Machinery credit insurance

Japanese: 機械類信用保険 - きかいるいしんようほけん

In order to contribute to the modernization of facilities at small and medium-sized enterprises and the promotion of the machinery industry, the government acts as the insurer and enters into credit insurance (bad debt insurance) between machinery manufacturers or dealers. It is based on the Machinery Credit Insurance Act, which was promulgated in 1961 (the former Machinery Installment Credit Insurance Act was renamed in 1970). In the event that the dealer incurs unforeseen losses due to the bankruptcy of the buyer for individual installment sales contracts, purchase financing guarantee contracts, or lease contracts made by the dealer (non-payment of the purchase price in the case of installment sales, performance of the guarantee obligation to the financial institution in the case of loan sales based on a purchase financing guarantee contract, and non-payment of the lease fee in the case of a lease contract), 50% of the damage amount is compensated, and the remaining 50% is to be borne by the dealer himself/herself.

Source: Heibonsha World Encyclopedia, 2nd Edition Information

Japanese:

中小企業の設備近代化および機械工業の振興に資するため，政府が保険者になり，機械類の製造業者または販売業者との間に締結される信用保険(貸倒保険)。1961年に公布された〈機械類信用保険法〉(1970年に従来の〈機械類賦払信用保険法〉を改称したもの)に基づく。業者の行った個々の割賦販売契約，購入資金借入保証契約またはリース契約について買主の倒産等により業者が不測の損害(割賦販売のときは代金不払い，購入資金借入保証契約に基づくローン販売のときは金融機関への保証債務の履行，リース契約のときはリース料の不払い)があった場合にその損害額の50％を塡補（てんぽ）するものであり，残りの50％は自己負担としている。

出典　株式会社平凡社世界大百科事典第２版について　情報

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