Article 9Loans of Mutual Aid Benefits

①When a bankruptcy occurs with respect to a business operator that is a counterparty to the transactions of a mutual aid policyholder, the Organization lends mutual aid benefits to the mutual aid policyholder at its request, except where the period from the date on which the mutual aid contract took effect to the date of occurrence of the bankruptcy is less than six months and where the number of months in which premiums were paid up to the date of occurrence of the bankruptcy is less than six months; provided, however, that this does not apply where the mutual aid policyholder does not fall under a small and medium-sized enterprise at the time of the request or in the cases set out in the following items.

③The amount specified by Cabinet Order in the proviso to the preceding paragraph is to be determined taking into consideration the amount of funds with which, by receiving the loan, most small and medium-sized enterprises are expected to be able to avoid situations such as becoming bankrupt owing to the effects of the bankruptcy of their business partner companies, and other such matters.

④The Organization may decline to lend all or part of the mutual aid benefits where a mutual aid policyholder who has requested a loan of mutual aid benefits has neglected to repay mutual aid benefits already lent, or where it is found that the mutual aid policyholder acted in bad faith or with gross negligence in coming to hold the accounts receivable, etc. in question or in their becoming difficult to collect.

⑤Where the Organization is to lend mutual aid benefits to a mutual aid policyholder and there is a temporary loan to be repaid, or interest or a penalty under Article 10-2, paragraph (5) to be paid, the Organization may deduct the total amount of the amounts set out in the following items from the loan amount of those mutual aid benefits: