Article 15An electronically recorded monetary claim (excluding an electronically recorded monetary claim connected with a record of guarantee and an electronically recorded monetary claim acquired by a person that has provided an electronically recorded guarantee (hereinafter referred to as "recorded guarantor") pursuant to the provisions of Article 35, paragraph (1) (including when those provisions are applied mutatis mutandis to paragraphs (2) and (3) of the same Article) (that electronically recorded monetary claim is hereinafter referred to as a "special right to reimbursement"); the same applies to the following Article) accrues as a result of a record being made of its accrual.

Article 16(1)In the record of an accrual, the following matters must be recorded:

(2)In the record of an accrual, the following matters may be recorded:

(3)If a record of any matter listed in paragraph (1), items (i) through (vi) is lacking, relevant electronically recorded monetary claims do not accrue.

(4)Records made on the matters listed in Article 2, paragraph (2), item (ix) of the Consumer Contract Act pertaining to the consumer defined by Article 2, paragraph (1) of the same Act (hereinafter simply referred to as "Consumer") have no effect.

(5)Notwithstanding the provisions of paragraphs (1) and (2), electronic monetary claim recording institutions may decide not to record the matters listed in paragraph (1), item (ii) (if the obligation is paid in installments, limited to each installment pertaining to each respective payment date) and in the items of paragraph (2) (excluding items (i), (ii), and (ix)) or to restrict the recording of the matters, pursuant to the provisions of its rules of operation.

Article 17An assignment of electronically recorded monetary claims has no effect unless a record has been made of that assignment.

Article 18(1)In the record of an assignment, the following matters must be recorded:

(2)In the record of an assignment, the following matters may be recorded:

(3)Records on matters listed in item (ii) of the preceding paragraph regarding consumers have no effect.

(4)When matters listed in Article 16, paragraph (2), item (xii) or (xv) are recorded in a record of accrual (limited to the part involving the record of assignment), the electronic monetary claim recording institution must not make a record of assignment that conflicts with the contents of the record of accrual.

Article 19(1)A person recorded as the assignee of an electronically recorded monetary claim due to a request for the recording of an assignment acquires the electronically recorded monetary claim; provided, however that this does not apply if the person has acted in bad faith or with gross negligence.

(2)The provisions of the preceding paragraph do not apply in the following cases:

Article 20(1)The obligor in a record of accrual or an electronically recorded guarantor (hereinafter referred to as "electronically recorded obligor) may not assert a defense based on a personal relationship with the person who assigned the electronically recorded monetary claim to the obligee of the claim, against the obligee; provided, however, that this does not apply if that obligee acquired the electronically recorded monetary claim knowing that that electronically recorded obligor would be harmed.

(2)The provisions of the preceding paragraph do not apply in the following cases:

Article 21The payment of an electronically recorded monetary claim to an electronically recorded person is effective even if that electronically recorded person does not have the right to receive the payment; provided, however, that this does not apply if the person who made the payment has acted in bad faith or with gross negligence.

Article 22(1)When an electronically recorded obligor (including the person's heir and other general successors; hereinafter the same applies in this paragraph) acquires an electronically recorded monetary claim, that claim does not expire, notwithstanding the provisions of the main clause of Article 520 of the Civil Code; provided, however, that this does not apply if a record of a payment, etc. has been made due to a merger accompanying the acquisition of the electronically recorded monetary claim pursuant to a request by that electronically recorded obligor or another electronically recorded obligor with the approval of the former.

(2)The persons listed in the following items may not request the performance of an obligation that arises from an electronically recorded guarantee (hereinafter referred to as an "electronically recorded guarantee obligation") against the persons prescribed in those items, even if they acquire the electronically recorded monetary claim:

Article 23Electronically recorded monetary claims extinguish if they are not exercised for three years, due to extinctive prescription.

Article 24In the record of a payment, etc., the following matters must be recorded:

Article 25(1)A request for the recording of a payment, etc. may be made solely by the persons listed in the following items:

(2)When payments, etc. have been made for electronically recorded monetary claims or secured claims of pledges on electronically recorded monetary claims (referred to as "electronically recorded monetary claims, etc." in the following paragraph), the persons listed in item (iii), (a) through (c) of the preceding paragraph may request the persons listed in item (i) or item (ii) of the same paragraph to give approval regarding item (iii) of the same paragraph.

(3)A person who makes the payment for electronically recorded monetary claims, etc. may request approval under paragraph (1), item (iii), in exchange for that payment, from the person listed in item (i) or item (ii) of the same paragraph.

(4)A request for the recording of a payment, etc. because of the payment, etc. was made for claims secured by a revolving pledge may not be filed unless that payment, etc. was made after the determination of the principal secured by the revolving pledge and an electronic recording has been made of that determination.

Article 26Alteration of the contents of electronically recorded monetary claims or pledges on the electronically recorded monetary claims by manifestation of intention has no effect unless a record is made of the alteration, unless otherwise prescribed by this Act.

Article 27In the record of an alteration, the following matters must be recorded:

Article 28A record of alteration when an electronically recorded monetary claim is transferred as the result of an assignment of the right to reimbursement (excluding a special right to reimbursement) by the person who is recorded as having made a payment, etc. in the monetary claim record and who has become the obligee of the claim by subrogation due to the payment, etc., is made through a recording that alters the name and address of that person to those of the assignee of the right to reimbursement.

Article 29(1)A request for the recording of an alteration must be filed by all persons that have an interest (in case of inheritance or other general succession regarding these persons, meaning their heirs or other general successors) in the electronic recording with regard to the recording of the alteration.

(2)Notwithstanding the provisions of the preceding paragraph, the recording of an alteration to alter the electronically recorded persons or electronically recorded obligors due to inheritance or corporate merger may be requested solely by the heir, or the corporation that will continue to exist after the merger, or the corporation established by the merger.However, if there are two or more heirs, the request for the recording of the alteration must be filed by all of them.

(3)The provisions of Article 5, paragraphs (2) and (3) apply mutatis mutandis to cases prescribed in paragraph (1) and the proviso to the preceding paragraph.

(4)Notwithstanding the provisions of paragraph (1), a request for the recording of an alteration involving the name or address of the electronically recorded person or electronically recorded obligor may be filed independently by the person. The same applies to the record of an alteration that will clearly have no influence on another person's rights and obligations and is prescribed in the rules of operation.

Article 30(1)When a record of alteration is not in effect due to the invalidity or rescission of the request, or for other reasons, the electronically recorded obligor who bore the obligation before the recording of the alteration bears the responsibility in accordance with the contents of the monetary claims record before the recording of the alteration; provided, however, that between a person who made a legitimate manifestation of intention in the request for the recording of the alteration and the counterparty to the request, the electronically recorded obligor who manifested that intention bears responsibility in accordance with the contents of the monetary claims record after the recording of that alteration.

(2)In the case provided for in the main clause of the preceding paragraph, the electronically recorded obligor who came to bear the obligation after the recording of the alteration bears the responsibility in accordance with the contents of the monetary claims record after the recording of that alteration.

Article 31An electronically recorded monetary claim connected to an electronically recorded guarantee accrues through the recording of a guarantee.

Article 32(1)The following matters must be recorded in the record of a guarantee:

(2)The following matters may be recorded in the record of a guarantee:

(3)When there is any lack of records of matters listed in paragraph (1), items (i) through (iii), electronically recorded monetary claims pertaining to the electronically recorded guarantee do not accrue.

(4)A record on matters listed in paragraph (2), item (v) regarding a consumer has no effect.

(5)When a matter listed in Article 16, paragraph (2), item (xii) or (xv) (limited to those pertaining to the record of a guarantee) has been recorded in a record of accrual, the electronic monetary claim recording institution must not make a record of guarantee that conflicts with the contents of the record of accrual.

Article 33(1)The validity of an electronically recorded guarantee obligation is not impaired, even if the person recorded as the principal obligor does not owe the principal obligation (excluding when a record of matters listed in Article 16, paragraph (1), items (i) through (vi), or paragraph (1), items (i) through (iii) of the preceding Article is not made).

(2)The provisions in the preceding paragraph do not apply if the electronically recorded guarantor is an individual (excluding those who are recorded as individual business operators).

Article 34(1)The provisions of Articles 452, 453 and 456 through 458 of the Civil Code and Article 511, paragraph (2) of the Commercial Code (Act No. 48 of 1899) do not apply to electronically recorded guarantees.

(2)Notwithstanding the provisions of the preceding paragraph, if the electronically recorded guarantor is an individual (excluding those who are recorded as individual business operators), the electronically recorded guarantor may assert set-off against the obligee with any claim that the principal obligor may have against the obligee.

Article 35(1)When an electronically recorded guarantor whose principal obligation accrued through the recording of accrual makes a disbursement (meaning acts to extinguish an obligation recorded as the principal obligation through payment or other conducts with the guarantor's own property; the same applies hereinafter in this Article), and a record of a payment, etc. is made to that effect, notwithstanding the provisions of Articles 459, 462, 463 and 465 of the Civil Code, that guarantor acquires the electronically recorded monetary claims in an amount equal to the aggregate of the amount jointly discharged with the disbursement, the amount of delinquency charges accrued after the date of the disbursement, and the amount of unavoidable expenses, against the persons listed in the following sub-items; provided, however, that the electronically recorded monetary claims so acquired from the person listed in item (iii) are limited to the share to be borne by the person from among the amount of the disbursement that the electronically recorded guarantor bear in excess of the person's share:

(2)The provisions of the preceding paragraph apply mutatis mutandis when an electronically recorded guarantor whose principal obligation is the obligation accrued pursuant to the provisions of that paragraph makes a disbursement.

(3)The provisions of the first paragraph apply mutatis mutandis when an electronically recorded guarantor whose principal obligation is an electronically recorded guarantee obligation makes a disbursement.In this case, the phrase "persons listed in the following sub-items" in that paragraph is deemed to be replaced with "persons listed in the following sub-items and persons who would fall under the category of those listed in the following sub-items if the disbursement were made by the electronically recorded guarantor who is recorded as the principal obligor".

Article 36(1)The creation of a pledge on electronically recorded monetary claims has no effect unless a record is made of the pledge's creation.

(2)The provisions of Article 362, paragraph (2) of the Civil Code do not apply to pledges in the preceding paragraph.

(3)The provisions of Articles 296 through 300, Articles 304, 342, 343, 346, 348, 349, 351, 373, 374, 378, 390, and 391, Articles 398-2 through 398-10, 398-19, 398-20 (excluding paragraph (1), item (iii)), and 398-22 of the Civil Code apply mutatis mutandis to pledges provided in paragraph (1).

Article 37(1)In a record of pledge creation (excluding the record of a revolving pledge's creation; the same applies in the following paragraph), the following matters must be recorded:

(2)In the record of a pledge's creation, the following matters may be recorded:

(3)In the record of a revolving pledge's creation, the following matters must be recorded:

(4)In the record of a revolving pledge's creation, the following matters may be recorded:

(5)When matters listed in Article 16, paragraph (2), item (xii) or (xv) (limited to the part pertaining to a record of pledge creation) have been recorded in the record of accrual, the electronic monetary claim recording institution must not make a record of pledge creation that conflicts with the contents of the record of accrual.

Article 38The provisions of Articles 19 and 20 apply mutatis mutandis to records of pledge creation. In this case, the term "assignee" in Article 19, paragraph (1) is deemed to be replaced with "pledgee", the phrase "the electronically recorded monetary claims" in the same paragraph is deemed to be replaced with "the pledge", the term "assignee" in paragraph (2), item (ii) of the same Article is deemed to be replaced with "pledgee", the phrase "the recording of the assignment" in item (iii) of the same paragraph is deemed to be replaced with "the recording of the pledge's creation", the phrase "with the person who assigned the electronically recorded monetary claim to the obligee of the claim, against the obligee" in Article 20, paragraph (1) is deemed to be replaced with "with the person who created the pledge for the pledgee, against the pledgee", the phrase "the obligee acquired the electronically recorded monetary claims" in the proviso to the same paragraph is deemed to be replaced with "the pledgee acquired the pledge", and the terms "the obligee" and "an assignee" in paragraph (2), item (ii) of the same Article are deemed to be replaced with "the pledgee".

Article 39(1)In an electronic recording of a change in the order of pledges pursuant to the provisions of Article 374, paragraph (1) of the Civil Code as applied mutatis mutandis to Article 36, paragraph (3), the following matters must be recorded:

(2)The request for an electronic recording referred to in the preceding paragraph must be filed by all electronically recorded persons for which the order of pledges is to be changed.In this case, the provisions of Article 5, paragraphs (2) and (3) apply mutatis mutandis.

Article 40(1)A sub-pledge pursuant to the provisions of Article 348 of the Civil Code applied mutatis mutandis to Article 36, paragraph (3) has no effect unless an electronic recording is made of the sub-pledge.

(2)The provisions of Article 37, paragraphs (1) through (4) apply mutatis mutandis to the electronic recording of a sub-pledge.

(3)The pledge number of the pledge that is the subject matter of a sub-pledge must also be recorded in the electronic recording of the sub-pledge.

(4)When a pledgee creates a sub-pledge for two or more persons, the order of priority of these sub-pledges follows the chronological order of their electronic recording.

Article 41(1)In the recording of an alteration due to a transfer of pledges or sub-pledges in case of partial assignment of secured claims, the amount of the secured claim that is the subject of that assignment must also be recorded beyond the matters listed in relevant items of Article 27.

(2)When a claim to be secured by a revolving pledge has been assigned, a request for the recording of an alteration due to the transfer of the revolving pledge may not be made unless that assignment was made after the determination of the principal amount secured by the revolving pledge and an electronic recording has been made of that determination.

Article 42(1)In an electronic recording of the determination of principal secured by a revolving pledge (hereinafter simply referred to as "principal" in this Article), the following matters must be recorded:

(2)An electronic recording of principal that has been determined pursuant to the provisions of Article 398-19, paragraph (2) or Article 398-20, paragraph (1), item (iv) of the Civil Code, applied mutatis mutandis to Article 36, paragraph (3) may be requested solely by the electronically recorded person of the revolving pledge; provided, however, that when a request is made after the principal is determined pursuant to the provisions of Article 398-20, paragraph (1), item (iv) of the Civil Code, the request must be made jointly with the request for an electronic recording of the acquisition of the revolving pledge or the right whose subject is the revolving pledge.

Article 43(1)Electronically recorded monetary claims may be divided (including when there are two or more recorded obligees or obligors and a separation is made with respect to specific obligees or obligors).

(2)Electronically recorded monetary claims are divided, pursuant to the provisions of the following Article through Article 47, by a record of the division being made in the monetary claims record in which the electronically recorded monetary claims being divided have been recorded (hereinafter referred to as "original monetary claims record"), and in the monetary claims record which is being newly created (hereinafter referred to as "divided monetary claims record"), and by some of the matters recorded in the original monetary claims record being recorded in the divided monetary claims record simultaneously with the recording of the division.

(3)A request for the recording of a division may be filed solely by the person that will be recorded as the obligee in the divided monetary claims record.

Article 44(1)In a recording of a division, the following matters must be recorded in the divided monetary claims record:

(2)When recording a division, the following matters must be recorded in the original monetary claims record:

(3)If matters listed in Article 16, paragraph (2), item (xii) or (xv) (limited to the part pertaining to the record of a division) have been recorded in the record of accrual, the electronic monetary claim recording institution must not make a record of a division that conflicts with the contents of the record of accrual.

Article 45(1)When an electronic monetary claim recording institution records a division, it must record the following matters in the divided monetary claims record at the same time:

(2)When the electronic monetary claim recording institution has recorded matters listed in item (i) of preceding paragraph in the divided monetary claims record, a statement that that matter has been transferred from the original monetary claims record and the date of the transfer must be recorded in the divided monetary claims record, and when the electronic monetary claim recording institution has recorded matters listed in item (ii) through item (iv) of the same paragraph, the date of the records must be recorded in that divided monetary claims record.

Article 46(1)When an electronic monetary claim recording institution records a division, it must record the following matters in the original monetary claims record at the same time:

(2)When an electronic monetary claim recording institution records matters listed in the items of the preceding paragraphs in the original monetary claims record, it must record the date of the record in the original monetary claims record.

Article 47Notwithstanding the provisions of Article 43, paragraph (3) and the preceding three Articles, necessary matters regarding a request for the recording of a division, the record matters in the record of a division, and recording in a divided monetary claims record and in an original monetary claims record accompanying the recording of a division in the following cases are specified by order of the competent ministry, in accordance with these provisions:

Article 47-2(1)An electronic monetary claim recording institution engaged in the electronic recording of monetary claims may be changed (hereinafter referred to simply as a "change of the electronic monetary claim recording institution").

(2)A change of electronic monetary claim recording institution is made by the process wherein the monetary claims record concerning the electronically recorded monetary claims for which a change of electronic monetary claim recording institution is to be made (hereinafter referred to as the "pre-change monetary claims record") is handed over from the electronic monetary claim recording institution that has recorded the pre-change monetary claims record in the registry (hereinafter referred to as the "pre-change electronic monetary claim recording institution") to the electronic monetary claim recording institution that is to take over the record matters in the pre-change monetary claims record (hereinafter referred to as the "post-change electronic monetary claim recording institution"), and the latter institution makes a record of change of recording institution in the monetary claims record to be newly created in its registry to record the record matters in the pre-change monetary claims record (hereinafter that newly created record is referred to as the "post-change monetary claims record"), pursuant to the provisions of the following Article through Article 47-5.

Article 47-3(1)A request for a recording of change of the recording institution may be filed by the person who is recorded in the pre-change monetary claims record as the obligee of the electronically recorded claim (meaning the person's heir or other general successor in case of inheritance or other general succession regarding the person) and has obtained approval from all obligors of the electronically recorded monetary claims.

(2)A request for a recording of change of recording institution may not be filed in the following cases:

(3)In applying the provisions of Article 6 regarding a request for a recording of change of recording institution, the term "electronic monetary claim recording institution" in the Article is replaced with "pre-change electronic monetary claim recording institution prescribed in Article 47-2, paragraph (2)".

(4)If a request for a recording of change of recording institution is filed, the pre-change electronic monetary claim recording institution must record the following matters in the pre-change monetary claims record without delay:

(5)When the pre-change electronic monetary claim recording institution makes a recording pursuant to the provisions of the preceding paragraph, it must notify the post-change electronic monetary claim recording institution of the following matters without delay:

Article 47-4Notwithstanding the provisions of Article 7, paragraph (1), when a pre-change electronic monetary claim recording institution makes a recording pursuant to the provisions of paragraph (4) of the preceding Article, it must not make an electronic recording (excluding the recording pursuant to the provisions of paragraph (4) of the following Article) in the pre-change monetary claims record.

Article 47-5(1)When a post-change electronic monetary claim recording institution receives a notification of matters pursuant to the provisions of Article 47-3, paragraph (5), it must make a recording of change of recording institution without delay.

(2)When recording a change of recording institution, the following matters must be recorded in the post-change monetary claims record.In this case, the post-change electronic monetary claim recording institution may record the matters listed in Article 16, paragraph (2), item (xv) in the post-change monetary claims record:

(3)When the post-change electronic monetary claim recording institution makes a recording of change of recording institution, it must notify the pre-change electronic monetary claim recording institution of the following matters without delay:

(4)When the pre-change electronic monetary claim recording institution receives a notification of matters pursuant to the provisions of the preceding paragraph, it must record the following matters in the pre-change monetary claims record without delay:

Article 48(1)With regard to electronically recorded monetary claims or pledges on them, it may not be asserted that they are part of trust property against a third party unless an electronic recording has been made for the trust.

(2)Beyond what is provided for in this Act, matters necessary for electronic recording for a trust are provided for by Cabinet Order.

Article 49(1)When compulsory execution concerning electronically recorded monetary claims, or restrictions on tax delinquency dispositions or other dispositions concerning electronically recorded monetary claims are conducted and an electronic monetary claim recording institution has received documents pertaining to these restrictions, the institution must make an electronic recording of the compulsory execution, etc. without delay.

(2)Necessary matters concerning the electronic recording of compulsory execution, etc. are specified by Cabinet Order.

(3)Necessary matters concerning procedures for compulsory execution, provisional attachment, provisional disposition, and auctions, and for injunction in anticipation of confiscation with regard to electronically recorded monetary claims are provided by way of Supreme Court rules.

Article 50Beyond what is provided for in this Act, procedures for the electronic recording of electronically recorded monetary claims and other matters necessary for electronic recording are specified by Cabinet Order.

Article 51(1)The competent minister may designate a person who meets the following requirements as a person performing the business prescribed in Article 56 (hereinafter referred to as the "electronic monetary claims recording business") upon the person's application:

(2)Upon making a designation provided for in the preceding paragraph, the competent minister must give public notice regarding the trade name and address of the head office of the designated electronic monetary claim recording institution in an official gazette.

Article 52(1)An applicant that intends to receive a designation provided for in paragraph (1) of the preceding Article must submit to the competent minister a written application for designation that states the following matters:

(2)The following documents must be attached to the written application for designation:

(3)In the case referred to in the preceding paragraph, when articles of incorporation, a balance sheet, or a profit and loss statement is prepared in the form of electronic or magnetic records, the electronic or magnetic records (limited to those specified by order of the competent ministry) may be attached in lieu of documents.

Article 53(1)The amount of stated capital of an electronic monetary claim recording institution must not be less than an amount specified by Cabinet Order.

(2)The amount specified by Cabinet Order in the preceding paragraph must not be under 500,000,000 yen.

(3)The amount of net assets of an electronic monetary claim recording institution must not be less than the amount specified by Cabinet Order referred to in paragraph (1).

Article 54The provisions of the proviso to Article 331, paragraph (2) (including cases in which it is applied mutatis mutandis to Article 335, paragraph (1) of the Companies Act), Article 332, paragraph (2) (including cases in which it is applied mutatis mutandis to Article 334, paragraph (1) of the Companies Act), Article 336, paragraph (2), and the proviso to Article 402, paragraph (5) of the Companies Act do not apply to an electronic monetary claim recording institution.

Article 55Directors, accounting advisors (when an accounting advisor is a corporation, its members who are to perform the duty), company auditors, executive officers or employees of the electronic monetary claim recording institution, and those who were formerly in those positions, must not disclose or misappropriate any secrets obtained in the course of their duties relating to the electronic monetary claims recording business.

Article 56An electronic monetary claim recording institution is to conduct business for the electronic recording of electronically recorded monetary claims, in accordance with the provisions of this Act and the institution's rules of operation.

Article 57An electronic monetary claim recording institution may not engage in business other than electronic monetary claims recording business and business incidental thereto.

Article 58(1)Pursuant to the provisions of the order of the competent ministry, electronic monetary claim recording institutions may entrust a part of their electronic monetary claims recording business to banks, etc. (meaning banks (meaning the banks prescribed in Article 2, paragraph (1) of the Banking Act (Act No. 59 of 1981)), cooperative financial institutions (meaning the cooperative financial institution prescribed in Article 2, paragraph (1) of the Act on Preferred Equity Investment by Cooperative Financial Institutions (Act No. 44 of 1993)), and other financial institutions specified by Cabinet Order; the same applies hereinafter),and other organizations, with the approval of the competent minister.

(2)Notwithstanding the provisions of other laws, banks, etc. may be entrusted, pursuant to the provisions of the preceding paragraph, to perform the entrusted business.

Article 59An electronic monetary claim recording institution must prescribe, in its rules of operation, procedures for electronic recording, contracts regarding settlement of remittance between accounts provided in Article 62, paragraph (1), or matters pertaining to the contract provided in Article 64, and other matters specified by order of the competent ministry.

Article 60An electronic monetary claim recording institution must perform its business so as to provide sufficient protection for persons who use the electronic monetary claim recording institution.

Article 61An electronic monetary claim recording institution must not unreasonably discriminate against specific persons.

Article 62(1)An electronic monetary claim recording institution may conclude a contract regarding the settlement of remittances between accounts with an obligor and banks, etc.

(2)The phrase "settlement of remittances between accounts" prescribed in the preceding paragraph and paragraph (2) of the following Article means a form of payment, used with regard to the obligation under an electronically recorded monetary claim (excluding one involving a record of guarantee, and a special right to reimbursement; hereinafter the same applies in this section), in which, based on an agreement among the electronic monetary claim recording institution, the obligor, and the bank, etc., the institution provides the bank, etc. with information, in advance, regarding the payment date that is recorded in the monetary claims records, the amount payable, and the obligor's and obligee's accounts, and on the payment date, the bank, etc. transfers a payment from the obligor's account to the obligee's account.

Article 63(1)When an electronic monetary claim recording institution concludes a contract regarding settlements of remittance between accounts provided in paragraph (1) of the preceding Article and the matters listed in Article 16, paragraph (2), item (i) are recorded in the monetary claims record, the electronic monetary claim recording institution must provide the bank, etc. to which that contract pertains with the information prescribed in paragraph (2) of the preceding Article.

(2)In the case referred to in the preceding paragraph, when an electronic monetary claim recording institution receives a notice from a bank, etc. prescribed in the same paragraph stating that there has been a settlement of remittance between accounts for the full amount of the obligation pertaining to the electronically recorded monetary claims to be paid on the payment date, the electronic monetary claim recording institution must make a record of the payment, etc. regarding that settlement of remittance without delay.

Article 64Beyond a contract regarding a settlement of remittance between accounts provided in Article 62, paragraph (1), an electronic monetary claim recording institution may conclude a contract with the obligor or obligee and the bank, etc. regarding payment of obligations pertaining to electronically recorded monetary claims to the obligee's account.

Article 65When an electronic monetary claim recording institution concludes a contract provided in the preceding Article and the matters listed in Article 16, paragraph (2), item (ii) have been recorded in the monetary claims record, if the electronic monetary claim recording institution receives a notice regarding the transfer payment of obligations pertaining to electronically recorded monetary claims to the obligee's account from the bank, etc. to which the contract pertains (limited to cases specified by order of the competent ministry as cases in which it is possible for the electronic monetary claim recording institution to be certain that the obligation pertaining to the electronically recorded monetary claims has been paid), the electronic monetary claim recording institution must make a record of payment, etc. for the payment without delay.

Article 66The notice prescribed in Article 63, paragraph (2) and the preceding Article is deemed to be a request for an electronic recording and the provisions of Article 8 apply.

Article 67An electronic monetary claim recording institution must prepare books and documents, and other records on its business and keep these documents, pursuant to order of the competent ministry.

Article 68(1)An electronic monetary claim recording institution must prepare a report on business and assets every business year and submit it to the competent minister.

(2)Matters to be stated in the report referred to in the preceding paragraph, the submission date, and other matters necessary regarding the report are specified by order of the competent ministry.

Article 69(1)If an electronic monetary claim recording institution intends to reduce the amount of its stated capital, it must obtain approval from the competent minister, pursuant to order of the competent ministry.

(2)If an electronic monetary claim recording institution intends to increase the amount of its stated capital, it must give notice to the competent minister, pursuant to order of the competent ministry.

Article 70An alteration of an electronic monetary claim recording institution's articles of incorporation or rules of operation has no effect unless the competent minister approves it.

Article 71If an electronic monetary claim recording institution intends to discontinue electronic monetary claims recording business, it must obtain approval from the competent minister, pursuant to the order of the competent ministry.

Article 72(1)When a matter listed in Article 52, paragraph (1), item (i), or items (iii) through (v) is changed, the electronic monetary claim recording institution must give notification to that effect and submit the documents listed in Article 52, paragraph (2), item (i) or (iii) to the competent minister, pursuant to order of the competent ministry.

(2)When a notification of changes to the electronic monetary claim recording institution's trade name or the address of its head office has been given pursuant to the provisions of the preceding paragraph, the competent minister must make a public notice to that effect in an official gazette.

Article 73(1)When the competent minister finds it necessary for the appropriate and reliable performance of electronic monetary claims recording business, the competent minister may order the electronic monetary claim recording institution, or the person that has been entrusted with the business by the institution, to submit reports or materials regarding the electronic monetary claim recording institution's business or assets, or may have the employees of the competent ministry conduct on-site inspections of the institution or the business office or office of the person who has been entrusted with the business from the institution regarding its business operation or inspections of financial conditions or books and documents, and other materials (for a person that has been entrusted with the business from the institution, limited to matters necessary for the inspection of the business of the institution or its financial conditions) or have the employees ask the relevant persons questions (for a relevant person of a person that has been entrusted with the business from the institution, limited to matters necessary for the questioning regarding the business of the institution or its financial conditions).

(2)The employees conducting on-site inspections, pursuant to the provisions of the preceding paragraph, must carry identification cards certifying their status and show them to the relevant persons.

(3)The authority to conduct an on-site inspection pursuant to the provisions of paragraph (1) must not be construed as being accorded for the purposes of carrying out criminal investigations.

Article 74If the competent minister finds it necessary for the appropriate and reliable performance of electronic monetary claims recording business, the competent minister may, to the extent necessary, order an electronic monetary claim recording institution to take necessary measures for the improvement of business operation or conditions of assets.

Article 75(1)If an electronic monetary claim recording institution falls under any of the following items, the competent minister may rescind the designation of Article 51, paragraph (1), order the suspension of the whole or a part of its business for a period not exceeding six months, or order the dismissal of the director, the accounting advisor, the company auditor, or executive officers:

(2)If the competent minister rescinds the designation under Article 51, paragraph (1) pursuant to the provisions of the preceding paragraph, the minister must give public notice to that effect in an official gazette.

Article 76(1)If an electronic monetary claim recording institution falls under any of the following items, the competent minister may order it to transfer its electronic monetary claims recording business to another stock company within a period fixed by the minister:

(2)A resolution reached pursuant to the provisions of Article 322, paragraph (1), Article 466, Article 467, paragraph (1), Article 783, paragraph (1) or Article 795, paragraph (1) of the Companies Act at a shareholders meeting of an electronic monetary claim recording institution (excluding a resolution by shareholders meeting provided for in Article 309, paragraph (3), item (ii) of the Companies Act with regard to a resolution made pursuant to the provisions of Article 783, paragraph (1) of the Companies Act) that has received an order pursuant to the provisions of the preceding paragraph may be made provisionally with a two-thirds majority of the voting rights of the shareholders present, notwithstanding the provisions of Article 309, paragraph (2) and Article 324, paragraph (2) of the Companies Act.

(3)A resolution reached at a shareholders meeting referred to in Article 309, paragraph (3), item (ii) of the Companies Act of an electronic monetary claim recording institution that has received an order pursuant to the provisions of paragraph (1) may be made provisionally with half or more of the shareholders present and a two-thirds majority of the voting rights of the shareholders present, notwithstanding the provisions of Article 309, paragraph (3) of the Companies Act.

(4)When a resolution is reached provisionally pursuant to the provisions of paragraph (2) (hereinafter referred to as a "provisional resolution" in this paragraph and the following paragraph), notice of the purport of the provisional resolution must be given to each shareholder, and another shareholders meeting must be convened within one month from the day of that provisional resolution.

(5)When a provisional resolution is approved by the majority prescribed in paragraph (2) in the shareholders meeting referred to in the preceding paragraph, it is deemed that the resolution pertaining to the matter which was provisionally resolved was made when the provisional resolution was approved.

(6)The provisions of the preceding two paragraphs apply mutatis mutandis when a resolution is provisionally made pursuant to the provisions of paragraph (3).In this case, the phrase "paragraph (2)" in the preceding paragraph is deemed to be replaced with "paragraph (3)".

Article 77(1)If an electronic monetary claim recording institution receives an order pursuant to the provisions of paragraph (1) of the preceding Article, and the institution fails to transfer the electronic monetary claims recording business within the period provided by the aforementioned order, the monetary claims record in the registry of the electronic monetary claim recording institution ceases to be effective as of the day after the last date of the period.

(2)After the day on which the monetary claims record ceases to be effective pursuant to the provisions of the preceding paragraph (hereinafter referred to as "date of validity expiry" in this Article), electronically recorded monetary claims and pledges created on them continue to exist as nominative claims and pledges on them with the contents of the electronically recorded monetary claims which were recorded in the record.

(3)When a person who was an electronically recorded guarantor on the date of validity expiry performs payment with the person's own property or other conduct to extinguish the obligation recorded as the principal obligation with regard to the nominative claim in the preceding paragraph, the person acquires the right to reimbursement with the same contents as a special right to reimbursement.

(4)The competent minister must, after the date of validity expiry, promptly give public notice to the effect that the monetary claims record referred to in paragraph (1) ceases to be effective in an official gazette.

(5)A person who was an electronic monetary claims recording institution or a general successor (limited to a person who has succeeded to the rights and obligations of the electronic monetary claims recording institution that ceases to exist after a merger, and does not perform electronic monetary claims recording business; hereinafter the same applies in this chapter) must, immediately after the date of validity expiry, send documents evidencing all the matters provided for in the following items (excluding the obligor's account) to persons listed in those respective items:

Article 78(1)A merger in which at least one of the parties is an electronic monetary claim recording institution (limited to when a stock company that continues to exist after the merger or a stock company that is established by the merger performs electronic monetary claims recording business; hereinafter referred to as "specified merger" in this Article) has no effect without the approval of the competent minister.

(2)An electronic monetary claim recording institution that intends to receive the approval under the preceding paragraph must submit to the competent minister a written application for merger approval that states matters listed in the items of Article 52, paragraph (1) regarding a stock company that will continue to exist after the specified merger or a stock company that will be established by the specified merger (hereinafter referred to as "electronic monetary claim recording institution after the specified merger" in this Article).

(3)Documents or electronic or magnetic records in which the contents of the merger contract are stated or recorded (limited to those specified by order of the competent ministry; hereinafter the same applies in this paragraph) and other documents or electronic or magnetic records specified by order of the competent ministry must be attached to a written application for merger approval.

(4)When an application for approval under paragraph (1) is made, the competent minister must examine whether the application meets the following standards:

(5)An electronic monetary claim recording institution after the specified merger (excluding an electronic monetary claim recording institution that is a stock company that continues to exist after the specified merger) is deemed to have obtained the designation under Article 51, paragraph (1) at the time of the specified merger.

(6)The electronic monetary claim recording institution after the specified merger succeeds to the rights and obligations arising out of the administrative authority's approval and other dispositions regarding the business of the electronic monetary claim recording institution extinguished after the specified merger.

Article 79(1)An incorporation-type company split conducted by an electronic monetary claim recording institution for the purpose of having a newly formed stock company succeed to the whole or a part of its electronic monetary claims recording business (hereinafter simply referred to as "incorporation-type company split" in this Article) has no effect without the competent minister's approval.

(2)The electronic monetary claim recording institution that intends to receive an approval under the preceding paragraph must submit to the competent minister a written application for incorporation-type company split approval that states the following matters regarding the stock company to be established by the incorporation-type company split (hereinafter referred to as the "formed company" in this Article):

(3)Documents or electronic or magnetic records in which the contents of the incorporation-type company split plan are stated or recorded (limited to those specified by order of the competent ministry; hereinafter the same applies in this paragraph) and other documents or electronic or magnetic records specified by order of the competent ministry must be attached to the written application for incorporation-type company split approval.

(4)When an application for approval under paragraph (1) is made, the competent minister must examine whether the application meets the following standards:

(5)The formed company is deemed to have obtained the designation under Article 51, paragraph (1) at the time of the incorporation-type company split.

(6)The formed company succeeds to the rights and obligations based on the administrative authority's approval and other dispositions regarding the business subject to succession from the electronic monetary claim recording institution that conducted the incorporation-type company split.

Article 80(1)An absorption-type company split conducted by an electronic monetary claim recording institution for the purpose of having another stock company succeed to the whole or a part of its electronic monetary claims recording business (hereinafter simply referred to as "absorption-type company split" in this Article) has no effect without a competent minister's approval.

(2)The electronic monetary claim recording institution that intends to obtain approval under the preceding paragraph must submit to the competent minister a written application for absorption-type company split approval that states the following matters regarding a stock company that is taking over the whole or a part of its electronic monetary claims recording business by the absorption-type company split (hereinafter referred to as the "succeeding company" in this Article):

(3)Documents or electronic or magnetic records in which the contents of the absorption-type company split contract are stated or recorded (limited to those specified by order of the competent ministry; hereinafter the same applies in this paragraph) and other documents or electronic or magnetic records specified by order of the competent ministry must be attached to the written application for an absorption-type company split approval.

(4)When an application for approval under paragraph (1) is made, the competent minister must examine whether the application meets the following standards:

(5)The succeeding company (excluding a succeeding company that is an electronic monetary claim recording institution) is deemed to have obtained the designation under Article 51, paragraph (1) at the time of the absorption-type company split.

(6)The succeeding company succeeds to the rights and obligations based on the administrative authority's approval and other dispositions regarding the business subject to succession from the electronic monetary claim recording institution that conducted the absorption-type company split.

Article 81(1)The transfer of the whole or a part of electronic monetary claims recording business conducted by an electronic monetary claim recording institution to another stock company (hereinafter referred to as "business transfer" in this Article) has no effect without the competent minister's approval.

(2)The electronic monetary claim recording institution that intends to obtain an approval under the preceding paragraph must submit to the competent minister a written application for business transfer approval that states the following matters regarding the stock company to be transferred the whole or a part of its electronic monetary claims recording business through the business transfer (hereinafter referred to as "transferee company" in this Article):

(3)Documents or electronic or magnetic records in which the contents of the transfer contract are stated or recorded (limited to those specified by order of the competent ministry; hereinafter the same applies in this paragraph) and other documents or electronic or magnetic records specified by order of the competent ministry must be attached to the written application for business transfer approval.

(4)When an application for approval under paragraph (1) is made, the competent minister must examine whether the application meets the following standards:

(5)The transferee company (excluding a transferee company that is an electronic monetary claim recording institution) is deemed to have obtained the designation under Article 51, paragraph (1) at the time of business transfer.

(6)The transferee company succeeds to the rights and obligations based on the administrative authority's approval and other dispositions regarding the business subject to the transfer from the electronic monetary claim recording institution that made the business transfer.

Article 82The following matters have no effect without the competent minister's approval:

Article 83(1)When an electronic monetary claim recording institution falls under any of the following items, its designation under Article 51, paragraph (1) ceases to be effective:

(2)When a designation under Article 51, paragraph (1) ceases to be effective pursuant to the provisions of the preceding paragraph, the person who was the electronic monetary claim recording institution or general successor must notify the competent minister to that effect, as specified by order of the competent ministry.

(3)When a notification pursuant to the provisions of the preceding paragraph is made, the competent minister must give public notice to that effect in an official gazette.

Article 84When a designation under Article 51, paragraph (1) is rescinded pursuant to the provisions of Article 75, paragraph (1) or that designation ceases to be effective pursuant to the provisions of paragraph (1) of the preceding Article (excluding cases that fall under item (iii) of the same paragraph), the person who was the electronic monetary claim recording institution or general successor must promptly finish the electronic monetary claims recording business that was performed by the institution.In this case, the person who was the institution or general successor is still deemed to be an electronic monetary claim recording institution within the scope of the purpose of finishing the electronic monetary claims recording business.

Article 85(1)In liquidation procedures, bankruptcy procedures, rehabilitation proceedings, reorganization proceedings, or procedures for the recognition and assistance of an electronic monetary claim recording institution, the court may ask the competent minister for an opinion or submit a request to the competent minister for an inspection or investigation.

(2)In the procedures prescribed in the preceding paragraph, when finding it necessary, the competent minister may state an opinion to the court.

(3)The provisions of Article 73 apply mutatis mutandis when the competent minister has received a request from the court for an inspection or investigation, pursuant to the provisions of paragraph (1).