(1) No prime contractor shall make payment in kind as the consideration for any subcontract; provided, this shall not apply where he or she has any of the following causes: <Amended on Aug. 13, 2013; Apr. 18, 2017>
1. Where a bill or a check issued by a prime contractor becomes dishonored or prime contractor's current deposit transaction is suspended or prohibited;
2. Where a petition for bankruptcy, commencement of rehabilitation or commencement of simplified rehabilitation prescribed in the Debtor Rehabilitation and Bankruptcy Act is filed against a prime contractor;
3. Where a cause prescribed by Presidential Decree by which it is deemed that a prime contractor cannot help but make payment in kind as the consideration for a subcontract occurs and a subcontractor requests such payment in kind.
(2) A prime contractor shall present to a subcontractor documents with which the subcontractor can verify rights and obligations on the goods to be delivered for payment in substitutes, such as ownership and whether offered as security, before making the payment in kind as referred to in the proviso of paragraph (1). <Added on Aug. 13, 2013; Apr. 18, 2017>
(3) Documents that shall be presented for each type of goods, the method and procedure for the presentation of documents, and other necessary matters shall be prescribed by Presidential Decree. <Added on Aug. 13, 2013>[This Article Wholly Amended on Apr. 1, 2009]