Article 14-12Limits on the Amount Given Priority for Pledges and Mortgages, etc.

①The principal amount of a claim secured by a pledge or mortgage that takes precedence over local government levies pursuant to the provisions of the preceding three Articles is limited to the amount of the claim at the time when the pledgee or mortgagee received notice of the seizure or request for share distribution relating to those local government levies; provided, however, that this does not apply where it would prejudice the rights of a person who holds another claim that takes priority over those local government levies.

②If registration of an increase in the amount of the claim or the maximum amount secured by a pledge or mortgage is made, the provisions of the preceding three Articles apply as if, at the time of that registration, a pledge or mortgage had been newly created in respect of the increased amount of the claim or maximum amount.