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  • Interpretation
  • No.335【Under Translation】
  • Date
  • 1994/01/28
  • Issue
    • Should the Enforcement Rules for the Lodgment Act, providing that the title to unclaimed property will pass to the National Treasury notwithstanding the failure of the public lodgment office to act in compliance with the legal requirement of service or publication of a notice of lodgment, be reviewed and revised to better protect the people*s property right under the Constitution?
  • Holding
    •        Article 330 of the Civil Code provides that: "The right of the creditor to the property lodged is extinguished by prescription if not exercised within ten years from the date of lodgment, and in such a case the ownership of the property lodged shall pass to the National Treasury." Additionally, the first sentence of Article 7 of the Enforcement Rules for the Lodgment Act provides that: "The period of prescription set forth in Article 330 of the Civil Code shall begin from the day after the date of lodgment." The above provisions are intended to determine as early as possible the status of the right to the property lodged so as to maintain a stable social order, and are not in contradiction with the Constitution. Passing the title to the property to the National Treasury, however, will affect the creditor*s property right. For this reason, the party making the lodgment is required by law to notify the creditor of the fact that the property has been lodged or, alternatively, a notice of lodgment must be served upon the creditor or published by the public lodgment office. If this process is not followed, a remedial action must be taken by serving upon the creditor or publishing such a notice within a reasonable time before the expiry of the period of prescription mentioned above. Accordingly, the aforesaid enforcement rules must undergo an overall review and a revision to insure that the property right of the people will be protected.
  • Reasoning
    •        Article 330 of the Civil Code provides that: "The right of the creditor to the property lodged is extinguished by prescription if not exercised within ten years from the date of lodgment, and in such a case title to the property lodged shall pass to the National Treasury." Additionally, the first sentence of Article 7 of the Enforcement Rules for the Lodgment Act provides that: "The period of prescription set forth in Article 330 of the Civil Code shall begin from the day after the date of lodgment." The underlying reason for the legislation is that failure on the part of the creditor to take delivery of the property lodged, which he is entitled to take delivery of at any time after the lodgment, will not only leave the property in the custody of the public lodgment office for an indefinite time but also place the right in an uncertain state for an unduly prolonged period, with adverse influence on the economy. The above provisions are therefore necessary in order to determine as early as possible the status of the right to the property lodged so as to maintain a stable social order, and are not in contradiction with the Constitution. However, the Civil Code provides, in Article 327, Paragraph 2, that the person who makes lodgment must notify the creditor promptly after the lodgment has been made. Article 8 of the Lodgment Act requires that in case of lodgment for payment of debt a notice of lodgment must be attached to the application for lodgment, and Article 10 of the same Act provides in Paragraphs 2 and 3 thereof that if the public lodgment office, upon receipt of the document of lodgment, deems it appropriate to accept the lodgment, it shall cause the notice of lodgment to be served upon the creditor or, alternatively, to have it published if service by publication is legally required but the person making the lodgment has failed to file an application therefor. Additionally, Article 15 of the Enforcement Rules for the Lodgment Act prescribes that, in case lodgment is made because the creditor is not known for certain, the public lodgment office shall have the notice of lodgment published. Since passing the title to the property to the National Treasury will affect the creditor*s property right, the Act requires that the party making the lodgment notify the creditor of the fact that the property has been lodged and that, alternatively, a notice of lodgment must be served upon the creditor or published by the public lodgment office. If this process is not followed, a remedial action must be taken by serving upon the creditor or publishing a notice within a reasonable time before the expiry of the period of prescription mentioned above. While title to the lodged property will pass to the National Treasury notwithstanding the failure of the public lodgment office to take remedial action as required, the creditor is entitled to claim state compensation under the State Compensation Act where applicable. In conclusion, the aforesaid enforcement rules must undergo an overall review and a revision based on our opinion given above and by taking into consideration other related matters, so that the property right of the people will be protected.  
      
    • *Translated by Raymond T. Chu.
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