the deed of trust shall govern if it prescribes otherwise.

Article 33Duty of Loyalty

A trustee shall perform trust affairs solely in the interests of the beneficiaries.

Article 34Prohibition of Conduct against Interests

(1) No trustee shall engage in any of the following conducts in whosoever’s name:

1. Converting the trust property to the inherent property or devolving the right to the trust property on the inherent property;

2. Converting the inherent property to the trust property or devolving the right to the inherent property on the trust property;

3. Devolving one of the trust property or the right thereto on the trust property of other trust, where a number of trusts are taken charge of;

4. Representing a third person in a conduct concerning a third person's trust property;

5. Other conduct against the interest of the beneficiary.

(2) Notwithstanding paragraph (1), a trustee may, in any of the following cases, engage in the conduct prescribed in the subparagraphs of paragraph (1): Provided, That in cases falling under subparagraph 3, a trustee shall notify the beneficiary of the relevant fact simultaneously with applying for permission to the court:

1. Where it is permitted by the deed of trust;

2. Where the fact related to such conduct is notified to, and the approval thereof is obtained from, the beneficiary;

3. Where permission is obtained from the court.

(3) Notwithstanding paragraph (1), a beneficiary may comprehensively succeed to the right to trust property unless it is based on the intention of the trustee, such as inheritance. In such cases, Article 26 shall apply mutatis mutandis to confusion over the relevant property.

Article 35Duty of Impartiality

Where a number of beneficiaries exist, the trustee shall impartially perform the trust affairs for each beneficiary: Provided, That the deed of trust shall govern if it prescribes otherwise.

Article 36Prohibition against Enjoyment of Benefit by Trustee

No trustee may enjoy any benefit of the trust in whosoever’s name: Provided, That the same shall not apply where the trustee is one of the joint beneficiaries.

Article 37Duty of Trustee for Separate Management

(1) A trustee shall manage the trust property separately from his/her inherent property and indicate the fact that it is trust property.

(2) A trustee who has taken charge of a number of trusts shall separately mange each piece of trust property and indicate that each piece of trust property is different from each other.

(3) Where the trust property under paragraph (1) or (2) is money or any other substitute, it may be managed separately by ensuring the clear management of relevant accounting.

Article 38Limited Liability

A trustee shall be liable for the debt to the beneficiary incurred by the deed of trust, only by the trust property.

Article 39Duty to Prepare, Preserve and Keep Documents, including Books

(1) A trustee shall keep books and other documents related to the trust affairs and ensure the clear performance and accounting of the affairs pertaining to each trust.

(2) A trustee shall prepare a list of property of each trust at the time he/she takes charge of the trust, and at a fixed time once each year: Provided, That the deed of trust shall govern if it prescribes otherwise concerning the timing of preparation.

(3) A trustee shall preserve the books, lists of property and other documents referred to in paragraphs (1) and (2) for a period prescribed by Presidential Decree.

(4) Where books, lists of property and other documents are preserved pursuant to paragraph (3), the method of preservation and other necessary matters shall be prescribed by Presidential Decree.

Article 40Inspection of Documents

(1) A truster or beneficiary may request an inspection or reproduction of the books and other documents pertaining to, or seek an explanation on, the performance or the accounting of the trust affairs, from the trustee or administrator of trust property.

(2) Any interested person, other than the truster or beneficiary, may request an inspection or reproduction of the books and other documents pertaining to the accounting of the trust affairs, such as a list of property of the trust, from the trustee or administrator of trust property.

Article 41Method of Managing Money

Money belonging to the trust property shall be managed in the following manner, unless otherwise expressly prescribed by the deed of trust:

1. Subscription for, underwriting or purchase of, national or local bonds, or debentures of a corporation incorporated under the special Acts;

2. Loans secured by a national bond, or other securities referred to in subparagraph 1;

3. Bank deposits or postal savings.

Article 42Delegation of Trust Affairs

(1) With the consent of the beneficiary, a trustee may require another person to perform the trust affairs on behalf of himself/herself for a justified ground: Provided, That the deed of trust shall govern if it prescribes otherwise.

(2) A trustee shall be liable only for the appointment and supervision in cases falling under the main sentence of paragraph (1). The same shall also apply where the deed of trust stipulates that the trust affairs be performed by another person.

(3) Any person who performs the trust affairs on behalf of a trustee shall bear the same liability as the trustee.

Article 43Trustees’ Duty to Reinstate

(1) Where a trustee has violated his/her duties incurring any loss to the trust property, the truster, beneficiary, or other trusters where a number of trustees exist, may request the relevant trustee to reinstate the trust property: Provided, That where it is impossible or substantially impracticable to reinstate the trust property, or excessive expenses are incurred in such reinstatement, or where any special ground exists making reinstatement inappropriate, a claim for damages may be raised.

(2) Paragraph (1) shall also apply where any change occurs to the trust property due to a violation of duty by the trustee.

(3) Where a trustee has violated any duty prescribed in Articles 33 through 37, he/she shall return all the benefit acquired therefrom by himself/herself or a third person to the trust property, even if no loss has incurred to the trust property.

Article 44Special Provisions on Violation of Duty of Separate Management

Where a trustee incurs any loss to the trust property due to a violation of the duty of separate management prescribed in Article 37, the trustee shall not be exempted from the responsibilities, unless he/she proves that the loss must have been incurred even if he/she managed it separately.

Article 45Responsibilities of Directors of Trustee Corporation

If a trustee corporation takes the responsibility pursuant to Article 43 or 44, a director or equivalent person who has involved in the violation of duty that is causative of the liability shall assume a joint and several responsibility therefor.

Article 46Rights to Claim Reimbursement of Expenses

(1) A trustee may pay expenses incurred in relation to the performance of trust affairs from the trust property.

(2) Where a trustee has paid expenses incurred in relation to the performance of trust affairs from the inherent property, he/she may be reimbursed for the expenses paid and the interest accrued from the date of payment.

(3) Paragraphs (1) and (2) shall also apply where a trustee bears a debt or suffers a loss, without his/her own negligence, for the performance of trust affairs.

(4) When trust property is likely to be insufficient to appropriate expenses incurred in relation to the performance of trust affairs, the trustee may request the beneficiary to pay the expenses or to provide a security corresponding thereto within the extent of the benefit he/she has acquired: Provided, That the same shall not apply where no beneficiary is specified or exists, or where the beneficiary renounces the right to benefit.

(5) Paragraph (4) shall also apply where trust property is insufficient for indemnifying a loss that a trustee suffers, without his/her negligence, for the performance of trust affairs.

(6) Where a deed of trust prescribes otherwise concerning the matters prescribed in paragraphs (1) through (5), such matters shall be governed by the deed of trust.

Article 47Rights to Claim Remuneration

(1) A trustee shall be entitled to remuneration only if the deed of trust prescribes to pay it: Provided, That a trustee who conducts a trust business shall be entitled to remuneration even where no expression provisions thereon are stipulated by the deed of trust.

(2) Where no amount of remuneration or the method of calculation is determined, a trustee may receive a reasonable amount of remuneration in the light of the nature and details of trust affairs.

(3) Where the remuneration referred to in paragraph (1) becomes unreasonable in the light of the nature and details of trust affairs due to a change in circumstances, the court may, upon request of the truster, beneficiary or trustee, increase or decrease the remuneration for the trustee.

(4) Article 46 (4) shall apply mutatis mutandis to remuneration for a trustee: Provided, That the deed of trust shall govern, if it prescribes otherwise.

Article 48Preferential Payment Rights for Rights to Claim Reimbursement of Expenses

(1) In civil execution proceedings or in proceedings for public sale under the National Tax Collection Act with respect to trust property, a trustee shall have the right to be reimbursed for expenses or profitable expenses incurred in the preservation or improvement of trust property in accordance with the purpose of the trust, in preference to the beneficiary or any other obligee.

(2) Based on the right to claim the reimbursement of expenses under Article 46 or the right to claim remuneration under Article 47, a trustee may sell trust property and appropriate proceeds therefrom for appropriating the settlement of claims: Provided, That the same shall not apply if the purpose of the trust becomes unachievable through the sale of the trust property or if any probable cause exists.

Article 49Requirements for Exercise of Rights

No trustee shall be entitled to exercise his/her right prescribed in Article 46 or 47, unless he/she performs his/her duty to reinstate trust property, etc. under Article 43 or 44.

Article 50Joint Trustees

(1) If a number of trustees exist, the trust property shall be under their partnership-ownership.

(2) In cases falling under paragraph (1), if a duty of a person among trustees terminates, the trust property shall naturally devolves on other trustees.

(3) In cases falling under paragraph (1), the trust affairs shall be performed jointly by trustees unless otherwise prescribed by a deed of trust: Provided, That any preservation act may be done individually.

(4) Where a number of trustees exist, any declaration of intention made to one trustee shall also have the same effect to other trustees.

(5) Where a number of trustees exist, a trustee to perform the duties of other trustees on behalf of them may be appointed by a deed of trust.

Article 51Joint and Several Liability of Joint Trustees

(1) Where a number of trustees exist, they shall be jointly and severally liable to pay the debt to a third person relating to the performance of trust affairs.

(2) Where a number of trustees exist, the trustees who have not been involved in a violation of duty shall not be liable for bearing a debt incurred in relation to the violation by some trustees: Provided, That the same shall not apply if they fail to take reasonable measures to deter such violation of duty committed by other trustees.

Article 52Rights of New Trustees, etc. to Claim Reinstatement

A new trustee or an administrator of trust property shall also be entitled to exercise the right prescribed in Article 43.

Article 53Succession of Liabilities by New Trustee

(1) Where a trustee is replaced, the new trustee shall succeed to the debt incurred by the former trustee to the beneficiary by the deed of trust. If a number of trustees exist, the same shall also apply where some of them are replaced.

(2) Any claim arising in relation to the performance of trust affairs may also be exercised to the new trustee within the limits of the trust property.

(3) The proceedings for compulsory execution, etc. or for disposition of default on national taxes, etc. against trust property under the proviso to Article 22 (1) may be continuously processed against a new trustee.

Article 54Preferential Payment Rights of Former Trustees

(1) Articles 48 (1) and 49 shall apply mutatis mutandis to the preferential payment right of a former trustee.

(2) A former trustee may retain trust property until he/she receives the payment for claims based on the right to claim under Article 46.

Article 55Transfer of Affairs

(1) When a trustee is replaced, the former trustee and other related persons shall conduct accounting of the trust affairs and transfer the affairs to a new trustee in the presence of the beneficiary.

(2) Where a beneficiary approves the accounting referred to in paragraph (1), the liabilities of the former trustee or other related persons against the beneficiary shall be deemed exempted: Provided, That the same shall not apply where there has been any misconduct.

Article 56Acquisition of Rights to Benefit

(1) A person designated as a beneficiary as prescribed by a deed of trust (including a person designated as a beneficiary pursuant to Article 58 (1) or (2)) shall naturally acquire the right to benefit: Provided, That the deed of trust shall govern, if it prescribes otherwise.

(2) A trustee shall, without delay, notify a person designated as a beneficiary under paragraph (1) of the designation: Provided, That the timing of the notification may be otherwise prescribed by a deed of trust except in cases where any burden is laid on the right to benefit.

Article 57Renunciation of Rights to Benefit

(1) A beneficiary may declare to the trustee his/her intention to renounce the right to benefit.

(2) Where a beneficiary declares his/her intention to renounce the right to benefit under paragraph (1), he/she shall be deemed to have had no right to benefit originally: Provided, That such declaration shall not infringe on any third person's right.

Article 58Rights, etc, to Designate Beneficiaries

(1) A person who has the right to designate or replace a beneficiary (hereinafter referred to as "right to designate a beneficiary, etc.") may be prescribed by a deed of trust.

(2) A person with the right to designate a beneficiary, etc. may exercise his/her right by means of declaration of his/her intention or a will to a trustee.

(3) Where the right to designate a beneficiary, etc. was exercised by a will and the trustee has not been aware of such fact, a person who has become the beneficiary thereby shall not contest against the trustee with such fact.

(4) Where a beneficiary has lost the right to benefit due to the exercise of the right to replace a beneficiary, the trustee shall, without delay, notify the person who has lost the right to benefit of such fact: Provided, That the deed of trust shall govern if it prescribes otherwise.

(5) No right to designate a beneficiary, etc. shall be inherited unless otherwise prescribed by the deed of trust.

Article 59Trusts as Will Substitutes

(1) The truster shall have the right to replace the beneficiary of any of the following trusts: Provided, That the deed of trust shall govern, if it prescribes otherwise:

1. A trust under which a person would be designated as a beneficiary acquires the right to benefit at the time the trustee dies;

2. A trust under which the beneficiary receives a benefit on the basis of trust property after the death of the truster.

(2) No beneficiary falling under paragraph (1) 2 shall exercise the right as a beneficiary until the truster dies: Provided, That the deed of trust shall govern, if it prescribes otherwise.

Article 60Trusts with Successive Beneficiaries

A deed of trust may prescribe the purport that, where a beneficiary dies, the right to benefit held by him/her be extinguished and that another person newly acquires the right to benefit. In such cases, it shall include cases where other persons acquire the right to benefit in succession by the death of the beneficiary.

Article 61No Restrictions on Rights to Benefit

None of the following rights of a beneficiary shall be restricted even by a deed of trust:

1. A right to file a claim with the court under this Act;

2. A right to raise an objection against any compulsory execution, etc. or the disposition of default on national taxes, etc. under Article 22 (2) or (3);

3. A right to request an inspection or reproduction of books, etc. under Article 40 (1);

4. A right to request reinstatement, compensation for losses, etc. under Article 43 or 45;

5. A right to renounce the right to benefit under Article 57 (1);

6. A right to revoke a legal act committed in violation of a trust, under Article 75 (1);

7. A right to demand a halt under Article 77;

8. A right to request the purchase of the right to benefit under Article 89, 91 (3) or 95 (3);

9. Other rights prescribed by Presidential Decree as necessary for the protection of beneficiaries in the light of the nature of trusts.

Article 62Relationship between Beneficiary Claims and Trust Claims

A trust claim shall have precedence over the beneficiary's right to claim the trustee to transfer the property that belongs to the trust property and to request for other benefit based on the trust property (hereinafter referred to as "beneficiary claim").

Article 63Extinctive Prescription of Beneficiary Claims

(1) The extinctive prescription of a beneficiary claim shall coincide with that of a bond.

(2) Notwithstanding paragraph (1), the extinctive prescription of a beneficiary claim shall commence at the time the beneficiary becomes aware that he/she has become a beneficiary.

(3) Notwithstanding paragraph (1), the extinctive prescription of a beneficiary claim shall not be completed within six months from the termination of the trust.

Article 64Transferability of Rights to Benefit

(1) A beneficiary may transfer his/her right to benefit: Provided, That the same shall not apply where the nature of the right to benefit does not allow it.

(2) Notwithstanding paragraph (1), the transfer of right to benefit shall be governed by the deed of trust if it prescribes otherwise: Provided, That none of such provisions shall contest against any third person in good faith.

Article 65Requirements for Contest against Transfer of Rights to Benefit and Protest of Trustees

(1) The transfer of the right to benefit may be contested against the trustee and a third person, only if:

1. The transferor has given notice of transfer to the trustee;

2. The trustee has accepted the transfer.

(2) No notice or acceptance under the subparagraphs of paragraph (1) shall be contested against any third person, other than the trustee, unless it is given or made by a deed with a fixed date.

(3) A trustee may contest against a transferee with a ground arisen to the transferee until the notice or acceptance referred to in the subparagraphs of paragraph (1) is given or made.

(4) Where a trustee fails to withhold an objection and accepts the transfer under paragraph (1) 2, he/she shall not contest against the transferee with the ground opposable to the transferor: Provided, That if any benefit has been provided to the transferor to extinguish a debt, he/she may collect it, and, where a trustee has born any debt to the transferor, he/she may insist upon the failure of incurrence thereof.

Article 66Pledges against Rights to Benefit

(1) A beneficiary may establish a pledge on the right to benefit as the object thereof: Provided, That the same shall not apply where the nature of the right to benefit does not allow the establishment of a pledge.

(2) Notwithstanding paragraph (1), the establishment of a pledge on the right to benefit as the object thereof shall be governed by the deed of trust where it prescribes otherwise: Provided, That none of such provisions shall contest against any third person in good faith.

(3) Article 65 concerning the requirements for contest against the transfer of the rights to benefit and the protest of trustees shall apply mutatis mutandis to the establishment of a pledge on the right to benefit as the object thereof. In such cases, "transferor" and "transferee" referred to in Article 65 shall be construed as "beneficiary" and "pledgee", respectively, and "fact that the right of benefit has been taken over" shall be construed as "fact that a pledge has been established on the right to benefit."(4) A pledge on the right to benefit as the object thereof shall exist in the beneficiary claim based on the relevant right to benefit and the money or other property receivable by the beneficiary as a substitute for the relevant right of benefit under this Act or the deed of trust.

(5) A pledgee of the right to benefit may accept money directly from the trustee and appropriate it to reimburse his/her claim, taking precedence over other obligees.

(6) Where a claim of a pledgee has not arrived at the maturity date, the pledgee may request the trustee to deposit the amount to be reimbursed. In such cases, the pledge shall exist in the deposit.