Bankruptcy Act

After the ordinary period for investigation has expired or the ordinary date of investigation has ended and before realization is completed for the property that belongs to the bankruptcy estate, when a bankruptcy trustee finds that money suitable for distribution that belongs to the bankruptcy estate exists, the bankruptcy trustee may make a distribution under the provisions of this Section (referred to below as an "interim distribution" in this Section) to holders of filed bankruptcy claims prior to a final distribution.

A bankruptcy trustee must obtain permission of the court in order to make an interim distribution.

With regard to an interim distribution, the provisions of Article 196, paragraphs (1) and (2), Article 197, Article 198, paragraph (1), Article 199, paragraph (1), items (i) and (ii), Article 200, Article 201, paragraph (4), and Article 203 apply mutatis mutandis. In this case, the phrase "permission under the provisions of paragraph (2) of the preceding Article" in Article 196, paragraph (1) is deemed to be replaced with "permission under the provisions of Article 209, paragraph (2)", the phrase "period of exclusion concerning a final distribution" in the items of Article 199, paragraph (1) and Article 200, paragraph (1) is deemed to be replaced with "period of exclusion concerning an interim distribution prescribed in Article 210, paragraph (1)", and the phrase "amount of distribution under the provisions of Article 201, paragraph (7)" in Article 203 is deemed to be replaced with "percentage of distribution under the provisions of Article 211".

In order to participate in the procedure for an interim distribution, within the period prescribed in Article 198, paragraph (1) as applied mutatis mutandis pursuant to paragraph (3) of the preceding Article (referred to below as the "period of exclusion concerning an interim distribution" in this Section), a holder of a right of separate satisfaction must prove to a bankruptcy trustee the fact that they have commenced the disposal of the collateral for the right of separate satisfaction, and also make a prima facie showing of the amount of the claim for which payment cannot be received by the disposal to a bankruptcy trustee.

The provisions of the preceding paragraph apply mutatis mutandis to a holder of a quasi-right of separate satisfaction.

When proof is made and a prima facie showing is made within the period of exclusion concerning an interim distribution with regard to the particulars prescribed in paragraph (1) (including as applied mutatis mutandis pursuant to the preceding paragraph), a bankruptcy trustee must immediately correct the distribution list.

Without delay after the period prescribed in Article 200, paragraph (1) as applied mutatis mutandis pursuant to Article 209, paragraph (3) has expired (when an objection under the provisions of Article 200, paragraph (1) is raised, after an order on the objection is made), a bankruptcy trustee must determine the percentage of distribution and give a notice of the percentage to each bankruptcy creditor that may participate in the procedure for an interim distribution.

With regard to a bankruptcy claim that is a claim subject to a condition subsequent, an interim distribution may not be received unless reasonable security is provided.

With regard to the bankruptcy claim stated in the preceding paragraph, if the condition is not met within the period of exclusion concerning a final distribution, the security provided under the provisions of that paragraph ceases to be effective.

With regard to a bankruptcy claim that was unable to enter into the procedure for an interim distribution on the grounds of failure to prove the particular prescribed in Article 198, paragraph (1) as applied mutatis mutandis pursuant to Article 209, paragraph (3), if the bankruptcy creditor that holds the bankruptcy claim has proven the particular within the period of exclusion concerning a final distribution or within the period of exclusion concerning an interim distribution that may be made after the interim distribution, the bankruptcy creditor may receive a distribution at the amount that they could have received in the previous interim distribution in preference to other bankruptcy creditors with the same priority in the final distribution or a subsequent interim distribution that may be made after the previous interim distribution. The same applies when a holder of a right of separate satisfaction (including a holder of a quasi-right of separate satisfaction) that was unable to participate in the procedure for an interim distribution on the grounds of failure to prove or make a prima facie showing of the particular prescribed in Article 210, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article) has proved and made a prima facie showing of the particular within the period of exclusion concerning a subsequent interim distribution that may be made after the interim distribution.

A bankruptcy trustee that seeks to make an interim distribution must make a deposit of the amount of distribution to the following bankruptcy claims:

a denied or disputed bankruptcy claim, for which the proceedings stated in Article 202, item (i) are pending;

a claim for tax, etc. or claim for a fine, etc., for which the proceedings stated in Article 202, item (ii) have not been closed when a notice of the percentage of distribution under the provisions of Article 211 is given;

part of a claim for which proof is made and a prima facie showing is made pursuant to the provisions of Article 210, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article) within the period of exclusion concerning an interim distribution, related to the amount subject to the prima facie showing;

a bankruptcy claim that is a claim subject to a condition precedent or claim which may arise in the future;

a bankruptcy claim that is a claim subject to a condition subsequent, for which security pursuant to the provisions of Article 212, paragraph (1) is not provided; and

a bankruptcy claim held by a bankruptcy creditor that has not filed a notification pursuant to the provisions of Article 111, paragraph (1), item (iv) or Article 113, paragraph (2).

When a deposit of the amount of distribution to a bankruptcy claim stated in item (i) or (ii) of the preceding paragraph is made pursuant to the provisions of those items, a bankruptcy trustee must deposit the amount of distribution deposited in the interest of the bankruptcy creditor that is to receive it when making a deposit of the amount of distribution to the bankruptcy claim pursuant to the provisions of Article 202, item (i) or (ii).

When a deposit of the amount of distribution to a bankruptcy claim stated in paragraph (1), item (iii) or (iv) is made pursuant to the provisions of those items, if the bankruptcy creditor or holder of a right of separate satisfaction (including a holder of a quasi-right of separate satisfaction) that holds the bankruptcy claim was unable to participate in the procedure for a final distribution due to the failure to conform to the provisions of Article 198, paragraph (2) or prove the particular prescribed in paragraph (3) of that Article (including as applied mutatis mutandis pursuant to paragraph (5) of that Article), a bankruptcy trustee must make a final distribution of the amount of distribution deposited to other bankruptcy creditors.

When a deposit of the amount of distribution to a bankruptcy claim stated in paragraph (1), item (v) is made pursuant to the provisions of that item, if the condition attached to the bankruptcy claim is not met within the period of exclusion concerning a final distribution, a bankruptcy trustee must pay the amount of distribution deposited to the bankruptcy creditor that holds the bankruptcy claim.

For the purpose of application of the provisions of Article 201, paragraph (5) when a deposit of the amount of distribution to a bankruptcy claim stated in paragraph (1), item (vi) is made pursuant to the provisions of that item, in Article 201, paragraph (5), the phrase "the amount of distribution determined for the bankruptcy creditor is less than the amount specified by the Rules of the Supreme Court prescribed in Article 111, paragraph (1), item (iv)" is deemed to be replaced with "the total of the amount of distribution determined for the bankruptcy creditor and the amount of distribution to a bankruptcy claim stated in Article 214, paragraph (1), item (vi) deposited by a bankruptcy trustee pursuant to the provisions of that item is less than the amount specified by the Rules of the Supreme Court prescribed in Article 111, paragraph (1), item (iv)", and the phrase "the amount of distribution" is deemed to be replaced with "the sum".

After a notice of the amount of distribution pursuant to the provisions of Article 201, paragraph (7) is given (in the case of a simplified distribution, after the period prescribed in Article 200, paragraph (1) as applied mutatis mutandis pursuant to Article 205 expires, and in the case of a consensual distribution, after the permission pursuant to the provisions of Article 208, paragraph (1) is granted), if a considerable amount of property available for a new distribution is confirmed, a bankruptcy trustee must make a distribution under the provisions of this Article with permission of the court (referred to below as a "subsequent distribution" in this Article) to holders of filed bankruptcy claims, in addition to a final distribution, simplified distribution, or consensual distribution. The same applies after an order of termination of bankruptcy proceedings is issued.

With regard to a subsequent distribution, the provisions of Article 201, paragraphs (4) and (5), Article 202, and Article 203 apply mutatis mutandis. In this case, the term "provisions of paragraph (1)" in Article 201, paragraph (5) is deemed to be replaced with "provisions of Article 215, paragraph (4)", and the term "paragraph (7) of the preceding Article" in Article 202, items (i) and (ii) and the term "Article 201, paragraph (7)" in Article 203 is deemed to be replaced with "Article 215, paragraph (5)".

A subsequent distribution is made according to the distribution list prepared for a final distribution, simplified distribution, or consensual distribution.

When the permission pursuant to the provisions of paragraph (1) is granted, a bankruptcy trustee must determine without delay the amount of distribution to each bankruptcy creditor that may participate in the procedure for a subsequent distribution.

A bankruptcy trustee must give notice of the amount of distribution determined pursuant to the provisions of the preceding paragraph to each bankruptcy creditor that may participate in the procedure for a subsequent distribution (excluding a bankruptcy creditor that may not receive a subsequent distribution pursuant to the provisions of Article 201, paragraph (5) as applied mutatis mutandis pursuant to paragraph (2) following the deemed replacement of terms).

A bankruptcy trustee must make a report of accounts to the court in writing without delay after making a subsequent distribution.

In the case referred to in the preceding paragraph, if a bankruptcy trustee has become absent, the report of accounts stated in that paragraph must be made by a successor bankruptcy trustee, notwithstanding the provisions of that paragraph.