Article 26A trustee has the authority to administer or dispose of property that comes under trust property and to perform any other acts that are necessary to achieve the purpose of the trust; provided, however, that this does not preclude the authority from being restricted by the terms of trust .

Article 27(1)If an act performed by a trustee in the interest of the trust property does not fall within the scope of the trustee's authority, and all of the following conditions are met, a beneficiary may rescind that act,:

(2)Notwithstanding the provisions of the preceding paragraph, if an act performed by a trustee to establish or transfer a right for property that comes under trust property (limited to property for which a registration of trust referred to in Article 14 may be made) does not fall within the scope of trustee's authority, a beneficiary may rescind that act limited to cases in which all of the following conditions are met:

(3)If one of the two or more beneficiaries has exercised the right to rescind pursuant to the provisions of the preceding two paragraphs, the rescission has the same effect on other beneficiaries.

(4)The right to rescind pursuant to the provisions of paragraph (1) or paragraph (2) is extinguished by prescription if it is not exercised within three months from the time when the beneficiary (if there is a trust administrator at the time in question, the trust administrator) becomes aware of the existence of the grounds for rescission. The same applies when one year has elapsed from the time of the act.

Article 28In the following cases, a trustee may entrust the administration of trust affairs to a third party:

Article 29(1)A trustee must administer trust affairs in accordance with the main purpose of the trust.

(2)A trustee must administer trust affairs with the due care of a prudent manager; provided, however, that if it is otherwise provided for by the terms of trust, the trustee must administer trust affairs with the care provided for in the terms of trust.

Article 30A trustee must administer trust affairs and perform other acts faithfully on behalf of a beneficiary.

Article 31(1)A trustee must not engage in the following acts:

(2)Notwithstanding the provisions of the preceding paragraph, in any of the following cases, a trustee may perform the acts set forth in the items of that paragraph; provided, however, that this does not apply to the case set forth in item (ii), if it is provided for by the terms of trust that the trustee may not perform the acts even in the case falling under that item:

(3)When having performed any of the acts set forth in the items of paragraph (1), the trustee must give notice of the material facts concerning that act to the beneficiary; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(4)If the acts set forth in paragraph (1), item (i) or (ii) are performed in violation of the provisions of paragraph (1) or paragraph (2), those acts are null and void.

(5)The acts set forth in the preceding paragraph come into effect retroactively to the time of the act, if ratified by the beneficiary.

(6)In the case prescribed in paragraph (4), when the trustee has disposed of or performed any other act regarding the property set forth in paragraph (1), item (i) or (ii) with a third party, the beneficiary may rescind the disposal or other act only if the third party knew or was grossly negligent in failing to know that the act set forth in paragraph (1), item (i) or (ii) was performed in violation of the provisions of paragraph (1) or paragraph (2). In such a case, the provisions of Article 27, paragraphs (3) and (4) apply mutatis mutandis.

(7)If an act set forth in paragraph (1), item (iii) or (iv) has been performed in violation of the provisions of paragraph (1) and paragraph (2), the beneficiary may rescind the act only if the third party knew or was grossly negligent in failing to know that the act was performed in violation of those provisions. In such a case, the provisions of Article 27, paragraphs (3) and (4) apply mutatis mutandis.

Article 32(1)With regard to an act that a trustee may carry out in administering trust affairs based on their authority as a trustee, if the trustee's failure to perform the act would be contrary to the interests of a beneficiary, they may not perform the act on the account of the trustee's own property or on the account of an interested party of the trustee.

(2)Notwithstanding the provisions of the preceding paragraph, in any of the following cases, the trustee may perform the act prescribed in that paragraph on the account of the trustee's own property or on the account of the interested party of the trustee; provided, however, that this does not apply to the reason set forth in item (ii) if it is provided by the terms of trust that a trustee may not perform the act on the account of the trustee's own property or on the account of an interested party of the trustee even in the case falling under that item:

(3)when the trustee has performed the act prescribed in paragraph (1) on the account of the trustee's own property or on the account of an interested party of the trustee, the trustee must give a notice of the material facts concerning the act to the beneficiary; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(4)If the trustee has performed an act prescribed in paragraph (1) in violation of the provisions of paragraph (1) and paragraph (2), the beneficiary may deem that the act has been performed in the interest of the trust property; provided, however, that this may not harm the rights of a third party.

(5)The rights under the provisions of the preceding paragraph are extinguished when one year has elapsed from the time of the act.

Article 33In the case of a trust with two or more beneficiaries, a trustee must impartially perform their duties on behalf of those beneficiaries.

Article 34(1)A trustee must manage trust property by separating property that comes under trust property from property that comes under trustee's own property and property that comes under trust property of other trusts by the means specified in the following items in accordance with the category of property prescribed in the respective items; provided, however, that if the terms of the trust otherwise provides for the means of separate management, the clause prevails:

(2)Notwithstanding the provisions of the proviso to the preceding paragraph, the trustee may not be exempted from the obligation of making the registration referred to in Article 14 for the property set forth in item (i) of the preceding paragraph.

Article 35(1)When entrusting the administration of trust affairs to a third party pursuant to the provisions of Article 28, a trustee must entrust the administration to a suitable person in light of the purpose of the trust.

(2)When the trustee has entrusted the administration of trust affairs to a third party pursuant to the provisions of Article 28, the trustee must perform necessary and appropriate supervision over the third party in order to achieve the purpose of the trust.

(3)When the trustee has entrusted the administration of trust affairs to any of the following third parties, the provisions of the preceding two paragraphs do not apply; provided, however, that when the trustee becomes aware that the third party is unsuitable or unfaithful or that the administration of trust affairs by the third party is inappropriate, the trustee must give a notice to the beneficiary of that fact, cancel the entrustment to the third party, or take other necessary measures:

(4)Notwithstanding the provisions of the proviso to the preceding paragraph, if it is otherwise provided for by the terms of trust, the clause prevails.

Article 36A settlor or a beneficiary may request a trustee to report on the status of administration of trust affairs as well as the status of property that comes under trust property and the obligation covered by the trust property.

Article 37(1)The trustee must prepare books and other documents or electronic or magnetic records relating to the trust property, as provided for by Order of the Ministry of Justice, in order to clarify the accounting on trust affairs as well as the status of property that comes under trust property and the obligation covered by the trust property.

(2)The trustee must prepare a balance sheet, profit and loss statement, and any other documents or electronic or magnetic records specified by Order of the Ministry of Justice once each year at a fixed time, as provided for by Order of the Ministry of Justice.

(3)When the trustee has prepared the documents or electronic or magnetic records referred to in the preceding paragraph, the trustee must report their content to a beneficiary (if there is a trust administrator at the time in question, to the trust administrator); provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(4)When the trustee has prepared the documents or electronic or magnetic records referred to in paragraph (1), the trustee must preserve the documents (if electronic or magnetic records are prepared in lieu of those documents by the means specified by Order of the Ministry of Justice, the electronic or magnetic records) or the electronic or magnetic records (if documents are prepared in lieu of those electronic or magnetic records, the documents) for ten years from the date of preparation (or until the date of the completion of the liquidation of the trust if this occurs within that ten-year period; the same applies in the following paragraph); provided, however, that this does not apply if the trustee has delivered those documents or their copies to the beneficiary (if there are two or more beneficiaries at the time in question, to all beneficiaries; if there is a trust administrator at the time in question, to the trust administrator; the same applies in the proviso to paragraph (6)), or has provided the beneficiary with information recorded in those electronic or magnetic records by the means specified by Order of the Ministry of Justice.

(5)When the trustee has prepared or acquired a written contract relating to the disposal of property that comes under trust property or any other documents or electronic or magnetic records concerning the administration of trust affairs, the trustee must preserve the documents (if electronic or magnetic records are prepared in lieu of those documents by the means specified by Order of the Ministry of Justice, the electronic or magnetic records) or the electronic or magnetic records (if documents are prepared in lieu of those electronic or magnetic records, the documents) for ten years from the date of the preparation or acquisition. In such a case, the provisions of the proviso to the preceding paragraph apply mutatis mutandis.

(6)When the trustee has prepared the documents or electronic or magnetic records referred to in paragraph (2), the trustee must preserve the documents (if electronic or magnetic records are prepared in lieu of those documents by the means specified by Order of the Ministry of Justice, the electronic or magnetic records) or the electronic or magnetic records (if documents are prepared in lieu of those electronic or magnetic records, the documents) until the date of the completion of the liquidation of the trust; provided, however that this does not apply if the trustee has, after ten years have elapsed from the date of their preparation, delivered those documents or their copies to the beneficiary, or has provided the beneficiary with information recorded in those electronic or magnetic records by the means specified by Order of the Ministry of Justice.

Article 38(1)A beneficiary may make the following requests to a trustee. In such a case, the beneficiary must clarify the reasons for the request.

(2)If the request referred to in the preceding paragraph is made, the trustee may not refuse the request unless it is found that any of the following cases applies:

(3)The provisions of the preceding paragraph (excluding item (i) and item (ii)) do not apply when the request referred to in paragraph (1) is made by all beneficiaries of the trust that has two or more beneficiaries, or when the request referred to in that paragraph is made by the beneficiary of the trust that has one beneficiary.

(4)If it is provided by the terms of trust that a request to inspect or copy documents or any other object under the provisions of paragraph (1) may not be made for information other than the following information when a beneficiary has given consent, the beneficiary who has given the consent (including the beneficiary's successor; hereinafter the same applies in this Article) is not allowed to withdraw the consent:

(5)Upon receiving a request to inspect or copy documents or any other object under the provisions of paragraph (1) from the beneficiary who has given the consent referred to in the preceding paragraph, the trustee may refuse the request, except for the part that falls under the information set forth in the items of the preceding paragraph.

(6)An interested party may make the following requests to the trustee:

Article 39(1)In the case of a trust with two or more beneficiaries, each beneficiary may request that a trustee disclose the following particulars by appropriate means. In such a case, the beneficiary must clarify the reasons for the request.

(2)If the request referred to in the preceding paragraph is made, the trustee may not refuse the request unless it is found that any of the following cases applies:

(3)Notwithstanding the provisions of the preceding two paragraphs, if it is otherwise provided by the terms of trust, the clause prevails.

Article 40(1)If any of the cases set forth in the following items has occurred due to a trustee's breach of the duties, a beneficiary may demand that the trustee take the measures specified in the respective items; provided, however, that this does not apply to the measures specified in item (ii), if it is extremely difficult to restore the trust property, if the restoration requires excessive expenses, or if there are other special circumstances in which it is inappropriate to have the trustee restore the trust property:

(2)If the trustee has entrusted the administration of trust affairs to a third party in violation of the provisions of Article 28, and a loss or change has occurred to the trust property, the trustee may not be exempted from the liability referred to in the preceding paragraph unless the trustee proves that the loss or change would have occurred even if the trustee had not entrusted the administration of trust affairs to a third party.

(3)If the trustee has performed an act in violation of the provisions of Article 30, Article 31, paragraphs (1) and (2), or Article 32, paragraphs (1) and (2), the trustee is presumed to have caused a loss to the trust property in the same amount as the amount of the profit obtained by the trustee or an interested party of the trustee as a result of that act.

(4)If the trustee has administered property that comes under trust property in violation of the provisions of Article 34, and a loss or change has occurred to the trust property, the trustee may not be exempted from the liability referred to in paragraph (1) unless the trustee proves that the loss or change would have occurred even if the trustee had separately managed the property in accordance with the provisions of that Article.

Article 41If a trustee that is a corporation assumes the liability under the provisions of the preceding Article, when the corporation has acted in bad faith or with gross negligence in violating laws and regulations or the provisions of the terms of trust, the trustee's director, company director, executive officer, or any other person equivalent to them is liable to compensate the beneficiary for any loss incurred in the trust property or to restore the trust property jointly and severally with the corporation.

Article 42A beneficiary may exempt a trustee from the following liabilities:

Article 43(1)The extinctive prescription of a claim regarding liability under the provisions of Article 40 is governed by the provisions on extinctive prescription of claims regarding liability arising from the failure to perform an obligation.

(2)The claim regarding liability under the provisions of Article 41 is extinguished by prescription in the following cases:

(3)The period of the extinctive prescription of a beneficiary's claim regarding liability under the provisions of Article 40 or Article 41 does not begin to run until the beneficiary becomes aware that the beneficiary has been designated as beneficiary (if there is no beneficiary at the time in question, until a trust administrator is appointed).

(4)The claim prescribed in the preceding paragraph is extinguished when 20 years have elapsed from the time a loss or change has occurred to the trust property due to the trustee's breach of duties.

Article 44(1)If a trustee has performed an act or is likely to perform an act that violates laws and regulations or the provisions of the terms of trust, and the act is likely to cause extreme harm to the trust property, a beneficiary may demand that the trustee cease that act.

(2)If a trustee has performed an act or is likely to perform an act that violates the provisions of Article 33, and the act is likely to cause extreme harm to some of the beneficiaries, those beneficiaries may demand that the trustee cease that act.

Article 45(1)If a beneficiary who has filed a suit regarding the demand under the provisions of Article 40, Article 41, or the preceding Article has won the suit (including cases of partially winning the suit), when the beneficiary has paid any expenses (excluding court costs) that were necessary for the suit or if the beneficiary is required to pay remunerations to an attorney-at-law, a legal professional corporation, a judicial scrivener, or a judicial scrivener corporation, the expenses or remuneration is to be paid from the trust property, up to the amount considered reasonable that does not exceed the actual amount.

(2)Even if the beneficiary who filed the suit referred to in the preceding paragraph has lost the suit, the beneficiary is not liable to compensate the trustee for any damage arising from the suit, except in cases the beneficiary has acted in bad faith.

Article 46(1)If there are sufficient grounds to suspect misconduct or material facts that constitute violation of laws and regulations or the clauses of the terms of trust in connection with the administration of trust affairs by a trustee, a beneficiary may file a petition with the court for the appointment of an inspector in order to have the inspector investigate the status of the administration of trust affairs as well as the status of property that comes under trust property and the obligation covered by the trust property.

(2)If the petition set forth in the preceding paragraph is filed, the court must appoint an inspector, except for cases it dismisses the petition as being unlawful.

(3)A judicial decision dismissing the petition referred to in paragraph (1) must include the reasons for that decision.

(4)No appeal may be entered against the judicial decision on the appointment of an inspector under the provisions of paragraph (1).

(5)The inspector set forth in paragraph (2) may receive remuneration determined by the court from the trust property.

(6)Before making the judicial decision to determine the remuneration for the inspector under the provisions of the preceding paragraph, the court must hear statements from the trustee and the inspector referred to in paragraph (2).

(7)Only a trustee or an inspector referred to in paragraph (2) may file an immediate appeal against the judicial decision that determines the remuneration for the inspector pursuant to the provisions of paragraph (5).

Article 47(1)If it is necessary for the performance of duties, the inspector referred to in paragraph (2) of the preceding Article may request that a trustee report on the status of the administration of trust affairs as well as the status of the property that comes under trust property and the obligation covered by the trust property, or may investigate the books, documents, and any other articles regarding the trust.

(2)The inspector referred to in paragraph (2) of the preceding Article must conduct the necessary investigation, and must make a report to the court by submitting documents or electronic or magnetic records (limited to those specified by Order of the Ministry of Justice) in which the results of the investigation are entered or recorded.

(3)If the court finds it necessary for clarifying the content of the report or confirming the basis of the report referred to in the preceding paragraph, it may request the inspector referred to in paragraph (2) of the preceding Article to make a further report referred to in the preceding paragraph.

(4)When the inspector referred to in paragraph (2) of the preceding Article has made the report referred to in paragraph (2), the inspector must deliver a copy of the documents referred to in paragraph (2) to the trustee and the beneficiary who filed the petition referred to in paragraph (1) of that Article, or must provide them with the information recorded in the electronic or magnetic records referred to in paragraph (2) by the means specified by Order of the Ministry of Justice.

(5)If the trustee has received a copy of the documents or the information recorded in the electronic or magnetic records by the means specified by Order of the Ministry of Justice pursuant to the provisions of the preceding paragraph, the trustee must immediately give notice of that fact to the beneficiaries (excluding the beneficiary who filed the petition referred to in paragraph (1) of the preceding Article; the same applies in the following paragraph); provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(6)If the report referred to in paragraph (2) has been made, when the court finds it necessary, it must order the trustee to give notice of the results of the investigation referred to in that paragraph to the beneficiary or to take any other appropriate measures to make the content of the report known to the public.

Article 48(1)If a trustee has paid the expenses that are found necessary for the administration of trust affairs from the trustee's own property, the trustee may receive reimbursement for those expenses and their interest that has accrued from the date of payment (hereinafter referred to as the "expenses and interest") from the trust property; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(2)If the expenses for the administration of trust affairs are required, the trustee may receive advance payment from the trust property; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(3)In order to receive advance payment of expenses from the trust property pursuant to the provisions of the main clause of the preceding paragraph, the trustee must give notice to the beneficiary of the amount of advance payment to be received and the basis for the calculation of that amount; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(4)Notwithstanding the provisions of paragraph (1) or paragraph (2), if the trustee has assumed obligations under the provisions of Article 40, the trustee may not receive reimbursement for the expenses and interest or advance payment of expenses until after the trustee performs those obligations; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(5)In the case referred to in paragraph (1) or paragraph (2), the trustee is not prevented from receiving reimbursement for expenses and interest or advance payment of expenses from the beneficiary based on an agreement between the trustee and the beneficiary.

Article 49(1)If a trustee may receive reimbursement for expenses and interest or advance payment of expenses from the trust property pursuant to the provisions of paragraph (1) or (2) of the preceding Article, the trustee may have money that belongs to the trust property to be included in the trustee's own property, to the extent of the amount receivable.

(2)In the case prescribed in the preceding paragraph, when necessary to do so, the trustee may dispose of property that comes under trust property (excluding the case in which it will not be possible to achieve the purpose of the trust by disposal); provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(3)In the case prescribed in paragraph (1), if any of the items of Article 31, paragraph (2) apply, the trustee may have property that comes under trust property other than money to be included in the trustee's own property, in lieu of exercising the right held pursuant to the provisions of paragraph (1); provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(4)If proceedings are commenced for enforcement against, or for the exercise of a security right of, property that comes under trust property, the right that the trustee holds pursuant to the provisions of paragraph (1) is deemed to be a monetary claim in relation to those proceedings.

(5)In the case referred to in the preceding paragraph, the trustee who has proved to have the right prescribed in that paragraph by means of a document certifying the existence of that right may also demand a distribution in the proceedings for enforcement or for exercise of a security right referred to in that paragraph.

(6)The right that the trustee has pursuant to the provisions of paragraph (1) concerning expenses and interest for the preservation, liquidation, or distribution of the property that comes under trust property, which has been implemented in the common interest of the creditors (limited to creditors who hold claims regarding the obligation covered by the trust property; hereinafter the same applies in this paragraph and the following paragraph) prevails over the rights of other creditors (in cases in which the expenses and interest were not beneficial to all creditors, those who did not benefit from the expenses and interest are excluded) in the proceedings for enforcement or for exercise of a security right referred to in paragraph (4). In such a case, the right has the same rank in the order of priority as a statutory lien prescribed in Article 307, paragraph (1) of the Civil Code.

(7)The right that the trustee holds pursuant to the provisions of paragraph (1) concerning the expenses and interest which fall under the following items prevails over the rights of other creditors for the amount specified in the respective items in accordance with the category of expenses set forth in the items in the proceedings for enforcement against or for the exercise of a security right referred to in paragraph (4) for the property:

Article 50(1)If a trustee has performed an obligation covered by the trust property by using the trustee's own property, and is to acquire the right under the provisions of paragraph (1) of the preceding Article through that performance, the trustee is subrogated to the creditor who holds the claim regarding the obligation covered by the trust property. In such a case, the right that the trustee has pursuant to the provisions of that paragraph is deemed to be a monetary claim in relation to the subrogation.

(2)If the trustee is subrogated to the creditor referred to in the preceding paragraph pursuant to the provisions of that paragraph, the trustee must give notice to the creditor, without delay, of the fact that the claim held by the creditor is a claim regarding an obligation covered by the trust property and that the trustee has performed the obligation by using the trustee's own property.

Article 51Until the right that the trustee holds pursuant to the provisions of Article 49, paragraph (1) is extinguished, the trustee may refuse the performance of the obligation of distribution of trust property to a beneficiary or to a holder of a vested right prescribed in Article 182, paragraph (1), item (ii); provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

Article 52(1)If, in receiving reimbursement for expenses and interest or advance payment of expenses pursuant to the provisions of Article 48, paragraph (1) or (2), the trust property (excluding any property that may not be disposed of pursuant to the provisions of Article 49, paragraph (2); the same applies in item (i) and paragraph (4)) is insufficient to provide the reimbursement or advance payment, and the trustee has given notice of the following particulars to a settlor and a beneficiary but has not received reimbursement of expenses and interest or advance payment of expenses from the settlor or the beneficiary even when a reasonable period of time set forth in item (ii) has elapsed, the trustee may terminate the trust:

(2)For the purpose of applying the provisions of the preceding paragraph to cases in which there is no settlor at the time in question, the terms "a settlor and a beneficiary" and "the settlor or the beneficiary" in that paragraph are deemed to be replaced with "the beneficiary".

(3)For the purpose of applying the provisions of paragraph (1) to cases in which there is no beneficiary at the time in question, the terms "a settlor and a beneficiary" and "the settlor or the beneficiary" in that paragraph are deemed to be replaced with "the settlor".

(4)If the trust property is insufficient to provide for reimbursement of expenses and interest or advance payment of expenses pursuant to the provisions of Article 48, paragraph (1) or (2), and there is neither the settlor nor the beneficiary of the trust at the time in question, the trustee may terminate the trust.

Article 53(1)In the cases set forth in the following items, a trustee may receive compensation from the trust property for the amount of damages specified in the respective items; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails:

(2)The provisions of Article 48, paragraphs (4) and (5), Article 49 (excluding paragraph (6) and paragraph (7)), and the preceding two Articles apply mutatis mutandis to the compensation for damages from the trust property under the provisions of the preceding paragraph.

Article 54(1)In addition to the case in which the provisions of Article 512 of the Commercial Code (Act No. 48 of 1899) apply to the acceptance of a trust, a trustee may receive trust fees (meaning an economic benefit to be received by the trustee as the consideration for the administration of trust affairs; the same applies hereinafter) from the trust property only if it is provided by the terms of trust that the trustee is to receive trust fees from the trust property.

(2)In the case referred to in the preceding paragraph, if the terms of trust contain a clause concerning the amount of trust fees or the means of their calculation, the amount of trust fees are determined pursuant to the clause, and if there are no such clause, the amount is to be a reasonable amount.

(3)If there are no clause referred to in the preceding paragraph, in order to receive trust fees from the trust property, the trustee must give notice to a beneficiary of the amount of trust fees and the basis for their calculation.

(4)The provisions of Article 48, paragraphs (4) and (5), Article 49 (excluding paragraph (6) and paragraph (7)), Article 51, and Article 52, as well as the provisions of Article 648, paragraphs (2) and (3), and Article 648-2 of the Civil Code, apply mutatis mutandis to the trustee's trust fees.

Article 55In the case of a trust whose security right is trust property, if it is provided by the terms of trust that a beneficiary is a creditor of the claim to be secured by that security right, a trustee that is a holder of the security right may file a petition for the exercise of the security right as trust affairs and have the proceeds of the sale distributed or payment money delivered.

Article 79In the case of a trust with two or more trustees, the trust property is to be held under joint ownership.

Article 80(1)In the case of a trust with two or more trustees, decisions on the administration of trust affairs are made by the majority of the trustees.

(2)Notwithstanding the provisions of the preceding paragraph, decisions on an act of preservation may be made by each trustee independently.

(3)If a decision is made on the trust affairs pursuant to the provisions of the preceding two paragraphs, each trustee may execute trust affairs based on that decision.

(4)Notwithstanding the provisions of the preceding three paragraphs, if the terms of trust contain a clause concerning the division of duties among the trustees, each trustee makes decisions on the trust affairs and executes the affairs pursuant to the clause.

(5)With regard to an act to be performed in the interest of the trust property based on the decision on the trust affairs made under the provisions of the preceding two paragraphs, each trustee has the authority to represent other trustees.

(6)Notwithstanding the provisions of the preceding paragraphs, if it is otherwise provided for by the terms of trust, the clause prevails.

(7)In the case of a trust with two or more trustees, it is sufficient for a third party to make a manifestation of intention to any one of them; provided, however, that if it is otherwise provided for by the terms of trust concerning a manifestation of intention by a beneficiary, the clause prevails.

Article 81In the case prescribed in paragraph (4) of the preceding Article, each trustee stands as a plaintiff or a defendant in a suit against the trust property on behalf of the other trustees with respect to their duties.

Article 82In the case of a trust with two or more trustees, each trustee may not entrust other trustees to make decisions on trust affairs (excluding those falling under ordinary business), except when it is otherwise provided for by the terms of trust or there is a compelling reason to do so.

Article 83(1)In the case of a trust with two or more trustees, if each trustee has assumed an obligation to a third party in administering trust affairs, each trustee is to be a joint and several obligor.

(2)Notwithstanding the provisions of the preceding paragraph, if the terms of trust contain a clause concerning the division of duties among the trustees, and one of the trustees has assumed an obligation to a third party in administering trust affairs pursuant to the clause in the terms of trust, other trustees are liable to perform the obligation only by using property that comes under trust property; provided, however, that if the third party knew at the time of the act that is the cause of the assumption of the obligation that the act was performed in administering trust affairs and that there were two or more trustees for the trust, and did not know and was not negligent in failing to know that the terms of trust contained a clause concerning the division of duties among the trustees, the other trustees may not assert this against the third party.

Article 84For the purpose of applying the provisions of Article 19 to a trust with two or more trustees, the phrase "If a co-ownership interest in a specific property that belongs to a trustee comes under both the trust property and the trustee's own property" in paragraph (1) of that Article is deemed to be replaced with "If a co-ownership interest in a specific property that belongs to a trustee comes under both the trust property and the trustee's own property, and there are two or more trustees for the trust regarding the trust property"; the term "trustee" in paragraph (1), item (ii) of that Article is deemed to be replaced with "trustee whose own property includes co-ownership interests"; the term "trustee" in paragraph (1), item (iii) of that Article is deemed to be replaced with "trustee whose own property includes co-ownership interests"; the term "trustee" in paragraph (2) of that Article is deemed to be replaced with "trustee whose own property includes co-ownership interests"; the phrase "If a co-ownership interest in a specific property that belongs to a trustee comes under both the trust property and the trust property of another trust" in paragraph (3) of that Article is deemed to be replaced with "If a co-ownership interest in a specific property that belongs to a trustee comes under both the trust property and the trust property of another trust, and there are two or more trustees for the trust or another trust regarding the trust property"; in paragraph (3), item (iii) of the that Article, the term "trustees" is deemed to be replaced with "trustees to whom the co-ownership interests for each trust property belong" and the phrase "based on a decision by the trustees" is deemed to be replaced with "based on a deliberation between the trustees"; and in paragraph (4) of that Article, the term "item (ii)" is deemed to be replaced with "item (ii) or item (iii)."

Article 85(1)In the case of a trust with two or more trustees, if two or more trustees assumes the liability under the provisions of Article 40 for performing an act in breach of their duties, the trustees who have performed that act are to be joint and several obligors.

(2)For the purpose of applying the provisions of Article 40, paragraph (1) and Article 41 to a trust with two or more trustees, the term "beneficiary" in these provisions is deemed to be replaced with "beneficiary or other trustees".

(3)In the case of a trust with two or more trustees, and any of those trustees is exempted from the liability under the provisions of Article 40 or Article 41 pursuant to the provisions of Article 42, other trustees may not file a claim to hold the person who should assume the liability pursuant to the provisions of Article 40 or Article 41 liable; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(4)For the purpose of applying the provisions of Article 44 to a trust with two or more trustees, the term "beneficiary" in paragraph (1) of that Article is deemed to be replaced with "beneficiary or other trustees" and the term "those beneficiaries" in paragraph (2) of that Article is deemed to be replaced with "those beneficiaries or other trustees".

Article 86(1)For the purpose of applying the provisions of Article 59 to a trust with two or more trustees, the term "beneficiary" in paragraph (1) of that Article is deemed to be replaced with "beneficiary and other trustees" and the phrase "a trustee's duties" in paragraphs (3) and (4) of that Article is deemed to be replaced with "all trustees' duties".

(2)For the purpose of applying the provisions of Article 60 to a trust with two or more trustees, the term "beneficiary" in paragraph (1) of that Article is deemed to be replaced with "beneficiary and other trustees" and the phrase "a trustee's duties" in paragraphs (2) and (4) of that Article is deemed to be replaced with "all trustees' duties".

(3)For the purpose of applying the provisions of Article 74, paragraph (1) to a trust with two or more trustees, the phrase "a trustee's duties" in that paragraph is deemed to be replaced with "all trustees' duties".

(4)In the case of a trust with two or more trustees, notwithstanding the provisions of Article 75, paragraphs (1) and (2), when one of the trustees' duties have terminated due to any of the grounds set forth in the items of Article 56, paragraph (1), other trustees succeed to the rights and obligations concerning the trust existing at of the time of termination of the duties and performs those duties; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

Article 87(1)For the purpose of applying the provisions of Article 163, item (iii) to a trust with two or more trustees, the phrase "if the trust lacks a trustee" in that item is deemed to be replaced with "if the trust lacks all of its trustees".

(2)In the case of a trust with two or more trustees, the trust also terminates when the trust lacks some of the trustees and the duties of that trustee are not performed by other trustees pursuant to the provisions of the proviso to paragraph (4) of the preceding Article and a new trustee has not assumed office for one year.

Article 88(1)A person designated by the clause of the terms of trust as the person who is to be a beneficiary (including a person designated as an initial beneficiary or as a new beneficiary as a result of the exercise of the right to designate or change beneficiaries prescribed in paragraph (1) of the following Article) automatically acquires a beneficial interest; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(2)If a person designated as the person who is to be a beneficiary prescribed in the preceding paragraph does not know that the person has acquired the beneficial interest pursuant to the provisions of that paragraph, the trustee must notify that person of that fact without delay; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

Article 89(1)In the case of a trust that establishes the persons who have the right to designate or change a beneficiary (hereinafter referred to as the "right to designate or change a beneficiary" in this Article), the right to designate or change a beneficiary is exercised by manifesting an intention to do so to the trustee.

(2)Notwithstanding the provisions of the preceding paragraph, the right to designate or change a beneficiary may be exercised through a will.

(3)If the right to designate or change a beneficiary is exercised through a will pursuant to the provisions of the preceding paragraph, and the trustee does not know that fact, the acquisition of the status of a beneficiary through the exercise of that right may not be asserted against the trustee.

(4)If the person who was the beneficiary has lost the beneficial interest as a result of the exercise of the right to change a beneficiary, the trustee must notify that person of that fact without delay; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(5)The right to designate or change a beneficiary is not succeeded to through inheritance; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(6)For the purpose of applying the provisions of paragraph (1) to cases in which the person who has the right to designate or change a beneficiary is a trustee, the term "trustee" in that paragraph is deemed to be replaced with "person who is to be a beneficiary".

Article 90(1)In the case of the trusts set forth in each of the following items, a settlor referred to in each of those items has the right to change a beneficiary; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails:

(2)The beneficiary referred to in item (ii) of the preceding paragraph does not have the right as a beneficiary until the settlor referred to in that item dies; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

Article 91A trust establishing that upon a beneficiary's death the beneficial interest held by the beneficiary is extinguished and another person acquires a new beneficial interest (including provisions that upon the death of the predecessor beneficiary, another person acquires a beneficial interest as the successor beneficiary) is effective from the time an existing beneficiary acquires a beneficial interest pursuant to the clause after 30 years have elapsed since the trust was created until the beneficiary dies, or until that beneficial interest is extinguished.

Article 92The beneficiary's exercise of the following rights may not be restricted by the clause of the terms of trust:

Article 149(1)A trust may be modified by the agreement among a settlor, a trustee, and a beneficiary. In such a case, the content of the terms of trust after the modification must be disclosed in making the modification.

(2)Notwithstanding the provisions of the preceding paragraph, in the cases set forth in the following items, a trust may be modified by the means specified in the respective items. In such a case, the trustee must give a notice of the content of the terms of trust after the modification to the settlor in the case set forth in item (i), and to the settlor and the beneficiary in the case set forth in item (ii), without delay:

(3)Notwithstanding the provisions of the preceding two paragraphs, in the cases set forth in the following items, a trust may be modified by the persons specified in the respective items manifesting their intention to do so to the trustee. In such a case, in the case set forth in item (ii), the trustee must notify the settlor of the content of the terms of trust after the modification without delay:

(4)Notwithstanding the provisions of the preceding three paragraphs, if it is otherwise provided for by the terms of trust, the clause prevails.

(5)If there is no settlor at the time in question, the provisions of paragraph (1) and paragraph (3), item (i) do not apply, and the phrase "to the settlor in the case set forth in item (i), and to the settlor and the beneficiary in the case set forth in item (ii)" in paragraph (2) is deemed to be replaced with "to the beneficiary in the case set forth in item (ii)".

Article 150(1)If, due to special circumstances that were unforeseeable at the time of the terms of trust, the clause of the terms of trust concerning the means of administration of trust affairs no longer conforms to the interests of a beneficiary in light of the purpose of a trust, the status of trust property, and other circumstances, the court may order a modification of the trust upon petition of a settlor, a trustee or a beneficiary.

(2)The petition referred to in the preceding paragraph must be filed by disclosing the clause of the terms of trust after the modification related to that petition.

(3)Before the court makes the judicial decision on the petition referred to in paragraph (1), it must hear the statements of the trustee; provided, however, that this does not apply when the court makes the judicial decision to dismiss the petition as unlawful or clearly groundless.

(4)The judicial decision on the petition referred to in paragraph (1) must include a summary of the reasons for that decision.

(5)Only the settlor, the trustee, or the beneficiary may file an immediate appeal against the judicial decision on the petition referred to in paragraph (1).

(6)The immediate appeal referred to in the preceding paragraph has the effect of a stay of enforcement.

Article 151(1)A consolidation of trusts may be implemented by the agreement among settlors, trustees, and beneficiaries of each of the previous trusts. In such a case, the consolidation must be implemented by clarifying the following particulars:

(2)Notwithstanding the provisions of the preceding paragraph, in the cases set forth in the following items, trusts may be consolidated by the means specified in the respective items. In such a case, the trustee must give a notice of the particulars set forth in the items of the preceding paragraph to the settlor in the case set forth in item (i) and to the settlor and the beneficiary in the case set forth in item (ii), without delay:

(3)Notwithstanding the provisions of the preceding two paragraphs, if it is otherwise provided for in each of the terms of trust, the clause prevails.

(4)If there is no settlor at the time in question, the provisions of paragraph (1) do not apply, and the phrase "to the settlor in the case set forth in item (i), and to the settlor and the beneficiary in the case set forth in item (ii)" in paragraph (2) is deemed to be replaced with "to the beneficiary in the case set forth in item (ii)".

Article 152(1)If a consolidation of trusts is to be implemented, creditors who hold claims regarding obligations covered by the trust property of the previous trusts may state their objections to the trustees with regard to the consolidation of trusts; provided, however, that this does not apply if there is no risk of those creditors being harmed by the consolidation of trusts.

(2)If all or some of the creditors referred to in the preceding paragraph may state their objections pursuant to the provisions of that paragraph, the trustee must give public notice of the following particulars in the Official Gazette, and must separately demand this to the known creditors set forth in that paragraph; provided, however, that the period set forth in item (ii) may not be shorter than one month:

(3)Notwithstanding the provisions of the preceding paragraph, a trustee that is a corporation may substitute public notice (limited to public notice given by the following means) for the separate demand to the creditors pursuant to the provisions of that paragraph:

(4)If a creditor referred to in paragraph (1) do not state an objection within the period referred to in paragraph (2), item (ii), the creditor is deemed to have accepted the consolidation of trusts.

(5)If a creditor referred to in paragraph (1) states their objections within the period referred to in paragraph (2), item (ii), the trustee must make payment or provide reasonable security to the creditor, or must entrust reasonable property to a trust company or financial institution (meaning a trust company and a financial institution engaging in trust business (meaning a financial institution authorized under Article 1, paragraph (1) of the Act on Engagement in Trust Business Activities by Financial Institutions (Act No. 43 of 1943)); the same applies in the following Section) for the purpose of having those creditors receive payment; provided, however, that this does not apply if there is no risk of the creditor being harmed by the consolidation of trusts.

Article 153If trusts are consolidated, the obligations covered by the trust property of the previous trusts becomes obligations covered by trust property after the consolidation of trusts.

Article 154If trusts are consolidated, the obligations covered only by the trust property (meaning obligations covered by the trust property which a trustee is liable only by using property that comes under trust property; hereinafter the same applies in this Chapter) among obligations covered by the trust property with regard to the previous trusts prescribed in the preceding Article, becomes obligations covered only by the trust property after the consolidation of trusts.

Article 163Beyond what is provided for in the provisions of the following Article, a trust terminates in the following cases:

Article 164(1)A settlor and a beneficiary may terminate a trust at any time by an agreement between them.

(2)If a settlor and a beneficiary have terminated the trust at a time that is detrimental to the trustee, the settlor and the beneficiary must compensate the trustee for any damages; provided, however, that this does not apply if there was a compelling reason for the trust to be terminated at that time.

(3)Notwithstanding the provisions of the preceding two paragraphs, if it is otherwise provided for by the terms of trust, the clause prevails.

(4)The provisions of paragraph (1) and paragraph (2) do not apply if there is no settlor at the time in question.

Article 165(1)If, due to the special circumstances that were unforeseeable at the time of the terms of trust, it is obvious that the termination of a trust has come to conform to the interests of the beneficiary in light of the purpose of the trust, the status of the trust property, and other circumstances, the court may order the termination of the trust upon petition of the settlor, the trustee, or the beneficiary,.

(2)Before the court makes the judicial decision on the petition referred to in the preceding paragraph, it must hear the statements of the trustee; provided, however, that this does not apply when the court makes the judicial decision to dismiss the petition as unlawful or clearly groundless.

(3)The judicial decision on the petition referred to in paragraph (1) must include the reasons for that decision.

(4)Only the settlor, the trustee, or the beneficiary may file an immediate appeal against the judicial decision on the petition referred to in paragraph (1).

(5)The immediate appeal referred to in the preceding paragraph has the effect of a stay of enforcement.

Article 166(1)In the following cases, if the court finds the existence of a trust to be impermissible from the perspective of securing public interest, it may order the termination of the trust, upon petition of the Minister of Justice, a settlor, a beneficiary, a trust creditor, or any other interested party:

(2)Before the court makes the judicial decision on the petition referred to in the preceding paragraph, it must hear the statements of the trustee; provided, however, that this does not apply when the court makes the judicial decision to dismiss the petition as unlawful or clearly groundless.

(3)The judicial decision on the petition referred to in paragraph (1) must include the reasons for that decision.

(4)Only the person who has filed the petition referred to in paragraph (1), or the settlor, the trustee or the beneficiary may file an immediate appeal against the judicial decision on the petition referred to in that paragraph.

(5)The immediate appeal set forth in the preceding paragraph has the effect of a stay of enforcement.

(6)If the settlor, the beneficiary, the trust creditor, or other interested party has filed the petition referred to in paragraph (1), upon petition of the trustee, the court may order the person who has filed the petition referred to in that paragraph to provide reasonable security.

(7)When filing the petition pursuant to the provisions of the preceding paragraph, the trustee must make a prima facie showing of the fact that the petition set forth in paragraph (1) was filed in bad faith.

(8)The provisions of Article 75, paragraph (5), paragraph (7), and Articles 76 through 80 of the Code of Civil Procedure (Act No. 109 of 1996) apply mutatis mutandis to the security required to be provided upon the filing the petition referred to in paragraph (1) pursuant to the provisions of paragraph (6).

Article 167If a court or other government agencies, a public prosecutor, or an official comes to know in the course of duties that there are grounds for filing the petition referred to in paragraph (1) of the preceding Article or for giving the warning referred to in item (ii) of that paragraph, the court, agency, prosecutor, or official must notify the Minister of Justice to that effect.

Article 168(1)Before the court makes a judicial decision on the petition referred to in Article 166, paragraph (1), it must seek the opinion of the Minister of Justice.

(2)If the court conducts a hearing on a case based on the petition referred to in the preceding paragraph, the Minister of Justice may attend that hearing.

(3)The court must notify the Minister of Justice of the fact that a case based on the petition referred to in paragraph (1) is pending at the court and of the date of the hearing referred to in the preceding paragraph.

(4)In addition to the persons specified in Article 166, paragraph (4), the Minister of Justice may file an immediate appeal against the judicial decision to dismiss the petition referred to in paragraph (1).

Article 169(1)If a petition referred to in Article 166, paragraph (1) has been filed, upon petition of the Minister of Justice, a settlor, a beneficiary, a trust creditor, or other interested party, or by the court's own authority, the court may render a disposition ordering administration by an administrator (referred to as an "administration order" in the following Article) or may give other freezing order that is necessary for the trust property, until a court decision is given to the petition referred to in that paragraph..

(2)The court may change or revoke the freezing order given pursuant to the provisions of the preceding paragraph.

(3)Only an interested party may file an immediate appeal against the freezing order pursuant to the provisions of paragraph (1) and against an order pursuant to the provisions of the preceding paragraph.

Article 170(1)When the court issues an administration order, it must appoint an administrator in the order.

(2)The court supervises the administrator referred to in the preceding paragraph.

(3)The court may order the administrator referred to in paragraph (1) to make a report on the status of property that comes under trust property and of the obligations covered by the trust property, and to settle the accounts for their administration.

(4)The provisions of Articles 64 through 72 apply mutatis mutandis to the administrator referred to in paragraph (1). In such a case, the term "former trustee" in Article 65 is deemed to be replaced with "trustee".

(5)If the freezing order pursuant to the provisions of paragraph (1) of the preceding Article (excluding an administration order) is issued against a right that belongs to the trust property that has been registered, the court clerk must commission a registration of that freezing order on the clerk's own authority, without delay.

(6)The provisions of the preceding paragraph apply mutatis mutandis to the cases in which the freezing order prescribed in that paragraph is changed or revoked, or the cases in which the freezing order has ceased to be effective.

Article 171(1)If the court has issued a freezing order pursuant to the provisions of Article 169, paragraph (1), the expenses for procedures of a non-contentious case are borne by a trustee. The same applies to any expenses necessary for the freezing order.

(2)If an immediate appeal is filed against the freezing order referred to in the preceding paragraph or a judicial decision to dismiss the petition referred to in Article 169, paragraph (1), if the court in charge of the appeal finds grounds for the immediate appeal and revokes the judicial decision of prior instance, the court expenses required for the proceedings in the instance of that appeal, as well as the court expenses required for the proceedings in the prior instance that had been borne by the appellant, are borne by the trustee.

Article 172(1)An interested party may make a request to the court clerk to inspect materials relating to the report or settlement of accounts referred to in Article 170, paragraph (3).

(2)An interested party may make a request to the court clerk for the copying of the materials referred to in the preceding paragraph or delivery of their authenticated copy, transcript, or extract.

(3)The provisions of the preceding paragraph do not apply to materials referred to in paragraph (1) which have been prepared in the form of audiotapes or videotapes (including objects on which certain particulars are recorded by any means equivalent to them). In such a case, the court clerk must permit the reproduction of those objects when requested by the interested party.

(4)The Minister of Justice may make a request to the court clerk to inspect the materials referred to in paragraph (1).

(5)The provisions of Article 91, paragraph (5) of the Code of Civil Procedure apply mutatis mutandis to the materials referred to in paragraph (1).

Article 173(1)If the court has ordered the termination of a trust pursuant to the provisions of Article 166, paragraph (1), upon petition of the Minister of Justice, a settlor, a beneficiary, a trust creditor, or any other interested party, or by the court's own authority, the court must appoint a new trustee for liquidation of the trust.

(2)No appeal may be entered against the judicial decision on the appointment of a new trustee pursuant to the provisions of the preceding paragraph.

(3)If a new trustee is appointed pursuant to the provisions of paragraph (1), the former trustee's duties are terminated.

(4)The new trustee referred to in paragraph (1) may receive advance payment of expenses and remuneration from the trust property in an amount determined by the court.

(5)Before the court makes the judicial decision to determine the amount of advance payment of expenses or remuneration under the provisions of the preceding paragraph, it must hear the statements of the new trustee referred to in paragraph (1).

(6)Only the new trustee referred to in paragraph (1) may file an immediate appeal against the judicial decision that determined the amount of advance payment of expenses or remuneration under the provisions of paragraph (4).

Article 174If a trust is terminated, an absorption-type trust split in which the trust is to be a succeeding trust may not be implemented.

Article 175A trust must go into liquidation as provided for in this Section when the trust is terminated (excluding cases in which the trust is terminated on the grounds set forth in Article 163, item (v) and in which the trust is terminated due to an order of commencement of bankruptcy proceedings against the trust property and the bankruptcy proceedings have not been completed).

Article 176Even if a trust is terminated, the trust is deemed to continue to exist until the liquidation is completed.

Article 177A trustee after the termination of a trust (hereinafter referred to as the "liquidation trustee") performs the following duties:

Article 178(1)A liquidation trustee has the authority to perform any and all acts necessary for the liquidation of a trust; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(2)In the following cases, a liquidation trustee may put property that comes under trust property up for auction:

(3)If the liquidation trustee has put property that comes under trust property up for auction pursuant to the provisions of item (i) of the preceding paragraph, the liquidation trustee must give a notice to that effect to the beneficiary, etc.

(4)If the price of a property is likely to decline due to damage or any other reasons, the liquidation trustee may put that property up for auction without making the demand referred to in paragraph (2), item (i).

Article 179(1)If it becomes obvious that the property that comes under trust property is insufficient to pay off its obligations for a trust in liquidation, a liquidation trustee must immediately file a petition for commencement of bankruptcy proceedings against the trust property.

(2)If an order of commencement of bankruptcy proceedings has been entered against the trust property, and the liquidation trustee has already made any payments to a creditor who holds a claim regarding an obligation covered by the trust property, the bankruptcy trustee may retrieve that payment.

Article 180(1)A liquidation trustee may perform obligations regarding a conditional claim, a claim with an indefinite duration, or any other claim of an indeterminate amount. In such a case, the liquidation trustee must file a petition with the court for the appointment of an appraiser in order to have those claims appraised.

(2)In the case referred to in the preceding paragraph, the liquidation trustee must perform obligations regarding the claims referred to in that paragraph in accordance with the appraisal by the appraiser set forth in that paragraph.

(3)Expenses for the procedures for the appointment of the appraiser referred to in paragraph (1) are borne by the liquidation trustee. The same applies to expenses for summoning the appraiser and for the appraiser to ask questions for the appraisal.

(4)A judicial decision dismissing the petition referred to in paragraph (1) must include the reasons for the dismissal.

(5)No appeal may be entered against the judicial decision on the appointment of an appraiser pursuant to the provisions of paragraph (1).

(6)The provisions of the preceding paragraphs do not apply to cases in which otherwise agreed by the liquidation trustee, the beneficiary, the trust creditors, and the holders of vested rights prescribed in Article 182, paragraph (1), item (ii).

Article 181A liquidation trustee may not distribute property that comes under trust property to a beneficiary for residual assets, etc. prescribed in paragraph (2) of the following Article until after the liquidation trustee has performed the obligations referred to in Article 177, items (ii) and (iii); provided, however, that this does not apply if the liquidation trustee has reserved property that are found to be necessary for performing those obligations.

Article 182(1)Residual assets belong to the following persons:

(2)If the terms of trust contain no clause concerning the designation of a beneficiary for residual assets or a holder of a vested right (hereinafter collectively referred to as a "beneficiary for residual assets, etc." in this paragraph) or if all the persons designated by the provisions of the terms of trust as beneficiary for residual assets, etc. have waived their rights, it is deemed that the terms of trust had the clause designating the settlor or settlor's heir or other general successor as the holder of a vested right.

(3)If ownership of residual assets cannot be determined pursuant to the provisions of the preceding two paragraphs, the residual assets belong to the liquidation trustee.

Article 183(1)A person designated by the clause of the terms of trust as the person who is to be a holder of a vested right automatically acquires a claim regarding an obligation to distribute residual assets; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(2)The provisions of Article 88, paragraph (2) apply mutatis mutandis to a person designated as the person who is to be a holder of a vested right prescribed in the preceding paragraph.

(3)A person who has become a holder of a vested right pursuant to the provisions of the terms of trust may manifest the intention to waive the right to the trustee; provided, however, that this does not apply if the person who has become the holder of a vested right pursuant to the provisions of the terms of trust is the party to the terms of trust .

(4)If a person who has become the holder of a vested right prescribed in the main clause of the preceding paragraph has manifested the intention under the provisions of that paragraph, the person is deemed to have never held rights as the holder of a vested right; provided, however, that this may not harm the rights of a third party.

(5)The provisions of Article 100 and Article 102 apply mutatis mutandis to the claim held by the holder of a vested right regarding an obligation to distribute residual assets.

(6)The holder of a vested right is deemed to be a beneficiary during the liquidation of the trust.

Article 184(1)If a liquidation trustee has completed their duties, the liquidation trustee must settle the final accounts related to trust affairs without delay and request approval for the settlement of accounts from all of the beneficiaries (if there is a trust administrator at the time in question, from the trust administrator) and the holders of vested rights at the time of the termination of the trust (hereinafter collectively referred to as the "beneficiaries, etc." in this Article).

(2)If the beneficiaries, etc. have approved the settlement of accounts referred to in the preceding paragraph, the liquidation trustee is deemed to have been exempted from the liability to the beneficiaries, etc.; provided, however, that this does not apply if there has been any misconduct in the liquidation trustee's execution of duties.

(3)If any of the beneficiaries, etc. has not stated an objection within one month from the time when they were requested to give approval for the settlement of accounts referred to in paragraph (1) from the liquidation trustee, that beneficiary or holder of a vested right is deemed to have approved of the settlement of accounts referred to in that paragraph.

Article 185(1)The term of trust may provide that a certificate indicating a single beneficial interest or two or more beneficial interests (hereinafter referred to as the "beneficiary certificate") is to be issued pursuant to the provisions in this Chapter.

(2)The provisions of the preceding paragraph do not preclude the terms of trust from providing that a beneficiary certificate will not be issued for a beneficial interest with a specific content.

(3)In the case of a trust subject to the provisions of paragraph (1) (hereinafter referred to as the "trust with certificates of beneficial interest"), the provisions of the preceding two paragraphs may not be changed by making a modification to the trust.

(4)In the case of a trust not subject to the provisions of paragraph (1), the provisions of that paragraph or paragraph (2) may not be established by making a modification to the trust.

Article 186A trustee of a trust with certificates of beneficial interest must prepare a beneficial interest register and enter or record the following particulars (hereinafter referred to as the "particulars to be stated in the beneficial interest register" in this Chapter) in the beneficial interest register, without delay:

Article 187(1)A beneficiary of a beneficial interest subject to the provisions of Article 185, paragraph (2) may request that a trustee of a trust with certificates of beneficial interest deliver a document stating the particulars to be stated in the beneficial interest register, which are stated or recorded in the beneficial interest register for the beneficiary to them, or provide them with an electronic or magnetic record in which the particulars to be stated in the beneficial interest register are recorded.

(2)The trustee of a trust with certificates of beneficial interest (for a trustee that is a corporation, its representative; the same applies in the following paragraph) must sign or affix the trustee's name and seal to the document referred to in the preceding paragraph.

(3)With respect to the electronic or magnetic record referred to in paragraph (1), the trustee of a trust with certificates of beneficial interest must take the measures specified by Order of the Ministry of Justice as an alternative to signing or affixing their name and seal.

(4)For the purpose of applying the provisions of the preceding two paragraphs to cases in which there are two or more trustees for a trust with certificates of beneficial interest, the phrase "trustee of the trust with certificates of beneficial interest" in these provisions is deemed to be replaced with "all trustees of the trust with certificates of beneficial interest".

Article 188A trustee of a trust with certificates of beneficial interest may appoint a beneficial interest register administrator (meaning a person who prepares and keeps a beneficial interest register and conducts other affairs concerning the beneficial interest register in lieu of the trustee of a trust with certificates of beneficial interest; the same applies hereinafter), and may entrust the administration of those affairs to the administrator.

Article 189(1)A trustee of a trust with certificates of beneficial interest may specify a fixed date (hereinafter referred to as the "record date" in this Article), and specify that the beneficiaries who have been stated or recorded in the beneficial interest register on the record date (hereinafter referred to as the "beneficiaries on the record date" in this Article) as the persons who are entitled to exercise their rights.

(2)The provisions of the preceding paragraph do not apply to the beneficiaries of bearer beneficial interest.

(3)If specifying the record date, the trustee of a trust with certificates of beneficial interest must specify the content of the rights that the beneficiaries on the record date are entitled to exercise (limited to the rights that are to be exercised within three months from the record date).

(4)If the trustee of a trust with certificates of beneficial interest has specified the record date, the trustee must give public notice in the Official Gazette by no later than two weeks prior to that record date, of the record date and the particulars specified pursuant to the provisions of the preceding paragraph; provided, however, that this does not apply if the terms of trust contain clauses on the record date and the content of the rights that the beneficiaries on the record date are entitled to exercise.

(5)Notwithstanding the provisions of paragraph (1), paragraph (3), and the main clause of the preceding paragraph, if it is otherwise provided for by the terms of trust, the clause prevails.

Article 190(1)A trustee of a trust with certificates of beneficial interest must keep a beneficial interest register at their domicile (if the trustee is a corporation (excluding cases in which there is a beneficial interest register administrator at the time in question), its principal office; if there is a beneficial interest register administrator at the time in question, the administrator's business office).

(2)A settlor, a beneficiary, and any other interested party may make the following requests to the trustee of a trust with certificates of beneficial interest. In such a case, the reasons for the request must be clarified:

(3)When the request referred to in the preceding paragraph has been made, the trustee of a trust with certificates of beneficial interest may not refuse the request, unless it is found that any of the following cases applies:

(4)If any of the requests referred to in paragraph (2) is made for the particulars set forth in Article 186, item (iii) or (iv) (limited to the particulars concerning a beneficial interest not subject to the provisions of Article 185, paragraph (2)), and it is otherwise provided for by the terms of trust, the clause prevails.

Article 191(1)It is sufficient for a notice or a demand letter from the trustee of a trust with certificates of beneficial interest to a beneficiary to be sent to the beneficiary's domicile stated or recorded in the beneficial interest register (if a beneficiary has notified the trustee of a place or a contact address for receiving notices or demand letters, to that place or contact address).

(2)The notice or demand letter referred to in the preceding paragraph is deemed to have reached the addressee at the time when the notice or demand letter should have normally arrived.

(3)If the beneficial interest in the trust with certificates of beneficial interest is co-owned by two or more persons, the co-owners must designate one person who is to receive the notice or demand letter sent by the trustee of a trust with certificates of beneficial interest to the beneficiaries, and must notify the trustee of that person's name. In such a case, that person is deemed to be a beneficiary and the provisions of the preceding two paragraphs apply to the person.

(4)If a notice by the co-owners under the provisions of the preceding paragraph has not been given, it is sufficient for a notice or a demand letter from the trustee of a trust with certificates of beneficial interest to the co-owners of the beneficial interest to be sent to one of the co-owners.

(5)If the trustee of a trust with certificates of beneficial interest is required to give notice to the beneficiaries of bearer beneficial interest pursuant to the provisions of this Act, it is sufficient for the trustee to send a notice to the beneficiary whose name and address is known to the trustee. In such a case, the trustee must give public notice in the Official Gazette of the particulars that are required to be given notice.

Article 192(1)If a beneficiary of bearer beneficial interest seeks to exercise their right against a trustee of a trust with certificates of beneficial interest or any other person, the beneficiary must present the certificate of beneficial interest to the trustee or that other person.

(2)If a beneficiary with bearer beneficial interest seeks to exercise the voting right at a beneficiaries meeting, the beneficiary must present the beneficiary certificate to the convener prescribed in Article 108 by no later than one week prior to the date of the beneficiaries meeting.

Article 193If a beneficial interest in a trust with certificates of beneficial interest is co-owned by two or more persons, the co-owners may not exercise the rights of the beneficial interest unless they designate one person who is to exercise the rights of the beneficial interest and notify the trustee of a trust with certificates of beneficial interest of that person's name; provided, however, that this does not apply if the trustee has consented to the exercise of those rights.

Article 194Transfer of a beneficial interest in a trust with certificates of beneficial interest (excluding a beneficial interest subject to the provisions of Article 185, paragraph (2)) does not become effective unless the beneficiary certificate related to the beneficial interest is delivered.

Article 195(1)Transfer of a beneficial interest in a trust with certificates of beneficial interest may not be asserted against the trustee of a trust with certificates of beneficial interest unless the name and address of the person who has acquired the beneficial interest has been entered or recorded in the beneficial interest register.

(2)For the purpose of applying the provisions of the preceding paragraph to the beneficial interest subject to the provisions of Article 185, paragraph (2), the term "trustee" in that paragraph is deemed to be replaced with "trustee and other third parties".

(3)The provisions of paragraph (1) do not apply to bearer beneficial interest.

Article 196(1)A possessor of a beneficiary certificate is presumed to be the lawful owner of the beneficial interest related to the certificate.

(2)A person who has received the delivery of a beneficiary certificate acquires the rights of the beneficial interest related to the beneficiary certificate; provided, however, that this does not apply if the person acted in bad faith or with gross negligence.

Article 197(1)In the cases set forth in the following items, the trustee of a trust with certificates of beneficial interest must enter or record in the beneficial interest register the particulars to be stated in the beneficial interest register regarding the beneficiary of the beneficial interest specified in the respective items, as provided for by Order of the Ministry of Justice:

(2)If the consolidation of beneficial interests is implemented by making a modification to the trust, the trustee of a trust with certificates of beneficial interest must enter or record in the beneficial interest register the particulars to be stated in the beneficial interest register regarding the beneficiary of that beneficial interest.

(3)If the split of a beneficial interest is implemented by making a modification to the trust, the trustee of a trust with certificates of beneficial interest must enter or record in the beneficial interest register the particulars to be stated in the beneficial interest register regarding the beneficiary of that beneficial interest.

(4)The provisions of the preceding three paragraphs do not apply to bearer beneficial interest.

Article 198(1)A person who has acquired a beneficial interest in a trust with certificates of beneficial interest from a person other than the trustee of the trust with certificates of beneficial interest (excluding the trustee) may request the trustee of a trust with certificates of beneficial interest to enter or record in the beneficial interest register the particulars to be stated in the beneficial interest register regarding that beneficial interest.

(2)The request pursuant to the provisions of the preceding paragraph must be made jointly with the person who is stated or recorded in the beneficial interest register as the beneficiary of the beneficial interest acquired, or the person's heir or other general successors, except in cases specified by Order of the Ministry of Justice that there is no risk of harming the interest of an interested party.

(3)The provisions of the preceding two paragraphs do not apply to bearer beneficial interest.

Article 199A pledge of a beneficial interest for a trust with certificates of beneficial interest (excluding a beneficial interest subject to the provisions of Article 185, paragraph (2)) does not become effective unless the beneficiary certificate related to the beneficial interest is delivered.

Article 200(1)A pledgee of a beneficial interest in a trust with certificates of beneficial interest (excluding a beneficial interest subject to the provisions of Article 185, paragraph (2)) may not assert the right of pledge against the trustee of a trust with certificates of beneficial interest or other third party unless the pledgee continues to possess the beneficiary certificate related to the beneficial interest.

(2)The pledge of a beneficial interest subject to the provisions of Article 185, paragraph (2) may not be asserted against the trustee of a trust with certificates of beneficial interest or other third party unless the name and address of the pledgee has been entered or recorded in the beneficial interest register.

Article 201(1)A person who has created a pledge on a beneficial interest for a trust with certificates of beneficial interest may request a trustee of a trust with certificates of beneficial interest to enter or record the following particulars in the beneficial interest register:

(2)The provisions of the preceding paragraph do not apply to bearer beneficial interest.

Article 202(1)A pledgee for whom the particulars set forth in the items of paragraph (1) of the preceding Article have been entered or recorded in the beneficial interest register (hereinafter referred to as the "registered pledgee of a beneficial interest" in this Section) may request that a trustee of a trust with certificates of beneficial interest deliver a document stating the particulars on the registered pledgee of a beneficial interest set forth in the items of that paragraph, which are stated or recorded in the beneficial interest register of that registered pledgee of a beneficial interest, or request that the trustee provide the registered pledgee of a beneficial interest with an electronic or magnetic record containing those particulars.

(2)The trustee (for the trustee that is a corporation, its representative; the same applies in the following paragraph) of a trust with certificates of beneficial interest must sign or affix their name and seal to the document referred to in the preceding paragraph.

(3)With respect to the electronic or magnetic record referred to in paragraph (1), the trustee of a trust with certificates of beneficial interest must take the measures specified by Order of the Ministry of Justice as an alternative to signing or affixing their name and seal.

(4)For the purpose of applying the provisions of the preceding two paragraphs to cases in which there are two or more trustees for the trust with certificates of beneficial interest, the phrase "trustee of a trust with certificates of beneficial interest" in these provisions is deemed to be replaced with "all trustees of the trust with certificates of beneficial interest".

Article 203(1)It is sufficient for a notice or a demand letter from a trustee of a trust with certificates of beneficial interest to a registered pledgee of a beneficial interest or demand that the trustee makes to a registered pledgee of a beneficial interest to be sent to the domicile of the registered pledgee of a beneficial interest that is entered or recorded in the beneficial interest register (if the registered pledgee of a beneficial interest has notified the trustee of a different place or contact address for receiving notices or demand letters, to that place or contact address).

(2)The notice or demand letter referred to in the preceding paragraph is deemed to have reached the addressee at the time when the notice or demand letter should have normally arrived.

Article 204(1)If the consolidation of beneficial interests is implemented by making a modification to the trust and the pledgee of the pledge created on the beneficial interests is the registered pledgee of a beneficial interest, the trustee of a trust with certificates of beneficial interest must enter or record in the beneficial interest register the name and address of that pledgee with regard to the consolidated beneficial interest.

(2)If the split of a beneficial interest is implemented by making a modification to the trust and the pledgee of the pledge created on the beneficial interest is the registered pledgee of a beneficial interest, the trustee of a trust with certificates of beneficial interest must enter or record in the beneficial interest register the name and address of that pledgee with regard to the split beneficial interest.

Article 205(1)In the case prescribed in paragraph (1) of the preceding Article, the trustee of a trust with certificates of beneficial interest must deliver the beneficiary certificate related to the consolidated beneficial interest to the registered pledgee of a beneficial interest.

(2)In the case prescribed in paragraph (2) of the preceding Article, the trustee of a trust with certificates of beneficial interest must deliver the beneficiary certificate related to the split beneficial interest to the registered pledgee of a beneficial interest.

Article 206(1)With regard to a beneficial interest that is subject to the provisions of Article 185, paragraph (2) which belongs to the trust property of another trust, the fact that the beneficial interest belongs to the trust property of that other trust may not be asserted against a trustee of a trust with certificates of beneficial interest or against any other third party unless the fact that the beneficial interest belongs to the trust property of the other trust is entered or recorded in the beneficial interest register.

(2)The trustee of the other trust to which the beneficial interest referred to in the preceding paragraph belongs may request that the trustee of a trust with certificates of beneficial interest enter or record in the beneficial interest register the fact that the beneficial interest belongs to the trust property.

(3)For the purpose of applying the provisions of Article 187 to cases in which the facts have been entered or recorded in the beneficial interest register pursuant to the provisions of the preceding paragraph, in paragraph (1) of that Article, the phrase "a beneficiary of a beneficial interest subject to the provisions of Article 185, paragraph (2)" is deemed to be replaced with "the trustee of another trust to which a beneficial interest set forth in Article 206, paragraph (1) belongs", the term "that beneficiary" is deemed to be replaced with "that beneficial interest", and the phrase "the particulars to be stated in the beneficial interest register, which are stated or recorded in the beneficial interest register regarding that beneficiary" is deemed to be replaced with "the particulars to be stated in the beneficial interest register, which are stated or recorded in the beneficial interest register regarding that beneficiary (including the fact that that beneficial interest belongs to the trust property)".

Article 207A trustee of a trust with certificates of beneficial interest must issue beneficiary certificates related to the beneficial interest without delay, as provided for by the terms of trust,.

Article 208(1)A beneficiary of a trust with certificates of beneficial interest may propose that that beneficiary does not desire to possess a beneficiary certificate related to the beneficial interest that the beneficiary holds to the trustee of a trust with certificates of beneficial interest; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(2)The proposal under the provisions of the preceding paragraph must be made by disclosing the content of the beneficial interest related to the proposal. In such a case, if the beneficiary certificate related to the beneficial interest has already been issued, the beneficiary must submit the beneficiary certificate to the trustee of a trust with certificates of beneficial interest.

(3)The trustee of a trust with certificates of beneficial interest who has received the proposal pursuant to the provisions of paragraph (1) must enter or record in the beneficial interest register the fact that they will not issue the beneficiary certificate related to the beneficial interest referred to in the first sentence of the preceding paragraph.

(4)If a trustee of a trust with certificates of beneficial interest has made the entry or record pursuant to the provisions of the preceding paragraph, the trustee may not issue the beneficiary certificate related to the beneficial interest referred to in the first sentence of paragraph (2).

(5)The beneficiary certificate submitted pursuant to the provisions of the second sentence of paragraph (2) becomes invalid at the time when the entry or record pursuant to the provisions of paragraph (3) is made.

(6)The beneficiary who has made the proposal under the provisions of paragraph (1) may at any time demand that the trustee of a trust with certificates of beneficial interest issue a beneficiary certificate related to the beneficial interest referred to in the first sentence of paragraph (2). In such a case, if there is a beneficiary certificate that was submitted pursuant to the provisions of the second sentence of that paragraph, the expenses for issuing a beneficiary certificate are to be borne by that beneficiary.

(7)The provisions of the preceding paragraphs do not apply to bearer beneficial interest.

Article 209(1)The following particulars and the serial number must be entered in a beneficiary certificate, and a trustee of a trust with certificates of beneficial interest (for a trustee that is a corporation, its representative) must sign or affix their name and seal to the certificate:

(2)For the purpose of applying the provisions of the preceding paragraph to cases in which there are two or more trustees for a trust with certificates of beneficial interest, the phrase "a trustee of a trust with certificates of beneficial interest " in those provisions is deemed to be replaced with "all trustees of a trust with certificates of beneficial interest".

Article 210A beneficiary of a beneficial interest for which a beneficiary certificate has been issued may at any time demand that their beneficiary certificate in registered form to be converted into a beneficiary certificate in bearer form, or that their beneficiary certificate in bearer form to be converted into a beneficiary certificate in registered form; provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

Article 211(1)A beneficiary certificate may be invalidated through the public notification procedures prescribed in Article 100 of the Non-Contentious Cases Procedures Act (Act No. 51 of 2011).

(2)A person who has lost the beneficiary certificate may not request its re-issuance until after the person obtains an order of nullification of right prescribed in Article 106, paragraph (1) of the Non-Contentious Cases Procedures Act.

(3)If a person who has lost the beneficiary certificate has filed a petition for public notification prescribed in Article 114 of the Non-Contentious Cases Procedures Act, the person who has lost the beneficiary certificate may provide reasonable security and have the trustee of a trust with certificates of beneficial interest perform the obligations regarding the beneficiary certificate.

Article 212(1)In the case of a trust with certificates of beneficial interest, notwithstanding the provisions of the proviso to Article 29, paragraph (2), the obligations referred to in the main clause of that paragraph may not be reduced by what is provided for by the terms of trust.

(2)The provisions of Article 35, paragraph (4) do not apply to a trust with certificates of beneficial interest.

Article 213(1)In the case of a trust with certificates of beneficial interest, notwithstanding the provisions of Article 92, item (i), item (v), item (vi), and item (viii), a clause may be established in the terms of trust to the effect that, with regard to all or part of the following rights, the rights may be exercised only by a beneficiary who holds a beneficial interest for not less than three-hundredths of the voting rights of all beneficiaries (or a smaller percentage provided for by the terms of trust; hereinafter the same applies in this paragraph) or a beneficiary who holds beneficial interest for not less than three-hundredths of the total number of existing beneficial interests:

(2)In the case of a trust with certificates of beneficial interest, notwithstanding the provisions of Article 92, item (i), a clause may be established in the terms of trust to the effect that, with regard to all or part of the following rights, the rights may be exercised only by a beneficiary who holds a beneficial interest for not less than one-tenth of the voting rights of all beneficiaries (or a smaller percentage provided for by the terms of trust; hereinafter the same applies in this paragraph) or a beneficiary who holds a beneficial interest for not less than one-tenth of the total number of existing beneficial interests:

(3)The provisions of the preceding two paragraphs do not apply to a trust with certificates of beneficial interest if disclosure pursuant to the provisions of Article 39, paragraph (1) is restricted by the clause of the terms of trust referred to in paragraph (3) of that Article.

(4)In the case of a trust with certificates of beneficial interest, notwithstanding the provisions of Article 92, item (xi), a clause may be established in the terms of trust to the effect that the right to demand a cessation pursuant to the provisions of Article 44, paragraph (1) may be exercised only by a beneficiary who has continually held a beneficial interest during the preceding six months (or a shorter period provided for by the terms of trust ).

Article 214In the case of a trust with certificates of beneficial interest that has two or more beneficiaries, unless otherwise provided for by the terms of trust, it is deemed that the terms of trust has established that a beneficiaries' decision (excluding a decision on the exercise of the rights set forth in the items of Article 92) is to be made by a majority vote at a beneficiaries meeting pursuant to the provisions of Chapter IV, Section 3, Subsection 2.

Article 215In the case of a trust with certificates of beneficial interest, among the rights of a settlor granted pursuant to the provisions of this Act, the following rights are exercised by a beneficiary:

Article 216(1)A limited liability trust comes into effect as a limited liability trust when it is provided by the terms of trust that the trustee is liable to perform all of the obligations covered by the trust property by using only property that comes under trust property, and when registration is made pursuant to the provisions of Article 232.

(2)The terms of trust referred to in the preceding paragraph must provide for the following particulars:

Article 217(1)In the case of a limited liability trust, enforcement, provisional seizure, provisional disposition, exercise of a security right or auction, or proceedings for collection of national tax delinquency may not be carried out against property that comes under trustee's own property, based on a claim regarding an obligation covered by the trust property (excluding obligations regarding the right set forth in Article 21, paragraph (1), item (viii)).

(2)The trustee may assert an objection to enforcement, provisional seizure, provisional disposition, or exercise of a security right or an auction that was carried out in violation of the provisions of the preceding paragraph. In such a case, the provisions of Article 38 of the Civil Execution Act and the provisions of Article 45 of the Civil Provisional Remedies Act apply mutatis mutandis.

(3)The trustee may assert an objection to proceedings for collection of national tax delinquency that were carried out in violation of the provisions of paragraph (1). In such a case, the assertion of the objection is to be made by filing an appeal against the proceedings for collection of national tax delinquency.

Article 218(1)The characters for the term "limited liability trust" must be used in the name of a limited liability trust.

(2)It is prohibited for any person to use in the name or trade name of a trust that is not a limited liability trust any characters which is likely to be mistaken for a limited liability trust.

(3)It is prohibited for any person to use for a wrongful purpose, any name or trade name which is likely to be mistaken for another limited liability trust.

(4)A trustee of a limited liability trust whose business interests have been, or are likely to be, infringed by the use of a name or trade name violating the provisions of the preceding paragraph may seek an injunction to suspend or prevent the infringement against the person who has infringed or is likely to infringe those business interests.

Article 219When conducting a transaction as the trustee of a limited liability trust, the trustee may not assert against the counterparty to the transaction that fact unless the trustee indicates the fact to the counterparty.

Article 220(1)The particulars required to be registered pursuant to the provisions of this Chapter may not be asserted against a third party in good faith until after the registration. The same applies even after the registration, if a third party did not know that those particulars were registered based on legitimate grounds.

(2)A person who has registered false particulars willfully or negligently with regard to the particulars required to be registered pursuant to the provisions of this Chapter may not assert the falsity of those particulars against a third party who has no knowledge of the falsity.

Article 221If a modification is made to a trust to repeal the provisions of Article 216, paragraph (1) and a registration of termination referred to in Article 235 is made, the provisions of this Chapter do not apply to the trust after the modification.

Article 222(1)Notwithstanding the provisions of Article 37 and Article 38, the preparation of books and other documents or electronic or magnetic records regarding a limited liability trust, reporting on their content, and their preservation, as well as their inspection and copying are governed by the provisions of the following paragraph through paragraph (9).

(2)The trustee must prepare the accounting books for the limited liability trust as provided for by Order of the Ministry of Justice.

(3)Promptly after the limited liability trust has come into effect, the trustee must prepare a balance sheet on the day on which it came into effect, as provided for by Order of the Ministry of Justice.

(4)Each year at a fixed time specified by Order of the Ministry of Justice, the trustee must prepare, in accordance with the provisions of Order of the Ministry of Justice, a balance sheet and profit and loss statement for the limited liability trust as well as their annexed detailed statements and other documents or electronic or magnetic records specified by Order of the Ministry of Justice.

(5)If the trustee has prepared the documents or electronic or magnetic records referred to in the preceding paragraph, they must make a report on their content to the beneficiary (if there is a trust administrator at the time in question, to the trust administrator); provided, however, that if it is otherwise provided for by the terms of trust, the clause prevails.

(6)If the trustee has prepared the accounting books referred to in paragraph (2), they must preserve those accounting books (if electronic or magnetic records have been prepared in lieu of documents by the means specified by Order of the Ministry of Justice, those electronic or magnetic records; if documents have been prepared in lieu of electronic or magnetic records, those documents) for ten years from the date of their preparation (or until the date of the completion of the liquidation of the trust if this occurs within that ten-year period; the same applies in the following paragraph); provided, however, that this does not apply if the trustee has delivered the documents or their copies to the beneficiary (if there are two or more beneficiaries at the time in question, to all beneficiaries; if there is a trust administrator at the time in question, to the trust administrator; the same applies in paragraph (8)), or has provided the beneficiary with information recorded in those electronic or magnetic records by the means specified by Order of the Ministry of Justice.

(7)If the trustee has prepared or acquired a written contract regarding the disposal of property that comes under trust property or any other documents or electronic or magnetic records concerning the administration of trust affairs, they must preserve those documents or electronic or magnetic records (if electronic or magnetic records have been prepared in lieu of those documents by the means specified by Order of the Ministry of Justice, those electronic or magnetic records; if documents have been prepared in lieu of those electronic or magnetic records, those documents) for ten years from the date of their preparation or acquisition. In such a case, the provisions of the proviso to the preceding paragraph apply mutatis mutandis.

(8)If the trustee has prepared the balance sheet referred to in paragraph (3) and the documents or electronic or magnetic records referred to in paragraph (4) (hereinafter referred to as the "balance sheet and relevant documents or records" in this paragraph and Article 224, paragraph (2), item (i)), they must preserve the balance sheet and relevant documents or records (if electronic or magnetic records have been prepared in lieu of documents by the means specified by Order of the Ministry of Justice, those electronic or magnetic records; if documents have been prepared in lieu of electronic or magnetic records, those documents) until the date of the completion of the liquidation of the trust; provided, however that this does not apply if, after ten years have elapsed from the date of the preparation, the trustee has delivered those documents or their copies to the beneficiary, or has provided the beneficiary with information recorded in those electronic or magnetic records by the means specified by Order of the Ministry of Justice.

(9)For the purpose of applying the provisions of Article 38 to the limited liability trust, the phrase "paragraph (1) or paragraph (5) of the preceding Article" in the items of paragraph (1) of that Article is deemed to be replaced with "Article 222, paragraph (2) or paragraph (7)," and the phrase "paragraph (2) of the preceding Article" in paragraph (4), item (i) of that Article and the items of paragraph (6) of that Article is deemed to be replaced with "Article 222, paragraph (3) or paragraph (4)."

Article 223The court may, upon petition or on its own authority, order the parties to a suit to submit all or some of the documents referred to in paragraph (2) through paragraph (4) of the preceding Article.

Article 224(1)If the trustee acted in bad faith or with gross negligence in administering trust affairs for limited lability trust, the trustee is liable to compensate for any damages suffered by a third party arising from this.

(2)The provisions of the preceding paragraph also apply if the trustee of the limited liability trust has performed the following acts; provided, however, that this does not apply if the trustee proves that they did not fail to exercise due care in performing those acts:

(3)In the cases referred to in the preceding two paragraphs, if there are other trustees who are also liable to compensate for damages, those trustees are joint and several obligors.

Article 225Distribution of trust property may not be made to the beneficiary in excess of the distributable amount (meaning the amount that may be distributed to the beneficiary, as calculated by the means specified by Order of the Ministry of Justice within the amount of net assets; hereinafter the same applies in this Section) for limited liability trust.

Article 226(1)If a trustee has distributed trust property to the beneficiary in violation of the provisions of the preceding Article, the persons set forth in the following items jointly and severally assume obligations specified in the respective items (for the beneficiary set forth in item (ii), joint and several liability is limited to the amount of distribution actually received by each beneficiary); provided, however, that this does not apply if the trustee proves that they did not fail to exercise due care in performing the duties:

(2)If the trustee has performed the obligation specified in item (i) of the preceding paragraph in whole or in part, the beneficiary set forth in item (ii) of that paragraph is exempted from the obligation specified in item (ii) of that paragraph up to the amount obtained by multiplying the amount of obligation performed by the ratio of the distributed amount referred to in item (ii) of that paragraph to the distributed amount referred to in item (i) of that paragraph, and if the beneficiary has performed the obligation specified in item (ii) of that paragraph in whole or in part, the trustee is exempted from the obligation specified in item (i) of that paragraph up to the amount of obligation performed.

(3)Money paid by the beneficiary to the trustee pursuant to the provisions of paragraph (1) (limited to the part regarding item (ii)) belongs to the trust property.

(4)The obligation prescribed in paragraph (1) may not be exempted; provided, however, that this does not apply if all beneficiaries consent to the exemption of the obligation up to the distributable amount on the day on which the distribution was made.

(5)In the case prescribed in the main clause of paragraph (1), if there are other trustees who also assume the obligation referred to in item (i) of that paragraph, those trustee are joint and several obligors.

(6)The provisions of Article 45 apply mutatis mutandis to an action regarding the claim pursuant to the provisions of paragraph (1).

Article 227(1)In the case prescribed in the main clause of paragraph (1) of the preceding Article, if the beneficiary who received the distribution had no knowledge of the fact that the distributed amount exceeds the maximum distributable amount on the day on which the distribution was made, the beneficiary is not liable to meet the demand by the trustee for reimbursement for the distributed amount.

(2)In the case prescribed in the main clause of paragraph (1) of the preceding Article, a trust creditor may have the beneficiary who received the distribution pay money equivalent to the distributed amount (or the amount of the claim held by that trust creditor if the distributed amount exceeds the amount of the claim).

Article 228(1)If a trustee has made distribution of trust property to a beneficiary, and a deficit (meaning the amount obtained by deducting the amount of assets from the amount of liabilities on the balance sheet when the amount of liabilities exceeds the amount of assets; hereinafter the same applies in this paragraph) occurs at the time referred to in Article 222, paragraph (4) that comes after the day on which the distribution was made, the persons set forth in the following items jointly and severally assume obligations specified in the respective items (for the beneficiary set forth in item (ii), the joint and several liability is limited to the distributed amount actually received by each beneficiary); provided, however, that this does not apply if the trustee has proved that they did not fail to exercise due care in performing their duties:

(2)If the trustee has performed the obligation specified in item (i) of the preceding paragraph in whole or in part, the beneficiary set forth in item (ii) of that paragraph is exempted from the obligation specified in item (ii) of that paragraph up to the amount obtained by multiplying the amount of obligation fulfilled by the ratio of the distributed amount referred to in item (ii) of that paragraph to the amount distributed referred to in item (i) of that paragraph, and if the beneficiary has fulfilled the obligation specified in item (ii) of that paragraph in whole or in part, the trustee is exempted from the obligation specified in item (i) of that paragraph up to the amount of obligation fulfilled.

(3)Money paid by the beneficiary to the trustee pursuant to the provisions of paragraph (1) (limited to the part regarding item (ii)) belongs to the trust property.

(4)The obligations prescribed in paragraph (1) may not be exempted without the consent of all beneficiaries.

(5)In the case prescribed in the main clause of paragraph (1), if there are other trustees who also assume the obligation referred to in item (i) of that paragraph, the trustees are joint and several obligors.

(6)The provisions of Article 45 apply mutatis mutandis to an action regarding the demand pursuant to the provisions of paragraph (1).

Article 229(1)A liquidation trustee of a limited liability trust must give public notice in the Official Gazette of the fact that trust creditors are required to file their claims during a fixed period of time to the trust creditors, and must separately give notice of that fact to each known trust creditor, after assuming office without delay; provided, however that the period may not be shorter than two months.

(2)The public notice pursuant to the provisions of the preceding paragraph must be accompanied by a supplementary note stating the fact that the trust creditors are excluded from the liquidation if they fail to file their claims during that period.

Article 230(1)A liquidation trustee of a limited liability trust may not perform any obligations of the limited liability trust in liquidation during the period referred to in paragraph (1) of the preceding Article. In such a case, the liquidation trustee may not be exempted from the liability arising from the failure to perform those obligations.

(2)Notwithstanding the provisions of the preceding paragraph, even during the period referred to in paragraph (1) of the preceding Article, with the permission of the court, the liquidation trustee may perform obligations regarding claims of small amounts, claims secured by security rights existing on property that comes under trust property of the limited liability trust in liquidation, and other obligations related to claims that are unlikely to harm other creditors even if they are performed. In such a case, if there are two or more liquidation trustees, a petition for the permission must be filed with the consent of all of those trustees.

(3)If filing a petition for the permission referred to in the preceding paragraph, the liquidation trustee must make a prima facie showing of the facts constituting the grounds for the petition.

(4)The judicial decision dismissing the petition referred to in paragraph (2) must include the reasons for the dismissal.

(5)No appeal may be entered against the judicial decision on the permission for performance pursuant to the provisions of paragraph (2).

Article 231(1)Trust creditors of a limited liability trust in liquidation (excluding known trust creditors) who have not filed their claims during the period referred to in Article 229, paragraph (1) are excluded from the liquidation.

(2)Trust creditors excluded from the liquidation pursuant to the provisions of the preceding paragraph may demand the performance only with respect to undistributed residual assets.

(3)If there are two or more beneficiaries and residual assets of the limited liability trust in liquidation have been distributed to some of those beneficiaries, the assets necessary for distribution to be made to beneficiaries other than those beneficiaries in the same proportion as that received by those beneficiaries are deducted from the residual assets referred to in the preceding paragraph.

Article 232If the provisions of Article 216, paragraph (1) have been established in the terms of trust, a registration of the provisions on the limited liability trust status must be made within two weeks, by registering the following particulars:

Article 233(1)If there is a change to the place of administration of affairs of a limited liability trust, a registration of that change must be made within two weeks at the former place of administration of affairs, and the particulars set forth in the items of the preceding Article must be registered at the new place of administration of affairs.

(2)If there is a change to the place of administration of affairs of the limited liability trust within the jurisdictional district of the same registry office, it is sufficient to make a registration of the change.

(3)If there is a change to any of the particulars set forth in the items of the preceding Article (excluding item (iv)), a registration of the change must be made within two weeks.

Article 234If a provisional disposition order is given to suspend the execution of duties by a trustee of a limited liability trust or to appoint a person who is a substitute for the trustee, or when the provisional disposition order is changed or revoked, a registration to that effect must be made at the place of administration of affairs of the trust.

Article 235If a limited liability trust has been terminated pursuant to the provisions of Article 163 (excluding the part regarding item (vi) and item (vii)) or Article 164, paragraph (1) or (3), or when a modification has been made to a trust to repeal the provisions of Article 216, paragraph (1), a registration of the termination must be made within two weeks.

Article 236(1)If a limited liability trust has been terminated and the trustee at the time of the termination of the limited liability trust assumes office of liquidation trustee, the name and address of the liquidation trustee must be registered within two weeks from the date of the termination.

(2)The provisions of the preceding paragraph also apply if a liquidation trustee is appointed pursuant to the clause of the terms of trust, or the provisions of Article 62, paragraph (1) or (4), or Article 173, paragraph (1).

(3)The provisions of Article 233, paragraph (3) apply mutatis mutandis to the registration pursuant to the provisions of the preceding two paragraphs.

Article 237If the liquidation of a limited liability trust has been completed, a registration of the completion of the liquidation must be made within two weeks from the date of approval of the settlement of accounts referred to in Article 184, paragraph (1).

Article 238(1)Affairs for registration of a limited liability trust are administered by the Legal Affairs Bureau or District Legal Affairs Bureau, the branch bureau or the branch office of those bureaus, which has jurisdiction over the place of administration of affairs of the limited liability trust as the competent registry office.

(2)Registry offices keep a limited liability trust register.

Article 239(1)Registrations under the provisions of Article 232 and Article 233 are made upon application by the trustee, and registrations under the provisions of Articles 235 through 237 are made upon application by the liquidation trustee.

(2)Notwithstanding the provisions of the preceding paragraph, if a trust property administrator or an incorporated trust property administrator has been appointed, registrations under the provisions of Article 232 and Article 233 (excluding a registration under the provisions of Article 246) are made upon application by the trust property administrator or the incorporated trust property administrator.

Article 240The following documents must be attached to a written application for registration of the provisions on limited liability trust status:

Article 241(1)When filing a written application for the registration of a change in the place of administration of affairs or of a change in any of the particulars set forth in the items of Article 232 (excluding item (iv)), a document certifying the change in the place of administration of affairs or the change in the registered particulars must be attached to the written application.

(2)When filing a written application for a registration of a change due to the assumption of office by a new trustee that is a corporation, the document set forth in item (ii) of the preceding Article must be attached to the written application.

(3)When filing a written application for a registration of a change due to the assumption of office by a financial auditor, the document set forth in item (iii), sub-item (b) or (c) of the preceding Article must be attached to the written application.

Article 242When filing a written application for the registration of the termination of a limited liability trust, a document certifying the grounds for the termination must be attached the written application.

Article 243(1)When filing a written application for the registration of a liquidation trustee when any of the persons set forth in the following items has become the liquidation trustee, the documents specified in the respective items must be attached to the written application:

(2)The provisions of Article 240 (limited to the part regarding item (ii)) apply mutatis mutandis to the registration of a liquidation trustee that is a corporation.

Article 244(1)When filing a written application for the registration of a change due to a liquidation trustee's resignation, a document certifying the resignation must be attached to the written application.

(2)When filing a written application for the registration of a change to any of the particulars specified in Article 236, paragraph (1), a document certifying the change to the registered particulars must be attached to the written application.

(3)The provisions of Article 241, paragraph (2) apply mutatis mutandis to the registration of a change due to assumption of office by a liquidation trustee that is a corporation.

Article 245When filing a written application for the registration of the completion of liquidation, a document certifying that the settlement of accounts referred to in Article 184, paragraph (1) has been approved must be attached to the written application.

Article 246In the following cases, a court clerk must commission the registry office that has jurisdiction over the place of administration of affairs of a limited liability trust to make a registration of the respective particulars on their own authority and without delay:

Article 247With regard to the registration of a limited liability trust, the provisions of Articles 2 through 5, Articles 7 through 15, Article 17 (excluding paragraph (3)), Articles 18 through 19-3, Article 20, paragraphs (1) and (2), Articles 21 through 24, Article 26, Article 27, Articles 51 through 53, Article 71, paragraph (1), Articles 132 through 137, and Articles 139 through 148 of the Commercial Registration Act (Act No. 125 of 1963), and the provisions of Article 56 of the Civil Provisional Remedies Act apply mutatis mutandis. In such a case, in Article 51, paragraph (1) of the Commercial Registration Act, the term "head office" is deemed to be replaced with "place of administration of affairs (meaning the place of administration of affairs prescribed in Article 216, paragraph (2), item (iv) of the Trust Act (Act No. 108 of 2006); the same applies hereinafter)" and the term "relocation" is deemed to be replaced with "change"; in Article 51, paragraph (1) and Article 52, paragraphs (2), (3), and (5) of that Act, the term "new location" is deemed to be replaced with "new place of administration of affairs"; in Article 51, paragraphs (1) and (2) and Article 52 of that Act, the term "former location" is deemed to be replaced with "former place of administration of affairs"; in Article 71, paragraph (1), the term "dissolution" is deemed to be replaced with "termination of a limited liability trust"; and in Article 56 of the Civil Provisional Remedies Act, the phrase "representative or any other officer of a corporation" is deemed to be replaced with "trustee or liquidation trustee of a limited liability trust" and the phrase "location of the head office or principal office of the corporation (in the case of a foreign corporation, the location of its office)" is deemed to be replaced with "place of administration of affairs (meaning the place of administration of affairs prescribed in Article 216, paragraph (2), item (iv) of the Trust Act (Act No. 108 of 2006) of the limited liability trust)".

Article 262(1)Unless otherwise provided for in this Article, a non-contentious case under the provisions of this Act is subject to the jurisdiction of the district court that has jurisdiction over the locality of the domicile of a trustee.

(2)For the purpose of applying the provisions of the preceding paragraph to cases in which there are two or more trustees, the term "domicile of a trustee" in that paragraph is deemed to be replaced with "domicile of any of the trustees".

(3)The case regarding a petition to the court filed pursuant to the provisions of this Act after the termination of a trustee's duties and prior to the assumption of office by a new trustee is subject to the jurisdiction of the district court that has jurisdiction over the domicile of the former trustee.

(4)For the purpose of applying the provisions of the preceding paragraph to cases in which there are two or more trustees, the phrase "termination of a trustee's duties " in that paragraph is deemed to be replaced with "termination of duties of all trustees" and for the purpose of applying the provisions of that paragraph to cases in which there are two or more former trustees, the phrase "domicile of the former trustee" in that paragraph is deemed to be replaced with "domicile of any of the former trustees".

(5)The case regarding a petition referred to in Article 6, paragraph (1) or Article 258, paragraph (6) is subject to the jurisdiction of the district court that has jurisdiction over the testator's last domicile.

Article 263With regard to non-contentious cases under the provisions of this Act, the provisions of Article 40 and Article 57, paragraph (2), item (ii) of the Non-Contentious Cases Procedures Act do not apply.

Article 264Beyond what is provided for in this Act, the necessary particulars on procedures for non-contentious cases under the provisions of this Act are prescribed by the Rules of the Supreme Court.

Article 265If a trustee (after the termination of a trustee's duties and prior to the assumption of office by a new trustee, the former trustee) is a corporation, public notice under the provisions of this Act (excluding Article 152, paragraph (2), Article 156, paragraph (2), Article 160, paragraph (2), and Article 229, paragraph (1)) must be given by the means of public notice (including the period of public notice) taken by that corporation.

Article 266(1)If it is provided that when a trustee that is a corporation implements an entity conversion, a merger, or any other act pursuant to the provisions of the Companies Act or other laws, the creditors of that corporation may state their objections through public notice, a demand, or other procedures, when the trustee that is a corporation seeks performs the act, the creditors who hold claims regarding the obligations covered by the trust property that the trustee is liable only by using property that comes under trust property to perform those obligations are not to be included as the creditors who may state their objections by going through those procedures with regard to that act.

(2)For the purpose of applying the provisions on the transfer of a business of a corporation under the provisions of the Companies Act or other laws, a trust created by the means set forth in Article 3, item (iii) are to be included in the act for which these provisions apply; provided, however, that this does not apply if it is otherwise provided for by those laws.