If a taxpayer or special collection agent has created a mortgage on its property on or before the statutory payment due date, etc. of local government levies, those local government levies are collected from the proceeds of realization of that property after the claim secured by that mortgage.

①If a taxpayer or special collection agent has acquired property on which a pledge or mortgage has been created, local government levies are collected from the proceeds of realization of that property after the claim secured by that pledge or mortgage.

②The provisions of the preceding paragraph apply, in the case of a pledge other than a pledge that can be registered, only where the pledgee proves to the enforcement agency in a compulsory liquidation procedure the fact that the pledge was created before the acquisition referred to in that paragraph; in this case, the provisions of the latter part of Article 14-9, paragraph (3) and Article 14-9, paragraph (4) apply mutatis mutandis.

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.

①If a taxpayer or special collection agent has created an enterprise value security right on its property on or before the statutory payment due date, etc. of local government levies, those local government levies are collected from the proceeds of realization of that property after the claim secured by that enterprise value security right.

②The principal amount of a specified secured claim prescribed in Article 6, paragraph (4) of the Act on the Promotion of Business Financing, etc. (Act No. 52 of 2024), secured by an enterprise value security right that takes precedence over local government levies pursuant to the provisions of the preceding paragraph, is limited to the amount of the claim at the time when the holder of the enterprise value security right 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.

①If any of the following statutory liens exists on the property of a taxpayer or special collection agent, local government levies are collected from the proceeds of realization of that property after the claim secured by that statutory lien:

②The provisions of items (iii) through (v) of the preceding paragraph (excluding the part relating to a statutory lien listed in item (iii) of that paragraph that has been registered) apply only where the holder of the statutory lien proves the fact that the statutory lien exists to the enforcement agency in a compulsory liquidation procedure.

①If any of the following statutory liens has existed on the property of a taxpayer or special collection agent since on or before the statutory payment due date, etc. of local government levies, or if a taxpayer or special collection agent has acquired property subject to that statutory lien, those local government levies are collected from the proceeds of realization of that property after the claim secured by that statutory lien:

②The provisions of paragraph (2) of the preceding Article apply mutatis mutandis to the statutory lien listed in item (i) of the preceding paragraph.

①If a right of retention exists on the property of a taxpayer or special collection agent and that property is realized by a delinquent tax collection procedure, the local government levies are collected from the proceeds of realization after the claim that was secured by that right of retention; in this case, that claim is to be distributed ahead of a claim secured by a pledge, mortgage, statutory lien or provisional registration for security prescribed in Article 14-17, paragraph (1).

②The provisions of the preceding paragraph apply only where the holder of the right of retention proves the fact that the right of retention exists to the administrative agency, etc. in the delinquent tax collection procedure.

①If a taxpayer or special collection agent has no other sufficient property to be applied to local government levies and has transferred property on which it created a pledge or mortgage registered after the statutory payment due date, etc. of the local government levies, then only where it is found that the levies would still fall short even if a delinquent tax collection procedure were carried out against the property of the taxpayer or special collection agent, those local government levies may be collected from the pledgee or mortgagee, out of the amount that the pledgee or mortgagee is to receive by distribution in respect of the claim secured by that pledge or mortgage in a compulsory liquidation procedure on the property relating to the transfer.

②The amount that may be collected under the preceding paragraph may not exceed the amount obtained by deducting the amount listed in item (ii) from the amount listed in item (i).

③The head of a local government may, in order to collect local government levies under paragraph (1), enforce the pledge or mortgage by subrogation to the pledgee or mortgagee referred to in that paragraph.

④When the head of a local government intends to collect local government levies under paragraph (1), the head must notify the pledgee or mortgagee to that effect.

⑤If a compulsory liquidation procedure has been carried out on the property relating to the transfer referred to in paragraph (1), the head of a local government may make a request for share distribution to the enforcement agency for the portion of local government levies equal to the amount that may be collected under that paragraph.