The Act Governing Bills Finance Business Article 26

Short-Term Bills may be issued in physical or dematerialized forms. Except for treasury bills, short-term bills issued in physical forms shall be delivered to the central depository custody institution for custody; those issued in dematerialized forms shall be registered by the central depository custody institution for issuance.Settlement for transaction in Short-Term Bills under the custody of or registered with the central depository custody institution as referred to in the preceding paragraph, shall be effected through book-entry transfer. The guidelines governing the book-entry transfer operation and the issuance, registration, and relevant matters for short-term bills issued in dematerialized forms shall be prescribed by the Competent Authority after consulting with the CBC.Short-Term Bills held or registered in the central custody institution may be pledged and the creation of the pledge may be effected through book-entry transfer and Article 908 of the Civil Code shall not be applicable.Transfer, inheritance and pledge of the Short-term Bills registered by the central custody institution for issuance shall not be valid against any third party unless such transfer, inheritance and pledge of the Short-Terms Bills have been registered under the guidelines established by the central competence authority referred to in the Paragraph 2.In the event that the payment for the dematerialized short-term bills registered by the central custody institution is dishonored upon their maturity, the central custody institution shall issue the certifying documents of debt and non-payment to the holder.The certifying documents of non-payment received by the aforesaid holder through notification shall be as the protest in the Law of Negotiable Instruments.In the case that the dematerialized short-term bills issued in the forms of the promissory notes of a company or a state-run business is dishonored by non-payment upon their maturity, and the holder thereof and upon receiving the aforesaid certifying documents of debt and non-payment, the holder may, in accordance with Article 123 of the Negotiable Instruments Act, petition a competent court for a ruling granting compulsory execution.