Article 1. The term "financial institutions" in this law shall mean bank, trust company, insurance company, mujin company, the Central Bank for Agriculture and Forestry, the Central Bank for Commerce and Industry Union the Pension Bank, the People's Bank, local agricultural association (Nogyo-kai), fishery association (Gyogyo-kai), credit union in urban district and other institutions engaged in the business of accepting deposit and/or making loans. The term "rate of interest" in this law shall mean rate of interest on deposit or savings, yields of instalment time deposit and of interest on mujin deposit, dividend of designated monetary trust, rate of interest on loan, discount rate, rate of interest on overdraft, rate of interest on call loan or call money and commission for subscription of security, rebate and other rates similar to them, which are actually charged or paid by the financial institutions in all or every part of the country.

Article 2. For the time being, the Finance Minister shall be authorized, when general interests of the economy require, to order the Governor of the Bank of Japan to decide the maximum rates of interest of the financial institutions, provided however, that this provision shall not be applicable to the financial institutions whose maximum rate of interest can be regulated by other laws. The Finance Minister shall be authorized, when general interests of the economy require, to order the Governor of the Bank of Japan to alter or to abolish the maximum rates of interest which the Governor of the Bank of Japan decided in accordance with the preceding paragraph. This provisions is applicable to the maximum rates of interest which has been already altered. The Governor of the Bank of Japan must request advise of the Rate Adjustment Committee (hereinafter referred to as the Committee) when he decides, alters or abolishes the maximum rates of interest under the above paragraphs. The Finance Minister must make a notification when he makes the Governor of the Bank of Japan decide, alter or abolish the maximum rates of interest in accordance with paragraph 1 or 2.

Article 3. In case when the Governor of the Bank of Japan decides the maximum rates of interest of the financial institution according to paragraph 1 or 2 of the preceding Article, he is authorized to decide the different maximum rates of interest applicable to different financial institutions, or to different districts.

Article 4. Maximum rates of interest as established under this law shall be maintained in close relationship to general money market conditions.

Article 5. In case where the maximum rates of interest for financial institutions are determined in accordance with this law, the financial institutions shall not make contract for, pay or receive interest exceeding the maximum rate. It is quite free for the financial institution to make contract with third parties for pay or receive interest less than the maximum rate.

Article 6. The Committee is under the supervision of the Finance Minister and, when requested by the Governor of the Bank of Japan, investigates and confers on the matters offered by the Governor of the Bank of Japan, and reports its findings to the Governor of the Bank of Japan. The Committee may present at any time to the Finance Minister or the Governor of the Bank of Japan its opinion as to the rates of interest of the financial institutions.

Article 7. The Committee shall consist of fifteen members. One of the members shall be the chairman. The chairman shall be elected by mutual voting of its members.

Article 8. The members shall be composed as follows: 1. The Chief of the Banking Bureau of the Finance Ministry; 2. The Chief of the Finance and Banking Division of the Economic Stabilization Board; 3. The Vice-Governor of the Bank of Japan; 4. Seven representatives of financial circle; 5. Three representatives of industrial circle; 6. Two persons of learning and experience. Members referred in above 4, 5 and 6, shall be appointed by the Finance Minister. In selecting them, he shall pay attention to geographical considerations, and secure representation for varied interests of the economy not specifically provide for such as labor and agriculture. The term of membership referred in the preceding paragraph items 4 to 6 inclusive and shall be one year, provided, however, that it is permissible to discharge members who are sentenced to confinement or heavier punishment, and who become unable to perform their duty because of illness. In case post of a member is vacant, appointment of a substitute member shall be made promptly. A substitute member holds his membership during the remainder of term of his predecessor.

Article 9. The chairman presides over the business of the Committee. When the chairman cannot preside owing to unavoidable circumstagces, one of the members nominated by the chairman acts for him.

Article 10. All deliberation of the Committee shall be confidential.

Article 11. In the Committee, there shall be some clerks. The clerks shall be appointed from among the staff of the Bank of Japan by the Finance Minister. The clerks are in charge of general affairs of the Committee.

Article 12. When a member or a clerk of the Committee or one who has been a member or a clerk of the Committee divulges or plagiariges secrets of deliberations of the Committee, he shall be punished with imprisonment not more than one year or fine not exceeding 5,000 yen.