Bona fide acquisition

Bona fide acquisition or innocent acquisition (선의취득/善意取得) means taking the ownership of a property or instrument free of any claims to it and of most defenses of a party to it.

It derives from following legal backgrounds:
 * "Nemo plus iuris ad alium transfere potest, quam ipse habet. (어느 누구도 자기가 가진 권리보다 더 큰 권리를 타인에게 줄 수 없다)" under the Roman law; and
 * "Hand whare Hand. (손이 손을 지킨다)", and "Wo man seinen Glauben gelassen hat, da muss man ihn suchen. (자기가 믿음을 준 곳에서 신뢰를 찾아야 한다)" under the German law.

Key words
bona fide acquisition, ownership, movable, negotiable instrument, holder in due course

Requirements
Under the Korean law, there are two different cases of a personal property (동산/動産) and a negotiable instrument (유가증권/有價證券). The latter is otherwise called a holder in due course.

In case of Personal Property
Bona fide acquisition of a personal property or movable requires under the Civil Act Compared with negotiable intruments, there are some differences as explained below to enhance the negotiability of instrument.
 * peaceable and open assignment
 * in good faith and without negligence.
 * The special provision on stolen or lost articles is applicable.

Article 249 (Bona fide Acquisition) of the Civil Act
 * If a person who peaceably and openly was assigned a movable, had possession of it in good faith and without negligence, he shall acquire its ownership immediately even if the assigner is not a legal owner.

Article 250 (Special Provision on Stolen or Lost Articles)
 * If the movable mentioned in the prededing Article is a stolen or lost article, the injured party or loser may demand the return of the article within two years from the time when the article was stolen or lost; provided, however, that this shall not apply in a case ther the lost or stolen article is money.

Article 251 (Special Provision on Stolen or Lost Articles)
 * If the assignee has bought the stolen or lost Article in good faith at a sale by auction, in a public market, or from a merchant selling articles of the same kind, the injured party or loser may demand the recovey of the article after he reimburses the assignee for the price paid for it.

In case of Negotiable Instruments
Bona fide acquisition of a bill of exchange or a promissory note is regulated by the Bills of Exchange and Promissory Notes Act (어음법) In case of a check, Article 21 of the Check Act (수표법) is applicable.

At first, the Act provides for the holder in due course of a bill of exchange. Article 16 (2).

Then the above provision apply mutatis mutandis to a promissory note. Article 77 (1).

Article 16 (Effect of Endorsement Establishing Title and Bona Fide Acquisition) of the Act
 * (1) The possessor of a bill of exchange shall be deemed to be the lawful holder if he establishes his title to the bill through an uninterrupted series of endorsements, even if the last endorsement is in blank. In this connection, cancelled endorsements shall be deemed not to be written. When an endorsement in blank is folloed by another endorsement, the person who signed this last endorsement shall be deemed to have acquired the bill by the endorsement in blank.
 * (2) Where a person has been dispossessed of a bill of exchange, in any manner whatsoever, the holder who establishes his right thereto in the manner mentioned in the preceding paragraph shall be not bound to give up the bill unless he has acquired it in bad faith, or unless in acquiring it he has been guilty of gross negligence.

Article 77 (Application of Provisions on Bill of Exchange)
 * (1) The following provisions relating to bills of exchange shall apply mutatis mutandis to promissory notes so far as they are not inconsistent with the nature of these instruments:
 * 1. Endorsement (Articles 11 through 20)
 * 2 - 9. Omitted.

Article 21 (Check Acquired in Good Faith) of the Check Act
 * Where a person has, in any manner whatsoever, been dispossessed of a check, whether it is a check to bearer or a check transferable by endorsement to which the holder establishes his right in the manner mentioned in Article 19 (Effect of Endorsement Establishing Title), the holder into whose possession the check has come shall not be bound to give up the check unless he has acquired it in bad faith or unless in acquiring it he has been guilty of gross negligence.

In the context of negotiable instruments, a holder in due course must have acquired the bill or note, which appears to be complete and regular, in good faith and without gross negligence from a person with defect in title. As for negotiable instruments, peaceable and open assignment, nor light negligence are not required.
 * The holder must have acquired the note in a manner as provided by the Act i.e., endorsement and delivery.
 * The series of endorsements shall be apparently uninterrupted.
 * The assignee must have an independent economic interest on the note.
 * The note should have been acquired from a person with any defect in title.
 * The holder must have acquired the note in good faith and without gross negligence.

The special provision on stolen or lost articles is not applicable to negotiable intruments. Articles 250 and 251 of the Civil Act.