Civil Code

If after the guarantor makes a request or gives proof pursuant to the provisions of Article 452 or Article 453, the obligee fails to demand or to levy execution and becomes unable to obtain full performance from the principal obligor as a result of that, the guarantor is released from the obligation to the extent that the obligee would have received payment if the obligee had immediately demanded or levied execution.

If there are multiple guarantors, the provisions of Article 427 apply even if their obligations arise from individual acts.

The postponement of expiration of prescription period and the renewal of prescription period due to grounds such as a request for performance in relation to the principal obligor are also effective in relation to the guarantor.

A guarantor may assert against the obligee a defense that can be raised by the principal obligor.

If the principal obligor has a right to set-off, right to revoke or right to cancel against the obligee, the guarantor may refuse to perform the obligation to the obligee to the extent that the principal obligor should have been released from the obligation by exercising these rights.

The provisions of Article 438, Article 439, paragraph (1), Article 440, and Article 441 apply mutatis mutandis to circumstances which arise with regard to the guarantor that bears the obligation jointly and severally with the principal obligor.

If a guarantor gives guarantee as requested by the principal obligor, the obligee, upon request of the guarantor, must provide, without delay, the guarantor with information concerning whether or not there has been a default in terms of the principal of the principal obligation or any interest, penalty or damages in connection with the principal obligation or any other charges secondary to the obligation, as well as the remaining amount of these items and the amount of those already due.

If the principal obligor has the benefit of time forfeits the benefit, the obligee must notify the guarantor to that effect within two months from the time when the obligee comes to know the principal obligor's forfeiture of the benefit.

If the obligee fails to notify the guarantor referred to in the preceding paragraph within the period referred to that paragraph, the obligee may not request the guarantor to perform the guarantee obligation for any delay damages that have accrued after the principal obligor is accelerated and becomes immediately due until the obligee notifies the guarantor pursuant to the provisions of that paragraph (excluding those that should have accrued even if the principal obligor maintains the benefit of time).

The provisions of the preceding two paragraphs do not apply if the guarantor is a corporation.

If a guarantor gives guarantee as requested by the principal obligor, and performs the obligation on behalf of the principal obligor or performs any other act that causes the obligation to be extinguished in exchange for the guarantor's own property (referred to as an "act for extinguishment of obligation" below), the guarantor has a right to reimbursement from the principal obligor for the amount of property expended for that act (if the amount of property exceeds the amount of the principal obligation extinguished by the act for extinguishment of obligation, the amount thus extinguished).

The provisions of Article 442, paragraph (2) apply mutatis mutandis to the cases stated in the preceding paragraph.

If a guarantor gives guarantee as requested by the principal obligor and performs an act for extinguishment of obligation before the due date of the principal obligation, the guarantor has the right to reimbursement from the principal obligor to the extent that the principal obligor was enriched at the time of the act. In such a case, if the principal obligor alleges to have had grounds for set-off before the day of the act for extinguishment of obligation, the guarantor may request the obligee to perform the obligation which should have been extinguished due to the set-off.

Reimbursement under the provisions of the preceding paragraph includes the statutory interest which accrues on and after the due date of the principal obligation and compensation for damage including expenses which could not have been avoided even if an act for extinguishment of obligation were performed on or after the due date.

The right to reimbursement referred to in paragraph (1) may not be exercised before the due date of the principal obligation.

If a guarantor has given a guarantee as requested by the principal obligor, the guarantor may exercise in advance the right to reimbursement against the principal obligor if:

the principal obligor is subject to an order commencing bankruptcy proceeding, and the obligee does not participate in the distribution of the bankruptcy estate;

the obligation is due; provided, however, that no extension of time granted by the obligee to the principal obligor after the conclusion of the guarantee contract may be duly asserted against the guarantor; and

the guarantor is, without negligence, rendered a judicial decision ordering the guarantor to perform the obligation to the obligee.

If a principal obligor reimburses a guarantor pursuant to the provisions of the preceding Article, the principal obligor may demand the guarantor to provide security or to obtain an exemption for the principal obligor until the obligee receives the full satisfaction of the entire obligation.

In the case prescribed in the preceding paragraph, the principal obligor may be released from the obligation for reimbursement by making a deposit with an official depository, by providing security, or by procuring the discharge of the liabilities of the guarantor.

The provisions of Article 459-2, paragraph (1) apply mutatis mutandis if a person, that has given guarantee without the request of the principal obligor, performs an act for extinguishment of obligation.

A person that has become a guarantor against the intention of the principal obligor has the right to reimbursement only to the extent currently enriched. In this case, if the principal obligor asserts to have grounds for set-off against the obligee before the day of the demand for reimbursement, the guarantor may demand that the obligee perform the obligation which would have been extinguished by that set-off.

The provisions of Article 459-2, paragraph (3) apply mutatis mutandis to the exercise of the right to reimbursement if the guarantor referred to in the preceding two paragraphs performs an act for extinguishment of obligation before the due date of the principal obligation.

If a guarantor gives guarantee as requested by the principal obligor and performs an act for extinguishment of obligation without giving prior notice to the principal obligor, the principal obligor may assert against the guarantor any defense that could have been asserted against the obligee. In such a case, if the principal obligor asserts a set-off against the guarantor, the guarantor may request the obligee to perform the obligation which should have been extinguished due to the set-off.

If a guarantor gives guarantee as requested by the principal obligor and performs an act for extinguishment of obligation in good faith because of the principal obligor's failure to notify the guarantor of the principal obligor's performance of an act for extinguishment of obligation, the guarantor may deem that the guarantor's own act for extinguishment of obligation is valid.

If the principal obligor performs an act for extinguishment of obligation after the guarantor has performed an act for extinguishment of obligation, the principal obligor may deem that the guarantor's own act for extinguishment of obligation is valid, not only if the guarantor has given guarantee against the intention of the principal obligor but also if the principal obligor has performed an act for extinguishment of obligation in good faith because of the guarantor's failure to notify the principal obligor of the guarantor's performance of act for extinguishment of obligation.

A person that has become a guarantor for one of the joint and several obligors or for one of the indivisible obligors has the right to reimbursement from the other obligors only to the extent of that person's share of the obligation.

If there are multiple guarantors, and one guarantor has paid the entire amount of the obligation or any amount exceeding that guarantor's share because the principal obligation is indivisible, or because there is a special provisions to the effect that each guarantor should pay the entire amount, the provisions of Articles 442 through 444 apply mutatis mutandis.

Except in the cases prescribed in the preceding paragraph, if one of the guarantors that are not jointly and severally liable has paid the entire amount or any amount exceeding that guarantor's share, the provisions of Article 462 apply mutatis mutandis.

A guarantor to a guarantee contract under which the principal obligation is one or more unidentified obligations within a certain specified scope (referred to as a "contract for revolving guarantee" below) and the guarantor is not a corporation (referred to as a "contract for revolving guarantee by an individual" below) is liable to perform the obligation in terms of the amounts of the principal of the principal obligation, any interest, penalty and damages in connection with the principal obligation, and all the other charges secondary to the obligation, as well as the amount of any penalty or damages which is agreed-upon on with regard to the guarantee obligation, up to a certain maximum amount which pertains to all of these amounts.

A contract for revolving guarantee by an individual does not become effective unless it provides for the maximum amount prescribed in the preceding paragraph.

The provisions of Article 446, paragraphs (2) and (3) apply mutatis mutandis to the provisions concerning a maximum amount prescribed in paragraph (1) in a contract for revolving guarantee by an individual.

If a contract for revolving guarantee by an individual under which the scope of the principal obligation includes an obligation to be borne as a result of loans or receiving a discount of a negotiable instrument (referred to as a "loan obligation"; and this contract is referred to as a "contract for revolving guarantee by an individual for loans" below) provides for the date on which the principal of the principal obligation should be fixed (referred to as the "principal fixed date" below), and it also provides that the principal fixed date is to fall on or after the day on which five years have passed after the day of the conclusion of the contract for the revolving guarantee by an individual for loans, the provisions concerning the principal fixed date do not become effective.

If a contract for revolving guarantee by an individual for loans does not provide for a principal fixed date (or if the provisions concerning the principal fixed date do not become effective pursuant to the provisions of the preceding paragraph), the principal fixed date is to fall on the day on which three years have passed from the day of the conclusion of the contract for revolving guarantee by an individual for loans.

If a change of the principal fixed date provided for in a contract for revolving guarantee by an individual for loans is to be effected, and the principal fixed date as changed falls on a day later than the day on which five years have passed after the day of the change, that change of the principal fixed date does not become effective; provided, however, that this does not apply if the change of the principal fixed date is effected within two months immediately preceding the principal fixed date, and the principal fixed date as changed falls on a day within five years from the original principal fixed date.

The provisions of Article 446, paragraphs (2) and (3) apply mutatis mutandis to the provisions concerning a principal fixed date in a contract for revolving guarantee by an individual for loans and its change (excluding provisions to the effect that the principal fixed date is to fall on a day within three years from the day of the conclusion of that contract for revolving guarantee by an individual for loans, and any change which is intended to change the principal fixed date to a day preceding the original principal fixed date).

The principal of the principal obligation under a contract for revolving guarantee by an individual is fixed in the following cases; provided, however, that in the case stated in item (i), it is fixed only if the procedure for judicial enforcement or enforcement procedure of a security right is commenced:

if an obligee files a petition for judicial enforcement or enforcement of any security right for a claim for payment of money with regard to any property of the guarantor;

if the guarantor receives an order commencing bankruptcy proceeding; or

the relevant principal obligor or guarantor has died.

Beyond the case prescribed in the preceding paragraph, the principal of the principal obligation under a contract for revolving guarantee by an individual for loans is fixed in the following cases; provided, however, that in the case stated in item (i), it is fixed only if the procedure for judicial enforcement or enforcement procedure of a security right is commenced:

if the obligee files a petition for judicial enforcement or enforcement of a security right for a claim for payment of money with regard to property of the principal obligor; or

if the principal obligor receives an order commencing bankruptcy proceeding.