Act on Limitation of Liability of Shipowners, etc.

Link to law: http://www.japaneselawtranslation.go.jp/law/detail_download/?ff=08&id=2268
Published: 2005

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Act on Limitation of Liability of Shipowners, etc. (Tentative translation)

Chapter I General Provisions (Articles 1 and 2)

Chapter II Limitation of Liability of Shipowner, etc. (Articles 3 to 8)

Chapter III Proceedings for Limitation of Liability

Section 1 General Rules (Articles 9 to 16)

Section 2 Petition for Commencement of Proceedings for Limitation of Liability (Articles 17 to 25)

Section 3 Order of Commencement of Proceedings for Limitation of Liability (Articles 26 to 36)

Section 4 Expansion of Proceedings for Limitation of Liability (Articles 37 to 39)

Section 5 Administrator (Articles 41 to 46)

Section 6 Participation in Proceedings for Limitation of Liability (Articles 47 to 56)

Section 7 Investigation and Determination of Claims Subject to Limitation (Articles 57 to 67)

Section 8 Liquidating Distribution (Articles 68 to 81)

Section 9 Discontinuance of Proceedings for Limitation of Liability (Articles 82 to 89)

Section 10 Expenses (Articles 90 to 94)

Chapter IV Auxiliary Provisions (Articles 95 to 98)

Chapter V Penal Provisions (Articles 99 to 101)

Supplementary Provisions

Chapter I General Provisions

(Purpose)

Article 1 This Act shall provide for the necessary matters concerning the limitation of liability of shipowners, etc.

(Definitions)

Article 2 (1) In this Act, the meanings of the terms set forth in the following items shall be as prescribed respectively in those items:

(i) Ship: a ship used for a voyage, except for a boat operated solely or mainly by oars and a ship used for official use;

(ii) Shipowner, etc.: a shipowner, ship lessee and charterer, and a member with unlimited liability of any of these which are juridical person;

(ii)-2 Salvor: a person who renders services in direct connection with salvage operations;

(iii) Servant, etc.: a servant of a Shipowner, etc. or Salvor or any other person for whose act the Shipowner, etc. or Salvor shall be responsible;

(iii)-2 Salvage Ship: a ship from which salvage operations (excluding salvage operations for or in relation to a ship which are performed only on board that ship) are performed;

(iv) Claim Subject to Limitation: a claim for which a Shipowner, etc., Salvor or Servants, etc. may limit their liability as provided in this Act;

(v) Claim on Damage to Person: a Claim Subject to Limitation based on damage resulting from loss of life or personal injury;

(vi) Claim on Damage to Property: a Claim Subject to Limitation, except for a Claim on Damage to Person;

(vi)-2 Claim on Damage to Passenger: a claim against a Shipowner, etc. of a Ship or the Servants, etc. thereof, for damage resulting from loss of life of or personal injury to a passenger carried by that Ship under a contract of passenger carriage by sea or a person who is permitted to accompany a vehicle or live animal carried by that Ship under a contract for the carriage of goods by sea;

(vii) (one) Unit: the amount of money equivalent to one special drawing right pursuant to the special drawing right provided in Article 3, paragraph 1 of the Articles of Agreement of the International Monetary Fund; and

(viii) Beneficiary Debtor: the debtor of a Claim Subject to Limitation in proceedings for limitation of liability, except for such debtor who has filed a petition for commencement of proceedings for limitation of liability.

(2) In this Act, the term "Salvage Operations" includes the following measures and excludes salvage operations performed in the course of public service:

(i) measures for the raising, removal, destruction or the rendering harmless of a Ship which is sunk, wrecked, stranded or abandoned or of anything that is or has been on board that Ship;

(ii) measures for the removal, destruction or the rendering harmless of cargo; and

(iii) in addition to the measures set forth in the preceding two items, measures taken in order to prevent or mitigate a loss from which a Claim Subject to Limitation would arise.

Chapter II Limitation of Liability of Shipowner, etc.

(Limitation of Liability of Shipowner, etc.)

Article 3 (1) A Shipowner, etc. or the Servants, etc. thereof may limit their liability for the following claims as provided in this Act:

(i) claims based on damage resulting from loss of life or personal injury or loss of or damage to property other than a Ship, occurring on board the Ship or in direct connection with the operation of the Ship;

(ii) claims based on damage resulting from a delay in the carriage of cargo, passengers or their luggage;

(iii) in addition to the claims set forth in the preceding two items, claims based on damage resulting from an infringement of rights, occurring in direct connection with the operation of a Ship (excluding claims based on damage resulting from loss of or damage to the Ship and claims based on damage resulting from a default of contractual obligations);

(iv) claims based on damage resulting from the measures set forth in paragraph (2), item (iii) of the preceding Article (excluding claims held by the Shipowner, etc. or the Servants, etc. thereof); and

(v) claims in respect of the measures set forth in paragraph (2), item (iii) of the preceding Article (excluding claims held by the Shipowner, etc. or the Servants, etc. thereof and claims for remuneration and expenses under a contract concluded with these persons).

(2) A Salvor or the Servants, etc. thereof may limit their liability for the following claims as provided in this Act:

(i) claims based on damage resulting from loss of life or personal injury or loss of or damage to property other than the Salvage Ship operated by the Salvor, occurring in direct connection with Salvage Operations;

(ii) in addition to the claims set forth in the preceding paragraph, claims based on damage resulting from an infringement of rights, occurring in direct connection with Salvage Operations (excluding claims based on damage resulting from loss of or damage to the Salvage Ship operated by the Salvor and claims based on damage resulting from a default of contractual obligations);

(iii) claims based on damage resulting from the measures set forth in paragraph (2), item (iii) of the preceding Article (excluding claims held by the Salvor or the Servants, etc. thereof); and

(iv) claims in respect of the measures set forth in paragraph (2), item (iii) of the preceding Article (excluding claims held by the Salvor or the Servants, etc. thereof and claims for remuneration and expenses under a contract concluded with these persons).

(3) Notwithstanding the provisions of the preceding two paragraphs, a Shipowner, etc., Salvor or Servants, etc. shall not be entitled to limit their liability for the claims referred to in the preceding two paragraphs if these claims relate to damage caused by them intentionally or caused by a reckless act committed by them with the knowledge that such act may result in damage.

(4) Notwithstanding the provisions of paragraph (1), a Shipowner, etc. or the Servants, etc. thereof shall not be entitled to limit their liability for a Claim on Damage to Passenger.

Article 4 Neither a Shipowner, etc. nor a Salvor shall be entitled to limit their liability for the following claims:

(i) claims for salvage or contribution in general average; and

(ii) claims held by servants of the Shipowner, etc. whose duties are connected with the Ship or by servants of the Salvor whose duties are connected with the Salvage Operations against their respective employers, and claims held by third parties arising from loss of life or personal injury caused to these servants.

(Deduction of Claims based on Damage Resulting from Same Accident)

Article 5 Where a Shipowner, etc., Salvor or Servants, etc. holds a claim against the claimant of a Claim Subject to Limitation arising from the same accident, the provisions of this Act shall apply with regard to the amount of the Claim Subject to Limitation that remains after deduction of the amount of the former claim.

(Extent of Limitation of Liability)

Article 6 (1) The limitation of liability of a Shipowner, etc. or the Servants, etc. thereof shall extend to all of the Claims on Damage to Persons and the Claims on Property against these persons arising from the same accident for each Ship.

(2) The limitation of liability of a Salvor associated with a Salvage Ship or the Shipowner, etc. of said Salvage Ship, or the Servants, etc. thereof shall extend to all of the Claims on Damage to Persons and the Claims on Property against these persons arising from the same accident for each Salvage Ship.

(3) The limitation of liability of Salvors other than the Salvor referred to in the preceding paragraph or the Servants, etc. thereof shall extend to all of the Claims on Damage to Persons and the Claims on Property against these persons arising from the same accident for each Salvor.

(4) If the limitation of liability referred to in the preceding three paragraphs relates only to Claims on Damage to Property, such limitation shall not extend to Claims on Damage to Persons, notwithstanding the provisions of the preceding three paragraphs.

(Amount of Limit of Liability)

Article 7 (1) The amount of the limit of liability in cases of the limitation of liability provided in paragraphs (1) and (2) of the preceding Article shall be as follows:

(i) where claims for which limitation of liability is sought consist only of Claims on Damage to Property: the amount calculated as provided in the following pro rata to the tonnage of the Ship; provided, however, that in the case of a wooden ship with a tonnage of less than 100 tons, the amount of the limit of liability shall be an amount equivalent to 336,000 Units:

(a) for a Ship with a tonnage not exceeding 2,000 tons: an amount equivalent to 1,000,000 Units; and

(b) for a Ship with a tonnage exceeding 2,000 tons: an amount calculated by adding 400 Units for each ton from 2,001 to 30,000 tons, 300 Units for each ton from 30,001 to 70,000 tons, or 200 Units for each ton in excess of 70,000 tons, respectively, to the amount referred to in (a);

(ii) in other cases: an amount calculated as provided in the following pro rata to the tonnage of the Ship:

(a) for a Ship with a tonnage not exceeding 2,000 tons: an amount equivalent to 3,000,000 Units; and

(b) for a Ship with a tonnage exceeding 2,000 tons: an amount calculated by adding 1,200 Units for each ton from 2,001 to 30,000 tons, 900 Units for each ton from 30,001 to 70,000 tons, or 600 Units for each ton in excess of 70,000 tons, respectively, to the amount referred to in (a).

(2) In the case provided in item (ii) of the preceding paragraph, a portion of the amount available for payment of Claims Subject to Limitation which is equivalent to an amount calculated by multiplying said amount available by the ratio of the amount set forth in item (i) of said paragraph (in the case of a wooden ship with a tonnage of less than 100 tons, the amount referred to in (a) of said item) to the amount set forth in item (ii) of said paragraph shall be available for payment of Claims on Damage to Property, and the remaining portion shall be available for payment of Claims on Damage to Persons, respectively; provided, however, that if the latter portion is insufficient to pay Claims on Damage to Persons, the former portion shall be available for payment of these claims according to the proportion of the unpaid amount and the amount of Claims on Damage to Property.

(3) The amount of the limit of liability in cases of the limitation of liability provided in paragraph (3) of the preceding Article shall be as follows:

(i) where claims for which limitation of liability is sought consist only of Claims on Damage to Property: an amount equivalent to 1,000,000 Units:

(ii) in other cases: an amount equivalent to 3,000,000 Units.

(4) The provisions of paragraph (2) shall apply mutatis mutandis to the case provided in item (ii) of the preceding paragraph.

(5) The claimant of a Claim Subject to Limitation shall receive payment pro rata to the amount of his/her Claim Subject to Limitation.

(Calculation of Tonnage of Ship)

Article 8 The tonnage of a Ship referred to in paragraphs (1) and (2) of the preceding Article shall be expressed by a figure calculated pursuant to the provisions of Article 4, paragraph 2 of the Act on Tonnage Measurement of Ships (Act No. 40 of 1980), with the unit "tons" attached.

Chapter III Proceedings for Limitation of Liability

Section 1 General Rules

(Jurisdiction over Cases of Limitation of Liability)

Article 9 A case of limitation of liability shall be subject to the exclusive jurisdiction of the court specified in each of the following items according to the categories of cases set forth in these items:

(i) in cases of the limitation of liability provided in Article 6, paragraph (1) where the Ship is registered, or in cases of the limitation of liability referred to in paragraph (2) of said Article where the Salvage Ship is registered: the district court with jurisdiction over the location of the Ship's registry;

(ii) in cases of the limitation of liability provided in Article 6, paragraph (1) where the Ship is not registered, or in cases of the limitation of liability provided in paragraph (2) of said Article where the Salvage Ship is not registered: the district court with jurisdiction over the location of the general venue of the petitioner, the place of the accident, the first place where the Ship docked after the accident or the place where the petitioner's property was seized or subjected to execution of a provisional seizure based on a Claim Subject to Limitation (in the case of proceedings for limitation of liability involving only Claims on Damage to Property, Claims on Damage to Persons shall be excluded; hereinafter the same shall apply in this Chapter); and

(iii) in cases of the limitation of liability provided in Article 6, paragraph (3): the district court with jurisdiction over the location of the general venue of the petitioner, the place of the accident or the place where the petitioner's property was seized or subjected to execution of a provisional seizure based on a Claim Subject to Limitation.

(Transfer of Cases of Limitation of Liability)

Article 10 The court, when it finds it necessary in order to avoid substantial detriment or delay, by its own authority, may transfer a case of limitation of liability to another court with jurisdiction, a district court with jurisdiction over the location of the general venue of the claimant of a Claim Subject to Limitation or the court before which another case of limitation of liability or a case of limitation of liability under the provisions of the Act on Liability for Oil Pollution Damage (Act No. 95 of 1975) arising from the same accident is pending.

(Application Mutatis Mutandis of the Code of Civil Procedure)

Article 11 With respect to proceedings for limitation of liability, except as otherwise provided, the provisions of the Code of Civil Procedure (Act No. 109 of 1996) shall apply mutatis mutandis.

(Optional Oral Arguments and Examination by Court's Own Authority)

Article 12 (1) A judicial decision concerning proceedings for limitation of liability may be made without going through oral argument.

(2) The court, by its own authority, may conduct necessary investigation on a case of limitation of liability.

(Appeal)

Article 13 A person who has an interest in a judicial decision concerning proceedings for limitation of liability, only as specially provided in this Act, may file an immediate appeal against the judicial decision. The period for filing, where a public notice of the juridical decision is made, shall be one month from the day on which such public notice is made.

(Public Notice)

Article 14 (1) A public notice under the provisions of this Act shall be effected by publication in an official gazette and a newspaper designated by the court.

(2) A public notice shall become effective on the day following the day of its last publication.

(Cases of Giving Public Notice and Making Service)

Article 15 Where both public notice and service are required to be made pursuant to the provisions of this Act, service may be made by sending the necessary documents by ordinary mail or by services of correspondence delivery prescribed in Article 2, paragraph (2) of the Act on Correspondence Delivery by Private Business Operators (Act No. 99 of 2002) that are provided by a general correspondence delivery operator prescribed in paragraph (6) of said Article or specified correspondence delivery operator prescribed in paragraph (9) of said Article. In this case, public notice shall have the effect of service upon all the persons concerned.

(Rules of the Supreme Court)

Article 16 In addition to what is provided for in this Act, the necessary matters concerning proceedings for limitation of liability shall be specified by the Rules of the Supreme Court.

Section 2 Petition for Commencement of Proceedings for Limitation of Liability

(Petition for Commencement of Proceedings)

Article 17 (1) A Shipowner, etc., Salvor or Servants, etc. may file a petition for commencement of proceedings for limitation of liability in order to limit their own liability.

(2) Co-owners of a Ship may file a petition for commencement of proceedings for limitation of liability independently in order to limit their own liability.

(Prima Facie Showing)

Article 18 The petitioner, when filing a petition for commencement of proceedings for limitation of liability, shall make a prima facie showing of the facts necessary for identifying the accident from which Claims Subject to Limitation have arisen, as well as the fact that the amount of Claims Subject to Limitation (excluding claims for interest arising after the accident or claims for damages or penalties due to default; the same shall apply in Article 25, item (ii)) exceeds the amount of the limit of liability provided in Article 7, paragraph (1) or paragraph (3) (hereinafter referred to as the "Amount of Limit of Liability"), and shall notify the court of the names and addresses of known claimants of Claims Subject to Limitation.

(Order of Statutory Deposit)

Article 19 (1) When the court finds a petition for commencement of proceedings for limitation of liability to be appropriate, it shall order the person who has filed the petition (hereinafter referred to as the "Petitioner") to make a statutory deposit of money equivalent to the Amount of Limit of Liability as determined by the court and money accrued thereon as calculated at a rate of six percent per annum for the period from the date of the accident to the date of statutory deposit (in cases where a deposit entrustment contract is concluded pursuant to the provisions of paragraph (1) of the following Article, the date of notification under the provisions of said paragraph; the same shall apply in the following paragraph), to the official depository designated by the court, and to notify the court thereof, within a period not exceeding one month.

(2) The amount of money equivalent to the Amount of Limit of Liability referred to in the preceding paragraph shall be calculated on the basis of the last amount of one Unit published as of the date of statutory deposit.

(3) An immediate appeal may be filed against an order under the provisions of paragraph (1).

(Deposit Entrustment Contract)

Article 20 (1) Where a Petitioner has concluded a deposit entrustment contract with the permission of the court and notified the court of this within a period designated by an order under the provisions of paragraph (1) of the preceding Article, the Petitioner shall not be required to make a statutory deposit of money covered by said contract within such period.

(2) A deposit entrustment contract shall be a contract under which, where an order of commencement of proceedings for limitation of liability has been made, the trustee shall make a statutory deposit, on behalf of the Petitioner, an amount of money and an amount accrued thereon as calculated at the same rate as the rate of interest charged on deposit money for the period from the date of the order of commencement of proceedings for limitation of liability to the date of statutory deposit, to the official depository referred to in paragraph (1) of the preceding Article.

(3) A deposit entrustment contract may not be modified or cancelled without the permission of the court after the notification under the provisions of paragraph (1) has been made.

(4) Only banks and other persons specified by Cabinet Order may become trustees under a deposit entrustment contract (hereinafter simply referred to as the "Trustee").

(Statutory Deposit by Trustee)

Article 21 (1) Where the notification under the provisions of paragraph (1) of the preceding Article has been made, the Trustee shall make a statutory deposit under a deposit entrustment contract by the date designated by the court (referred to as the "Designated Date" in paragraph (1) of the following Article) and notify the court of this.

(2) The statutory deposit made by the Trustee pursuant to the provisions of the preceding paragraph shall be deemed to be a statutory deposit made by the Petitioner as a depositor.

(Trustee's Obligation in Case of Failure to Make a Statutory Deposit)

Article 22 (1) Where a Trustee fails to make the statutory deposit under the provisions of paragraph (1) of the preceding Article, the Trustee shall have an obligation to pay to an administrator an amount of money that should be deposited as of the Designated Date and an amount of money accrued thereon as calculated at a rate of six percent per annum for the period from the day following the Designated Date to the date of payment.

(2) Where a Trustee fails to perform the obligation referred to in the preceding paragraph, the court shall, upon the petition of an administrator, order the Trustee to pay to the administrator the amount due under the provisions of said paragraph.

(3) An order made under the provisions of the preceding paragraph shall have the same effect as an enforceable title of obligation.

(4) An immediate appeal may be filed against a judicial decision on the petition referred to in paragraph (2).

(5) When an administrator receives a payment of money from a Trustee pursuant to the provisions of paragraph (1), the administrator shall immediately make a statutory deposit of said money to the official depository referred to in Article 19, paragraph (1) and report this to the court.

(6) The statutory deposit made by the administrator pursuant to the provisions of the preceding paragraph shall be deemed to be a statutory deposit made by the Petitioner as a depositor.

(Stay Order for Other Procedures)

Article 23 (1) Where a petition for commencement of proceedings for limitation of liability is filed, the court, when it finds it necessary, upon the petition of the Petitioner or a Beneficiary Debtor, may order stay of procedures for compulsory execution, provisional seizure, provisional disposition or exercise of a security interest against the property of the Petitioner or Beneficiary Debtor based on a Claim Subject to Limitation, until an order is made on the petition for commencement of proceedings for limitation of liability.

(2) The court may change or revoke a stay order issued under the provisions of the preceding paragraph.

(Dismissal without Prejudice)

Article 24 If the Petitioner is a bankrupt, the court shall dismiss without prejudice a petition for commencement of proceedings for limitation of liability.

(Dismissal with Prejudice on Merits)

Article 25 In the following cases, the court shall dismiss with prejudice on the merits a petition for commencement of proceedings for limitation of liability:

(i) where expenses for proceedings are not prepaid;

(ii) where it is obvious that the amount of Claims Subject to Limitation does not exceed the Amount of Limit of Liability; and

(iii) where the Petitioner does not comply with the order made under the provisions of Article 19, paragraph (1).

Section 3 Order of Commencement of Proceedings for Limitation of Liability

(Time When Proceedings for Limitation of Liability Become Effective)

Article 26 Proceedings for limitation of liability shall become effective as from the time when an order of commencement thereof is made.

(Matters to Be Specified Upon Making an Order of Commencement)

Article 27 The court, upon making an order of commencement of proceedings for limitation of liability, shall appoint an administrator and specify the following matters:

(i) the period for filing proofs of Claims Subject to Limitation, which should be not less than one month and not more than four months from the date of order; and

(ii) the date of investigation of Claims Subject to Limitation, between which and the last day of the period for filing proofs of claims there should be a period of not less than one week and not more than two months.

(Public Notice of Commencement)

Article 28 (1) The court, when it has made an order of commencement of proceedings for limitation of liability, shall immediately make a public notice of the following matters:

(i) the date and time and the main text of the order of commencement of proceedings for limitation of liability;

(ii) the total amount of money deposited based on an order under the provisions of Article 19, paragraph (1) or money under a deposit entrustment contract referred to in Article 20, paragraph (1);

(iii) the name and address of an administrator;

(iv) the names of the Petitioner and known Beneficiary Debtors, and the relationships between these parties and the Ship, Salvage Ship or Salvor associated with the accident;

(v) the period for filing proofs of Claims Subject to Limitation and the date of investigation of these claims; and

(vi) notice to the effect that proofs of Claims Subject to Limitation against the Petitioner or Beneficiary Debtors should be filed within the period for filing proofs of these claims.

(2) A document containing a statement of the matters set forth in the items of the preceding paragraph shall be served upon an administrator, the Petitioner, known claimants of Claims Subject to Limitation, and known Beneficiary Debtors.

(3) The provisions of the preceding two paragraphs shall apply mutatis mutandis to cases where there is a change to any of the matters set forth in paragraph (1), items (ii) to (v); provided, however, that no public notice shall be required with regard to the change of the date of investigation of Claims Subject to Limitation.

(Appeal)

Article 29 (1) An immediate appeal may be filed against a judicial decision on a petition for commencement of proceedings for limitation of liability.

(2) The provisions of Article 23 shall apply mutatis mutandis to the case where an immediate appeal has been filed against an order to dismiss without prejudice or with prejudice on the merits a petition for commencement of proceedings for limitation of liability.

Article 30 (1) Where an immediate appeal as referred to in paragraph (1) of the preceding Article has been filed against an order of commencement of proceedings for limitation of liability, and when the court finds the Amount of Limit of Liability or the date of the accident as determined by an order under the provisions of Article 19, paragraph (1) to be inappropriate, the court shall order the Petitioner to make a statutory deposit of money equivalent to the Amount of Limit of Liability, which should be increased, and money accrued thereon as calculated at a rate of six percent per annum for the period from the date of the accident to the date of statutory deposit (in cases where a deposit entrustment contract is concluded pursuant to the provisions of Article 20, paragraph (1) as applied mutatis mutandis pursuant to the following paragraph, the date of notification under the provisions of Article 20, paragraph (1)) or of money as calculated at a rate of six percent per annum as provided in Article 19, paragraph (1), which should be increased, and to notify this to the court before which the case of limitation of liability is pending, within a period not exceeding two weeks.

(2) The provisions of Article 19, paragraph (2) and Articles 20 through 22 shall apply mutatis mutandis to the case referred to in the preceding paragraph. In this case, the term "date of statutory deposit" in Article 19, paragraph (2) shall be deemed to be replaced with "date of statutory deposit referred to in Article 30, paragraph (1)."

(Public Notice of Order to Revoke Order of Commencement)

Article 31 (1) When an order to revoke an order of commencement of proceedings for limitation of liability becomes final and binding, the court shall give public notice of this immediately.

(2) A document containing a statement of the matters pertaining to the public notice made under the provisions of the preceding paragraph must be served upon an administrator, the Petitioner, known claimants of Claims Subject to Limitation, and known Beneficiary Debtors.

(Restriction on Recovery of Deposit Money Where Order of Commencement Has Been Revoked)

Article 32 A Petitioner may recover the money deposited as the fund provided in the following Article or dispose of the right to claim the recovery of such money only after the expiration of one month from the day on which the order referred to in paragraph (1) of the preceding Article becomes final and binding.

(Effect of Commencement of Proceedings)

Article 33 When proceedings for limitation of liability have been commenced, the claimant of a Claim Subject to Limitation may, as provided in this Act, receive payment from the money deposited based on an order under the provisions of Article 19, paragraph (1) or Article 30, paragraph (1), the money to be deposited pursuant to the provisions of Article 21, paragraph (1) or Article 22, paragraph (5) (including the cases where these provisions are applied mutatis mutandis pursuant to Article 30, paragraph (2)), and the money to be deposited pursuant to the provisions of Article 94, paragraph (1), with interest accrued on these monetary deposits (hereinafter collectively referred to as a "Fund"). In this case, the claimant of a Claim Subject to Limitation may not exercise his/her right against the property of the Petitioner or the property of the Beneficiary Debtor other than the Fund.

Article 34 When proceedings for limitation of liability have been commenced, the claimant of a Claim Subject to Limitation may not set off the Claim Subject to Limitation against a claim held by the Petitioner or the Beneficiary Debtor.

(Action to Oppose Compulsory Execution)

Article 35 (1) In order for a Petitioner or Beneficiary Debtor to seek non-permission of compulsory execution based on a Claim Subject to Limitation by alleging the grounds referred to in the second sentence of Article 33, the Petitioner or Beneficiary Debtor shall file an action to oppose compulsory execution.

(2) The provisions of the Civil Execution Act (Act No. 4 of 1979) concerning an action to oppose execution shall apply mutatis mutandis to the action referred to in the preceding paragraph.

(Action to Oppose Exercise of Security Interest)

Article 36 (1) In order for a Petitioner or Beneficiary Debtor to seek non-permission of the exercise of a security interest based on a Claim Subject to Limitation by alleging the grounds referred to in the second sentence of Article 33, the Petitioner or Beneficiary Debtor shall file an action to oppose the exercise of the security interest.

(2) The action referred to in the preceding paragraph shall be subject to the exclusive jurisdiction of the court with jurisdiction over the location of the general venue of the defendant, or if there is no such court, to the exclusive jurisdiction of the court with jurisdiction over the location of the property subject to the security interest.

(3) The provisions of Articles 36 and 37 of the Civil Execution Act shall apply mutatis mutandis to the action referred to in paragraph (1).

Section 4 Expansion of Proceedings for Limitation of Liability

(Petition for Expansion of Proceedings)

Article 37 (1) Where proceedings for limitation of liability have been commenced only with regard to Claims on Damage to Property, the Petitioner or a Beneficiary Debtor may file a petition for expansion of proceedings for limitation of liability in order to limit their liability for Claims on Damage to Persons; provided, however, that this shall not apply after the date of investigation of Claims Subject to Limitation has commenced.

(2) The provisions of Articles 18 through 25 shall apply mutatis mutandis to the petition referred to in the preceding paragraph.

(Order of Expansion of Proceedings)

Article 38 (1) An order to expand proceedings for limitation of liability shall provide that the proceedings for limitation of liability shall also be effective in relation to Claims on Damage to Persons.

(2) The provisions of the preceding Section (excluding Article 27 for the part concerning the appointment of an administrator) shall apply mutatis mutandis to the order referred to in the preceding paragraph.

(Cases Where Beneficiary Debtor Shall Be Deemed to Be Petitioner)

Article 39 When the order referred to in paragraph (1) of the preceding Article has been made, with regard to application of the provisions of Articles 82 through 84, Articles 90 through 92, and Article 94, the Beneficiary Debtor who filed a petition for expansion of proceedings for limitation of liability shall be deemed to be the Petitioner.

Section 5 Administrator

(Authority)

Article 40 (1) An administrator shall have the authority to state opinions on the date of investigation of Claims Subject to Limitation, make a liquidating distribution and perform other duties as provided in this Act.

(2) In order to perform the duties referred to in the preceding paragraph, an administrator may request a Petitioner or Beneficiary Debtor to report the necessary matters or submit books and other documents.

(Supervision)

Article 41 An administrator shall be supervised by a court.

(Duty of Care)

Article 42 An administrator shall perform his/her duties with the due care of a prudent manager.

(Administrator Representative)

Article 43 (1) An administrator, if necessary, may appoint an administrator representative on his/her own responsibility, in order to have them perform his/her duties.

(2) The appointment of an administrator representative pursuant to the provisions of the preceding paragraph shall require permission of the court.

(Remuneration)

Article 44 (1) An administrator may receive an advance payment of the expenses necessary for proceedings for limitation of liability as well as remuneration determined by the court.

(2) An immediate appeal may be filed against an order made pursuant to the provisions of the preceding paragraph.

(Dismissal)

Article 45 The court, upon the petition of an interested person or by its own authority, may dismiss an administrator if there are any material reasons. In this case, the court shall interrogate the administrator.

(Duty to Submit Report of Account)

Article 46 An administrator or his/her heir, upon the termination of the administrator's office, shall submit a report of account to the court without delay.

Section 6 Participation in Proceedings for Limitation of Liability

(Participation)

Article 47 (1) The claimant of a Claim Subject to Limitation may participate in proceedings for limitation of liability by reason of the Claim Subject to Limitation that he/she holds (in the case of a claim for interest or a claim for damages or penalties due to default, limited to a claim that has arisen by the day on which the date of investigation of Claims Subject to Limitation is to commence; hereinafter the same shall apply in this Chapter).

(2) The Petitioner or Beneficiary Debtor who has paid a Claim Subject to Limitation shall be deemed to hold the Claim Subject to Limitation to the extent of such payment and may participate in proceedings for limitation of liability by reason of such claim.

(3) A person who is to be subrogated to the claimant of a Claim Subject to Limitation or a person who is to acquire a right to reimbursement against the Petitioner or Beneficiary Debtor with regard to a Claim Subject to Limitation shall be deemed to hold the Claim Subject to Limitation, and may participate in proceedings for limitation of liability by reason of such claim; provided, however, that this shall not apply to a Claim Subject to Limitation by reason of which the claimant has participated in the proceedings for limitation of liability.

(4) When there is a likelihood of compulsory execution based on a Claim Subject to Limitation in a foreign country, the Petitioner or Beneficiary Debtor shall be deemed to hold the Claim Subject to Limitation for the amount of the Claim Subject to Limitation which is due to be paid through that execution, and may participate in the proceedings for limitation of liability by reason of such claim. The provisions of the proviso to the preceding paragraph shall apply mutatis mutandis to this case.

(5) A person who intends to participate in proceedings for limitation of liability pursuant to the provisions of the preceding paragraphs shall file to the court a proof of the details of the Claim Subject to Limitation and other matters as provided by the Rules of the Supreme Court.

(6) When a person who intends to participate in proceedings for limitation of liability pursuant to the provisions of paragraph (4) files the proof of claim under the provisions of the preceding paragraph, the person shall make a prima facie showing of the likelihood of compulsory execution in a foreign country.

(Cases Where Person Other Than Petitioner and Beneficiary Debtors Has Obligation for Entire Performance of Claim Subject to Limitation)

Article 48 (1) Where there is a person, other than the Petitioner and the Beneficiary Debtors, who has an obligation for the entire performance of a Claim Subject to Limitation, and when proceedings for limitation of liability have been commenced or expanded for the benefit of such person as well, the claimant of the Claim Subject to Limitation may exercise his/her right in the respective proceedings for limitation of liability with regard to the entire amount of the Claim Subject to Limitation that the claimant holds at the time of the commencement of proceedings for limitation of liability or the time of the expansion of proceedings for limitation of liability.

(2) The provisions of the preceding paragraph shall apply mutatis mutandis to a claim arising from tanker oil pollution damage as provided in Article 2, item (vi) of the Act on Liability for Oil Pollution Damage (limited to a claim that falls within the category of Claim Subject to Limitation) in the case where there is a person, other than the Petitioner and the Beneficiary Debtors, who has an obligation for the entire performance of a Claim Subject to Limitation, and when proceedings for limitation of liability have been commenced for the benefit of such person pursuant to the provisions of said Act.

(Non-monetary Claims)

Article 49 With regard to a non-monetary claim or a monetary claim the amount of which is not fixed or the amount of which is fixed in a foreign currency, the amount of such claim shall be the estimated amount at the time of the commencement of proceedings for limitation of liability or the time of the expansion of proceedings for limitation of liability.

(Period for Filing Proofs of Claims)

Article 50 (1) The filing of a proof of claim under the provisions of Article 47, paragraph (5) shall be conducted within the period for filing proofs of claims designated by the court pursuant to the provisions of Article 27 (including the cases where applied mutatis mutandis pursuant to Article 38, paragraph (2)).

(2) If a person who is entitled to participate in proceedings for limitation of liability pursuant to the provisions of Article 47, paragraphs (1) through (4) has been unable to file a proof of his/her claim within the period for filing proofs of claims due to reasons not attributable thereto, such person may file a proof of claim after the expiration of the period for filing proofs of claims, notwithstanding the provisions of the preceding paragraph; provided, however, that this shall not apply after the end of the date of investigation of Claims Subject to Limitation.

(Filing of Notification of Change)

Article 51 (1) A participant in proceedings for limitation of liability shall notify the court of a change that has occurred to any of the filed matters or a change that the person intends to make to any of the filed matters.

(2) The provisions of the preceding Article shall apply mutatis mutandis to the case of making a notification of a change that would prejudice the interests of other claimants of Claims Subject to Limitation.

(3) When a person who has participated in proceedings for limitation of liability pursuant to the provisions of Article 47, paragraph (3) or paragraph (4) has been subrogated to the claimant of a Claim Subject to Limitation, has acquired the right to reimbursement against the Petitioner or Beneficiary Debtor or has paid a Claim Subject to Limitation, that person shall notify the court thereof. In this case, that person shall prove the facts constituting the cause of such notification.

(Succession to Status of Participant in Proceedings)

Article 52 (1) A person who has acquired a claim for which a participant in proceedings for limitation of liability has filed a proof of claim may succeed to the status of such participant.

(2) A person who intends to succeed to the status of a participant pursuant to the provisions of the preceding paragraph shall notify the court of the claim that he/she has acquired and other matters as provided by the Rules of the Supreme Court. In this case, the person shall prove the fact that he/she has acquired the claim concerned.

(3) The provisions of the preceding two paragraphs shall apply mutatis mutandis to the Petitioner or Beneficiary Debtor who has paid a claim for which a person who has participated in proceedings for limitation of liability pursuant to the provisions of Article 47, paragraph (1) has filed a proof of claim.

(Dismissal of Proof or Notification)

Article 53 (1) When any proof filed or notification made pursuant to the provisions of this Section is in violation of the provisions of Article 47, paragraph (5) or paragraph (6), Article 50 (including the cases where applied mutatis mutandis pursuant to Article 51, paragraph (2)), Article 51, paragraph (3), or paragraph (2) of the preceding Article (including the cases where applied mutatis mutandis pursuant to paragraph (3) of said Article), the court shall dismiss such proof or notification.

(2) An immediate appeal may be filed against an order under the provisions of the preceding paragraph.

(Interruption of Prescription)

Article 54 Participation in proceedings for limitation of liability shall have the effect of an interruption of prescription; provided, however, that this shall not apply if a proof of claim filed upon participation is withdrawn or dismissed.

(Obligation to File Proof of Known Claimants of Claims Subject to Limitation)

Article 55 (1) When a Petitioner and a Beneficiary Debtor become aware of the name and address of the claimant of a Claim Subject to Limitation, other than claimants of Claims Subject to Limitation referred to in the notification under the provisions of Article 18 (including the cases where applied mutatis mutandis pursuant to Article 37, paragraph (2)), who has not participated in the proceedings for limitation of liability yet, the Petitioner and the Beneficiary Debtor shall notify the court of such name and address immediately; provided, however, that this shall not apply if they become aware of these matters after the date of investigation of Claims Subject to Limitation has ended.

(2) The provisions of the Article 28, paragraphs (2) and (3) (including the cases where applied mutatis mutandis pursuant Article 38, paragraph (2)) shall apply mutatis mutandis to the claimant of a Claim Subject to Limitation referred to in the notification under the provisions of the preceding paragraph.

(Permission for Advance Payment of Liquidating Distribution)

Article 56 (1) When there is an urgent necessity in order to avoid extreme harm to a person who has participated in proceedings for limitation of liability pursuant to the provisions of Article 47, paragraph (1), the court may order an administrator to pay a reasonable amount of money from the Fund as part of the liquidating distribution for a Claim Subject to Limitation upon the petition of the administrator or by the court's own authority, even before the claim filed by such participant has been determined.

(2) When an administrator receives a request from the claimant of a Claim Subject to Limitation as provided in the preceding paragraph to file the petition referred to in said paragraph, the administrator shall report such request to the court immediately, and if the administrator decides not to file the petition, the administrator shall report the reasons for such decision to the court without delay.

Section 7 Investigation and Determination of Claims Subject to Limitation

(Investigation of Claims Subject to Limitation)

Article 57 On the date of investigation of Claims Subject to Limitation, the question as to whether each filed claim is a Claim Subject to Limitation shall be investigated, and if it is a Claim Subject to Limitation, the details thereof and the distinction as to whether it is a Claim on Damage to Person or Claim on Damage to Property shall be investigated.

(Appearance of Persons Concerned)

Article 58 A Petitioner, Beneficiary Debtors, and participants in proceedings for limitation of liability, as well as agents of these persons may appear on the date of investigation of Claims Subject to Limitation and make an objection with regard to any filed claims.

(Appearance of Administrator)

Article 59 An investigation of Claims Subject to Limitation may not be conducted without the appearance of an administrator.

(Determination of Claims Subject to Limitation Without Objection)

Article 60 If no objection is made with regard to a claim by an administrator or any of the persons set forth in Article 58 on the date of investigation of Claims Subject to Limitation, the status of such claim as a Claim Subject to Limitation and the details thereof, as well as the distinction as to whether it is a Claim on Damage to Person or Claim on Damage to Property shall be determined.

(Assessment Decision)

Article 61 (1) The court shall make an assessment decision with regard to a disputed claim.

(2) If the relevant claim is not a Claim Subject to Limitation, this shall be determined by an assessment decision, and if the relevant claim is a Claim Subject to Limitation, the details of the claim and the distinction as to whether it is a Claim on Damage to Person or Claim on Damage to Property shall be determined by an assessment decision.

(3) An assessment decision shall be served upon the person who has filed the relevant proof of claim and the person who has made an objection to said claim.

(Investigation by Administrator)

Article 62 When the court makes an assessment decision, it may order an administrator to conduct an investigation or request an administrator to state his/her opinions concerning the necessary matters.

(Action to Oppose Assessment Decision)

Article 63 (1) A person who disagrees with an assessment decision (excluding an administrator) may file an action to oppose within an unextendable period of one month from the day on which the person received the service of the decision.

(2) In the action referred to in the preceding paragraph, the disputing party shall stand as defendants if it is filed by the person who filed the disputed claim, and such person who filed the disputed claim shall stand as a defendant if it is filed by a disputing party.

(3) The action referred to in paragraph (1) shall be subject to the exclusive jurisdiction of the court before which the case of limitation of liability is pending, and oral argument may not be commenced until the period set forth in paragraph (1) has expired.

(4) If two or more actions are pending with respect to the same claim concurrently, oral arguments and judicial decisions of these actions shall be made in a consolidated manner. In this case, the provisions of Article 40, paragraphs (1) through (3) of the Code of Civil Procedure shall apply mutatis mutandis.

(5) A judgment rendered with regard to the action referred to in paragraph (1), except where the action is dismissed as unlawful without prejudice, shall approve or change the assessment decision.

(Suspension of Litigation Proceedings)

Article 64 (1) Where a proof of Claim Subject to Limitation is filed pursuant to the provisions of Article 47, paragraph (5), and if an action between the claimant of said Claim Subject to Limitation and the Petitioner or a Beneficiary Debtor (hereinafter referred to as an "Action Outside the Proceedings") is pending, the court, upon the petition of the plaintiff, may order the suspension of court proceedings of said action.

(2) The court, upon the petition of the plaintiff, may revoke an order of suspension under the provisions of the preceding paragraph.

(Expansion of Jurisdiction over Action Outside Proceedings)

Article 65 If an action to oppose an assessment decision is pending, an action between the person who holds a claim involved in said action and the Petitioner or a Beneficiary Debtor relating to said claim may be filed with the court before which the case of limitation of liability is pending.

(Transfer)

Article 66 (1) Where an action to oppose an assessment decision is pending, and if an Action Outside the Proceedings which relates to a claim involved in said action is pending before another court of first instance, the court before which the case of limitation of liability is pending may, upon petition, request that said Action Outside the Proceedings be transferred thereto.

(2) When the order under the provisions of the preceding paragraph has been made, the court which is requested to transfer the Action Outside the Proceedings shall transfer said action to the court before which the case of limitation of liability is pending.

(3) The transfer of the action under the provisions of the preceding paragraph may be carried out even while court proceedings are discontinued or suspended.

(Consolidation)

Article 67 If an action to oppose an assessment decision and an Action Outside the Proceedings are pending before the court before which the case of limitation of liability is pending, oral arguments and judicial decisions of these actions shall be made in a consolidated manner.

Section 8 Liquidating Distribution

(Liquidating Distribution)

Article 68 A Fund shall be appropriate to a liquidating distribution, except for the part thereof which is paid pursuant to the provisions of Article 92, paragraph (5) (including the cases where applied mutatis mutandis pursuant to Article 94, paragraph (2)) or Article 93, paragraph (1) or paragraph (3).

(Time of Liquidating Distribution)

Article 69 (1) An administrator shall make a liquidating distribution without delay after the date of investigation of Claims Subject to Limitation has ended.

(2) If an objection is made on the date of investigation of Claims Subject to Limitation, an administrator may make a liquidating distribution only after the expiration of the statute period for filing an action to oppose an assessment decision; provided, however, that this shall not apply if the administrator obtains the permission of the court.

(Distribution List)

Article 70 (1) In order to make a liquidating distribution, an administrator shall prepare a distribution list and obtain the approval of the court.

(2) A distribution list shall contain a statement of the name of the claimant of each Claim Subject to Limitation who is to be eligible for a liquidating distribution, the amount of each Claim Subject to Limitation which is to be eligible for a liquidating distribution, the amount of money available for a liquidating distribution, the percentage of a liquidating distribution, and other matters as provided by the Rules of the Supreme Court, separately for Claims on Damage to Persons and Claims on Damage to Property.

(Public Notice of Approval of Distribution List)

Article 71 When the court approves a distribution list, it shall give public notice of this.

(Objection to Distribution List)

Article 72 (1) A person who disagrees with the statement in the distribution list may raise an objection to the court within an unextendable period of two weeks from the date of public notice given under the provisions of the preceding Article.

(2) The court, when it finds an objection to be reasonable, shall order an administrator to correct the distribution list.

(3) An immediate appeal may be filed against a judicial decision on an objection.

(Request for Reservation of Liquidating Distribution)

Article 73 A participant in proceedings for limitation of liability may make a request to an administrator for the reservation of a liquidating distribution prior to the expiration of the period of filing an objection to the distribution list, by proving that an Action Outside the Proceedings is pending in relation to his/her filed claim or that the compulsory execution or exercise of a security interest has taken place based on said claim.

(Reservation of Liquidating Distribution)

Article 74 An administrator shall reserve a liquidating distribution with regard to the following claims:

(i) a claim for which a request for the reservation of a liquidating distribution has been made pursuant to the provisions of the preceding Article;

(ii) a claim which has been filed by a participant in proceedings for limitation of liability pursuant to the provisions of Article 47, paragraph (3) or paragraph (4), and for which the notification under the provisions of Article 51, paragraph (3) has not been made; and

(iii) a claim which has not been determined yet in the proceedings for limitation of liability, except for those set forth in the preceding two items.

(Order of Reservation of Expenses, etc.)

Article 75 (1) If any expenses, etc. as well as fees for an attorney or legal professional corporation are to be paid on behalf of a Petitioner pursuant to the provisions of Article 92, paragraph (1) or Article 93, paragraph (2) or to be paid pursuant to Article 93, paragraph (1), the court shall order an administrator to reserve a reasonable amount out of a Fund.

(2) A court may change or revoke an order under the provisions of the preceding paragraph.

(Effect of Liquidating Distribution)

Article 76 When a participant in proceedings for limitation of liability becomes entitled to receive a payment from a Fund in an amount to be distributed thereto pursuant to the provisions of laws and regulations concerning statutory deposits, the Petitioner and Beneficiary Debtor shall be discharged from their liability for the claim for a liquidating distribution to such participant outside the proceedings for limitation of liability.

(Exclusion from Proceedings)

Article 77 When it is determined in an Action Outside the Proceedings that a filed claim is not a Claim Subject to Limitation, said claim shall be excluded from proceedings for limitation of liability.

(Implementation of Reserved Distribution)

Article 78 When any of the following events has taken place with regard to the respective claims set forth in the items of Article 74, an administrator shall implement a liquidating distribution without delay:

(i) with regard to the claim set forth in Article 74, item (i), where the details of the claim have been determined and the person who requested a reservation has requested that a liquidating distribution be made;

(ii) with regard to the claim set forth in Article 74, item (ii), where the details of the claim have been determined and the notification under the provisions of Article 51, paragraph (3) has been made; and

(iii) with regard to the claim set forth in Article 74, item (iii), where the details of the claim have been determined.

(Subsequent Distribution)

Article 79 (1) If any part of a Fund available for a liquidating distribution is newly identified, an administrator shall make a liquidating distribution subsequently.

(2) An administrator may temporarily suspend making the liquidating distribution referred to in the preceding paragraph with the permission of the court.

(Termination of Proceedings)

Article 80 The court shall make an order of termination of proceedings for limitation of liability and give public notice thereof, when a liquidating distribution is completed.

(Compensation for Damages)

Article 81 Where a Petitioner or Beneficiary Debtor has violated the obligation to make a notification as provided in Article 18 (including the cases where applied mutatis mutandis pursuant to Article 37, paragraph (2)) or Article 55, paragraph (1), and when an order of termination of proceedings for limitation of liability has been made, these persons shall be liable to compensate for damage resulting from their violation of the obligation.

Section 9 Discontinuance of Proceedings for Limitation of Liability

(Discontinuance of Proceedings)

Article 82 In the following cases, the court shall make an order of discontinuance of proceedings for limitation of liability upon petition or by its own authority; provided, however, that this shall not apply to the case referred to in item (iii) where such discontinuance of proceedings is likely to be extremely harmful to the claimant of a Claim Subject to Limitation:

(i) where an administrator has proved that he/she is unable to receive a payment of money from a Trustee based on the order under the provisions of Article 22, paragraph (2) (including the cases where applied mutatis mutandis pursuant to Article 30, paragraph (2) and Article 37, paragraph (2));

(ii) where the Petitioner does not comply with the order under the provisions of Article 30, paragraph (1) (including the cases where applied mutatis mutandis pursuant to Article 38, paragraph (2)); and

(iii) where the Petitioner does not comply with the order under the provisions of the second sentence of Article 91.

Article 83 (1) A Petitioner may file a petition for discontinuance of proceedings for limitation of liability with consent from all of the known Beneficiary Debtors and the participants in the proceedings for limitation of liability.

(2) When the petition referred to in the preceding paragraph has been filed, the court shall issue an order of discontinuance of proceedings for limitation of liability.

Article 84 Where a Petitioner has been given an order of commencement of bankruptcy proceedings, and if the continuation of proceedings for limitation of liability is likely to be extremely harmful to bankruptcy creditors, a court shall issue an order of discontinuance of proceedings for limitation of liability upon the petition of a bankruptcy trustee; provided, however, that this shall not apply when public notice of approval of a distribution list has been given or permission has been given for a final distribution as provided in Article 195, paragraph (1) of the Bankruptcy Act (Act No. 75 of 2004), simplified distribution as provided in Article 204, paragraph (1) of said Act, consensual distribution as provided in Article 208, paragraph (1) of said Act or an interim distribution as provided in Article 209, paragraph (1) of said Act.

(Public Notice of Discontinuance)

Article 85 (1) When the court has made an order of discontinuance of proceedings for limitation of liability, it shall give public notice of the main text of the order and the gist of the reasons attached thereto immediately.

(2) The provisions of Article 31, paragraph (2) shall apply mutatis mutandis to the case referred to in the preceding paragraph.

(Appeal)

Article 86 An immediate appeal may be filed against an order to dismiss a petition for discontinuance of proceedings for limitation of liability without prejudice or with prejudice on the merits and against an order of discontinuance of proceedings for limitation of liability.

(Public Notice of Revocation of Order of Discontinuance)

Article 87 (1) When an order to revoke an order of discontinuance of proceedings for limitation of liability becomes final and binding, the court shall give public notice of this immediately.

(2) The provisions of Article 31, paragraph (2) shall apply mutatis mutandis to the case referred to in the preceding paragraph.

(Coming into Effect of Order of Discontinuance)

Article 88 An order of discontinuance of proceedings of limitation of liability shall not be effective unless it becomes final and binding.

(Restriction on Recovery of Deposit Money Where Order of Discontinuance Becomes Final and Binding)

Article 89 The provisions of Article 32 shall apply mutatis mutandis to the case where an order of discontinuance of proceedings for limitation of liability becomes final and binding.

Section 10 Expenses

(Principle of Burden of Expenses)

Article 90 Except for those provided in Article 93, paragraph (1) or paragraph (2), the expenses necessary for proceedings for limitation of liability and remuneration for an administrator (hereinafter referred to as "Expenses, etc." in this Section) shall be borne by a Petitioner.

(Obligation to Prepay)

Article 91 When filing a petition for commencement of proceedings for limitation of liability, a Petitioner shall prepay an amount designated by the court as Expenses, etc. The same shall apply where the prepaid amount of Expenses, etc. falls short and the court orders the prepayment of a shortfall in Expenses, etc.

(Payment of Expenses, etc. on Behalf of Petitioner Who Does Not Comply with Order of Prepayment)

Article 92 (1) In the case that falls under Article 82, item (iii), if the grounds provided in the proviso to said Article exist, Expenses, etc. shall be paid from a Fund on behalf of a Petitioner.

(2) Expenses, etc. paid on behalf of a Petitioner pursuant to the provisions of the preceding paragraph shall be collected from the Petitioner by an administrator.

(3) In the case referred to in the preceding paragraph, the court shall, upon the petition of an administrator, order the Petitioner to pay to an administrator the same amount of money as the amount of Expenses, etc. paid on his/her behalf pursuant to the provisions of paragraph (1).

(4) The provisions of Article 22, paragraphs (3) and (4) shall apply mutatis mutandis to the order under the provisions of the preceding paragraph.

(5) If it is impossible to collect Expenses, etc. which should be collected pursuant to the provisions of paragraph (2), such Expenses, etc. shall be paid from a Fund.

(Expenses, etc. for Administrator's Conduct of Action)

Article 93 (1) The Expenses, etc. as well as fees for an attorney or legal professional corporation necessary for an administrator to conduct an action to oppose an assessment decision shall be paid from a Fund, except for the expenses provided in the following paragraph.

(2) Among the expenses necessary for an administrator to conduct an action to oppose an assessment decision, those that fall under the scope of court costs shall be paid from a Fund on behalf of a Petitioner.

(3) Court costs which have been imposed on an administrator by a judgment on an action to oppose an assessment decision shall be paid from a Fund.

(4) The court shall determine the amount of Expenses, etc. and of the remuneration referred to in paragraph (1) upon the petition of an administrator.

(5) An immediate appeal may be filed against an order under the provisions of the preceding paragraph.

(Statutory Deposit of Expenses, etc. and Court Costs Collected by Administrator)

Article 94 (1) When an administrator has collected the Expenses, etc. or court costs which were paid on behalf of a Petitioner pursuant to the provisions of Article 92, paragraph (1) or paragraph (2) of the preceding Article, the administrator shall make a statutory deposit of the collected money as part of a Fund for the benefit of the Petitioner.

(2) The provisions of Article 22, paragraph (6) shall apply mutatis mutandis to a statutory deposit made by an administrator pursuant to the provisions of the preceding paragraph, and the provisions of Article 92, paragraph (5) shall apply mutatis mutandis to the case where it is impossible to collect the court costs referred to in the preceding paragraph which should be collected by an administrator.

Chapter IV Auxiliary Provisions

(Maritime Lien)

Article 95 (1) The claimant of a Claim Subject to Limitation shall have, with regard to his/her claim, a statutory lien over the Ship involved in an accident, its equipment and the freight charge yet to be received.

(2) The statutory lien referred to in the preceding paragraph is next in order of precedence to the statutory lien referred to in Article 842, item (viii) of the Commercial Code (Act No. 48 of 1899).

(3) The provisions of Article 843, the main clause of Article 844, paragraph (2), Article 844, paragraph (3), Article 845, Article 846, Article 847, paragraph (1), and Article 849 of the Commercial Code shall apply mutatis mutandis to the statutory lien referred to in paragraph (1).

(4) Where an order of commencement of proceedings for limitation of liability has been made prior to the extinguishment of the statutory lien referred to in paragraph (1), and if an order to revoke said order of commencement or an order of discontinuance of the proceedings for limitation of liability becomes final and binding, the statutory lien referred to in paragraph (1) shall be extinguished when one year has passed after the order of revocation or order of discontinuance becomes final and binding, notwithstanding the provisions of Article 847, paragraph (1) of the Commercial Code as applied mutatis mutandis pursuant to the preceding paragraph.

(Effect of Constitution of Limitation Fund in Foreign Country Which Is State Party)

Article 96 (1) Where a limitation fund, which is provided in the Convention on Limitation of Liability for Maritime Claims of 1976 as amended by the Protocol of 1996 to amend the Convention on Limitation of Liability for Maritime Claims of 1976 (hereinafter referred to as the "Convention on Limitation of Liability for Maritime Claims"), has been constituted in a foreign country which is a State Party to said Protocol, the claimants of Claims Subject to Limitation which are to be paid from said fund may not exercise their rights against the property of the Shipowner, etc., property of the Salvor or property of any Servant, etc. other than the limitation fund.

(2) The provisions of Articles 34 through 36 shall apply mutatis mutandis to the case referred to in the preceding paragraph.

Article 97 Deleted

(Application of This Act to Manager, etc. of Ship)

Article 98 (1) This Act shall apply to a manager of a Ship and an operator of a Ship as provided in Article 1, paragraph (2) of the Convention on Limitation of Liability for Maritime Claims as well as members with unlimited liability of such manager and operator which are corporations in the same manner as it applies to a Shipowner, etc., and it shall apply to servants of a manager of a Ship or an operator of a Ship as provided in said paragraph and other persons for whose acts such manager or operator shall be responsible in the same manner as it applies to Servants, etc.

(2) This Act shall apply to an insurer of an insurance contract to compensate for any damage arising from being liable to pay a Claim Subject to Limitation in the same manner as it applies to an insured party.

Chapter V Penal Provisions

Article 99 (1) If an administrator or an administrator representative accepts, solicits or promises to accept a bribe in connection with his/her duties, he/she shall be punished by imprisonment with work for not more than three years or a fine of not more than three million yen.

(2) In the case referred to in the preceding paragraph, any bribe which has been accepted shall be confiscated. If the whole or part of the bribe cannot be confiscated, an equivalent value thereof shall be collected.

Article 100 A person who has given, offered or promised to give a bribe as provided in paragraph (1) of the preceding Article shall be punished by imprisonment with work for not more than three years or a fine of not more than three million yen.

Article 101 (1) A person who has been requested to make a report or submit a document pursuant to the provisions of Article 40, paragraph (2), but has not made a report or submitted a document or has made a false report or submitted a false document shall be punished by imprisonment with work for not more than one year or a fine of not more than 500,000 yen.

(2) When the representative person of a corporation, or an agent, employee or any other worker of a corporation or individual has committed a violation of this Act as provided in the preceding paragraph in connection with the business of the corporation or individual, not only the offender shall be punished but also the corporation or individual shall be punished by the fine referred to in said paragraph.