Article 739Forfeiture of the Benefit of Time for Failure to Pay Interest on Bonds

①If a bond-issuing company fails to pay interest on bonds, or fails to periodically partially redeem bonds if it must carry out that redemption, pursuant to a resolution at a bondholders meeting, the person executing the resolution may give written notice to the bond-issuing company to the effect that it must make payment within a defined period of time, and to the effect that, if payment is not made within relevant period of time, the bond-issuing company will forfeit the benefit of time as to the total amount of relevant bonds; provided, however, that relevant period may not be less than two months.

②A person who executes a resolution under the preceding paragraph may, in lieu of the written notice under the provisions of that paragraph, provide the matters to be notified under the provisions of that paragraph by electronic or magnetic means, with the approval of the bond-issuing company, pursuant to the provisions of Cabinet Order. In these cases, the person who executes relevant resolution is deemed to have given relevant written notice.

③If a bond-issuing company fails to make the payment in paragraph (1) within the period in that paragraph, it will forfeit the benefit of time with respect to the total amount of relevant bonds.