Article 1.　The People's Finance Corporation shall have as its object the replacement of those functions of the People's Bank and the Pension Bank which should be continued, thereby providing means for the advancement of business capital fund to those worthy persons who are not in a position to obtain credit from banks or other private credit organizations.

Article 2.　The People's Finance Corporation (hereinafter called "the Corporation" ) shall be a juridical person of public law. It shall not be considered to be a commercial company within the meaning of Article 35 of the Civil Code (Law No.89 of 1890) or of the provisions of the Commercial Code (Law No.48 of 1899) concerning commercial companies and associations.

Article 3.　The Corporation shall have its principal office in Tokyo-to.

2　The Corporation may establish its branch offices at such place as are approved by the Minister of Finance, but not exceeding one branch office in each prefecture with the exception of Tokyo-to, Hokkaido and Fukuoka Prefecture where it may have two branches each.

Article 4.　The Corporation is authorized, with the approval of the Minister of Finance, to issue a power of attorney to private financial institutions so that they can act as its agents to perform a part of its business.

2　The Corporation shall issue to its agents the loan regulation standards to be followed in making all loans for the Corporation.

Article 5.　The authorized capital of the Corporation shall be one billion three hundred million yen (1,300,000,000 yen) provided that the capital of the Corporation may be increased upon the approval of the Diet.

2　The capital of the Corporation shall be subscribed by the Government in full amount.

3　The funds invested to the Corporation by the Government shall be used for making small loans as prescribed by Article 18, except in case specifically provided for in Article 23, in case of acquiring immovable assets for carrying on its business within the amount approved by the Diet, and in cases of redemption of borrowing from the Bank of Japan which has succeeded to the People's Bank and appropriation of expenditure after the approval of the Diet.

Article 6.　The Corporation shall be registered as prescribed by Cabinet Order.

2　Matters required to be registered in accordance with the preceding paragraph shall have no binding force on a third party before such registration.

Article 7.　The Corporation shall be free from the income and corporation taxes.

Article 8.　Persons other than the Corporation shall not be allowed to use the name of the People's Finance Corporation or any other similar name.

Article 9.　The provisions of Articles 44, 50 and 54 of the Civil Code shall apply correspondingly to the Corporation.

Article 10.　The People's Finance Council (hereinafter called "the Council" ) shall be set up in the Ministry of Finance in order to make advices on the important matters of the business management of the Corporation at the request of the Minister of Finance, besides the recommendation prescribed in Article 13, Paragraph 1, and the approvals prescribed in Article 18, Paragraph 1, Article 19, Paragraph 2, Article 20, Article 24 and Article 29, Paragraph 2. The Council may make advices on the matters of business management of the Corporation, on its own initiative, to the Minister of Finance.

2　The Council shall consist of nine members.

3　The members shall be appointed as follows:

4　The members stipulated in the preceding paragraph shall be appointed by the Minister of Finance, upon the recommendation submitted by the Currency Issue Investigation Council and upon the approval of the Cabinet.

5　In appointing the members, appropriate consideration shall be given so that the interest of citizens of all the regions of the country may be represented.

6　One of the members shall be the chairman who is elected by the members from among themselves.

7　The term of office of the members shall be two years;provided that at the time of creation of the Council, the term of office of half of the members provided for in Paragraph 3, Item 2 and that of one of them provided for in said paragraph Item 3 shall be one year respectively.

8　Any member of the Council who becomes physically or mentally incapacitated or otherwise disqualified to perform the duties and responsibilities of their office, may be removed from office by the Minister of Finance after the approval of the Currency Issue Investigation Council

9　In case of vacancy of members, appointmen of substitute member shall be made within two months. A substitute member shall be in office during the remaining term of his predecessor.

10　The members may be reappointed.

11　The Chairman and other members shall not be paid for service;provided that they may be paid a reasonable per diem equivalent to the time spent in order to attend meetings of the Council or spent in special service to the Council, and travelling expenses to and from such meetings or when assigned to such service.

12　The Meeting of the Council shall be held at least four times a year.

13　In addition to the provisions of the preceding paragraphs, administrative matters necessary for the operation of the Council may be prescribed by Cabinet Order.

Article 11.　The Corporation shall have, as its officers, a President, a Vice-president, four Directors and two Auditors.

Article 12.　The President shall represent the Corporation and shall preside over its business.

2　The Vice-president shall represent the Corporation when directed by the President, assist the President in the management of the corporate business, act on behalf of the President in case of the latter's disability, and act as President in case of a vacancy in the office of President.

3　Directors shall represent the Corporation when directed by the President, assist the President and the Vice-president in the management of its business, act on behalf of the President of the Vice-president in case of the disability, and act as President or Vice-president in case of a vacancy in those positions.

4　Auditors shall audit the business of the Corporation.

Article 13.　The President and the Auditors shall be appointed by the Minister of Finance on the recommendation of the Council and on the approval of the Cabinet.

2　The Vice-president and the Directors shall be appointed by the President with the approval of the Minister of Finance.

Article 14.　The term of office for the President, Vice-president, Directors and Auditors shall be four years;provided that the term of office of half of Directors and Auditors of initial appointment shall be two years.

2　The President, Vice-president, Directors and Auditors may be reappointed.

3　In case of vacancy of President, Vice-president, Director or Auditor, appointment of a substitute shall be made without delay. A substitute officer shall be in office during the remaining term of his predecessor.

Article 15.　In any case where the interest of the President, Vice-president or any Director is against that of the Corporation, such officer shall not have the power to represent the Corporation. In this case, Auditors shall represent present the Corporation.

Article 16.　The President, Vice-president and Directors may appoint, from among those persons who are the personnel of the Corporation, representatives who will be authorized to have the juridical or non-juridical competence as to the business of the branch offices.

Article 17.　The positions of the officers and employees (hereinafter the term "employees" means those who work for the Corporation on a permanent basis and receive fixed remuneration, but does not include officers or temporary employees who are employed for a period not exceeding two months;hereinafter the same) shall be in the national public service.

Article 18.　In order to attain the objects specified in Article 1, the Corporation shall make small loans of business capital fund, in compliance with the schedules and instructions as will be set forth after the approval of the Council by the Minister of Finance.

2　"Small loans of business capital fund" as provided for in the preceding paragraph shall mean the advancement of small business fund to those persons who, not being in a position to obtain credit from banks or other private credit organization, have the will of carrying on their businesses independently and also have reasonable business plans;it shall not be construed as meaning the advancement of relief fund to the distressed people.

Article 19.　The Corporation shall prepare, at the opening of its business, in writing, methods of conducting its business and submit the same to the Minister of Finance for approval. Similar steps shall be taken when any alteration is to be made in the said methods.

2　The Minister of Finance shall get the approval of the Council, prior to the approval provided in the preceding paragraph.

3　The documents, in which the methods of conducting business are stated as mentioned in the preceding paragraph shall include statement regarding the maximum size of loans, rate of interest, term of loans and stand to be followed by the agents prescribed in Article 4, Paragraph 2.

Article 20.　The Corporation shall make quarterly business plan and fund employment plan in each business year, based upon the authorized appendices of the budget, submit them to the Minister of Finance and obtain the approval of the Minister of Finance which shall be given after approval of the Council. This is also the same in case the Corporation wants to alter these plans.

Article 21.　The Law concerning Temporary Measures for the Budget and Settlement of Account of Public Corporation, etc.(Law No. of 1949) shall apply to the accounting of the Corporation.

Article 22.　In case the Corporation has made profit in settlement account of each business year, the Corporation shall turn over such profit to the National Treasury.

Article 23.　The running fund of the Corporation which is temporarily unemployed for making loans may be operated in such ways as to purchase public bonds or Reconversion Finance Debentures or to make deposits to the Deposit Bureau of the Ministry of Finance.

Article 24.　In case any person who has received a loan from the Corporation has found it extremely difficult to redeem the principal of the loan or pay the interest thereon owing to calamities or other special circumstances, the Corporation, may, after the approval of the Council, change the loan conditions or approve the change in the method of payment of the principal or interest in arrear.

Article 25.　The Corporation may deliver the funds necessary for loaning to the financial institutions who act as its agents to perform a part of its business in accordance with the provision of Article 4, Paragraph 1.

Article 26.　The Corporation shall not acquire immovable assets for carrying on its business in excess of the amount approved by the Diet, except those which are transferred from the People's Bank or the Pension Bank in accordance with the provision of Article 44, Paragraph 1.

Article 27.　The Corporation shall prepare necessary books as prescribed by the Minister of Finance in order to show properly and clearly the nature and details of its business and conditions of business operations and accounting.

Article 28.　The Corporation shall be placed under the supervision of the Minister of Finance;provided that the Corporation shall be under the supervision of the Attorney-General in regard to litigation in which the Corporation is a party or participator.

2　The Minister of Finance may, when he deems it necessary for enforcement of this Law, issue to the Corporation orders concerning business.

Article 29.　The Minister of Finance may dismiss the officer of the Corporation when the latter has come to fall under anyone of the following items:

2　The Minister of Finance shall receive the approval of the Council, when he intends to dismiss an officer by virtue of the preceding paragraph, item 4.

Article 30.　The Minister of Finance may, when he deems it necessary, order submission of reports from the Corporation, or let his staff enter the office of the Corporation to examine the business conditions, books, papers and other necessary things.

2　When a staff member of the Minister of Finance enters the office of the Corporation for examination, in sccordance with the preceding paragraph, he shall carry a certificate to identify himself, and present it upon request of interested parties.

Article 31.　In case any officers or employees of the Corporation have not submitted the report required according to the provision of the preceding Article, Paragraph 1 or submitted the report containing false statements, or refused, obstructed or evaded the examination under the same Article, they shall be subjected to a fine not exceeding thirty thousand yen.

Article 32.　In any of the following cases, the officer of the Corporation who is responsible for the violation shall be subjected to an administrative fine not exceeding thirty thousand yen:

Article 33.　A person who is using a name same as or similar to the name of the People's Finance Corporation in violation of Article 8 shall be subjected to an administrative fine not exceeding ten thousand yen.

Article 34.　The Appeal Law (Law No.105 of 1890) and other laws and orders defined by the Cabinet Order shall apply mutatis mutandis, in accordance with the Cabinet Order, to the Corporation which is deemed to be an administrative agency of the state.

Article 35.　Officers and employees of the Corporation shall be regarded as the employees of the Government who are paid allowances by the National Treasury, for the purpose of applying the provisions of the National Public Service Mutual Aid Association Law (Law No.69 of 1948);in this case "agencies" in the Law shall read "the People's Finance Corporation," "chiefs of agencies" shall read "the president of the People's Finance Corporation," and "the National Treasury" in Article 69 (excepting cases where paragraph 1, item 3 of the same Article applies) and in Article 92 shall read "the People's Finance Corporation" and "the representative of the Government" in Article 73, Paragraph 2, Article 75, Paragraph 2 and Article 98, shall read "the representative of the People's Finance Corporation" .

Article 36.　The National Treasury shall bear, for the mutual aid association established in the Corporation, the compensation provided for in Article 69, Paragraph 1, item 3 of the National Public Service Mutual Aid Association Law.

Article 37.　Officers and employees of the Corporation shall be regarded as the employees of the Government for purposes of the application of Article 12, Paragraph 1 of the Health Insurance Law (Law No.70 of 1922) and Article 16-(2) of the Welfare Annuity Insurance Law (Law No.60 of 1941).

Article 38.　Officers and employees of the corporation shall be regarded as the employees of the Government who are paid allowances by the National Treasury for purposes of the application of the Law concerning the Emergency Measure of the Allowance to the Government Personnel with the Enforcement of the Labor Standard Law and Orders (Law No.167 of 1947), in so far as their accident compensation concerns.

2　The enterprise of the Corporation shall be regarded as the enterprise directly undertaken by the Government for purposes of the application of Article 3, Paragraph 3 of the Laborers Accident Compensation Insurance Law (Law No.50 of 1947).

3　The compensation arising out of the provision of Paragraph 1 shall be borne by the Corporation.

Article 39.　Officers and employees of the Corporation shall be regarded as the employees of the Government for purpose of the application of Article 7 of the Unemployment Insurance Law (Law No.146 of 1947).

Article 40.　In case the Corporation pays benefits to its officers and employees which meet the requirements for exclusion from the coverage under the Unemployment Insurance Law according to the preceding Article, the National Treasury shall bear a part of those benefits which are not in excess of the amounts prescribed by the Unemployment Insurance Law in the same ratio as it bears for benefits paid under the said Law in accordance with Article 28, Paragraph 1 of the same Law.

Article 41.　The Minister of Finance shall, upon the recommendations of the Currency Issue Investigation Council, appoint an establishment committee to take charge of procedures relative to the establishment of the Corporation, from among the members coming under each item of Article 10, Paragraph 3 and the representatives of both the People's Bank and the Pension Bank.

Article 42.　The establishment committee shall, after completing preparation necessary for establishment, without delay, demand the payment of the capital.

Article 43.　On the date of the payment of the capital, the establishment committee shall transfer its duties to the President of the Corporation.

2　The establishment of the Corporation shall be registered by the whole of the President, Vice-president, Directors and Auditors, on the date the President takes over the duties in accordance with the preceding paragraph.

3　The Corporation shall come into existence by the registration of its establishment.

Article 44.　The People's Bank and the Pension Bank shall be automatically dissolved when the establishment of the Corporation has been effected, and their credits and debits and rights attached to thereto shall be succeeded by the Corporation.

2　The Minister of Finance shall all request the registration of the dissolution of the People's Bank and the Pension Bank to the nearest registration offices of the main and branch offices of respective banks.

3　The registration office shall make registration without delay when such request was made as stipulated in the preceding paragraph.

4　The registration tax shall not be imposed on the registration stipulated in the preceding paragraph.

Article 45.　Of the credits and debits succeeded by the Corporation from the People's Bank and the Pension Bank in accordance with the provision of the preceding Article, Paragraph 1, those which are stated below shall be placed on a special account for liquidation thereof, which shall, as provided for by the Cabinet Order, completed as soon as possible within the limit not to impair the sound operation of the Corporation:

2　With regard to the credits and debits which shall be placed on the special account for liquidation in accordance with the preceding paragraph, the Corporation may, notwithstanding the provision of Article 18, Paragraph 1, conduct the business of liquidation until completion.

3　When the Corporation takes over the credits and debits of the Pension Bank in accordance with Paragraph 1 of the preceding Article, if any office of the Pension Bank located within the enforcement area of this Law has credits and debits to any other office thereof located outside the said area, such credits and debits shall be placed on the special account stipulated under Paragraph 1.

Article 46.　The security transfer tax shall not be imposed on the transfer of the securities from the People's Bank and the Pension Bank to the Corporation provided for under Article 44, Paragraph 1.

Article 47.　In regard to the transfer of the business of the People's Bank and the Pension Bank to the Corporation, the Corporation may be regarded as a financial institution which has succeeded all the business of the assignor financial institutions, when applied Article 36-(8), Paragraph 1 and Articles 41-(2) through 41-(5) of the Financial Institutions Reconstruction and Reorganization Law (Law No.39 of 1946).

Article 48.　The necessary matters shall be stipulated by the Cabinet Order relative to the establishment of the Corporation, taking over the business of and the dissolution of the People's Bank and the Pension Bank, besides the provision of this Law.

Article 49.　For six months after the enforcement of this Law, the provision of Article 8 shall not apply to persons who may, at the time this Law is enforced, have the name same as or similar to the People's Finance Corporation.