Article 124Extinguishment or Assumption of Security Interests

①A pledge, mortgage, statutory lien, or right of retention on property put up for realization, a right pertaining to a provisional registration for security, and a right pertaining to a final registration (including definitive registration) that is based on a provisional registration for security and was made after the seizure of that property are extinguished when the purchaser pays the purchase price. The same applies, in the case where delinquent tax collection procedures have been executed against property transferred as security pursuant to the provisions of Article 24 (Liability in Rem for Tax of a Holder of Property Transferred as Security), and there is a provisional registration of a reservation of repurchase made by the delinquent taxpayer, to the claim preserved by that provisional registration.

②If, when realizing real property, a ship, an aircraft, a motor vehicle, or construction machinery, all of the following items apply, the district director may have the purchaser assume the burden relating to a pledge, mortgage, or statutory lien on that property (limited to those that have been registered; the same applies hereinafter in this Article). In this case, the provisions of the preceding paragraph do not apply to the pledge, mortgage, or statutory lien so assumed.