Article 52Disposition of the Collateral and Enforcement of Guarantee

①If the national tax for which security has been provided has not been paid in full by the due date for payment (including a due date advanced as prescribed in Article 38, paragraph (2) (Advance Demand) and a due date extended under a tax payment grace period or under a collection grace period or delinquent tax collection procedure execution grace period; hereinafter the same applies in the following Article and Article 63, paragraph (2) (Exemption from Delinquent Tax)), or if the district director of the tax office, etc. has revoked the postponement of tax payment, tax payment grace period or collection grace period or delinquent tax collection procedure execution grace period granted for the national tax for which security has been provided, the district director of the tax office, etc. appropriates cash provided as collateral to the national tax or dispose of property other than cash provided as collateral through a procedure similar to a delinquent tax collection procedure and appropriate money obtained thereby to the national tax and the expenses for the disposition of the property, or has the guarantor pay the national tax.

③If the guarantor fails to pay that national tax in full by the payment deadline referred to in the preceding paragraph, the district director of the tax office, etc. must, except when having the guarantor pay pursuant to the provisions of Article 38, paragraph (1) as applied mutatis mutandis pursuant to paragraph (6), demand payment from that person by a written payment reminder. In this case, the written payment reminder is to be issued within 50 days from the payment deadline, except as otherwise provided in the national tax laws.

④In the case referred to in paragraph (1), if the district director of the tax office, etc. finds that there is still a shortfall after appropriating the cash provided as security or the proceeds from the disposition of the property provided as security to the national tax referred to in that paragraph and the disposition expenses, they execute the delinquent tax collection procedure against other property of the person who provided that security, and if they find that the guarantor has not paid in full the amount to be paid and that there is still a shortfall even after executing the delinquent tax collection procedure against the person who provided that security, they execute the delinquent tax collection procedure against the guarantor.

⑤When executing the delinquent tax collection procedure against a guarantor pursuant to the provisions of the preceding paragraph, the district director of the tax office, etc. may not liquidate the property of that guarantor until after liquidating the property of the person who provided the security referred to in that paragraph.

⑥The provisions of Article 38, paragraphs (1) and (2), the preceding Section and Article 55 (Consignment of Payment) apply mutatis mutandis where a guarantor is made to pay the national tax referred to in paragraph (1).