①In the case where a person subject to the grace period has, before the day of the death of the donor, made a loan of all or part of the farmland or pasture land, out of the farmland, etc. to which the provisions of the main clause of paragraph (1) of the preceding Article apply, through the creation of a right based on a loan for use or a right of lease (referred to as a "right of lease, etc." in this Article) carried out for a farmland intermediary management project prescribed in Article 2, paragraph (3) of the Act on the Promotion of Farmland Intermediary Management Services (excluding a project that conducts the services listed in item (vii) of that paragraph) (that loan is referred to as a "specified loan" in this Article), and has, within two months from the day on which the person made that specified loan, submitted to the district director with jurisdiction over the place for tax payment, pursuant to the provisions of Cabinet Order, a written notification stating that the person is making the specified loan and other matters specified by Order of the Ministry of Finance, then, with regard to the application of the provisions of the proviso to paragraph (1) and paragraph (4) of the preceding Article relating to that person subject to the grace period, the creation of a right of lease, etc. relating to all or part of that farmland or pasture land for which that specified loan has been made (referred to as "specified lent farmland, etc." in this Article) is deemed not to have taken place, and the farming business is deemed not to have been discontinued.

②The term "person subject to the grace period" prescribed in the preceding paragraph means a donee to whom the provisions of the main clause of paragraph (1) of the preceding Article apply.

③In the case where the term relating to the lending of specified lent farmland, etc. to which the provisions of paragraph (1) apply (or, in the case where the right of lease, etc. relating to the specified loan has been extinguished before the arrival of that term, the day of that extinction; referred to as the "lease term" in this Article) has arrived, the person subject to the grace period to whom the provisions of that paragraph apply must, within two months from that lease term, submit to the district director with jurisdiction over the place for tax payment, pursuant to the provisions of Cabinet Order, a written notification stating, with regard to the specified lent farmland, etc. whose lease term has arrived, that a new specified loan is being made or that it is being used for the agriculture of that person subject to the grace period, and other matters specified by Order of the Ministry of Finance. In this case, with regard to the part of the specified lent farmland, etc. whose lease term has arrived for which a new specified loan has been made, the creation of a right of lease, etc. relating to the new specified loan is deemed not to have taken place, and the farming business is deemed not to have been discontinued.

④Only if the person subject to the grace period to whom the provisions of paragraph (1) apply has, pursuant to the provisions of Cabinet Order, applied to the district director with jurisdiction over the place for tax payment, within two months from the lease term referred to in the preceding paragraph, for approval of the expectation that the person will make a new specified loan by the day on which one year has elapsed from the day following that lease term (referred to as the "lease grace deadline" in paragraph (7)), and has obtained the approval of that district director, the provisions of paragraph (7) (limited to items (i) and (ii)) do not apply to the specified lent farmland, etc. for which that approval has been obtained.

⑤The person subject to the grace period who has obtained the approval referred to in the preceding paragraph must, within two months from the day on which the person made a new specified loan with regard to the specified lent farmland, etc. for which the approval referred to in that paragraph was obtained or the day on which the person used it for the agriculture of that person subject to the grace period, submit to the district director with jurisdiction over the place for tax payment, pursuant to the provisions of Cabinet Order, a written notification stating that a new specified loan is being made or that it is being used for the agriculture of that person subject to the grace period, and other matters specified by Order of the Ministry of Finance. In this case, with regard to the part of the specified lent farmland, etc. for which that approval has been obtained for which a new specified loan has been made, the creation of a right of lease, etc. relating to the new specified loan is deemed not to have taken place, and the farming business is deemed not to have been discontinued.

⑥Even in the case where the written notification referred to in paragraph (1) has not been submitted within two months from the day on which the specified loan was made, the case where the written notification referred to in paragraph (3) or the documents relating to the application for approval referred to in paragraph (4) have not been submitted within two months from the lease term, or the case where the written notification referred to in the preceding paragraph has not been submitted within two months from the day on which the new specified loan referred to in that paragraph was made or the day on which it was used for the agriculture of the person subject to the grace period, if the district director prescribed in those provisions finds that there were unavoidable circumstances for the failure to submit them within those time limits and those documents have been submitted to that district director pursuant to the provisions of Cabinet Order, those documents are deemed to have been submitted within those time limits with regard to the application of those provisions and the provisions of the following paragraph.

⑦In the case where the person subject to the grace period to whom the provisions of paragraph (1) apply has come to fall under any of the cases listed in the following items, with regard to the application of the provisions of the proviso to paragraph (1) and paragraph (4) of the preceding Article relating to the gift tax subject to deferral prescribed in paragraph (1) of that Article, a creation of a right of lease, etc. is deemed to have taken place with regard to the specified lent farmland, etc. referred to in paragraph (1) (limited, in the case listed in item (i) or (iii), to the part of that specified lent farmland, etc. other than the part for which a new specified loan is being made or which is being used for the agriculture of that person subject to the grace period, and, in the case listed in item (iv), to the part relating to the written notification referred to in that item) on the lease term relating to that specified lent farmland, etc. (or, in the case where the person has come to fall under the case listed in item (iii) or (iv), on the lease grace deadline relating to that specified lent farmland, etc. (or, in the case where the day on which the new specified loan referred to in paragraph (5) was made or the day on which it was used for the agriculture of that person subject to the grace period is before that lease grace deadline, that day; the same applies in item (iv))):

⑧The provisions of paragraph (3) through the preceding paragraph apply mutatis mutandis to the case where abandonment of cultivation (meaning abandonment of cultivation prescribed in paragraph (1), item (i) of the preceding Article) has occurred with regard to specified lent farmland, etc. to which the provisions of paragraph (1) apply. In this case, in paragraph (3), the phrase "the term relating to the lending of specified lent farmland, etc. to which the provisions of paragraph (1) apply (or, in the case where the right of lease, etc. relating to the specified loan has been extinguished before the arrival of that term, the day of that extinction; referred to as the 'lease term' in this Article) has arrived" is deemed to be replaced with "abandonment of cultivation (meaning abandonment of cultivation prescribed in paragraph (1), item (i) of the preceding Article; the same applies hereinafter in this Article) relating to specified lent farmland, etc. to which the provisions of paragraph (1) apply has occurred", the phrase "that paragraph" is deemed to be replaced with "paragraph (1)", the phrase "from that lease term" is deemed to be replaced with "from the day on which the abandonment of cultivation occurred", the phrase "whose lease term has arrived" is deemed to be replaced with "with regard to which the abandonment of cultivation has occurred", and the phrase "for which a new specified loan has been made, the creation" is deemed to be replaced with "for which a new specified loan has been made or the part used for the agriculture of that person subject to the grace period, the abandonment of cultivation and the creation"; in paragraph (4), the phrase "lease term" is deemed to be replaced with "day on which the abandonment of cultivation occurred", and the phrase "do not apply to the specified lent farmland, etc. for which that approval has been obtained" is deemed to be replaced with "do not apply to the specified lent farmland, etc. for which that approval has been obtained, and that abandonment of cultivation is deemed not to have taken place with regard to it"; in paragraph (6), the phrase "lease term" is deemed to be replaced with "day on which the abandonment of cultivation occurred"; in the preceding paragraph, the phrase "lease term relating to that specified lent farmland, etc. (" is deemed to be replaced with "day on which the abandonment of cultivation relating to that specified lent farmland, etc. occurred (", and the phrase "creation of a right of lease, etc." is deemed to be replaced with "abandonment of cultivation"; in item (i) of that paragraph, the phrase "from that lease term" is deemed to be replaced with "from the day on which the abandonment of cultivation occurred", and the phrase "whose lease term has arrived" is deemed to be replaced with "with regard to which the abandonment of cultivation has occurred"; and in item (ii) of that paragraph, the phrase "lease term" is deemed to be replaced with "day on which the abandonment of cultivation occurred".

⑨The following donees (referred to as "persons under the grace period of a former Act" in the following paragraph and paragraph (11)) may receive the application of the provisions of paragraph (1):

⑩In the case where a person under the grace period of a former Act has received the application of the provisions of paragraph (1) pursuant to the provisions of the preceding paragraph, the provisions of the preceding Article apply by deeming that person under the grace period of a former Act to be a donee prescribed in paragraph (1) of that Article, and the provisions of Article 70-4 of the Act on Special Measures Concerning Taxation before the amendment prescribed in the items of the preceding paragraph do not apply.

⑪Beyond what is provided for in paragraphs (3) through (8) and the preceding paragraph, the submission of the written notification referred to in paragraph (27) of the preceding Article relating to persons subject to the grace period and persons under the grace period of a former Act, and other necessary matters concerning the application of the provisions of paragraphs (1) and (9), are specified by Cabinet Order.