①The operational rules of a fund must state the particulars of the payments to general customers under the provisions of Article 79-56, paragraph (1), the particulars of the method of calculation of burden charges and their payment, and other particulars specified by Cabinet Office Order and Ministry of Finance Order.

②A fund must obtain the authorization of the Prime Minister and the Minister of Finance if it seeks to change its operational rules.

①When it is necessary in order for a fund to perform its services, that fund may request a financial instruments business operator that is its member to submit reports or materials that should serve as a reference with regard to the state of the business or assets of that financial instruments business operator.

②A financial instruments business operator that has been requested to submit reports or materials that should serve as a reference with regard to the state of its business or assets pursuant to the provisions of the preceding paragraph, must submit the reports or materials without delay.

③The Prime Minister may issue materials to a fund or allow a fund to inspect the same, if the fund has so requested and the Prime Minister finds this to be particularly necessary in order for the fund to perform its services.

①If a financial instruments business operator that is a member of a fund falls under any of the following items, it must immediately notify the fund to which it belongs of this:

②If a fund receives a notice under the provisions of the preceding paragraph, it must immediately report this to the Prime Minister and the Minister of Finance.

③If the Prime Minister issues any of the following dispositions with regard to a financial instruments business operator that is a member of a fund, the Prime Minister must immediately notify the Minister of Finance and the fund to which that financial instruments business operator:

④The Prime Minister must, when having filed a petition for commencement of reorganization proceedings under the provisions of Article 377, paragraph (1) of the Act on Special Treatment of Corporate Reorganization Proceedings and Other Insolvency Proceedings of Financial Institutions, a petition for commencement of rehabilitation proceedings under the provisions of Article 446, paragraph (1) of that Act, and a petition for commencement of bankruptcy proceedings under the provisions of Article 490, paragraph (1) of that Act with the court with regard to a financial instruments business operator which is a member of a fund, immediately notify to that effect to the Minister of Finance and the fund to which the relevant financial instruments business operator belongs.

⑤If the Prime Minister receives a notice under the provisions of Article 379; Article 448; or Article 492 of the Act on Special Treatment of Corporate Reorganization Proceedings and Other Insolvency Proceedings of Financial Institutions or any other notice concerning special liquidation proceedings with regard to a financial instruments business operator that is a member of a fund, the Prime Minister must immediately notify the Minister of Finance and the fund to which the financial instruments business operator belongs of this.

If a fund receives a notice under the provisions of paragraph (1) or paragraphs (3) through (5) of the preceding Article, it must, without delay, reach a finding as to whether it is difficult for the financial instruments business operator to which the notice pertains (hereinafter referred to as a "financial instruments business operator that is the subject of a notice") to smoothly perform its obligations in connection with the refunding of customer assets, unless it is found to be clearly unlikely that not reaching such a finding would result in insufficient investor protection.

①If a fund, pursuant to the provisions of the preceding Article, reaches the finding that it is difficult for a financial instruments business operator that is the subject of a notice to smoothly perform its obligations in connection with the refunding of customer assets, it must promptly specify the period and place of notification set forth in paragraph (1) of the following Article and other matters specified by Cabinet Order and issue public notice of the same.

②If a public notice under the provisions of Article 197, paragraph (1) of the Bankruptcy Act (including as applied mutatis mutandis pursuant to Article 209, paragraph (3) of that Act) or a notice under the provisions of paragraph (5) is issued or if any other cause specified by Cabinet Order occurs with regard to a financial instruments business operator that is subject to the finding referred to in the preceding paragraph (hereinafter referred to as a "distressed financial instruments business operator") after the fund has issued public notice pursuant to the provisions of the preceding paragraph, the fund may change the period of notification with regard to which it has issued the public notice pursuant to the provisions of that paragraph.

③If a fund changes the period of notification pursuant to the provisions of the preceding paragraph, it must issue public notice of the particulars of the change without delay.

④When a fund specifies the matters prescribed in paragraph (1) or if it changes the period of notification pursuant to the provisions of paragraph (2), it must immediately report this to the Prime Minister and the Minister of Finance.

⑤The bankruptcy trustee must notify the fund upon providing the notice under the provisions of Article 197, paragraph (1) (including as applied mutatis mutandis pursuant to Article 209, paragraph (3) of the Bankruptcy Act) or Article 204, paragraph (2) of the Bankruptcy Act or upon receipt of permission under the provisions of Article 208, paragraph (1) of that Act in connection with the bankruptcy proceedings of the distressed financial instruments business operator.

①At the request of the general customer of a distressed financial instruments business operator, the fund is to pay the amount calculated pursuant to the provisions of Cabinet Office Order and Ministry of Finance Order on any claim that the general customer has against the distressed financial instruments business operator as of the day that the fund issues public notice pursuant to the provisions of paragraph (1) of the preceding Article (limited to a claim for the customer assets of the relevant general customer), and which the fund, pursuant to the provisions of Cabinet Order, finds would be difficult for the distressed financial instruments business operator to smoothly pay (hereinafter referred to as "claims to be compensated").

②Notwithstanding the provisions of the preceding paragraph, a fund is not to make the payment referred to in that paragraph to the officer of a distressed financial instruments business operator or to any other person specified by Cabinet Order.

③A request set forth in paragraph (1) may only be made within the period of notification for which public notice is issued pursuant to the provisions of paragraph (1) or (3) of the preceding Article; provided, however, that this does not apply if there has been a natural disaster or if the fund otherwise finds there to be a compelling reason for the failure to make a request within the period of notification.

①Notwithstanding the provisions of paragraph (1) of the preceding Article, if the general customer of a distressed financial instruments business operator which makes the request set forth in that paragraph falls under any of the following items, the amount that must be paid by the fund pursuant to the provisions of that paragraph is equivalent to the amount under the provisions of that paragraph less the amount provided for in the relevant item:

②With regard to the application of paragraph (1) of the preceding Article and the provisions of the preceding paragraph if a financial instruments business operator is deemed to be a general customer pursuant to the provisions of Article 79-20, paragraph (2), each general customer of the financial instruments business operator which causes the financial instruments business operator to be deemed a general customer has the position of a general customer.

③If the amount that must be paid pursuant to the provisions of paragraph (1) of the preceding Article and paragraph (1) exceeds the amount specified by Cabinet Order, the amount specified by Cabinet Order is the amount that must be paid.

④If a fund makes the payment referred to in paragraph (1) of the preceding Article, it acquires a claim to be compensated in connection with that payment and in line with the amount it pays, pursuant to the provisions of Cabinet Order.

①If a general customer is an individual and that individual receives a payment set forth in Article 79-56, paragraph (1) on a claim to be compensated that the individual holds against a distressed financial instruments business operator (limited to a claim involving securities; hereinafter the same applies in this paragraph), the securities under the claim to be compensated that is connected with that payment (limited to the part of the claim to be compensated that the fund acquires based on that payment) are deemed to transfer from the individual to the fund that makes the payment, based on the amount of payment that the individual receives and at the time the individual receives that payment, and the provisions of the Income Tax Act (Act No. 33 of 1965) and other laws and regulations concerning income tax apply.

②Necessary particulars for the application of the special provisions to Article 4-2 and Article 4-3 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957) in a case to which the provisions of the preceding paragraph are applicable are specified by Cabinet Order.