Even if an IOU is written for a monetary transaction, it has no legal effect by itself. It must be notarized by a qualified notary public to have legal effect. In this post, we learned about how to notarize an IOU and how much it costs.
Click here to learn how to write an IOU 공증 비용
index
1. What is Notary? 좋은뉴스
2. IOU notarization
1) Preparation materials for notarization of IOU
2) Notary fee
3) Legal effect of IOU
3. Extinction of IOU
1. What is Notary?
Notary public means ‘to publicly prove’, and in relation to the notary public system, it means that a notary public proves certain matters (Source: Korean Notary Public Association). In Korea, a law firm that has served as a judge, prosecutor, or lawyer for more than 10 years or has two or more lawyers can perform notarization.
Through notarization, it is possible to secure legal evidence in case of dispute, and in some cases, it is possible to protect rights through prompt execution. In this way, notarization can be seen as a system for preventing as well as resolving disputes.
IOU legal effect
2. IOU notarization
An IOU itself is like a memorandum without any legal force. However, if the IOU is notarized, it will have strong evidence in civil or criminal trials. In particular, if a ‘notarial deed of promissory note’ with consent for compulsory execution is prepared, it will act as a source of enforcement under the 「Civil Execution Act」, so compulsory execution is possible without going through a civil lawsuit.
▶ A promissory note notarial deed is a document in which the debtor becomes the issuer of the bill or check and the creditor becomes the payee. It is attached to the original of the bill or check. Usually, the phrase agreeing to the compulsory execution is written. However, just notarizing the IOU does not mean that it can be enforced without litigation. Only a promissory note notarial deed can be enforced without going through a lawsuit.
1) Preparation materials for notarization of IOU
In order to have the IOU notarized, both the creditor and the debtor can visit the notary office with their personal seal, identification card, and IOU. If an agent goes instead, the agent’s ID and seal are additionally required.
At this time, you should not go anywhere, but you must go to a notary office that has received notarization from the Minister of Justice. in other words,
① An office established by a person appointed as a notary;
② You must go to an office established by a law firm that has notarized and notarized by an attorney in charge of notarization.
2) Notary fee
When an IOU is notarized, both the creditor and the debtor must pay a fee to the notary public. The fees according to Article 2 of the 「Notary Fee Rules」 are as follows.
Notary fee explained
notary fee
3) Legal effect of IOU
A notarized IOU can legally have the effect of claim, seizure, provisional seizure, provisional injunction, and approval.
Claims: filing of sonar payment order, participation in bankruptcy proceedings, application for auction
seizure, provisional seizure, provisional disposition
Approval: proof of contents
3. Extinction of IOU
The statute of limitations for IOUs is 10 years from the date of repayment, and the statute of limitations for commercial claims arising from commercial activities is 5 years.
Extinctive prescription refers to a system in which a right holder lapses if he does not exercise his right for a certain period of time, even though he was able to exercise his right. Therefore, if the claim cannot be collected within the statute of limitations, it can be extended by preparing and sending a certificate of contents, re-creating an IOU and getting it notarized, or receiving a judgment such as a payment order.