• KDI Journal of Economic Policy
• /
• v.40 no.3
• /
• pp.69-89
• /
• 2018

We study whether a default option attached to non-recourse mortgages improves borrowers' surplus from mortgage financing. By defaulting on mortgage debt, borrowers can save their non-collateralized income from being foreclosed. In exchange, borrowers must forgo non-monetary surplus from retaining any collateral. Banks may charge a high mortgage rate due to increased default rates. We find that the interest rate of non-recourse mortgage decreases with the borrower's surplus from home ownership. Moreover, non-recourse mortgages benefit only borrowers who deem housing property as an investment asset. Hence, the transition to a non-recourse mortgage is detrimental to welfare if the borrower enjoys a large surplus from home ownership. Although the borrower privately knows how much surplus she enjoys from home ownership, a menu of non-recourse mortgage contracts may exist, yielding a separating equilibrium without information rent.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.43
• /
• pp.169-198
• /
• 2009

This paper sees some legal phases of the forfaiting transactions performed by using bills of exchange (drafts) or promissory notes. It focuses on the issues of the endorsement without recourse and the aval under the Korean statute for such negotiable instruments which is enacted by succeeding to the Convention Providing a Uniform Law For Bills of Exchange and Promissory Notes (Geneva, 1930) of the League of Nations. This paper purposes to give basic legal guides for forfaiting participants in order for them to be able to prevent and solve some problems caused by lack of understanding for relevant rules of law. Forfaiting is a useful technic as it provides financing for international export businesses by enabling forfaiters to discount future payment obligations on non-recourse basis. It gives benefits to exporters by removing political, transfer and commercial risks of importers or their country. Also it protects exporters from the risks of the increase of interest rates and the fluctuation of exchange rate as well. In traditionally normal forfaiting transactions, exporter of goods generally takes promissory notes or accepted drafts from importers in payment for the price of goods. Further, when the exporter is not comfortable with the importer's credit or is not confident whether the importer will pay the accepted drafts or the promissory notes as they come due, the exporter nomally requires the importer to make the importer's bank (avalizer or guarantor) add an aval, which is made by the written expression of intention, the words of "per aval", and the guarantor's signature on the drafts or promissory notes. The exporter endorses without recourse to transfer the drafts or the promissory notes to the forfaiter, typically a bank, who purchases the drafts or the promissory notes without recourse.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.59
• /
• pp.159-178
• /
• 2013

International factoring is very useful to transfer credit risk, to promote cash flow, to collect debt and to reduce cost and expenses. However, International factoring system in china shows imperfection especially in gap of legal vacuum and its limit to be developed. Here I suggest a practical alternative for development of International factoring system in china as follow. First, legal environment in China for factoring system should be rearranged. Even law and contract law have relative clauses for factoring system there are many difficulty to be applied. It is necessary to prepare legal ground for factoring system. Second, without recourse for International factoring system should be fixed. Without recourse is the essential point for factoring system in international trade. In fact chinese factors are partially applied only for those big global companies. However International factoring system is especially useful for small-medium companies lacked of a good credit rating. It is necessary to promote special factors by combining financial organizations as it does in developed countries. Third, they need to make legal ground to prohibit unlicensed factoring companies. Forth, they need to educate usefulness of factoring system. The settlement system in China is to be developed by systematic researches and promotion for International factoring system.

• Korea Trade Review
• /
• v.42 no.3
• /
• pp.25-47
• /
• 2017

Forfaiting is a trade finance facility whereby financial institution purchases accounts receivable from exporters, on a without recourse basis. After the adoption of K-IFRS in 2011, accounting for simple borrowing as usual negotiation increases debt ratio which in turn, worsens financial soundness of a company. Hence, exporting companies have their interest in forfaiting that enables book-off in order to decrease the borrowing. Along with the execution of URF 800 at ICC and increasing the interest of exporting companies into forfaiting, foreign exchange banks in Korea expand the development of products related to forfaiting. Upon surveying all these national banks of this matter, this paper identified an appropriate solution for the forfaiting practice.

• Korea Trade Review
• /
• v.43 no.5
• /
• pp.1-23
• /
• 2018

Forfaiting is a trade finance facility whereby financial institution purchases accounts receivable from exporters on a without recourse basis to resolve exporters' credit risk. Since the effectuation of Uniform Rules for Forfaiting(URF 800), exporting companies have been interested in forfaiting and foreign exchange banks in South Korea have expanded products related to forfaiting. However, the risk management for dealing with forfaiting needs improvement. In this paper, we will compare current forfaiting risk managements between foreign exchange banks and foreign banks in South Korea by studying the agreements for each bank and standard forfaiting agreements of the ICC. There is a significant gap for risks covered and points of reserve(points of recourse) between each bank. This work suggests the need for unification for these gaps in order to enhance risk management for exporting companies and foreign exchange banks in South Korea.

• Venture DIGEST
• /
• s.115
• /
• pp.36-37
• /
• 2008

포페이팅(Forfaiting)은 권리의 포기, 양도를 의미하는 프랑스어 "a' forfait"에서 유래된 용어로 수출업체가 대외무역.용역거래에서 발생하는 연불채권을 채권의 소지자(수출자)가 불소구조건(Without Recourse)으로 은행에 매각하는 금융거래이다. 따라서 포페이팅은 연불수출시 감수해야 할 여러 가지 위험요소들로부터 자유롭게 해주는 수출금융제도이다.

• Bulletin of the Korean Mathematical Society
• /
• v.35 no.1
• /
• pp.63-74
• /
• 1998

Our study is dedicated to the the proof of uniqueness of solution of initially boundary value problem in Elastodynamics of initially stressed bodies with voids. This proof is obtained without recourse either to an energy conservation law or to any boundedness assumptions on the elastic coefficients.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
• /
• v.69
• /
• pp.239-259
• /
• 2016

An increasing number of transactions in the bilateral trade between Korea and China rely on collection and remittance, resulting in an increase in exporters' demand for trade financing. Therefore, there is a need to vitalize forfaiting transactions using drafts or promissory notes, which are based on the collections. In the forfaiting transactions, exporters transfer a payment claim to forfaiters on a non-recourse basis through a without recourse endorsement. However, forfaiters do not know importers' creditworthiness and ability to repay drafts or promissory notes; thus, they need a bank aval as a means of credit support. In forfaiting using aval, the drafts or promissory notes are transferred internationally. However, there is no internationally unified law that regulates drafts and promissory notes, and the governing laws related to such drafts and promissory notes do not accept the "principle of party autonomy." Therefore, there is no other choice but to apply the laws of a certain country, in the event of any dispute relating to such drafts or promissory notes. This paper examined forfaiting using aval from the comparative law perspective, focusing on the "Law of China on Negotiable Instruments." The results of this study may to provide businesses involved in international trade with practical guidance and assistance when using forfaiting with aval, especially in trade with China.

• Proceedings of the Korean Society for Language and Information Conference
• /
• 1996.02a
• /
• pp.157-166
• /
• 1996

This paper treats the japanese adjective phrase forming derivational suffix -tai from a new point of view: firstly it tries to approach from a semantic standpoint by applying the proposal made in Ikeya (1991). It will be shown that adjective phrases formed by -tai fits nicely with the semantic structure proposed by Ikeya. Secondly, we attempt to 'derive' -tai sentences by adopting a basic framework of HPSG so that we can 'derive' them without having recourse to transformational operations, that is, in a monostratal way. In tackling the problem we have tried to incorporate many ideas proposed so far on this issue.

• 한국전산유체공학회:학술대회논문집
• /
• 2003.10a
• /
• pp.156-157
• /
• 2003

A simple method is proposed to split the flux vector of the Euler equations by introducing two artificial wave speeds. The direction of wave propagation can be adjusted by these two wave speeds. This idea greatly simplifies the upwinding, and leads to a new family of upwind schemes. Numerical flux function for multi-dimensional Euler equations is formulated for any grid system, structured or unstructured. A remarkable simplicity of the scheme is that it successfully achieves one-sided approximation for all waves without recourse to any matrix operation. Moreover, its accuracy is comparable with the exact Riemann solver. For 1-D Euler equations, the scheme actually surpasses the exact solver in avoiding expansion shocks without any additional entropy fix. The scheme can exactly resolve stationary contact discontinuities, and it is also freed of the carbuncle problem in multi­dimensional computations.