Article 1. Those vessels, which have been abandoned on or after August 15, 1945, or shall hereafter be abandoned, within the territorial waters of, or on the coast of Japan, and which are, after suitable investigation, designated by the Minister of Transportation as abandoned vessels (hereinafter called "DESIGNATED VESSELS" ), shall be disposed of in accordance with the provisions of this Law without regard to any other existing Law or Ordinance.
The Designation of Abandonment mentioned in the preceding paragraph shall be made in the form of a Notification.
The designation mentioned in Paragraph 1 shall not be made with respect to any vessel which is known to have, or may reasonably be presumed to have, the nationality of any one of the United Nations, nor with respect to any vessel which is to be subject to confiscation under the provisions of other Laws and Ordinances.
Article 2. When the designation specified in Paragraph 1 of the preceding Article has been made, the Marine Authorities shall take custody of the designated vessel.
The Marine Authorities shall, according to the provisions of Order, make a public notice to the effect that the vessel has been designated as abandoned, notifying thereby the persons specified below at the same time of their right to make application for return of the designated vessel, or for payment, as provided in this Law, within three months of the date of publication of the public notice, and likewise informing the owner that he may claim return of the vessel, without cost, within the 30-day period as provided in Paragraph 3 of this Article 2 (hereinafter called the grace period). In case any such persons are known or discovered, the Marine Authorities shall further notify them individually, in writing, of their rights under this Law. The persons entitled under the above provisions are:
1. The owner of a designated vessel;
2. The person having a security right on a designated vessel;
3. The person who has found a designated vessel after its apparent abandonment;
4. The person who has taken custody of a designated vessel according to the instruction of public agencies after its apparent abandonment;
5. Any person who has suffered damage or injury by a designated vessel after its apparent abandonment.
The owner of a designated vessel or his agent who has made application for its return in accordance with the provisions of the preceding paragraph, may, within 30 days following the date of public notice or the date of individual notification, whichever is later in date, as provided for in the same paragraph, claim the delivery of the said designated vessel to the Marine Authorities. The vessel shall be returned immediately to the owner. In this case, the owner of the said designated vessel need not bear the expenses as specified in Article 3, nor are the persons specified in this Article, Paragraph 2, Items 3 and 4 entitled to the payment of the sum as specified in Article 3, Paragraph 1, Items 2 and 3.
The provisions of the preceding paragraph shall not apply to the vessel which has been reported as an abandoned vessel to the Marine Authorities prior to the date of the enforcement of this Law and whose owner has not yet been discovered by the Marine Authorities'investigation.
Article 3. The owner of a designated vessel who has made application for its return in accordance with the provisions of Paragraph 2 of the preceding Article and who has failed to claim the delivery of the designated vessel within the grace period may, within three months following the expiration of the period during which the application for its return is to be made as specified in the same paragraph, claim the delivery thereof to the Marine Authorities. In this case, the following expenses shall be borne by the owner of the said designated vessel:
1. A sum equal to the costs incurred by the Marine Authorities on account of making the public notice and the notification and taking the designated vessel into custody;
2. A sum equal to one-tenth of the value of the said designated vessel, if any of the persons falling under Paragraph 2, Item 3 of the preceding Article has made application for payment according to the provisions of the same paragraph;
3. A sum equal to the costs of reasonable rescue, salvage or maintenance repairs, if any, actually incurred by those falling under Paragraph 2, Item 4 of the preceding Article, who have made application for payment according to the provisions of the same paragraph;
4. A sum equal to the cost for making the appraisal as specified in the provisions of Paragraph2.
The value of a designated vessel referred to in Item 2 of the preceding paragraph shall be the fair, current value estimated by an appraiser, appointed by the Minister of Transportation.
The Marine Authorities shall not deliver the said designated vessel to her owner, until and unless they have received the entire amount as provided for in Paragraph 1;except that the Minister of Transportation may extend the period for payment for a period of ninety days when in his discretion he deems this necessary to avoid hardship and injustice.
Article 4. When no claim has been made by the owner for the delivery of a designated vessel under the provisions of Article 2, Paragraph 2 and Article 3, Paragraph 1, the Marine Authorities shall, according to the provisions of Order, sell the said vessel at a public sale to those of the persons engaging in shipping, fishing or any other legitimate business closely connected with maritime enterprises who are deemed by the Marine Authorities as appropriate and responsible. In this case, the Marine Authorities shall cause an appraiser, appointed by the Minister of Transportation, to fix the fair, current value, which shall be the minimum price at the public sale.
Any previous right, in a designated vessel shall lapse with the sale as mentioned in the preceding Paragraph, and the purchaser thereof shall acquire absolute ownership.
The purchaser of a designated vessel at a public sale, in accordance with the provisions of paragraph 1, shall be entitled to get registered as the true owner of the said vessel under the provisions of Order.
Article 5. When the Marine Authorities have received either payment from the owner under Article 3, Paragraph 1, or proceeds from the sale under Paragraph 1 of the preceding Article, the authorities shall, without delay, pay the sum specified in Article 3, Paragraph 1, Items 2 and 3, to those of the persons specified in Article 2, Paragraph 2, Items 3 and 4 who have made application for payment under the provisions of the same paragraph.
The sum specified in Article 3, Paragraph 1, Items 1 and 4 shall become the property of the National Treasury from the time when the Marine Authorities have received either the sum specified in the same paragraph or the proceeds of the sale effected by virtue of Paragraph 1 of the preceding Article. The sum equal to the costs required for the sale as provided for in Paragraph 1, of the preceding Article shall become the property of the National Treasury from the time when the Marine Authorities have received the proceeds of the sale effected by virtue of Paragraph 1 of the same Article.
Article 6. When a person coming under either of Article 2, Paragraph 2, Item 2 or Item 5 has made application for payment in accordance with the provisions of the same paragraph, the Marine Authorities shall deposit with the Deposit Bureau the balance obtained by deducting from the sum of proceeds from the sale under the provisions of Article 4, Paragraph 1, the sums referred to in Article 3, Paragraph 1 and the sum corresponding to the costs required for the sale as provided for in Article 4, Paragraph 1 (hereinafter called the Balance).
Article 7. Those of the persons falling under either of Article 2, Paragraph 2, Item 2 or Item 5 who have made application for payment according to the provisions of the same paragraph may, within two years following the date of the sale effected by virtue of the provisions of Article 4, Paragraph 1, exercise his right upon the sum deposited in accordance with the provisions of the preceding Article. In this case, a person who comes under Article 2, Paragraph 1, Item 2 shall take priority to a person who falls under Item 5 of the same paragraph.
In case where there are many persons falling under Article 2, Paragraph 2, Item 5 and the sum deposited according to the provisions of the preceding Article is not sufficient to pay the total claimed sum, they may exercise their rights in proportion to their respective sum of claim.
Article 8. When persons mentioned in Article 2, Paragraph 2, Items 2 and 5 have made no applications as provided for in the same paragraph, the balance shall become the property of the National Treasury from the time when the Marine Authorities have received the proceeds of the sale effected by virtue of Article 4, Paragraph 1.
In case any person specified in Article 2, Paragraph 2, Item 2 or Item 5 has made application, according to the provisions of the same paragraph, the sum deposited according to the provisions of Article 6 shall become the property of the National Treasury after the expiration of the period as provided for in Article 7, Paragraph 1, deducting such sum as paid to the claimants according to the provisions of the preceding Article.
Article 9. The Marine Authorities may keep, as funds separate and apart from budget funds, the sums specified in Items 2 and 3 of Paragraph 1 of Article 3, up to the time of payment in accordance with the provisions of Article 5, Paragraph 1 and the sum constituting the balance up to the time when the same is deposited with the Deposit Bureau in accordance with Article 6 hereof.
Article 10. In the event the true owner of a designated vessel has been discovered to be a national of one of the United Nations after the designation as mentioned in Article 1, Paragraph 1, such owner may claim the delivery of the said vessel on presentation of adequate proof of ownership, and the vessel will then be delivered to him free and clear of any of the costs or expenses mentioned in Article 3, Paragraph 1.
In the case contemplated in the preceding paragraph, if a designated vessel has already been sold in accordance with the provisions of Article 4, Paragraph 1, the person specified in the preceding paragraph may, within five (5) years following the date of the sale effected by virtue of the provisions of Article 4, Paragraph 1, claim the delivery of the designated vessel in accordance with the provisions of the preceding paragraph. If, in this case, a claim has been made for the delivery of the designated vessel, the Marine Authorities may be relieved of the duty of delivery by paying the full amount of proceeds of the sale thereof to such a person as is specified in the preceding paragraph.
The provisions of the two preceding paragraphs shall not apply to the case where the person designated in Paragraph 1 abandoned his ownership, or where the owner has acquired the nationality of the United Nations, or a United Nations'national has acquired the ownership of such designated vessel, after the vessel has been designated according to the provisions of Article 1, Paragraph 1.
Article 11. In case where the person who is the true owner of a vessel sold under the provisions of Article 4, Paragraph 1 and who is not the national of any of the United Nations has been unable to make the application as specified in because of his temporary absence from Japan, Article 2, Paragraph 2, the person may, within six (6) months of his return to Japan, upon presentation of adequate proof of absence to the Minister of Transportation, claim the Marine Authorities for the payment of the sum which has become the property of National Treasury in accordance with the provisions of Article 8.