①If the competent minister finds that a significant obstacle has arisen or could arise to the sound development of installment sales as prescribed in Article 2, paragraph (1), item (i) for designated goods because an installment seller is conducting installment sales of those designated goods as prescribed in that item with the initial installment at a percentage of the installment price which is significantly lower than the percentage of which public notice is issued pursuant to the provisions of the preceding Article, or with a term for the payment of the cost which is significantly longer than the term of which public notice is issued pursuant to that Article, the minister may recommend that the installment seller increase the percentage or shorten the term.

②A recommendation under the provisions of the preceding paragraph may be given through a public notice.

It is not permissible for a person to engage in installment sales in the course of trade, through which it receives all or part of the cost of the designated goods from the purchaser in two or more installments as prescribed in Article 2, paragraph (1), item (i), before the delivery of the designated goods (referred to below as "prepaid installment sales"), without being licensed by the Minister of Economy, Trade and Industry; provided, however, that this does not apply in the following cases:

①A person seeking the license referred to in the preceding Article must submit an application to the Minister of Economy, Trade and Industry stating the following:

②The articles of incorporation, a certificate of registered information, the general conditions of the contract for prepaid installment sales, and the documents specified by Order of the Ministry of Economy, Trade and Industry must accompany the application referred to in the preceding paragraph; provided, however, that a certificate of registered information may be omitted if so specified by Order of the Ministry of Economy, Trade and Industry.

③In the case referred to in the preceding paragraph, if the articles of incorporation have been created in the form of an electronic or magnetic record (meaning a record used in computer data processing, which is created in electronic form, magnetic form, or any other form that is impossible to perceive through the human senses alone; the same applies below), the electronic or magnetic record (limited to one as specified by Order of the Ministry of Economy, Trade and Industry) may accompany the application in lieu of a paper document.

①If the Minister of Economy, Trade and Industry finds an applicant for the license referred to in Article 11 to fall under one of the following items, the minister must not grant the license referred to in that Article:

②The total assets and the total liabilities referred to in item (iii) of the preceding paragraph must be calculated pursuant to Cabinet Order.

③If an application is filed for the license referred to in Article 11 and the Minister of Economy, Trade and Industry reaches the disposition not to grant the license, the minister must notify the applicant of this without delay, indicating the reasons for refusal.

①A licensed installment seller must make a business security deposit with the closest official depository to its principal business office.

②Once a licensed installment seller makes a business security deposit, it must file a notification of this with the Minister of Economy, Trade and Industry, accompanied by a copy of the deposit statement showing receipt of the deposit.

③A licensed installment seller must not commence prepaid installment sale operations until after it files the notification under the provisions of the preceding paragraph.

①The amount of the business security deposit referred to in paragraph (1) of the preceding Article is the sum total of 100,000 yen for the principal business office and 50,000 yen for each other business office or agency office.

②National and local government bonds and other securities specified by Order of the Ministry of Economy, Trade and Industry (including book-entry transfer bonds prescribed in Article 278, paragraph (1) of the Act on the Book-Entry Transfer of Corporate Bonds and Shares (Act No. 75 of 2001)) may serve as the business security deposit referred to in the preceding paragraph, pursuant to the provisions of Order of the Ministry of Economy, Trade and Industry.

①If a licensed installment seller newly establishes a business office or agency office after commencing operations, it must deposit the business security deposit for each such business office or agency office in the amount calculated based on the rates prescribed in paragraph (1) of the preceding Article.

②The provisions of Article 16 and paragraph (2) of the preceding Article apply mutatis mutandis when a deposit is made pursuant to the provisions of the preceding paragraph.

①If a licensed installment seller closes some of its business offices or agency offices and the amount of the business security deposit exceeds the amount prescribed in Article 17, paragraph (1), the licensed installment seller may recover the excess amount.

②The recovery of the excess business security deposit as referred to in the preceding paragraph is not permitted unless public notice is issued to the persons with the right to that business security deposit as referred to in Article 21, paragraph (1), indicating that those persons must make a filing within a fixed period of not less than six months, and no filing is made within that period; provided, however, that this does not apply once ten years have passed following the occurrence of grounds for the recovery of a business security deposit.

③The necessary matters of the public notice referred to in the preceding paragraph and other matters relevant to the recovery of the business security deposit as referred to in the provisions of paragraph (1) are specified by Order of the Ministry of Justice and Order of the Ministry of Economy, Trade and Industry.

①If, as of March 31 and September 30 of each year (each of these days is referred to below as a "base date"), the amount that corresponds to one-half of the total amount of advances that a licensed installment seller has received, from persons with which it has concluded contracts for prepaid installment sales by that base date, as all or part of the cost of the goods under the contracts, exceeds the amount of the business security deposit provided for in Article 17, paragraph (1) as of the base date, the licensed installment seller must not conclude any new contract for prepaid installment sales after fifty days have passed counting from the day after that base date, until it takes the preservative measures for advances received which are referred to in the following paragraph and notifies the Minister of Economy, Trade and Industry of this pursuant to the provisions of paragraph (1) of the following Article.

②Preservative measures for advances received are the making of business deposit for prepaid services or the conclusion of a contract on the entrustment of business deposits for prepaid services, in a way that the licensed installment seller may allocate an amount that corresponds to one-half of the total amount of the advances that it receives by the base date, from persons with which it has concluded contracts for prepaid installment sales as of the base date, as all or part of the cost of the goods under the contracts, after the business security deposit prescribed in Article 17, paragraph (1) as of the base date is deducted (referred to below as the "base amount"), toward the repayment of obligations arising from those contracts.

③A contract on the entrustment of business deposits for prepaid services that is concluded as a preservative measure for advances received is a contract under which the entrusted party agrees to make a business deposit for prepaid services on behalf of the entrusting party, in an amount that corresponds to that with which it is entrusted, if the licensed installment seller that is the entrusting party comes to fall under one of the items of Article 27, paragraph (1) or if the entrusted party receives instructions under the provisions of Article 20-3, paragraph (3), during the period from the day after the notification under the provisions of paragraph (1) of the following Article until fifty days have elapsed counting from the day after the next base date (or, if a notification under that paragraph which concerns the base amount for that next base date is filed before that day, until the day of that notification).

④It is not permissible for a person other than a bank, financial institution specified by Cabinet Order, or person designated by the Minister of Economy, Trade and Industry to become the entrusted party under a contract on the entrustment of business deposit for prepaid services as referred to in the preceding paragraph (simply referred to below as a "contract on the entrustment of business deposits").

⑤The provisions of Article 16, paragraph (1) and Article 17, paragraph (2) apply mutatis mutandis when a business deposit for prepaid services is made as a preservative measure for advances received.