Junior Liens in Secured Transactions: A Comparative Study between American Law and Japanese Law

2016 Fiscal Year Final Research Report

• Project/Area Number: 26380137
• Research Category: Grant-in-Aid for Scientific Research (C)
• Allocation Type: Multi-year Fund
• Section: 一般
• Research Field: Civil law
• Research Institution: Waseda University
• Principal Investigator: Aoki Noriyuki 早稲田大学, 法学学術院, 教授 (30350416)
• Project Period (FY): 2014-04-01 – 2017-03-31
• Keywords: 譲渡担保 / 後順位 / 実行 / 消除主義 / 引受主義 / ABL / モーゲージ / UCC第9編

Outline of Final Research Achievements

Under Japanese Law, a Junior Lien　in　a　Secured　Transaction　can　be　created　and　perfected,　but　cannot　be　foreclosed.　Only if the Senior Lienor decides to foreclose the senior lien, the Junior can seize the debtor's claim for surplus, by which the Junior can realize its lien. Japanese Supreme Court points out if the Junior is eligible to foreclose the junior security interest it will harm the Senior because the senior lien is to be extinguished in the foreclosure started by the Junior without any legal dividing procedure, under Japanese Civil Procedure Law. In this research project, I suggest that Japanese Law should accept the idea that the Junior Lien never extinguish the senior lien in the foreclosure, learning from the American law.

Free Research Field

民法