①If the unused balance on the base date exceeds the amount specified by Cabinet Order (hereinafter referred to as the "standard amount" in this Chapter), an issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, make security deposits for issuance to the official depository nearest to its principal business office or office in an amount equivalent to not less than half the amount of the unused balance on the base date (hereinafter referred to as the "amount required for deposit" in this Chapter).

②If, due to completion of the procedure for the fulfillment of the right prescribed in Article 31, paragraph (1) or the occurrence of other facts, the amount of security deposits for issuance (including the total amount of the secured amount prescribed in the following Article and the amount of trust property prescribed in Article 16, paragraph (1); the same applies in Article 18, item (ii) and Article 23, paragraph (1), item (iii)) is less than the amount required for deposit as of the base date immediately preceding the day on which those issues occurred (or the amount calculated as if the Prepaid Payment Instruments pertaining to those procedures did not exist in accordance with the method specified by Cabinet Office Order as of the base date immediately preceding the day on which the refund procedure prescribed in Article 20, paragraph (1) or the procedure for the fulfillment of the right prescribed in Article 31, paragraph (1) was completed), an issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, deposit the shortage and notify the Prime Minister to that effect without delay.

③Security deposits for issuance may be paid in national government bond certificates, local government bond certificates or other bond certificates specified by Cabinet Office Order (including book-entry transfer bonds specified in Article 278, paragraph (1) of the Act on Book-Entry Transfer of Corporate Bonds and Shares; the same applies in Article 16, paragraph (3)). In this case, the appraised value of those bond certificates is determined pursuant to the provisions of Cabinet Office Order.

If an issuer of prepaid payment instruments has concluded a guarantee contract for security deposits for issuance (meaning a contract in which a deposit-taking institution satisfying the requirements specified by Cabinet Order or any other person specified by Cabinet Order promises that security deposits for issuance will be made on behalf of the issuer of prepaid payment instruments in response to an order by the Prime Minister; the same applies in this Chapter) and has notified the Minister to that effect, pursuant to the provisions of Cabinet Order, it may choose not to deposit all or part of the security deposits for issuance with regard to the secured amount (meaning the amount of money to be deposited under the guarantee contract for security deposits for issuance; the same applies in Article 17) limited to the period during which the contract remains in force.

①If an issuer of prepaid payment instruments concludes a trust agreement of security deposits for issuance with a trust company, etc. (meaning a trust agreement whose purpose is to apply the trust property to assign security deposits for issuance in response to an order by the Prime Minister and the provisions which prescribe that the trust company, etc. is to carry out necessary acts including the management of the trust property for the achievement of the purpose; the same applies hereinafter in this Chapter) and notifies the Minister to that effect, it may choose not to deposit all or part of the security deposits for issuance with regard to the amount of the trust property, for the period during which the trust property is entrusted based on the trust agreement for security deposits for issuance.

②A trust agreement for security deposits for issuance must prescribe the following particulars:

③The types of trust properties to be entrusted pursuant to a trust agreement for security deposits for issuance are limited to money, bank deposits and savings (limited to those specified by Cabinet Office Order), or national government bond certificates, local government bond certificates or other bond certificates specified by Cabinet Office Order. In this case, the appraised value of those bond certificates is determined pursuant to the provisions of Cabinet Office Order.

If the Prime Minister finds it necessary for the protection of the interests of users of prepaid payment instruments, the Minister may order an issuer of prepaid payment instruments who has concluded a guarantee contract for security deposits for issuance or a trust agreement for security deposits for issuance or the counterparty thereto to deposit all or part of the secured amount or the amount of proceeds from the trust property that have been realized.

All or part of the security deposits for issuance may be recovered, pursuant to the provisions of Cabinet Order, if the user falls under any of the following items:

Beyond what is provided for in this Section, a change of the official depository for security deposits for issuance due to a change in the location of the principal business office or office of an issuer of prepaid payment instruments and other particulars necessary for the making of security deposits for issuance is prescribed by Cabinet Office Order and Ministry of Justice Order.

①If an issuer of prepaid payment instruments falls under any of the following items, the issuer must refund the outstanding balance of those prepaid payment instruments specified by Cabinet Office Order to the holder's account:

②If an issuer of prepaid payment instruments intends to refund the amount pursuant to the provisions of the preceding paragraph, the issuer must give public notice of the following particulars and provide the information concerning those particulars to the holders of the prepaid payment instruments subject to the refund, pursuant to the provisions of Cabinet Office Order:

③The provisions of Article 940, paragraph (1) (limited to the part pertaining to item (iii)) and Article 940, paragraph (3) of the Companies Act (Act No. 86 of 2005) apply mutatis mutandis to cases where an issuer of prepaid payment instruments (limited to companies) gives public notice under the preceding paragraph by way of electronic public notice (meaning electronic public notice specified in Article 2, item (xxxiv) of that Act; the same applies in the following paragraph). In this case, any necessary technical replacement of terms is specified by Cabinet Order.

④The provisions of Article 940, paragraph (1) (limited to the part pertaining to item (iii)) and Article 940, paragraph (3), Article 941, Article 946, Article 947, Article 951, paragraph (2), Article 953, and Article 955 of the Companies Act apply mutatis mutandis to cases where an issuer of prepaid payment instruments (limited to foreign companies) gives public notice under paragraph (2) by way of electronic public notice. In this case, any necessary technical replacement of terms is specified by Cabinet Order.

⑤An issuer of prepaid payment instruments must not refund any amount with regard to the prepaid payment instruments that it issues to the holders thereof except in cases set forth in the items of paragraph (1); provided, however, that this does not apply to cases where the amount to be refunded is small or other cases where the sound management of the business of issuing prepaid payment instruments is not hindered, as specified by Cabinet Office Order.

An issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, take measures necessary for preventing leakage, loss, or damage to information pertaining to the business of issuing prepaid payment instruments and other measures for ensuring security management of the relevant information.

If an issuer of prepaid payment instruments entrusts (including those under multi-tier entrustment arrangements) part of the business of issuing prepaid payment instruments to a third party, the issuer of prepaid payment instruments must provide guidance to the third party to whom the relevant business has been entrusted and take other measures necessary for ensuring the proper and steady operation of the business pursuant to the provisions of Cabinet Office Order.

An issuer of prepaid payment instruments must take measures necessary to appropriately and promptly process complaints from the users about the issuance and use of prepaid payment instruments in an appropriate and prompt manner.

An issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, prepare and maintain the books of accounts and documents on its business of issuing prepaid payment instruments.

①An issuer of prepaid payment instruments must, pursuant to the provisions of Cabinet Office Order, prepare a written report on the business of issuing prepaid payment instruments containing the following particulars as of the each base date, and submit it to the Prime Minister:

②Documents concerning finance and other documents specified by Cabinet Office Order must be attached to the written report referred to in the preceding paragraph.

③In the case of issuers of prepaid payment instruments for its own business, the provisions of paragraph (1) do not apply to Base Dates falling within a period from the day immediately following the Base Date on which the Unused Base Date Balance decreased to the standard amount to the day immediately preceding the subsequent Base Date on which the Unused Base Date Balance again exceeded the Standard Amount.

①If the Prime Minister finds it necessary for ensuring sound and appropriate management of the business of issuing prepaid payment instruments of an issuer of prepaid payment instruments, the Minister may order the issuer of prepaid payment instruments to submit reports or materials that can be used as reference for its business or property, or have officials enter the business office, office or other facility of that issuer of prepaid payment instruments, ask questions about the status of its business or property or inspect its books and documents or other items.

②When the Prime Minister finds it particularly necessary for ensuring sound and appropriate management of the business of issuing prepaid payment instruments of an issuer of prepaid payment instruments, the Minister may order a person to whom business has been entrusted by the issuer of prepaid payment instruments (including persons to whom the business has been entrusted by the entrusted person (including those under multi-tier entrustment arrangements); hereinafter the same applies in this Article and Article 32) to submit reports or materials that can be used as reference for the business or property of the issuer of prepaid payment instruments, or have officials enter the facility of a person to whom business has been entrusted by the issuer of prepaid payment instruments, ask questions about the status of the business or property of the issuer of prepaid payment instruments or inspect its books and documents or other items, to the extent necessary for the Minister.

③A person to whom business has been entrusted by an issuer of prepaid payment instruments referred to in the preceding paragraph may, if there are reasonable grounds, refuse to submit reports or materials, or to respond to the inquiry or the inspection under the provisions of that paragraph.