①Where, with respect to a mutual aid policyholder, there has been inheritance, merger or split, or transfer of the whole of its business, its universal successor or the transferee of the whole of its business (hereinafter referred to as the "successor, etc.") may, by making an application to the Organization within the period specified by Order of the Ministry of Economy, Trade and Industry and obtaining its consent, succeed to the position held by that mutual aid policyholder.

②The Organization must not refuse the consent under the preceding paragraph, except in the following cases:

③Where the monthly premium of a mutual aid policyholder who has succeeded pursuant to paragraph (1) would exceed an amount equivalent to one-fortieth of the premium payment limit, the monthly premium is to be an amount equivalent to one-fortieth of the premium payment limit.

④Where the total premium amount of a mutual aid policyholder who has succeeded pursuant to paragraph (1), calculated in the same manner as under the provisions of Article 11, paragraph (4), would exceed the premium payment limit, the total premium amount is to be the premium payment limit, and the Organization returns the amount by which it would exceed to that person.

⑤In the case referred to in the preceding paragraph, the Organization may deduct the total amount of the amounts set out in the following items from the amount to be returned:

⑥Beyond what is provided for in the preceding three paragraphs, matters necessary for succession are specified by Cabinet Order.

Where there is a person who has received 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, the Organization may have that person return those mutual aid benefits, temporary loan, early repayment allowance, cancellation refund or full repayment allowance.

①Except in the cases prescribed in paragraphs (3) through (6), a mutual aid policyholder must pay premiums for each month from the month containing the date on which the mutual aid contract took effect to the month containing the date on which the mutual aid contract was cancelled, based on the monthly premium as of the last day of that month (for the month containing the date of cancellation, the date of cancellation), by the last day of that month (for the premiums for the month containing the date on which the mutual aid contract took effect and the following month, by the last day of the second month after the month containing the date on which the mutual aid contract took effect).

②Premiums may not be paid in installments.

③Where payment of premiums would cause the total premium amount calculated in the same manner as under the provisions of Article 11, paragraph (4) to exceed the premium payment limit, a mutual aid policyholder may not pay premiums for the amount by which it would exceed.

④A mutual aid policyholder whose total premium amount calculated in the same manner as under the provisions of Article 11, paragraph (4) has reached an amount equivalent to 40 times the monthly premium (where the monthly premium has been increased or decreased, the monthly premium after the increase or decrease) may, as specified by Order of the Ministry of Economy, Trade and Industry, notify the Organization and refrain from paying premiums.

⑤A mutual aid policyholder who has received, or is to receive, a loan of mutual aid benefits pursuant to Article 9, paragraph (1) may, with the consent of the Organization, refrain from paying premiums only for a period within the grace period for the repayment of those mutual aid benefits. In this case, the Organization is to give that consent only where it finds that there are unavoidable circumstances for not paying.

⑥Where the total amount of the amount obtained by deducting the amount of mutual aid benefits already repaid from the amount of mutual aid benefits already lent or to be lent, and an amount equivalent to ten times the total premium amount calculated in the same manner as under the provisions of Article 11, paragraph (4), has reached the amount specified by Cabinet Order in the proviso to Article 9, paragraph (2), a mutual aid policyholder may, by applying to the Organization, refrain from paying premiums only for the period until that total amount falls below that amount specified by Cabinet Order.

①Where a mutual aid policyholder has paid premiums on or before the last day of the month preceding the month in which they are to be paid (hereinafter referred to as "advance payment of premiums"), the Organization may reduce the amount of those premiums as specified by Order of the Ministry of Economy, Trade and Industry.

②With regard to premiums for which advance payment of premiums has been made, the premiums for each month are deemed to have been paid when the first day of each month in which they are to be paid arrives.

Where a mutual aid policyholder has not paid premiums by the payment due date, the Organization may have that person pay a surcharge, within the amount calculated on the overdue amount at the rate of 14.6 percent per annum for the number of days from the day following the payment due date to the day preceding the date of payment.

Where the Organization finds that a mutual aid policyholder is unable to pay premiums by the payment due date owing to a disaster or other unavoidable grounds, it may extend the payment due date.

①A person entitled to receive payment of a cancellation refund or full repayment allowance has the right to be paid, in preference to other creditors, out of the property of the Organization, in the case of a cancellation refund, the amount of the cancellation refund prescribed in Article 11, paragraph (3) (where there is money that the Organization may deduct from the amount of that cancellation refund pursuant to paragraph (5) of that Article, the remainder after deducting the amount of that money from the amount of that cancellation refund), and in the case of a full repayment allowance, the amount of the full repayment allowance prescribed in Article 11-2, paragraph (3) (where there is money that the Organization may deduct from the amount of that full repayment allowance pursuant to paragraph (4) of that Article, the remainder after deducting the amount of that money from the amount of that full repayment allowance).

②With regard to the calculation of the amount of the cancellation refund prescribed in the preceding paragraph, Article 11, paragraph (4) applies with the phrase "mutual aid benefits already lent or to be lent" in that paragraph deemed to be replaced with "mutual aid benefits already lent".

③The order of precedence of the statutory lien under paragraph (1) ranks next after the general statutory liens under the provisions of the Civil Code (Act No. 89 of 1896).

The right to receive payment of a cancellation refund or full repayment allowance is extinguished by prescription if not exercised for five years from the time when it can be exercised, and the right to receive payment of premiums is extinguished by prescription if not exercised for two years from the time when it can be exercised.

When calculating a period relating to a request for a loan of mutual aid benefits or for payment of an early repayment allowance, cancellation refund or full repayment allowance, where the request was made by mail, or by a general correspondence delivery provider prescribed in Article 2, paragraph (6) of the Act on Correspondence Delivery by Private Business Operators (Act No. 99 of 2002) or a specified correspondence delivery provider prescribed in paragraph (9) of that Article, by correspondence delivery prescribed in paragraph (2) of that Article, the number of days required for sending is not counted in that period.

With regard to a mutual aid policyholder who has paid premiums under the provisions of this Act, special measures are to be taken for the imposition of corporation tax or income tax, as provided for by the Act on Special Measures Concerning Taxation (Act No. 26 of 1957).

Where an order is established, amended or abolished under the provisions of this Act, necessary transitional measures may be provided for by that order within the scope judged reasonably necessary in connection with that establishment, amendment or abolition.

Fundamental matters concerning the system of mutual aid for the prevention of bankruptcy of small and medium-sized enterprises, such as the amount of premiums and the loan amount of mutual aid benefits, are to be reviewed at least every five years on the basis of the trends in and forecasts of the revenue and expenditure situation and the usage situation of the small and medium-sized enterprise bankruptcy prevention mutual aid business.