(1) Where a lessee files an application for auction of a leasehold building on the grounds of a final and conclusive judgment on a lawsuit claiming the return of security deposit or execution title corresponding thereto, the performance of opposite obligation or offer of such performance shall not be prerequisites to commence execution, notwithstanding Article 41 of the Civil Execution Act.
(2) A lessee equipped with prerequisites for counterclaim under Article 3(1) who has obtained a certificate of a fixed date on the lease contract from the competent head of tax office has a right to be reimbursed security deposit in preference to posterior creditors or other creditors from the realized amount of leasehold building (including the site possessed by a lessor) at the time of auction under the Civil Execution Act or public auction under the National Tax Collection Act.
(3) If a lessee fails to transfer a leasehold building to any transferee, he or she may not receive the security deposit under paragraph (2).
(4) Interested parties who are dissatisfied with the order of preferential payment and security deposit under paragraphs (2) and (7) may raise an objection to an auction court or an agency issuing disposition on default. <Amended on Aug. 13, 2013>
(5) Where an objection is filed to an auction court as prescribed in paragraph (4), the provisions of Articles 152 through 161 of the Civil Execution Act shall apply mutatis mutandis.
(6) When interested parties have verified to have instituted a lawsuit against a lessee, a financial institution having succeeded the preferential payment right pursuant to paragraph (7), etc. within seven days from the date an objection was filed, the agency issuing a default disposition that has received such an objection as prescribed in paragraph (4) shall reserve the return of the security deposit to the lessee, a financial institution having succeeded the preferential payment right pursuant to paragraph (7), etc. within the extent any objections were raised until the lawsuit is concluded, and allocate the remaining amount. In such cases, such reserved security deposit shall be allocated according to the result of such lawsuit. <Amended on Aug. 13, 2013>
(7) When any of the following institutions has taken over the repayment of deposit of the lessee having obtained the preferential payment right pursuant to paragraph (2), Article 6(5) and Article 7(1) according to the contract, the preferential payment right shall succeed to it within the limit of the amount having been taken over: <Added on Aug. 13, 2013; May 29, 2016>
1. The bank under the Banking Act;
2. The Small and Medium Industry Bank under the Industrial Bank of Korea Act;
3. The Korea Development Bank under the Korea Development Bank Act;
4. The NongHyup Bank under the Agricultural Cooperatives Act;
5. The Suhyup Bank under the Fisheries Cooperatives Act;
6. The communications agency under the Postal Savings and Insurance Act;
7. The insurance company having obtained permission as an insurance commodity with the guaranty insurance under Article 4(1)2d of the Insurance Business Act;
8. In addition, the agency prescribed by Presidential Decree, which corresponds to an agency prescribed in subparagraphs 1 through 7.
(8) A financial institution, etc. (hereinafter referred to as "financial institution, etc.") having succeeded the preferential payment right pursuant to paragraph (7) shall not exercise the preferential payment right in any of the following cases: <Added on Aug. 13, 2013>
1. When a lessee has lost the requisites for counteraction under Article 3(1);
2. When the registration of leasehold has been canceled under Article 6(5);
3. When the registration of lease has been canceled under Article 621 of the Civil Act.
(9) A financial institution, etc. shall not cancel the lease by performing on behalf of or subrogating the lessee to exercise the preferential payment right. <Added on Aug. 13, 2013>[This Article Wholly Amended on Jan. 30, 2009]