(Indemnity of Losses)
Article 1. The Government shall indemnify to the persons engaged in coal mining, other mining and electric supply for losses, which were caused by reasons of the responsibility of which cannot be attributed to the persons and which were recognized as unavoidable for the securing of production, provided that such losses have occurred in coal mining enterprises during the period from July 6, 1947, to June 22, 1948, in enterprises of mining other than coal mining during the period from May 1, 1943, to July 31, 1948, and in electric supply enterprises during the period from November 1, 1946, to June 22, 1948.
2 The amounts to be indemnified by the Government in accordance with the provision of the preceding paragraph shall not exceed 10,794,000,000 yen in the total amount for coal mining,328,000,000 yen in the total amount for mining other than coal mining and 2,992,000,000 yen in the total amount for electric supply.
3 The amount to be indemnified in accordance with the provision of Paragraph 1 shall be fixed by the Minister of Commerce and Industry according to the standard to be fixed by the Minister of Commerce and industry after making negotiations with the Minister of Finance.
(Delivery of the Registered National Bond)
Article 2. The Government may settle the obligation of the indemnity of the preceding Article by delivery of the registered national bond.
2 The delivery price, term of redemption and and rate of interest of the registered national bond, which will be delivered for settlement in accordance which the provisions of the preceding paragraph, shall be as follows:
1. Delivery Price: 100 yen per face value 100 yen;
2 Term of Redemption: 10 years;
3. Rate of Interest: 5.5% per annum.
3 The Government may issue the national bond up to the amount necessary for settling, the obligation of the indemnity of the preceding Article.
(Repayment of Liabilities to the Finance Bank and Others)
Article 3. The person who will receive the indemnity in accordance with the provisions of Article 1 and who has specified liabilities designated by the Minister of Commerce and Industry to the Reconversion Finance Bank and parties mentioned on Appendix, shall repay the said liabilities according to the indications given by the said Minister and the Minister of Finance, with the right to receive the registered national bond as indemnity in accordance with the provisions of the same Article in the case designated by the Minister of Commerce and Industry.
2 The person as mentioned in the preceding paragraph may, in case he has liabilities to the Reconversion Finance Bank other than those mentioned in the said paragraph or has the liabilities designated by the Minister of Commerce and Industry to the person as mentioned in the Appendix, repay the said liabilities with the right as mentioned in the said paragraph.
3 The person as mentioned in the Appendix shall, when he has received the repayment under the provisions of the preceding two paragraphs, repay the liabilities to the Reconversion Finance Bank with the right as provided in Paragraph 1 as indemnity according to the indication given by the Minister of Commerce and Industry and the Minister of Finance.
4 The amount of the liabilities which will be extinct by the repayment of the preceding three paragraphs, shall be deemed to be equal to the face value of registered national bond certificates which was appropriated for the repayment.
(Redemption of the Reconversion Finance Bank Bond)
Article 4. The Reconversion Finance Bank may appropriate the registered national bond received as the repayment in accordance with the provisions of the preceding Article, to redeem the Reconversion Finance Bank Bond owned by the Bank of Japan.
2 The amount of the Reconversion Finance Bank Bond redeemed in accordance with the provision of the preceding paragraph shall be deemed to be equal to the face value of the registered national bond certificates appropriated for the redemption.
(Special Cases of Tax Laws)
Article 5. The amount of indemnity received in accordance with the provisions of Article 1 for the loss occurred in the business year beginning more than one year prior to the first day of the business year during which the said indemnity was paid, shall not be deemed to be profit in the computation of income for the imposition of income under the Corporation Tax Law (Law No.28 of 1947) and of enterprise tax under the Local Tax Law (Law No.110 of 1948), provided that the said loss has not yet been deducted, as such, from gross profits.