Article 18-3Preservative Measures for Advances Received

①If, as of March 31 and September 30 of each year (each of these days is referred to below as a "base date"), the amount that corresponds to one-half of the total amount of advances that a licensed installment seller has received, from persons with which it has concluded contracts for prepaid installment sales by that base date, as all or part of the cost of the goods under the contracts, exceeds the amount of the business security deposit provided for in Article 17, paragraph (1) as of the base date, the licensed installment seller must not conclude any new contract for prepaid installment sales after fifty days have passed counting from the day after that base date, until it takes the preservative measures for advances received which are referred to in the following paragraph and notifies the Minister of Economy, Trade and Industry of this pursuant to the provisions of paragraph (1) of the following Article.

③A contract on the entrustment of business deposits for prepaid services that is concluded as a preservative measure for advances received is a contract under which the entrusted party agrees to make a business deposit for prepaid services on behalf of the entrusting party, in an amount that corresponds to that with which it is entrusted, if the licensed installment seller that is the entrusting party comes to fall under one of the items of Article 27, paragraph (1) or if the entrusted party receives instructions under the provisions of Article 20-3, paragraph (3), during the period from the day after the notification under the provisions of paragraph (1) of the following Article until fifty days have elapsed counting from the day after the next base date (or, if a notification under that paragraph which concerns the base amount for that next base date is filed before that day, until the day of that notification).

④It is not permissible for a person other than a bank, financial institution specified by Cabinet Order, or person designated by the Minister of Economy, Trade and Industry to become the entrusted party under a contract on the entrustment of business deposit for prepaid services as referred to in the preceding paragraph (simply referred to below as a "contract on the entrustment of business deposits").

⑤The provisions of Article 16, paragraph (1) and Article 17, paragraph (2) apply mutatis mutandis when a business deposit for prepaid services is made as a preservative measure for advances received.