Section VI. Procedures for Distribution by Court
487. (Which court is to implement distribution)
The court to implement distribution shall be the court of first instance to which the
bailiff belongs in the case of execution against movables, and the execution court in
other cases.
488. (Preparations for distribution)
1. Upon the arising of any of the grounds described below, the court that is to carry
out the distribution shall set a date for distribution and send notice of the date,
time and place thereof to the creditors entitled to distribution and to the debtor:
(a) if in a case of execution against movables, the ground for deposit has been
extinguished, in a case where there has been a report to a court under
Paragraph 1 Article 400 (Deposit by bailiff with the court) or there has been
a report under Article 401 (Report to court of first instance);
(b) if in a case of execution against a claim or other property rights, there has
been a deposit (payment into court) under Article 412 (Collection Suits), a
sale has been carried out pursuant to an order for sale under Article 413
(Ruling ordering sale) or the proceeds of sale have been submitted under
Paragraph 2 of Article 414 (Execution of ruling of attachment of right to
demand delivery of movables) ;
(c) if in a case of execution against an immovable, there has been payment of
the sale price under Paragraph 1 of Article 447 (Payment of the price) or an
application under the first sentence of Paragraph 3 of Article 447 (Payment
of the price) has been made and a ruling permitting sale has become final
and binding; or
(d) if in a case of execution against a vessel, there has been payment of the sale
price under Article 479 (Payment of the price).
2. When the date of distribution has been fixed, the court clerk shall send a notice to
each creditor to submit within one week, to the court that is to carry out the
distribution, a statement of accounts indicating the principal of the claim, the
interest until the date of distribution and the amount of execution costs.
489. (Implementation of distribution)
1. The court charged with distribution shall implement distribution in accordance
with the distribution schedule in cases prescribed in Paragraph 1 of Article 488
(Preparations for distribution); provided that it shall not be necessary to follow the
distribution schedule in cases prescribed in Paragraph 2.
2. If there is only one creditor, or where there are two or more creditors but the
amount to be appropriated to distribution is sufficient to satisfy the claim of each
creditor and the whole of the execution costs, the court responsible for distribution
shall effect distribution to the creditor or creditors and deliver any surplus to the
debtor in execution.
3. If after the time for distribution has arrived a document listed in Items (a) to (g) of
Paragraph 1 of Article 370 (Stay and cancellation of execution) is filed, and there
are creditors entitled to distribution other than the creditor(s) in execution, the
court charged with distribution shall effect distribution to such creditors.
4. Even if after the time for distribution has arrived a document listed in Items (a) or
(b) of Paragraph 2 of Article 370 (Stay and cancellation of execution) is filed, the
court charged with distribution shall carry out distribution to such creditors.
490. (Preparation of distribution schedule)
1. The court responsible for distribution shall prepare a distribution schedule on the
date of distribution except as providing in Paragraph 2 of Article 489
(Implementation of distribution).
2. On the date of distribution, the court shall summon the creditors in execution set
forth below, together with the debtor(s) in execution:
(a) Execution against movables Creditors prescribed in Article 398 (Scope of
creditors entitled to distribution)
(b) Execution against claims and
other property rights
Creditors prescribed in Article 415 (Scope of
creditors eligible for distribution)
(c) Execution against immovables Creditors prescribed in Article 453 (The scope of
creditors entitled to distribution)
(d) Execution against vessel Creditors prescribed in Article 486 (The scope of
creditors entitled to distribution)
3. For the purpose of preparing the distribution schedule, the court shall examine the
creditors and debtor(s) in execution who appear at court on the date of distribution,
and shall verify such documentary evidence as can be verified on the spot.
4. The claim principal, the interest and other incidental claims, amount of execution
costs, priority of distribution and amount shall be noted alongside the following
amounts:
(a) Execution against movables Amount of proceeds of sale of attached articles and
amount of money attached
(b) Execution against claims and
other property rights
Amount to be distributed
(c) Execution against immovables Amount of proceeds of sale
(d) Execution against vessel Amount of sale price
5. The priority and amount of distribution prescribed in Paragraph 4 shall be
recorded in accordance with the agreement of all the creditors on the date of
distribution, if such agreement is achieved, and in other cases in accordance with
the provisions of the Civil Code, Commercial Code or other relevant law.
6. For the purposes of distribution, claims subject to a certain time stipulation which
have not matured shall be deemed to have matured.
491. (Objection to entry in distribution table)
1. Any creditor, or any debtor in execution, who is dissatisfied with the claims of
creditors or the amounts for distribution noted in a distribution table, may state an
objection on the date of distribution.
2. The court responsible for implementing the distribution shall proceed to
distribution of that portion of the distribution table to which there is no objection.
3. If a creditor in execution or creditor who has submitted a demand for distribution
by virtue of an authenticated copy of enforceable title of execution receives
payment of the whole of his/her claim, the debtor in execution may demand that
the court clerk deliver up to him/her the authenticated copy of enforceable title of
execution submitted by such creditor.
4. Where the case has finished, in circumstances other those described in Paragraph 3,
the creditor described therein may demand that the court clerk deliver up to
him/her the authenticated copy of enforceable title of execution; provided that if
such creditor receives partial payment of his/her claim, the court clerk shall note
such amount on the authenticated copy prior to delivering it up.
492. (Suit of objection by creditor who has stated an objection to the contents of a
distribution table)
1. A creditor who has stated an objection to any entry in a distribution table shall file
a suit of objection to such entry, naming the other party to the motion of objection
as the defendant.
2. The court that is to effect the distribution shall have jurisdiction over suits
described in Paragraph 1.
3. Unless a creditor who has stated an objection to an entry in a distribution table
proves, not later than one week following the date of distribution, that the creditor
has filed a suit described in Paragraph 1, the objection shall be deemed to have
been withdrawn.
4. If a court finds in its judgment in a suit under Paragraph 1 that the objection is
well founded, it shall cancel the distribution table in order that an amended or new
distribution table may be prepared.
493. (Suit of objection by debtor in execution to contents of table of distribution)
1. A debtor in execution who has stated an objection to any entry in a distribution
table against a creditor holding an authenticated copy of enforceable title of
execution shall file a suit of objection to claim, naming the creditor who is the
other party to the motion of objection as the defendant.
2. A debtor in execution who has stated an objection to any entry in a distribution
table against a creditor who does not hold an authenticated copy of enforceable
title of execution shall file a suit of objection to distribution, naming the creditor
who is the other party to the motion of objection as the defendant.
3. The court that is to effect the distribution shall have jurisdiction over suits
described in Paragraph 2.
4. Unless not later than one week following the date of distribution, a debtor in
execution who has stated an objection to an entry in a distribution table proves the
filing of a suit described in Paragraph 1 and files an authenticated copy of a
decision staying execution by virtue of such suit, or proves the filing of a suit
described in Paragraph 2, the objection shall be deemed to have been withdrawn.
5. If the court that is to execute the distribution finds in its judgment under Paragraph
2 that the objection is well founded, it shall cancel the table of distribution in order
to amend it or prepare a new table.
494. (Retention of amount of distribution)
1. If any of the following grounds applies to a claim to which a creditor is entitled,
the court that is to implement the distribution shall retain such amount:
(a) the claim is subject to a condition precedent or uncertain time stipulation;
(b) the claim belongs to a provisional attachment creditor;
(c) a document listed in Paragraph 2, Item (a) of Article 370 (Stay and
cancellation of execution) has been submitted;
(d) an authenticated copy of a decision temporarily enjoining the exercise of a
lien, pledge or hypothec relating to the claim has been submitted; and/or
(e) a suit of objection to an entry in a distribution table has been filed under
Paragraph 1 of Article 492 (Suit of objection by creditor who has stated an
objection to the contents of a distribution table) or Paragraph 2 of Article 493
(Suit of objection by debtor in execution to contents of table of distribution).
2. The court that is to execute the distribution shall retain the amount of distribution
to any creditor who fails to appear at the court to receive such distribution.
495. (Implementation of distribution upon confirmation of rights, etc.)
1. If the ground of retention of distribution under Paragraph 1 of Article 494
(Retention of amount of distribution) disappears, the court that is to implement
distribution shall proceed to distribute the retained money.
2. Where distribution is to be carried out under Paragraph 1, the court that is to
implement distribution shall alter the distribution table even on behalf of creditors
who have not stated an objection to an entry in the distribution table in the
following cases:
(a) if it is no longer possible to make a distribution to a creditor whose
distribution has been retained for a cause described in Items (a) through (d)
of Paragraph 1 of Article 494 (Retention of amount of distribution);and/or
(b) if a creditor whose distribution has been retained for a reason described in
Item (e) of Paragraph 1 of Article 494(Retention of amount of distribution)
loses in a suit of objection to an entry in the distribution table filed by the
debtor in execution under Paragraph 2 of Article 493 (Suit of objection by
debtor in execution to contents of table of distribution).
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