{"id":52602,"date":"2025-10-13T10:07:41","date_gmt":"2025-10-13T10:07:41","guid":{"rendered":"https:\/\/my.legal500.com\/developments\/?post_type=legal_developments&#038;p=52602"},"modified":"2025-10-22T09:52:42","modified_gmt":"2025-10-22T09:52:42","slug":"the-new-act-on-security-interests-by-assignment-significant-changes-to-security-interests-over-movables-and-receivables-impact-on-priority-and-perfection-rules","status":"publish","type":"legal_developments","link":"https:\/\/my.legal500.com\/developments\/thought-leadership\/the-new-act-on-security-interests-by-assignment-significant-changes-to-security-interests-over-movables-and-receivables-impact-on-priority-and-perfection-rules\/","title":{"rendered":"The New Act on Security Interests by Assignment &#8211; Significant Changes to Security Interests over Movables and Receivables: Impact on Priority and Perfection Rules"},"content":{"rendered":"<h2><strong>I. Introduction<\/strong><\/h2>\n<p><strong>The Act on Contracts for Security Interest by Assignment and Retention of Title (the &#8220;Act&#8221;), enacted on May 30, 2025, and promulgated on June 6, 2025, is expected to take effect by 2027 (within two years and six months from its promulgation date).<\/strong><\/p>\n<p><!--more--><\/p>\n<p>The Act introduces significant changes to the legal framework for \u201csecurity interests by assignment\u201d (jou-to tanpo) over movables and receivables in Japan. This newsletter highlights three key aspects of the Act that are anticipated to substantially impact practice: (1) the express recognition of the ability to create subordinate (junior) security interests by assignment; (2) the new rule subordinating perfection by constructive transfer with retention of possession (sen-yu kaitei; hereinafter \u201cConstructive Transfer\u201d) to other methods; and (3) a transitional measure that preserves the priority of pre-enactment Constructive Transfer.<\/p>\n<p>View original article<a href=\"https:\/\/www.noandt.com\/en\/publications\/publication20250926-2\/\"> here<\/a>.<\/p>\n<p>Author: Ryuji Oka, Partner<br \/>\n+81-3-6889-7266\u00a0 ryuji_oka@noandt.com<\/p>\n<p>Ryuji Oka is a partner at Nagashima Ohno &amp; Tsunematsu. He has extensive experience in handling acquisition finance transactions. He has been heavily involved in numerous restructuring and insolvency transactions, particularly in distressed finance and debtor-in-possession (DIP) financing, while handling a wide range of corporate legal matters, with a focus on finance transactions. More recently, he has expanded his practice to cover emerging sectors such as agriculture, forestry, and fisheries.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-52602","legal_developments","type-legal_developments","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/legal_developments\/52602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/legal_developments"}],"about":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/types\/legal_developments"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/developments\/wp-json\/wp\/v2\/media?parent=52602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}