①A mortgagee has the right to have the mortgagee's claim satisfied before other obligees out of the immovables that the obligor or a third party provided to secure the obligation without transferring possession.

②Superficies and farming rights may be the subject of a mortgage. In this case, the provisions of this Chapter apply mutatis mutandis.

A mortgage extends to the things that form an integral part of the immovables that are the subject of the mortgage (referred to as "mortgaged immovables" below) except for buildings on the mortgaged land; provided, however, that this does not apply if the act establishing the mortgage provides otherwise or the revocation of fraudulent act may be demanded as prescribed in Article 424, paragraph (3) with regard to the act of the obligor.

If there is a default with respect to a claim secured by a mortgage, the mortgage extends to the fruits of the mortgaged immovables derived after the default.

The provisions of Article 296, Article 304 and Article 351 apply mutatis mutandis to mortgages.

If more than one mortgage is created with respect to the same immovables, the order of priority of those mortgages follows the chronological order of their registration.

①The order of priority of mortgages may be changed with the agreement of all mortgagees; provided, however, that if there are interested persons, the consent of the same must be obtained.

②The changes in order referred to in the preceding paragraph do not become effective unless registered.

①If a mortgagee has the right to demand periodic payments including interest, that mortgagee may exercise the mortgage solely with respect to payments of the last two years before maturity; provided, however, that with respect to prior periodic payments, if special registration is effected after maturity, the mortgagee is not precluded from exercising the mortgage as from the time of that registration.

②If the mortgagee has the right to claim compensation for damage resulting from defaults in obligations, the provisions of the preceding paragraph also apply to the damage of the most recent two years; provided, however, that the aggregate period including the interest and other periodic payments may not exceed two years.

①A mortgagee may apply the mortgage to secure other claims, or assign or waive that mortgage, or its order of priority, for the benefit of other obligees of the same obligor.

②In the cases referred to in the preceding paragraph, if a mortgagee disposes of the mortgage for the benefit of two or more persons, the order of priority of the rights of persons who benefit from that disposition follows the chronological order of supplemental registration in the registration of the mortgage.

①In the cases in the preceding Article, the mortgagee may not duly assert the disposition of mortgages against principal obligors, guarantors, mortgagors or their respective successors unless the disposition is notified to the principal obligors or the principal obligors consent to that disposition in accordance with the provisions of Article 467.

②If the principal obligors have received the notice or given the consent pursuant to the provisions of the preceding paragraph, payments made without the consent of the persons who benefit of the disposition of the mortgage may not be duly asserted against those beneficiaries.

If a third party that purchases the ownership or superficies of a mortgaged immovables pays the price of the same to a mortgagee at the request of the same mortgagee, that mortgage is terminated for the benefit of that third party.

A third party acquirer of a mortgaged immovables may make a claim for the extinguishment of a mortgage as prescribed in Article 383.

No principal obligor, guarantor or successor of the same may make a claim for the extinguishment of a mortgage.

A third party acquirer of a mortgaged immovables that is subject to a condition precedent may not make a claim for the extinguishment of a mortgage while it is uncertain whether or not the condition precedent will be fulfilled.

A third party acquirer of a mortgaged immovables must make a claim for the extinguishment of a mortgage before seizure under auction procedure as a result of the enforcement of the mortgage takes effect.

If a third party acquirer of a mortgaged immovables makes a claim for the extinguishment of a mortgage, that third party must send the documents stated below to each registered obligee:

In the cases stated below, the obligee that has received the documents stated in each item of the preceding Article is deemed to have approved the price or amount that the third party acquirer of the mortgaged immovables has offered as stated in the document stated in item (iii) of that Article:

If an obligee that has received the documents stated in each item of Article 383 files a petition under item (i) of the preceding Article, that obligee must give notice to that effect to the obligor and assignor of the mortgaged immovables within the period under that item.

A mortgage is extinguished if all registered obligees approve the price or amount offered by the third party acquirer of the mortgaged immovables, and the third party acquirer of the mortgaged immovables has paid or deposited with the official depository the price or amount approved.

①A registered lease may be duly asserted against mortgagees that hold mortgages registered before the registration of that lease if all mortgagees that hold those mortgages give their consent and those consents are registered.

②For a mortgagee to give the consent referred to in the preceding paragraph, the approval of the persons that hold rights for which the mortgage is the subject matter and other persons who should suffer detriment as a result of the consent of the mortgagee must be obtained.

If the land and a building on that land belong to the same owner, a mortgage is created with respect to that land or building, and the enforcement of that mortgage causes them to belong to different owners, it is deemed that a superficies has been created with respect to that building. In this case, the rent is fixed by the court at the request of the parties.

①If a building is constructed on a mortgaged land after the creation of a mortgage, the mortgagee may auction the building together with the land; provided, however, that the right of priority of that mortgagee may be exercised solely against the proceeds of the land.

②The provisions of the preceding paragraph do not apply if the owner of that building has rights with respect to the possession of the mortgaged land that may be duly asserted against the mortgagee.

A third party acquirer of a mortgaged immovables may be the purchaser at the auction of the same.

If a third party acquirer of a mortgaged immovables has incurred necessary or beneficial expenses with respect to the mortgaged immovables, that third party may obtain reimbursement of the same out of the proceeds of the mortgaged immovables before other obligees, in accordance with the distinctions in Article 196.

①If an obligee holds mortgages on several immovable properties to secure the same claim, and the proceeds of those immovable properties are to be distributed simultaneously, the burden of the claim is divided in proportion to the value of each of the immovable properties.

②If an obligee holds mortgages on several immovable properties to secure the same claim, and the proceeds from only one of the immovable properties are to be distributed, the mortgagee may receive the payment of the entire claim out of those proceeds. In this case, subordinated mortgagees may exercise their mortgages in subrogation of that mortgagee, up to the amount that that mortgagee that receives payment would otherwise be entitled to receive from the proceeds of other immovables, in accordance with the provisions of the preceding paragraph.

A person that exercises a mortgage by way of subrogation pursuant to the provisions of the second sentence of paragraph (2) of the preceding Article may note that subrogation in the registration of that mortgage.

①A mortgagee may receive payment from assets other than the mortgaged immovables only for the portion of that mortgagee's claim that is not paid from the proceeds of the relevant mortgaged immovables.

②The provisions of the preceding paragraph do not apply if the proceeds of other assets are to be distributed before the proceeds of the mortgaged immovables. In these cases, each other obligee may demand that the amount to be distributed to the mortgagee be deposited in order to have the mortgagee receive payment under the provisions of that paragraph.

①A person that uses or profits from a building subject to a mortgage by virtue of a lease that cannot be duly asserted against the mortgagee, and that is stated as follows (in the following paragraph referred to as "mortgaged building user") is not required to deliver that building to the purchaser of that building until six months have passed from the time when the purchaser purchased that building at auction:

②The provisions of the preceding paragraph do not apply if the purchaser, specifying a reasonable period of time, issues a notice to the mortgaged building user demanding payment of consideration for a period of one month or more with respect to the use of the building referred to in that paragraph that has been made after the time of purchase by the purchaser, and no payment is made within that reasonable period of time.

No mortgage is extinguished by prescription in relation to obligors and mortgagors unless it is extinguished simultaneously with the claim the mortgage secures.

If a person that is neither an obligor nor a mortgagor has possessed the mortgaged immovables in complete conformity with the requirements for acquisitive prescription, the mortgage is extinguished thereby.

Even if a holder of superficies or a farming right holder that created mortgage on that holder's superficies or farming right renounces the relevant rights, the renunciation may not be duly asserted against the mortgagee.

①Mortgages may be created, by an establishing act, in order to secure unspecified claims of a certain scope, up to the limit of a maximum amount.

②The scope of the unspecified claims to be secured by the mortgage under the provisions of the preceding paragraph (referred to as "revolving mortgage" below) must be prescribed by limiting the scope to claims arising from specific contracts with the obligor for continuous transactions or other claims arising from certain kinds of transactions with the obligor.

③Claims that arise continuously with the obligor pursuant to a specific cause, claims under negotiable instruments or checks, or electronically recorded monetary claims (meaning electronically recorded monetary claims prescribed in Article 2, paragraph (1) of the Electronically Recorded Monetary Claims Act (Act No. 102 of 2007); the same applies in paragraph (2) of the following Article) may be treated as claims that are to be secured by a revolving mortgage, notwithstanding the provisions of the preceding paragraph.

①A revolving mortgagee may exercise the relevant revolving mortgage up to the maximum amount with respect to all of fixed principal as well as periodic payments including interest and compensation for damage resulting from failure to perform obligations.

②If a claim under a negotiable instrument or check or electronically recorded monetary claim acquired from causes other than the transactions with the obligor is agreed to be treated as a claim to be secured by a revolving mortgage, and any of the following grounds exist, that revolving mortgage may be exercised only with respect to claims acquired before those grounds arose; provided, however, that even with respect to claims acquired after the grounds arose, the exercise of the revolving mortgage is not precluded as far as the claims were acquired without knowledge of those grounds:

①The scope of the claims to be secured by a revolving mortgage may be changed if the change is effected before the principal is fixed. The same applies with respect to change of obligors.

②In order to effect the changes referred to in the preceding paragraph, it is not required that the approval of third parties including subordinated mortgagee be obtained.

③If the change under paragraph (1) is not registered before the principal is fixed, it is deemed that the change was not effected.

Changes in the maximum amount of a revolving mortgage may not be made unless the consent of the interested parties is obtained.

①With respect to the principal secured by a revolving mortgage, the date when the principal is to be fixed may be specified or changed.

②The provisions of Article 398-4, paragraph (2) apply mutatis mutandis to the cases referred to in the preceding paragraph.

③The date under paragraph (1) must be within five years of the day when the date was prescribed or changed.

④If registration with respect to a change in the date under paragraph (1) is not effected before the old date, the principal secured is fixed on that old date.

①A person that acquires a claim from a revolving mortgagee before the principal is fixed may not exercise the revolving mortgage with respect to that claim. The same applies to a person that made payment for or on behalf of an obligor before the principal was fixed.

②If an obligation is assumed before the principal is fixed, the revolving mortgagee may not exercise the revolving mortgage with respect to the obligation of the person that assumes the obligation.

③If the discharging assumption of an obligation is effected before the principal is fixed, the obligee may not transfer the revolving mortgage to the obligation assumed by the new obligor, notwithstanding the provisions of Article 472-4, paragraph (1).

④If any novation due to the substitution of the obligee is effected before the principal is fixed, the obligee before the novation may not transfer the revolving mortgage to the obligations after the novation, notwithstanding the provisions of Article 518, paragraph (1). The same applies to the obligee in the case of novation due to the substitution of the obligor before the principal is fixed.

①If succession involving a revolving mortgagee commences before the principal is fixed, the revolving mortgage secures the claims that exist at the time of the commencement of succession and otherwise secures claims that were agreed upon by the heirs and the mortgagor of the revolving mortgage and that an heir acquires after the commencement of succession.

②If succession involving an obligor commences before the principal is fixed, the revolving mortgage secures the obligations that exist at the time of the commencement of succession and otherwise secures the claims that were agreed upon by the revolving mortgagee and the mortgagor of the revolving mortgage and that an heir assumes after the commencement of succession.

③The provisions of Article 398-4, paragraph (2) apply mutatis mutandis if an agreement referred to in the preceding two paragraphs is reached.

④If the agreements referred to in paragraph (1) and paragraph (2) are not registered within six months of the commencement of succession, the principal secured is deemed to have been fixed at the time of the commencement of succession.

①If there is a merger with respect to a revolving mortgagee before the principal is fixed, the revolving mortgage secures the claims that exist at the time of the merger and otherwise secures claims that a corporation that survives the merger or a corporation that is incorporated by the merger acquires after the merger.

②If there is a merger with respect to an obligor before the principal is fixed, the revolving mortgage secures the obligations that exist at the time of the merger and otherwise secures the obligations that a corporation that survives the merger or a corporation that is incorporated by the merger assumes after the merger.

③In the cases provided for in the preceding two paragraphs, the mortgagor of the revolving mortgage may demand that the principal secured be fixed; provided, however, that this does not apply, in the cases referred to in the preceding paragraph, if the relevant obligor is the mortgagor of the revolving mortgage.

④If a demand under the provisions of the preceding paragraph is made, the principal secured is deemed to have been fixed at the time of the merger.

⑤The demand under the provisions of paragraph (3) may not be made if two weeks have passed since the day when the mortgagor of the revolving mortgage acquired knowledge of the merger. The same applies if one month has passed from the day of the merger.

①If, before the principal is fixed, a company split in which the relevant revolving mortgagee is the company to be split is effected, the revolving mortgage secures the claims that exist at the time of the split and otherwise secures claims acquired after the split by the split company and the company incorporated by the split, or claims acquired after the split by the company that succeeded to some or all of the rights and obligations of the split company regarding its business.

②If, before the principal is fixed, a split in which the relevant obligor is the company to be split is effected, the revolving mortgage secures the obligations that exist at the time of the split and otherwise secures obligations that are assumed after the split by the split company and the company incorporated by the split, or claims acquired after the split by the company that assumed some or all of the rights and obligations of the split company regarding its business.

③The provisions of paragraphs (3) through (5) of the preceding Article apply mutatis mutandis to cases under the preceding two paragraphs.

①Before the principal is fixed, a revolving mortgagee may not dispose of a revolving mortgage under the provisions of Article 376, paragraph (1); provided, however, that the revolving mortgagee is not precluded from applying that revolving mortgage to secure other claims.

②The provisions of Article 377, paragraph (2) do not apply to payments made before the principal is fixed in the cases provided for in the proviso to the preceding paragraph.

①Before the principal is fixed, a revolving mortgagee may assign a revolving mortgage, with the approval of the mortgagor of the revolving mortgage.

②A revolving mortgagee may divide the revolving mortgage into two revolving mortgages and assign either of the same pursuant to the provisions of the preceding paragraph. In this case, the rights for which that revolving mortgage is the subject is extinguished with respect to the revolving mortgage that was assigned.

③In order to effect an assignment under the provisions of the preceding paragraph, the approval of the person that holds the rights for which that revolving mortgage is the subject must be obtained.

Before the principal is fixed, a revolving mortgagee may, with the approval of the mortgagor of the revolving mortgage, effect a partial assignment of the revolving mortgage (meaning assignments of revolving mortgages that the assignor effects without dividing the revolving mortgage in order to co-own the same with the assignee; the same applies in this Section below).

①Co-owners of a revolving mortgage are paid in proportion to the amount of their respective claims; provided, however, that if before the principal is fixed, a proportion other than the above is agreed upon, or if it is agreed upon that a certain person will be paid before another, that agreement prevails.

②A co-owner in a revolving mortgage may, with the consent of the other co-owners, assign rights of the same pursuant to the provisions of Article 398-12, paragraph (1).

If a revolving mortgagee that has accepted an assignment or waiver of the order of priority of a mortgage has assigned or partially assigned that mortgagee's revolving mortgage, the assignee benefits from the assignment or waiver of that order of priority.

The provisions of Articles 392 and 393 apply with respect to a revolving mortgage only when the fact that the revolving mortgage has been simultaneously established on several immovables to secure the same claim is registered.

①A change in the scope, obligors or maximum amount of the claims to be secured, or assignment or partial assignment of the revolving mortgages for which registration is effected in accordance with the preceding Article does not take effect unless registration is effected with respect to all immovables over which that revolving mortgages are established.

②The principal secured by the revolving mortgage for registered pursuant to the preceding Article is fixed even when grounds on which the principal is fixed arise only with respect to one immovable property alone.

A person that has a revolving mortgage on several immovables may exercise the right of priority with respect to the proceeds of each immovable property up to the respective maximum amounts, except for cases provided for in Article 398-16.

①If three years have passed from the time of the creation of a revolving mortgage, the mortgagor of the revolving mortgage may request the fixing of the principal secured. In this case, the principal secured is fixed when two weeks have passed since the time of that request.

②A revolving mortgagee may request the fixing of the principal secured at any time. In this case, the principal secured is fixed on the request of the same.

③The provisions of the preceding two paragraphs do not apply if the date on which the principal secured is to be fixed is specified.

①The principal secured by a revolving mortgage is fixed in the following cases:

②If the commencement of auction procedures, the seizure under item (iii) of the preceding paragraph or the order commencing bankruptcy proceeding under item (iv) of that paragraph ceases to be effective, it is deemed that the principal secured was not fixed; provided, however, that this does not apply if a person has acquired that revolving mortgage or a right for which the revolving mortgage is the subject on the assumption that the principal was fixed.

①After the principal is fixed, the mortgagor of the revolving mortgage may request a reduction in the maximum amount of that revolving mortgage, to the amount of the obligations actually in existence plus the amount of the periodic payments including interest and the amount of damages due to default in obligations should arise in the following two years.

②As to the reduction in the maximum amount of a revolving mortgage registered pursuant to Article 398-16, it suffices to make the request referred to in the preceding paragraph with respect to one of those immovables.

①If the amount of the obligations currently in existence after the principal is fixed exceeds the maximum amount of a revolving mortgage, the person that created the revolving mortgage to secure the obligations of another person or a third party that has acquired ownership, superficies, farming rights, or a lease that may be duly asserted against any third party with respect to the mortgaged immovables may request the extinguishment of that revolving mortgage on paying or depositing with an official depository an amount equivalent to that maximum amount. In this case, that payment or deposit has the effect of performance of the obligation.

②A revolving mortgage that has been registered pursuant to Article 398-16 is extinguished if the request for extinguishment referred to in the preceding paragraph is made with respect to one immovable property.

③The provisions of Articles 380 and 381 apply mutatis mutandis to the requests for extinguishment under paragraph (1).