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Query: 
When the scope of the claims to be secured by a Revolving Mortgage is altered before the principal is fixed, the approval of subordinated obligees has to be obtained.


Article 398-4
(1) The scope of the claims to be secured by a revolving mortgage may be changed if the change is effected before the principal is crystallized. The same applies with respect to change of obligors.
(2) In order to effect the changes referred to in the preceding paragraph, it is not required that the approval of third parties including subordinated mortgagee be obtained.
(3) If the change under paragraph (1) is not registered before the principal is crystallized, it is deemed that the change was not effected..


Article 398-5
Changes in the maximum amount of a revolving mortgage may not be made unless the consent of the interested parties is obtained..


Article 398-12
(1) Before the principal is crystallized, a revolving mortgagee may assign a revolving mortgage, with the approval of the mortgagor of the revolving mortgage.
(2) A revolving mortgagee may divide the revolving mortgage into two revolving mortgages and assign either of the same pursuant to the provisions of the preceding paragraph.In this case, the rights for which that revolving mortgage is the subject matter is extinguished with respect to the revolving mortgage that was assigned.
(3) In order to effect an assignment under the provisions of the preceding paragraph, the approval of the person that holds the rights for which that revolving mortgage is the subject matter must be obtained.
Article 398-13
Before the principal is crystallized, a revolving mortgagee may, with the approval of the mortgagor of the revolving mortgage, effect a partial assignment of the revolving mortgage (meaning assignments of revolving mortgages that the assignor effects without dividing the revolving mortgage in order to co-own the same with the assignee; hereinafter the same applies in this Section)..


Article 398-19
(1) If three years have passed from the time of the creation of a revolving mortgage, the mortgagor of the revolving mortgage may request the crystallizing of the principal secured.In this case, the principal secured is crystallized when two weeks have passed since the time of that request.
(2) A revolving mortgagee may request the crystallizing of the principal secured at any time.In this case, the principal secured is crystallized on the request of the same.
(3) The provisions of the preceding two paragraphs do not apply if the date on which the principal secured is to be crystallized is specified..


Article 398-21
(1) After the principal is crystallized, the mortgagor of the revolving mortgage may request a reduction in the maximum amount of that revolving mortgage, to the amount of the obligations actually in existence plus the amount of the periodic payments including interest and the amount of compensation for loss or damage due to default in obligations that will arise in the following two years.
(2) As to the reduction in the maximum amount of a revolving mortgage registered pursuant to Article 398-16, it suffices to make the request referred to in the preceding paragraph with respect to one of those immovable properties..


Article 177
Acquisitions of, losses of and changes in real rights on immovables may not be duly asserted against any third parties, unless the same are registered pursuant to the applicable provisions of the Real Property Registration Act (Act No. 123 of 2004) and other laws regarding registration.
Article 361
Beyond what is provided for in this Section, the provisions of the next Chapter (Mortgages) apply mutatis mutandis to pledges of immovables, provided that it is not inconsistent with the nature of the same.
Article 373
If more than one mortgage is created with respect to the same immovables, the order of priority of those mortgages follows the chronological order of their registration.
Article 339
Statutory liens registered in accordance with the provisions of the preceding two Articles may be exercised prior to mortgages.
Article 337
In order to preserve the effectiveness of statutory liens for preservation of immovables, registration must be carried out immediately after the completion of the act of preservation.
Article 338
(1) In order to preserve the effectiveness of statutory liens for construction work for immovables, the budgeted expenses of the construction work must be registered prior to the commencement of the same.In this case, if the expenses of the construction work exceed the budgeted amount, a statutory lien does not exist with respect to the amount in excess of the same.
(2) The amount of increase in value of immovables that resulted from construction work must be evaluated by an appraiser appointed by the court at the time of the participation in the distribution..


Article 467
(1) The assignment of a claim (including the assignment of a claim that is yet to arise) may not be duly asserted against the applicable obligor or any other third party, unless the assignor gives notice thereof to the obligor or the obligor has consented to the same.
(2) Notice or consent as referred to in the preceding paragraph may not be duly asserted against a third party other than the obligor unless the notice or the consent is made using an instrument bearing a certified date..


Article 362
(1) A pledge may have a property right for its subject matter.
(2) Beyond what is provided for in this Section, the provisions of the preceding three Sections (General Provisions, Pledges on Movables and Pledges of Immovables) apply mutatis mutandis to pledges referred to in the preceding paragraph, provided that it is not inconsistent with the nature of the same..


Article 353
A pledgee of movables may, if the pledged thing is usurped, recover the same solely by filing an action for recovery of possession..


Article 371
If there is a default with respect to a claim secured by a mortgage, the mortgage extends to the fruits of the mortgaged immovables derived after the default..


Article 396 No mortgage is extinguished by prescription in relation to obligors and mortgagors unless it is extinguished simultaneously with the claim the mortgage secures.


Article 702
(1) If a manager has incurred beneficial expenses for a principal, the manager may claim reimbursement of those costs from the principal.
(2) The provisions of Article 650, paragraph (2) apply mutatis mutandis if a manager has incurred beneficial obligations on behalf of the principal.
(3) If a manager has engaged in the benevolent intervention in another's business against the will of the principal, the provisions of the preceding two paragraphs apply mutatis mutandis, solely to the extent currently enriched..


Article 424
(1) An obligee may demand the court to rescind an act which the obligor commits knowing that it will prejudice the obligee; provided, however, that this does not apply if a person that benefits from that act (hereinafter referred to as the "beneficiary" in this Subsection) does not know, at the time of the act, that the obligee will be prejudiced.
(2) The provisions of the preceding paragraph do not apply to an act with a subject matter other than property rights.
(3) The obligee may make the demand under the provisions of paragraph (1) (hereinafter referred to as "demand for rescission of fraudulent act") only if the obligee's claim has arisen from a cause that existed before the act prescribed in paragraph (1).
(4) The obligee may not make demand for rescission of fraudulent act if the obligee's claim is not enforceable by compulsory execution..


Article 457
(1) The postponement of expiry of prescription period and the renewal of prescription period due to grounds such as a request for performance in relation to the principal obligor are also effective in relation to the guarantor.
(2) A guarantor may assert against the obligee a defense that can be raised by the principal obligor.
(3) If the principal obligor has a right to set-off, right to rescind or right to cancel against the obligee, the guarantor may refuse to perform the obligation to the obligee to the extent that the principal obligor should have been released from the obligation by exercising these rights..


Article 371
If there is a default with respect to a claim secured by a mortgage, the mortgage extends to the fruits of the mortgaged immovables derived after the default..


Article 398-3
(1) A revolving mortgagee may exercise the relevant revolving mortgage up to the maximum amount with respect to all of crystallized principal as well as periodic payments including interest and compensation for loss or damage resulting from failure to perform obligations.
(2) If a claim under a negotiable instrument or check or electronically recorded monetary claim acquired from causes other than the transactions with the obligor is agreed to be treated as a claim to be secured by a revolving mortgage, and any of the following grounds exist, that revolving mortgage may be exercised only with respect to claims acquired before those grounds arose;provided, however, that even with respect to claims acquired after the grounds arose, the exercise of the revolving mortgage is not precluded as far as the claims were acquired without knowledge of those grounds:
(i) the suspension of payments by the obligor;
(ii) a petition to commence bankruptcy proceeding, the commencement of rehabilitation proceeding, the commencement of reorganization proceeding or the commencement for special liquidation with respect to the obligor; or
(iii) a petition for commencement of auction procedure in relation to a mortgaged immovables or attachment for disposition of delinquency..


Article 372
The provisions of Article 296, Article 304
and Article 351
apply mutatis mutandis to mortgages.
Article 296
A holder of a right of retention may exercise that holder's rights against the whole of the thing retained until the relevant claim is satisfied in its entirety..


Article 356
The pledgee of immovables may use and profit from the immovables that are the subject matter of a pledge in line with the way the relevant immovables are used..


Article 462
(1) The provisions of Article 459-2, paragraph (1) apply mutatis mutandis if a person, that has given guarantee without the request of the principal obligor, performs an act for extinguishment of obligation.
(2) A person that has become a guarantor against the will of the principal obligor has the right to reimbursement only to the extent currently enriched.In this case, if the principal obligor asserts to have grounds for set-off against the obligee prior to the day of the demand for reimbursement, the guarantor may demand that the obligee perform the obligation which would have been extinguished by that set-off.
(3) The provisions of Article 459-2, paragraph (3) apply mutatis mutandis to the exercise of the right to reimbursement if the guarantor referred to in the preceding two paragraphs performs an act for extinguishment of obligation before the due date of the principal obligation..


Article 398-8
(1) If succession involving a revolving mortgagee commences before the principal is crystallized, the revolving mortgage secures the claims that exist at the time of the commencement of succession and otherwise secures claims that were agreed upon by the heirs and the mortgagor of the revolving mortgage and that an heir acquires after the commencement of succession.
(2) If succession involving an obligor commences before the principal is crystallized, the revolving mortgage secures the obligations that exist at the time of the commencement of succession and otherwise secures the claims that were agreed upon by the revolving mortgagee and the mortgagor of the revolving mortgage and that an heir assumes after the commencement of succession.
(3) The provisions of Article 398-4, paragraph (2) apply mutatis mutandis if an agreement as referred to in the preceding two paragraphs is reached.
(4) If the agreements referred to in paragraph (1) and paragraph (2) are not registered within six months of the commencement of succession, the principal secured is deemed to have been crystallized at the time of the commencement of succession..


Article 449
If a guarantor that guarantees an obligation which may be voidable due to the principal obligor's limited capacity to act, is aware, at the time of entering into a guarantee contract, of the cause for its voidability, that guarantor is presumed to have assumed an independent obligation of the same subject matter in the event of non-performance by the principal obligor or rescission of the obligation..


Article 398-20
(1) The principal secured by a revolving mortgage is crystallized in the following cases:
(i) if the revolving mortgagee has filed, with respect to the mortgaged immovables, a petition for auction or execution against earnings from immovable collateral or the attachment under the provisions of Article 304
as applied mutatis mutandis pursuant to Article 372;provided, however, that this provision applies only if the commencement of either auction procedures or execution procedures against earnings from immovable collateral, or an attachment has been effected;
(ii) if the revolving mortgagee has effected an attachment for disposition of delinquency against the mortgaged immovables;
(iii) if two weeks have passed from the time when the revolving mortgagee acquired knowledge of the commencement of auction procedures or attachment for disposition of delinquency against the mortgaged immovables; or
(iv) if the obligor or mortgagor of the revolving mortgage has become subject to an order commencing bankruptcy proceeding.
(2) If the commencement of auction procedures, the attachment under item (iii) of the preceding paragraph or the order commencing bankruptcy proceeding under item (iv) of that paragraph ceases to be effective, it is deemed that the principal secured was not crystallized;provided, however, that this does not apply if a person has acquired that revolving mortgage or a right for which the revolving mortgage is the subject matter on the assumption that the principal was crystallized..


Article 400
If the subject matter of a claim is the delivery of a specific thing, the obligor must retain the thing with the due care of a prudent manager, which is determined in light of the contract or other sources of claims and the common sense in the transaction, until the delivery..


Article 398-6
(1) With respect to the principal secured by a revolving mortgage, the date when the principal is to be crystallized may be specified or changed.
(2) The provisions of Article 398-4, paragraph (2) apply mutatis mutandis to the cases referred to in the preceding paragraph.
(3) The date under paragraph (1) must be within five years of the day when the date was prescribed or changed.
(4) If registration with respect to a change in the date under paragraph (1) is not effected before the old date, the principal secured is crystallized on that old date..


Article 425-4 If an act done by the obligor is rescinded by the demand for rescission of fraudulent act made against the subsequent acquirer, the subsequent acquirer may exercise the right specified in each of the following items according to the categories set forth in the respective items; provided, however, that this is limited to the value of the counter-performance which was completed by the subsequent acquirer in order to acquire the property from the predecessor or the value of the claim which was extinguished as a result of the acquisition of the property by the subsequent acquirer from the predecessor:
(i) if the act prescribed in Article 425-2 is rescinded: the beneficiary's right to demand return of the counter-performance or right to demand reimbursement of its value from the obligor, which should have arisen pursuant to the provisions of that Article if the act were rescinded by the demand for rescission of fraudulent act against the beneficiary; or
(ii) if the act prescribed in the preceding Article is rescinded (excluding the case of rescission pursuant to the provisions of Article 424-4): the beneficiary's claim against the obligor, which should have been restored pursuant to the provisions of the preceding Article if the act were rescinded by demand for rescission of fraudulent act against the beneficiary.
Article 425-2 If an act concerning the disposition of property conducted by the obligor (excluding an act concerning the extinguishment of an obligation) is rescinded, the beneficiary may demand that the obligor return the counter-performance that the beneficiary completed in order to acquire the property. If it is difficult for the obligor to return the counter-performance, the beneficiary may demand the reimbursement of its value.
