Bankruptcy Act

With regard to a claim secured by a security interest prescribed in Article 65, paragraph (2) which pertains to the right of separate satisfaction, a holder of a right of separate satisfaction may exercise their right as a bankruptcy creditor only for the amount of the claim for which payment cannot be received by exercising the right of separate satisfaction; provided, however, that if the amount of the claim secured by the security interest is no longer secured in whole or in part after the commencement of bankruptcy proceedings, the holder of the right of separate satisfaction is not precluded from exercising their right as a bankruptcy creditor for the whole or part of the amount of the claim.

The preceding paragraph also applies to a person that holds a special statutory lien, pledge, or mortgage on the bankrupt's property that does not belong to the bankruptcy estate or a person that holds a bankruptcy claim in the previous bankruptcy proceedings when an additional order commencing bankruptcy proceedings is issued against the bankrupt.

A bankruptcy creditor may participate in the bankruptcy proceedings with regard to the amount of the claim before receiving the payment even if the bankruptcy creditor has received payment of their bankruptcy claim after an order commencing bankruptcy proceedings is issued by exercising their right against property that belongs to the bankruptcy estate and exists in a foreign state.

With permission of the court, a bankruptcy creditor may jointly or severally appoint one or more bankruptcy creditor representatives.

A bankruptcy creditor representative may perform any and all acts involved in bankruptcy proceedings in the interest of the bankruptcy creditors that appoint the representative.

If there are two or more bankruptcy creditor representatives, they exercise their authority jointly; provided, however, that it is sufficient for a manifestation of intention by a third party to be made to one of them.

The court may rescind the permission stated in paragraph (1) when it finds the exercise of authority by the bankruptcy creditor representative to be grossly unfair.

A bankruptcy creditor that seeks to participate in bankruptcy proceedings must file notification of the following particulars to the court within a period during which proofs of bankruptcy claims should be filed as specified pursuant to the provisions of Article 31, paragraph (1), item (i) or paragraph (3) (referred to below as a "period for filing proofs of claims"):

the amount and cause of each bankruptcy claim;

if the claim in question is a preferred bankruptcy claim, a statement to that effect;

if the claim in question is a subordinate bankruptcy claim or consensually-subordinated bankruptcy claim, a statement to that effect;

if the total amount of distribution given to a bankruptcy creditor is less than the amount specified by the Rules of the Supreme Court but the creditor has the intention of receiving distribution money, a statement to that effect; and

beyond what is stated in the preceding items, particulars specified by the Rules of the Supreme Court.

A holder of a right of separate satisfaction must file a notification of the following particulars, in addition to those stated in the items of the preceding paragraph:

the collateral for the right of separate satisfaction; and

the amount of the claim for which payment is not expected to be received by exercising the right of separate satisfaction.

The provisions of the preceding paragraph apply mutatis mutandis to a holder of a special statutory lien, pledge or mortgage or a holder of a bankruptcy claim prescribed in Article 108, paragraph (2) (hereinafter referred to as a "holder of a quasi-right of separate satisfaction").

When a bankruptcy creditor is unable to file proofs of bankruptcy claims by the expiration of the period stated in Article 31, paragraph (1), item (iii) (referred to below as the "ordinary period for investigation") or the end of the date stated in Article 31, paragraph (1), item (iii) (referred to below as the "ordinary date of investigation") due to grounds not attributable to them, they may file a notification only within one month after the grounds cease to exist.

The one-month period prescribed in the preceding paragraph may not be extended or shortened.

With regard to a bankruptcy claim arising after the expiration of an ordinary period for investigation or the end of an ordinary date of investigation, a notification must be filed within the inalterable period of one month after the claim arose.

The provisions of paragraphs (1) and (2) apply mutatis mutandis when a bankruptcy creditor makes a change to any filed particular, which is likely to be prejudicial to interests of other bankruptcy creditors, after the expiration of an ordinary period for investigation or the end of an ordinary date of investigation due to grounds not attributable to them.

A person that has acquired a filed bankruptcy claim may have the title of the holder of the filed claim changed even after the expiration of an ordinary period for investigation or the end of an ordinary date of investigation.

If a person whose title of the holder of a filed claim is to be changed pursuant to the provisions of the preceding paragraph, when the person has the intention of receiving the distribution money even if the total amount of the distribution to be given to them is less than the amount specified by the Rules of the Supreme Court prescribed in Article 111, paragraph (1), item (iv), the person must file a notification with the court to that effect.

A person that holds any of the following claims must file without delay with the court a notification of the amount and cause of the claim, and a statement to that effect, and any other particulars specified by the Rules of the Supreme Court if the claim in question is a claim for a foreign tax subject to mutual assistance. In this case, if the person that holds the claim is a holder of a right of separate satisfaction or holder of a quasi-right of separate satisfaction, the provisions of Article 111, paragraph (2) apply mutatis mutandis:

a claim for tax, etc., which does not fall within the scope of claims on the estate; or

a claim for a fine, etc., which does not fall within the scope of claims on the estate.

An investigation of bankruptcy claims by the court is conducted pursuant to the provisions of the following Subsection based on a statement of approval or disapproval prepared by a bankruptcy trustee as well as written objections made by bankruptcy creditors and by the bankrupt.

Notwithstanding the provisions of the preceding paragraph, the court may conduct an investigation of bankruptcy claims pursuant to the provisions of Subsection 3 based on approval or disapproval given by a bankruptcy trustee as well as objections made by bankruptcy creditors and by the bankrupt on the date of the investigation when the court finds it necessary to do so.

The court may conduct an investigation of bankruptcy claims in writing during the special period for investigation under the provisions of Article 119 even after conducting the investigation of bankruptcy claims on the ordinary date of investigation under the provisions of Article 121, and may conduct an investigation of bankruptcy claims on the special date of investigation under the provisions of Article 122 when the court finds it necessary to do so even after conducting the investigation of bankruptcy claims in writing during the ordinary period for investigation under the provisions of Article 118.

When an ordinary period for investigation is specified, a bankruptcy trustee must prepare a statement of approval or disapproval of the following particulars with regard to each bankruptcy claim filed during the period for filing notifications of claims:

the amount of the bankruptcy claim;

a statement to the effect that the claim in question is a preferred bankruptcy claim;

a statement to the effect that the claim in question is a subordinate bankruptcy claim or consensually-subordinated bankruptcy claim; and

the amount of the claim for which payment is not expected to be received by exercising a right of separate satisfaction (including a special statutory lien, pledge or mortgage, or bankruptcy claim prescribed in Article 108, paragraph (2)).

A bankruptcy trustee may state their approval or disapproval of the particulars listed in the items of the preceding paragraph (if there is a change to any filed particular, the particular stated in each item of that paragraph after the change; the same applies in this Section) in the statement of approval or disapproval stated in that paragraph also with regard to a bankruptcy claim which is filed or for which a change is made to any filed particular (limited to a change which is prejudicial to the interests of other bankruptcy creditors; the same applies in this Section) after the expiration of the period for filing notifications of claims.

A bankruptcy trustee must submit a statement of approval or disapproval prepared pursuant to the provisions of the preceding two paragraphs by the time limit set by the court prior to an ordinary period for investigation.

With regard to any particular of which approval or disapproval should be stated in a statement of approval or disapproval stated in paragraph (1) pursuant to the provisions of that paragraph, if neither approval nor disapproval is stated in the statement of approval or disapproval submitted pursuant to the provisions of the preceding paragraph, it is deemed that a bankruptcy trustee has approved the particular.

With regard to a bankruptcy claim for which approval or disapproval of the particulars stated in the items of paragraph (1) may be stated in a statement of approval or disapproval pursuant to the provisions of paragraph (2), if the statement of approval or disapproval submitted pursuant to the provisions of paragraph (3) states approval or disapproval of a part of the particulars, it is deemed that a bankruptcy trustee has approved the particulars of which neither approval nor disapproval is stated in the statement of approval or disapproval.