(Purpose)
Article 1. This Law aims at the contribution to a sound growth of the financing business guaranteeing its fair management by controlling money-lending business, etc. and prohibiting the black-market financing.
(Definition)
Article 2. The "money-lending business" as used in this Law shall mean those businesses which practise money-lending or money-brokerage;provided however, that those which come under any of the following items shall be excepted:
(1) Those which are practised by national government or local public bodies;
(2) Those which are practised by People's Finance Corporation, Reconversion Finance Bank, financial institutions (referred to banks, trust companies, insurance companies, mujin companies, urban credit associations, Central Bank for Agriculture and Forestry, Central Bank for Commercial and Industrial Cooperatives, Agricultural Cooperatives Fishery Cooperatives and other cooperatives which receive deposits;hereinafter the same) or others which have specified provisions of law to conduct such business;
(3) Those which are practised, as incidental to such business, by the persons who carry on the business of purchase or sale, transportation or custody of commodities or brokerage of purchase or sale of commodities.
2 The delivery of money by means of discounting of bills, security for sale, and other similar methods, shall be deemed lending of money as mentioned in the preceding paragraphs.
3 "The money-lender" as used in this Law, shall mean the one who carries on money-lending business and was delivered the certificate in accordance with the provisions of Article 4 paragraph 2.
(Filing of Money-lender)
Article 3. A person who intends to practise the money-lending business, shall file, in advance, an application stating the following matters with the Minister of Finance:
(1) Name and surname, trade name or denomination;
(2) Domicile or address of business office;
(3) In case of a juridical person or a corporation or a foundation other than a juridical person, amount of capital or that of investment and name, surname, and domicile of the representatives or administrator concerned;
2 The application mentioned in the preceding paragraph shall be attached with the following documents:
(1) In case of a juridical person or a corporation or a foundation other than a juridical person, articles of in corporation, and regulations, certified copy of the register, documents mentioning names and surnames or denominations of principal stockholders or of principal investors and the number of stocks held by these stockholders or the amounts invested by these investors, curriculum vitae and certified copy of the census register of the representative or administrator concerned, balance sheet and profit and loss account of the business year immediately before the current business year;
(2) In case of an individual, his curriculum vitae and that of his legal representative, their certified copies of the census register, and documents on their properties prepared according to the form fixed by the Minister of Finance;
(3) Method of business stating the matters designated by the Minister of Finance.
(Acceptance of Application)
Article 4. With regard to the application presented in accordance with the provisions of the preceding Article the Minister of Finance shall not accept it in case the applicant comes under any one of the following items or descriptions contrary to the provisions of laws, false descriptions, omission of the descriptions, on imporant facts were made in the application or in the attached documents. In case of the refusal the Minister shall notify the applicant to that effect:
(1) Bankrupt not yet reinstated;
(2) One who was imposed upon any penalty heavier than the imprisonment or a fine by the provisions of this Law and for whom a period of three years has not elapsed since the accomplishment of the execution or the day on which the cancellation of execution of the sentence was decided;
(3) One whose business has been suspended twice or more in accordance with the provisions of paragraph 1 or 3 of Article 13 or paragraph 2 of Article 14 and for whom a period of two years has not elapsed since the day on which the final action for suspension of business was taken;
(4) A minor not having the same capacity as that of an adult with regard to the business or an interdict, whose legal representative comes under any one of the preceding items;
(5) Any one of officers, representative, or administrator of a juridical person, or of a corporation or a foundation other than a juridical person, coming under the provisions of any one of the preceding items.
2 In case of the acceptance of the application presented in accordance with the provisions of the preceding Article, the Minister of Finance shall deliver the certificate of acceptance to the applicant.
(Restrictions on the Money-lending Business)
Article 5. Any person other than the money-lender who was delivered the certificate according to the preceding Article shall not practise the money-lending business.
(Report of Alteration)
Article 6. In case of alterations made to the matters described in the application presented according to the provisions of Article 3 and in the attached documents to the said application, the money-lender concerned shall report, without delay, to the Minister of Finance to that effect.
2 In case the report of alteration is to be made in accordance with the provisions of the preceding paragraph for a newly appointed representative or for a newly appointed administrator, curriculum vitae and certified copy of the census register of the representative concerned or those of the administrator concerned, shall be attached to the report.
(Prohibition upon Receiving of Deposited Money)
Article 7. The money-lender shall not receive deposited money.
2 "Deposited Money" in the preceding paragraph shall mean the money which is received from nonspecific and large number of persons and has the same economic nature to deposits, savings, instalment under any name whatsoever.
(Rate of Interest on Money Lent and Commission on Money-brokerage)
Article 8. The provisions of Articles 2 to 5 inclusive and Article 6 paragraph 2 of the Temporary Law of Interest Rate Adjustment (Law No.181 of 1947) shall apply mutatis mutandis to interest on money lent and commission on money-brokerage of the money lenders.
(Business Report)
Article 9. The money-lender shall prepare within two months after the close of a business year (in case there is no stipulation of business year, from April to September, and from October to March) a business report for that business year, shall submit one copy of this report to the Minister of Finance, and shall keep another copy of the same in his business office. However, under unavoidable circumstances the money-lender may postpone the submittance of the said report fixing a period and obtaining an approval in advance of the Minister of Finance for the postponement.
2 The form for the business report mentioned in the preceding paragraph shall be fixed by the Minister of Finance.
(Report and Inspection of Books and of Documents)
Article 10. The Minister of Finance may, when it is deemed necessary in order to secure the fair management of the money-lending business, cause the person who practises the money lending business to submit a report on the situation of his business and of his property or may inspect his books and documents which the money-lender submitted voluntarily.
(Examination)
Article 11. The Minister of Finance may, when it is deemed necessary to secure the fair management of the money lending business, cause his subordinate officials to enter the business office of the person who practises the money lending business and examine the books and documents and other properties relating to the business of the money-lender.
2 In case of the examination to be made according to the provisions of the preceding paragraph, the Minister of Finance shall cause his subordinate officials to carry with them their identification cards showing their status to show these cards on the demand of interested persons.
3 The power of examination prescribed by the preceding paragraph shall not be interpreted as being used for the purpose of criminal prosecution.
(Matters to Be Reported by the Money-lender)
Article 12. In case of opening of money-lending business, suspension of the business for a period not less than three months, or reopening of money-lending business after the suspension of the business for a period not less than three months, the money-lender shall report, without delay, to the Minister of Finance to that effect
2 In case the money-lender comes under any one of the following items, the person mentioned in the item concerned shall report, without delay, to the Minister of Finance to that effect:
(1) In case of the money-lender, who comes under any one of the items of Article 4 paragraph 1, the said money-lender;
(2) In case of the dissolution or disappearance of a juridical person of a corporation or a foundation other than a juridical person, who has been a money-lender, the representative or administrator concerned;
(3) In case of the death of an individual, who has been a money-lender, his inheritor;
(4) In case of the discontinuance of the money-lending business, a natural person, who has been the money-lender or the representative or administrator of a juridical person or a corporation or a foundation other than a juridical person, who has been the money-lender.
3 In case the money-lender comes under any one of the items of the preceding paragraph, the application presented in accordance with the provisions of Article 3 shall lost its validity on and after that time.
(Suspension of Business)
Article 13. The Minister of Finance may order a money-lender to suspend his business by fixing a certain period of time not shorter than ten days and not longer than one year when a money-lender acted contrary to the provisions of this Law or to actions taken by the Minister of Finance in accordance with the provisions of this Law.
2 The Minister of Finance, in case he wants to order suspension of business pursuant to the provision of the preceding paragraph, shall in advance notify the money lender to that effect, request the said money lender or his proxy to appear in person, and cause a subordinate official to hear the case in order to give the money lender an opportunity to produce evidence in vindication.
3 The Minister of Finance, in case no vindication is made by the money lender even after the lapse of one month after the notification was issued pursuant to the provision of the preceding paragraph, may order suspension of business fixing a certain period if time not shorter than ten days and not longer than one year.
(Prohibition of Evasion of Law, etc.)
Article 14. No one can evade the provision of Articles 5, 7, or Article 5 of the Temporary Law of Interest Rate Adjustment which apply mutatis mutandis in accordance with the provision of Article 8, under any protext whatsoever, or by any means whatsoever.
2 The Minister of Finance may order suspension of business, according to the procedure similar to one as provided for in paragraphs 2 and 3 of the preceding Article to a person who is clarified to be practising the moneylending business in violation of the provisions of Article 5.
(Prohibition of Malfeasant Advances, etc.)
Article 15. The executive officers, members of personnel, or persons of herwise engaged, of a financial institution shall not make lending of money (including the lending of money provided for in Article 2 paragraph 2), act as intermediary in the loan of money, or stand surety for obligations by abusing their positions and with the view of promoting their own interests or those of third party other than the financial institution concerned.
2 When, in case a person, without any fund at his disposal at the time of presenting a check, issued a check, as accounting officer, a member or personnel, or a person otherwise engaged of a financial institution has, in spite of his knowing the circumstances, honored, purchased, or received payment by, the check in question it shall be regarded as an advance of money in as far as the application of the provision of the preceding paragraph is concerned.
(Regulation for Non-business Mujin)
Article 16. With regard to such mujin (signifying the mujin referred to in Article 1 of the Mujin Business Law (Law No.42 of 1931)), as is not carried on as business, but is conducted on a large scale and deemed to effect the public interest and designated by the Minister of Finance, the provisions of Article 3, Article 4 paragraph 2, Article 6, Article 10, Article 11, Article 12 paragraph 2 items (2) and (3) and Article 13 shall apply mutatis mutandis.
(Delegation of Power)
Article 17. The Minister of Finance may delegate a part of the power provided for in this Law to the chief of the Regional Bureau and the Chief of the Sub-Regional Bureau of the Ministry of Finance.
(Penal Provisions)
Article 18. Any person who comes under any of the following items shall be punishable with penal servitude not exceeding three (3) years or a fine not exceeding three hundred thousand yen;or with both of them:
(1) A person who practised the money-lending business contrary to the provision of Article 5;
(2) A person who received deposited money contrary to the provision of Article 7 paragraph 1;
(3) A person who acted contrary to the provisions of Article 5 of the Temporary Law of Interest Rate Adjustment which apply mutatis mutandis to the provision of Article 8;
(4) A person who acted contrary to the order for suspension of business provided for in paragraph 1 or 3 of Article 13 (including the case that applies mutatis mutandis to the provision of Article 16) or Article 14 paragraph 2;
(5) A person who acted contrary to the provision of Article 14 paragraph 1.
Article 19. Any person who acted contrary to the provision of Article 15 paragraph 1 shall be punishable with penal servitude not exceeding three years or a fine not exceeding three hundred thousand yen, or with both of them;provided, however, that in case the proper Articles of the Criminal Code (Law No.45 of 1907) provide for the case, the same Law shall apply thereto.
Article 20. A person who comes under any of the following items shall be punished with a fine not exceeding thirty thousand yen:
(1) A person who made a false statement in the written report or its annexed papers provided for in Article 3 (including the case that applies mutatis mutandis to the provisions of Article 16);
(2) A person who failed to file the report provided for in Article 6 (including the case that applies mutatis mutandis to the provisions of Article 16) or made false statement in the written report or its annexed papers provided for in the same Article;
(3) A person who neglected to file the written report of business provided for in Article 9 paragraph 1, or who made a false statement in the said written report;
(4) A person who in violation of the provision of Article 10 (including the case that applies mutatis mutandis to the provisions of Article 16) failed to file a report, or made a false report;
(5) A person who refused, obstructed, or evaded the inspection provided for in Article 11 paragraph 1 (including the case that applies mutatis mutandis to the provisions of Article 16);
(6) A person who neglected to report as provided for in Article 12 paragraph 1 or 2 (including the case that applies mutatis mutandis to the provisions of Article 16).
Article 21. In case the representative of a juridical person (including a corporation or a foundation other than juridical persons which have a legal representative or administrator;the same shall apply hereinafter in this paragraph), or a proxy, an employee or any person otherwise engaged, of a juridical person or an individual has, with regard to the business or property of the said juridical person or individual, committed an offence mentioned in Article 18 or the preceding Article not only the offender shall be punished, but the fines mentioned under the respective Articles shall be imposed on the juridical person or individual concerned.
2 In case a corporation or a foundation other than juridical person is punished in accordance with the provision of the preceding paragraph, not only its representative or administrator shall represent the said corporation or foundation in connection with the action at law, but the provisions of the law relating to criminal action in case a juridical person is a defendant shall apply with necessary modification.