A mutual aid contract may not be concluded by anyone other than a small and medium-sized enterprise that has continuously carried on business for one year or more.
A small and medium-sized enterprise that is currently a mutual aid policyholder may not conclude a new mutual aid contract.
The Organization must not refuse to conclude a mutual aid contract except in the following cases:
Where the applicant for the mutual aid contract is a person whose mutual aid contract was cancelled pursuant to Article 7, paragraph (2) and for whom one year has not elapsed from the date of the cancellation;
Where the applicant for the mutual aid contract is a person for whom one year has not elapsed from the date on which the person received, or attempted to receive, a loan of mutual aid benefits or a temporary loan, or payment of an early repayment allowance, cancellation refund or full repayment allowance, by deception or other wrongful act;
Where, in addition to what is set out in the preceding two items, there is a cause specified by Order of the Ministry of Economy, Trade and Industry as a cause likely to impede, through the conclusion of that mutual aid contract, the proper and smooth operation of the small and medium-sized enterprise bankruptcy prevention mutual aid business.
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small and medium-sized enterprisemachine translation
「中小企業者」
A company whose stated capital, or a company or individual whose number of regular employees, is at or below a limit set by industry — 300 million yen or 300 employees in manufacturing, construction, transport and other industries, 100 million yen or 100 in wholesale, 50 million yen or 100 in services, 50 million yen or 50 in retail, or the amounts a Cabinet Order (政令) sets for industries it names — or an enterprise association (企業組合), a cooperative partnership (協業組合), or a business cooperative (事業協同組合) or other union set up under a special law that meets requirements a Cabinet Order sets.
Defined inArticle 2, paragraph (1)· applies throughout the law
mutual aid contractmachine translation
「共済契約」
A contract under which a small and medium-sized enterprise (中小企業者) promises to pay premiums (掛金) to the Organization for Small and Medium Enterprises and Regional Innovation, JAPAN (独立行政法人中小企業基盤整備機構), and the Organization promises that, if a business operator it trades with goes bankrupt (倒産), it will lend it a mutual aid benefit (共済金) as the Act on Mutual Relief System for the Prevention of Bankruptcies of Small and Medium-sized Enterprises provides.
Defined inArticle 2, paragraph (2)· applies throughout the law
the Organizationmachine translation
「機構」
The Organization for Small and Medium Enterprises and Regional Innovation, JAPAN (独立行政法人中小企業基盤整備機構), an incorporated administrative agency, with which small and medium-sized enterprises (中小企業者) conclude mutual aid contracts (共済契約) and which lends them mutual aid benefits (共済金).
Short name set inArticle 2, paragraph (2)
mutual aid policyholdermachine translation
「共済契約者」
The party to a mutual aid contract (共済契約) other than the Organization for Small and Medium Enterprises and Regional Innovation, JAPAN (独立行政法人中小企業基盤整備機構): the business that pays the premiums (掛金).
Defined inArticle 2, paragraph (3)· applies throughout the law
early repayment allowancemachine translation
「早期償還手当金」
An allowance the Organization for Small and Medium Enterprises and Regional Innovation, JAPAN (独立行政法人中小企業基盤整備機構) may pay under Article 10, paragraph (6) to a mutual aid policyholder (共済契約者) who finishes repaying a mutual aid benefit (共済金) it borrowed before the deadline for completing repayment, having repaid the whole of it by the repayment dates (償還期日).
Defined inArticle 2, paragraph (4)· applies throughout the law
temporary loanmachine translation
「一時貸付金」
Money the Organization for Small and Medium Enterprises and Regional Innovation, JAPAN (独立行政法人中小企業基盤整備機構) lends under Article 10-2, paragraph (1) to a mutual aid policyholder (共済契約者) who needs business funds for a temporary purpose.
Defined inArticle 2, paragraph (5)· applies throughout the law
cancellation refundmachine translation
「解約手当金」
The refund the Organization for Small and Medium Enterprises and Regional Innovation, JAPAN (独立行政法人中小企業基盤整備機構) pays under Article 11, paragraph (1) when a mutual aid contract (共済契約) is cancelled, where premiums (掛金) have been paid for 12 months or more.
Defined inArticle 2, paragraph (6)· applies throughout the law
full repayment allowancemachine translation
「完済手当金」
An allowance the Organization for Small and Medium Enterprises and Regional Innovation, JAPAN (独立行政法人中小企業基盤整備機構) may pay under Article 11-2, paragraph (1), when the mutual aid scheme's finances leave a surplus, to a mutual aid policyholder (共済契約者) who has repaid the whole of a mutual aid benefit (共済金) it borrowed by the repayment dates (償還期日).
Defined inArticle 2, paragraph (7)· applies throughout the law
cancellation
解除
Ending a contract by one party's notice to the other, where the contract or the law gives that party a right to cancel (Civil Code, Article 540, paragraph (1)). The Civil Code lets a party cancel for the other's failure to perform: after a demand to perform within a reasonable time that is not met, unless what is still missing is minor (Article 541), or at once where performance has become wholly impossible, or the other party has clearly refused to perform, among other cases where performance clearly will not come (Article 542, paragraph (1)). On cancellation each party must put the other back in the position before the contract, and damages can still be claimed (Article 545, paragraphs (1) and (4)); a lease, though, ends only from then on (Article 620). Cancellation differs from rescission (取消し), after which the act is treated as void from the start (Article 121).
Written by AI using Civil Code, Arts. 121, 540, 541, 542, 545, 620 as a reference.