I hereby give My sanction to the Imperial Ordinance concerning the partial amendments to be made to the Enforcement Ordinance of the Special Law relative to the Bank Law, and cause the same to be promulgated.
Signed: HIROHITO, Seal of the Emperor
This fourteenth day of the fourth month of the twenty-second year of Showa (April 14, 1947)
Countersigned: Prime Minister YOSHIDA Shigeru
Minister of Finance ISHIBASHI Tanzan
Imperial Ordinance No. 125
Part of the Enforcement Ordinance of the Special Law relative to the Bank Law shall be amended as follows:
Article 4-(2). The savings banks are authorized to make the invitation of subscription to the debentures issued, or to conduct the business of payment of the interest and principal.
Article 4-(3). The savings banks are authorized to respond to the invitation of subscription to the debentures issued by the juridical persons established by virtue of special laws and ordinances, to undertake their floatation, or to buy in the same debentures.
Article 4-(4). The savings banks are authorized to make loans of securities on the pledge of the national bonds, local bonds, debentures, shares, deposits or immovables.
As regards the shares to be accepted as pledges, in accordance with the provisions of the preceding paragraph, the stipulations of paragraph 2 of Article 11 of the Savings Bank Law may be applicable, with the necessary modifications.
The total amount of the loans made in accordance with the provisions of paragraph 1, combined with the total amount of the loans as provided for by paragraph 1, Article 4-(6), shall not exceed three-tenths of the paid-in sum as provided for in paragraph 1 of Article 1, as well as items 1, 5, and 6, of Article 5, of the Savings Bank Law (hereinafter to be referred to as the deposits, etc., at the savings banks).
The amount of the deposits, etc., at the savings banks mentioned in the preceding paragraph is fixed and determined on the basis of the figures actually standing on the last day of the preceding business year.
Article 4-(5). The savings banks are authorized to make loans to the juridical persons who have under contemplation the issue of corporation debentures and other kinds of debentures, under the condition that the repayment will be made with the funds expected to be obtained by the floatation of the debentures concerned.
The total amount of the loans to be made by virtue of the provisions of the preceding paragraph is not allowed to exceed the total amount of the paid-in capital and the reserve funds of the savings banks concerned, except in the case where the sanction of the competent Minister has been obtained.
Article 4-(6). The savings banks are authorized to make loans as provided for in item 2 or 3 of paragraph 1 of Article 11 of the Savings Bank Law within the limits of 3/10 of the deposits, etc. of the banks.
Of the total amount of loans as provided for in the preceding paragraph the total amount of loans as provided for in item 3 of paragraph 1 of Article 11 of the Savings Bank Law shall, with the total amount of loans as provided for in item 7 of the same paragraph, be within the limits of 1/10 of the deposits, etc. of the savings banks.
The savings banks are authorized to make loans as provided for in item 8 of paragraph 1 of Article 11 of the Savings Bank Law within the limits of 1/20 of the deposits, etc. of the banks.
Loans as provided for in the preceding paragraph shall be less than ¥ 50,000 per person and guaranteed by two or more reliable persons.
The provisions of paragraph 4 of Article 4-(4) shall apply mutatis mutandis in respect to the amount of the deposits, etc. of the savings banks as under paragraphs 1 to 3 inclusive.
Article 4-(7). The savings banks are authorized, within the limits of 3/10 of the deposits, etc. thereof, to deposit money in banks, trust companies and other financial institutions designated by the competent Minister, put their property in trust or purchase bills accepted by banks, trust companies and other financial institution designated by the competent Minister.
The provisions of paragraph 4 of Article 4-(4) shall apply mutatis mutandis in respect to the amount of the deposits, etc. of the savings banks.
In Article 6, "and Article 10 (including cases where application is made mutatis mutandis under paragraph 2 of Article 17 of the Savings Bank Law)" shall read "Article 10 (including cases where application is made mutatis mutandis under paragraph 2 of Article 17 of the Savings Bank Law), paragraph 1 of Article 13 and Article 14," and next to the same Article the following paragraph shall be added:
The provisions of paragraph 2 of Article 11 of the Savings Bank Law shall not apply in respect to corporation debentures as provided for in paragraph 1 of the same Article.
Supplementary Provision:
The present Ordinance shall come into force as from the day of its promulgation.