Article 1.　The following laws shall be abolished:

Article 2.　The Sericulture Law (Law No.57 of 1945) shall be partially amended as follows:

Article 3.　With regard to Commerce and Industry Cooperative and Central Association of Commerce and Industry Cooperatives, Forest Industry association and Forestry Products Association, Urban Credit Association, Sericulture Association, Salt Business Association and Federation of Salt Business Association (hereinafter referred to as "the Old Association" ) existing at the time of enforcement of this Law (abolishment day of the Urban Credit Association Law in case of Urban Credit Association;hereinafter the same), the laws prescribed in Article 1, the Sericulture Law before amendment, and the Salt Monopoly Law (Law No.11 of 1905) before amendment which is still effective according, to the provision of paragraph 15 of the Supplementary Provisions of the Salt Monopoly Law (Law No.112 of 1949), (hereinafter referred to as "the Old Laws" ) shall be effective even after the enforcement of this Law.

2　The old Association existing eight months (three months in case of Central Association of Commerce and Industry Cooperative) after the enforcement day of this Law (encluding those in the course of liquidation) shall be dissolved at that time.

3　In case complaint being made by the interested parties or administrative agency, the Court may order dissolution to the old Associations if it is deemed necessary for the purpose of public interest. In this case, the said Association shall be dissolved by its order.

Article 4.　The old Associations may, by resolution of general meeting, become the Smaller Enterprise, Etc. Cooperatives under the Smaller Enterprise, Etc. Cooperative Law (Law No.181 of 1949;hereinafter referred to as "the new Law" ) within the period mentioned in paragraph 2 of the preceding Article. If in this case, the Articles of the old Association or the organizations there of do not conform with the provisions of the new Law, necessary modification shall be made to the said Articles and others.

2　Notwithstanding the provisions of the old Laws, the modifications of the Articles of the old Associations under the preceding paragraph shall not need the permission of the administrative agency.

3　In the case of paragraph 1, officers of the old Association shall hold their positions until the election of new officers is held under the provisions of Article 6.

Article 5.　The change into the Smaller Enterprise, Etc. Cooperative under the provision of paragraph 1 of the preceding Article shall become effective through the registration of the matters mentioned in Article 83 paragraph 2 of the new Law within the period prescribed in Article 3 paragraph 2 at the locality of the principal office.

2　The provisions of Article 83 paragraph 3, Article 92 paragraph 1 and Article 93 paragraphs 1 and 2 and Article 94 shall apply mutatis mutandis to the registration mentioned in the preceding paragraph.

3　In case the registration mentioned in paragraph 1 is to be made at any place other than the locality of its former principal office, it shall be accompanied with a copy of its former registration.

4　In case the registration prescribed in paragraph 1 was effected at the locality of the former principal office, the official of the Registry Office shall, in virtue of his office, close the registry record concerning the old Association, stating the reason thereon.

5　In case the registration prescribed in paragraph 1 is to be made at any place other than the locality of its former principal office, the official of the Registry Office shall notify to that effect the registry office at the locality of the principal office of the old Association.

6　On receipt of the notice mentioned in the preceding paragraph, the provisions of paragraph 4 shall apply mutatis mutandis.

7　In complying with the requirement of paragraph 4 (including the case where it applies mutatis mutandis in the preceding paragraph), the official of the Registry Office concerned shall give notify to that effect to the Registry Office in the locality of any branch office of the old Association.

8　On receipt of the notice mentioned in the preceding paragraph, the provision of paragraph 4 shall apply mutatis mutandis.

Article 6.　When an old Association has been reorganized into a Smaller Enterprise, Etc. Cooperative according to the provisions of Article 4 paragraph 1, an election of all officers shall be held within ninety days from the day of the registration mentioned in paragraph 1 of the preceding Article.

Article 7.　In case where an old Association was reorganized into a Smaller Enterprise, Etc. Cooperative in accordance with the provision of Article 4 paragraph 1, the members of the said Association who are not qualified for membership of the said Smaller Enterprise, Etc. Cooperative shall be deemed to have withdrawn from the said Association at the time when the change in organization has become effective.

2　In the case of Article 4 paragraph 1, any right of pledge existing on the share of any member of the defunct association shall, when the said member becomes a member of the Smaller Enterprise, Etc. Cooperative, exist on the right to request repayment under the provision of Article 20 paragraph 1 of the new Law and on the right to request dividend under the provision of Article 59 or Article 82 paragraph 2 of the new Law and on the right to request distribution of the property in the case of dissolution of the new Cooperative.

3　If, in the case of Article 4 paragraph 1, Smaller Enterprise, Etc. Cooperatives have reduced the scope of business they carried out when they were old Association, the remaining business of the undertakings which are to be discontinued may be performed, only for the purpose of termination notwithstanding the provisions of the new Law to the contrary.

Article 8.　The provisions of Article 4 shall not apply to the Forestry Industry Association.

Article 9.　If the Salt Business Association, in case where it has changed into the Smaller Enterprise, Etc. Cooperative according to the provisions of Article 4 paragraph 1, was an Association of which members are responsible to the extent of his guarantee, any member of the Salt-Business Associations who has become a member of the Smaller Enterprise, Etc. Cooperative shall not be discharged from the responsibility due to the provisions of Article 17-(8) paragraph 3, proviso to the Old Salt Monopoly Law for the liabilities of the said Association which accrued prior to the reorganization of it.

2　The responsibility of the preceding paragraph shall be released from a creditor who does not demand or does not make a previous notice about the demand within two years from the reorganization according to the provisions of Article 4 paragraph 1, after the elapse of the said period.

Article 10.　In case where an Urban Credit Association has become a Smaller Enterprise, Etc. Cooperative (Credit Cooperative) under the provision of Article 4 paragraph 1, it may, notwithstanding the provisions of Article 76 or 77 of the new Law, continue its existing loans to persons who had been members but who withdraw from the Association at the time of the reorganization, thus effecting no change in the terms of such loans.

Article 11.　In any Federation of Cooperative organized under the new Law in which any of the members were members of an old Association which has dissolved under the provision of Article 3 paragraph 2 (hereinafter referred to as "the Dissolved Association" ), such members desiring to facilitate the transfer of its interest in old to the new organization, may demand the Dissolved Association to negotiate a settlement and receive such shares.

2　If no settlement is reached by the foregoing negotiations or negociations cannot be held within a certain period of time, any of the parties concerned may apply to the administrative agency for arbitration. In this case, if the decision is made, the negociations mentioned in the preceding paragraph shall be deemed to have been concluded.

3　None of the parties may appeal to the court for the cancellation or change of the said decision if thirty days have elapsed as from the day on which he knew that decision.

4　The assets and liabilities to be transferred under the provision of paragraph 1 or 2 above shall become the property of the new Federation, but credit therein as an investment of the members concerned who originally held said shares in the Dissolved Association, on completion of said transfer such members shall be considered paid in full for their shares and withdrew from the Dissolved Association.

5　The proportion of assets and liabilities to be transferred or the value in lieu thereof to be paid, under the provision of paragraph 1 or 2 shall not exceed the proportion of the entire assets and liabilities of the Dissolved Association to which the transferring members herein concerned would otherwise be entitled to on dissolution.

6　For the purpose of basing calculations equitably for member Cooperatives who transfer their interest in the Dissolved Association as provided for by the preceding paragraphs, the most recent feasible date immediately prior to the settlement or decision shall be used.

Article 12.　The provisions of the preceding Article shall apply mutatis Mutandis to the case of members of a Smaller Enterprise, Etc. Cooperative who were members of an Association established under the old Law.

Article 13.　The Forestry Products Association or the Sericultural Association which has as its members those eligible for the membership of an Agricultural Cooperative Association or Federation of Agricultural Cooperative Association under the Agricultural Association Law (Law No.132 of 1947) may, by resolution of general meeting, become the Agricultural Cooperative Association or Federation of Agricultural Cooperative Association within the period mentioned in Article 3 paragraph 2. If, in this case, the Articles of the old Associations or the organizations thereof do not conform with the provisions of the Agricultural Cooperative Association Law, necessary modification shall be made to the said Articles and others.

2　As to the change into an Agricultural Cooperative Association or a Federation of Agricultural Cooperative Associations as mentioned in the preceding paragraph the provisions of Article 4 paragraphs 2 and 3, Articles 6, 7, and Article 59 to Article 61 inclusive (Permit for Formatibn) of the Agricultural Cooperative Association Law shall apply mutatis mutandis.

3　The change into an Agricultural Cooperative Association or a Federation of Agricultural Cooperative Associations mentioned in paragraph 1 shall become effective through the registering of the matters mentioned in Article 74 paragraph 2 of the Agricultural Cooperative Association Law at the locality of the principal office, within the period mentioned in Article 3 paragraph 2.

4　As to the registration mentioned in the preceding paragraph the provisions of Article 5 paragraphs 3 to 8 inclusive and of Article 74 paragraph 3, Article 82 paragraph 1, and Articles 83 and 84 (Registration of Formation) of the Agricultural Cooperative Association Law shall apply mutatis mutandis.

Article 14.　In any Federation of Agricultural Cooperatives (Article 13) in which any of the members were members of a former Forest Industry Association, Forestry Products Association, or Sericultural Association, such members desiring to facilitate the transfer of its interest in old to the new organization, may authorize the latter to negotiate a settlement and receive such shares.

2　In any Agricultural Cooperative Association or Federation of Agricultural Cooperative Associations in which any of the members were members of a former Forestry Products Association or Sericultural Association, such members desiring to facilitate the transfer of its interest in old to the new organization, may authorize the latter to negotiate a settlement and receive such shares.

3　As to the preceding two paragraphs, Article 11 shall apply mutatis mutandis.

Article 15.　The Smaller Enterprise, Etc. Cooperative which has succeeded the property of the old Association carrying on deposit business, shall be deemed to be the financial institution to which part or whole of the business has been transferred by the transferring financial institution, in case of the application of the provisions of Article 37-(8) paragraph 1 (adjustment account) and Articles 42-(2) to 42-(5) inclusive (Retirement Allowance) of the Financial Institutions Reconstruction and Reorganization Law (Law No.39 of 1946).

Article 16.　The value of property transferred from the old Associations to the Smaller Enterprise, Etc. Cooperative or Agricultural Cooperative Association or Federation of Agricultural Cooperative Associations in accordance with the provisions of Article 11, 12 or 14, shall not, in the assessment of profit under the Corporation Tax Law (Law No.28 of 1947), be included in the profit of the said Cooperatives or in the loss of the said old Associations.

Article 17.　When, any of new Cooperatives accepts the transfer of any interest in real estate or a ship, from an old Association in accordance with the provisions of Article 4 or Articles 11 to 14 inclusive and it effects registration of said acquisition, the amount of Registration Tax shall be four thousandths of the value of real estate or a ship;however, when the amount computed under the Registration Tax Law (Law No.27 of 1896) is smaller than that computed under this Law, that amount shall be taxed whichever is smaller.

2　The value of real estate or a ship mentioned in the preceding paragraph shall be decided by the book value of the old Association just before the transfer.

Article 18.　No Security Transfer Tax shall be charged against the transfer of securities made in compliance with provisions of Article 4, or Articles 11 to 14 inclusive.

Article 19.　No Local Tax shall be charged by any Local Autonomous Body against the transfer of assets made in compliance with the provisions of Article 4 or Articles 11 to 14 inclusive.

Article 20.　A Sangyo Kumiai engaging in the credit function under the old Sangyo Kumiai Law (Law No.34 of 1900) or A Sangyo Kumiai which was formed by the amalgamation of the aforesaid Sangyo Kumiai, existing at the time of enforcement day of this Law, may, by resolution of general meeting, become a Credit Cooperative under the new Law within the period mentioned in Article 3 paragraph 2. If, in this case the Articles or organizations of aforesaid Sangyo Kumiais do not conform with the provisions of the new Law, necessary modification shall be made to the said Articles and others.

2　If the aforesaid Sangyo Kumiai, in case where it has changed into the Credit Cooperative according to the provisions of the preceding paragraph, was a Sangyo Kumiai which members were non-limitedly responsible or responsible to the extent of his guarantee, any member of it who has become a member of the Credit Cooperative shall not be discharged from the responsibility due to the provision of Article 2 paragraph 2 of the Sangyo Kumiai Law for the liabilities of the said Sangyo Kumiai which accrued prior to the reorganization of it.

3　The responsibility of the preceding paragraph shall be released of, in connection with a creditor who does not demand or does not make a previous notice about the demand within three years from the reorganization, after the elapse of the said period.

4　The provisions of Article 4 paragraphs 2 and 3, Articles 5 to 7 inclusive and the preceding 3 Articles shall apply mutatis mutandis to the reorganization mentioned in paragraph 1.

Article 21.　The following partial amendment shall be made to the Central Bank of Commerce and Industry Cooperative Law (Law No.14 of 1936):

Article 22.　The following partial amendment shall be made to the Central Bank of Agriculture and Forestry Law (Law No.42 of 1923):

Article 23.　The following partial amendment shall be made to the Registration Tax Law:

Article 24.　The following partial amendment shall be made to the Revenue Stamp Tax Law (Law No.54 of 1899):

Article 25.　The following partial amendment shall be made to the Income Tax Law (Law No.27, 1947):

Article 26.　The following partial amendment shall be made to the Corporation Tax Law:

Article 27.　The following partial amendment shall be made to the Local Tax Law (Law No.110 of 1948):

Article 28.　The following partial amendment shall be made to the Trade Association Law (Law No.191 of 1948):

Article 29.　In the following provisions, "Urban District Credit Association" or "Credit Union in Urban District" shall be amended as "Credit Cooperative, Federation of Cooperatives carrying on credit functions mentioned in Article 79 paragraph 1 item (1) of the Smaller Enterprise, Etc. Cooperative Law" :

Article 30.　The following partial amendment shall be made to the Financial Emergency Measures Ordinance (Imperial Ordinance No.83 of 1946):

Article 31.　The following partial amendment shall be made to the People's Savings Association Law (Law No.64 of 1941):

Article 32.　The following partial amendment shall be made to the Law regarding Arrangement of the Penal Provisions for Economic Activities (Law No.4 of 1944):

Article 33.　For old Associations notwithstanding the provisions of Articles 21, 22, 24, 25 and the preceding 4 Articles, old laws shall be effective even after the enforcement of this Law.

Article 34.　With respect to application of penal provisions to acts done prior to the enforcement of this Law (in case of the old Associations Prior to the lapsing of the old Law which is effective according to the provision of Article 3 paragraph 1), the old Law shall be valid even after the enforcement of this Law (in case of the old Associations, after the lapsing of the old Law which is effective according to the provision of the same paragraph of the same Law).

Article 35.　With respect to application of the provisions of Article 31 paragraph 3, Articles 39 and 51 of the Sericulture Law (only in the case of application mutatis mutandis of Article 23 paragraph 2 to Article 39), the old Law shall, notwithstanding the provisions of Article 2, be valid even after the enforcement of this Law.