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Registration for Assignment of Movables

To avoid immediate acquisitions by third parties, creditors may utilize the provisions regarding registration for assignment of movables. The Act on Special Provisions, etc. of the Civil Code Concerning the Perfection Requirements for the Assignment of Movables and Claims (Dosan Saiken Joto Tokurei Ho), states that when a registration of assignment is made in a movables assignment registration file, the movables are deemed to have been delivered as set forth in Article 178 of the Civil Code.[1]

A registration of assignment of movables follows an application of the assignor and assignee once the following matters in a movables assignment registration file are recorded: (i) the name and address of the assignor (in the case of a juridical person, its trade name or other name and its main office or principal office); (ii) the name and address of the assignee (in the case of a juridical person, its trade name or other name and its main office or principal office); (iii) if the main office or principal office of the assignor or the assignee is located in a foreign country, its business office or other office located in Japan; (iv) the cause of registration regarding the registration of assignment of movables and the date thereof; (v) any matters necessary for identifying the assigned movables, which are specified by Ordinance of the Ministry of Justice; (vi) the duration of the registration of assignment of movables; (vii) the registration number; and (viii) the date of registration.[2]

The registration does not certify the existence of the movables or the assignor’s ownership; however, it does provide notice of the assignment of the movables.

In contrast to the International Registry System, this registration is searched by the name of assignor.

Retention of Title and Lease

In the case of retention of title or lease, because there is no transfer of ownership, sellers or lessors are not required to perfect their rights for asserting them against a third party. Furthermore, they cannot utilize the provisions regarding registration of assignment of movables because there is no assignment.

However, a third party may acquire the ownership by immediate acquisition. Therefore, sellers and lessors have been known to put nameplates on the collaterals to provide notice of their rights to a third party.

  • [1] Article 3(1) of Act on Special Provisions, etc. of the Civil Code Concerning the PerfectionRequirements for the Assignment of Movables and Claims (Dosan Saiken Joto Tokurei Ho).
  • [2] Article 7(2) of the Act on Special Provisions, etc. of the Civil Code Concerning the PerfectionRequirements for the Assignment of Movables and Claims (Dosan Saiken Joto Tokurei Ho).
 
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