Article 1.　As regards the following claims owned by the State under the jurisdictions of the former War Ministry, Naval Ministry and Munitions Ministry, outstanding at the time of enforcement of this Law (hereinafter referred to as "the former military claims" ) for which the immediate payment of the receipts concerning the claims concerned is markedly difficult due to the condition of the obligors'means, the competent Minister shall be authorized to conclude the special contract to defer the payment time-limit or to permit the suitable payment in instalment within the term not exceedingg three years only when it is deemed advantageous for the collection of the receipts thereof:

2　In case the special contract for the deferment of the payment timelimit or the payment in instalment is concluded under the provision of the preceding paragraph, a sound hypothecation shall be made to be offered, and the interest based on the standard prescribed by the Minister of Finance considering the market rate of interest shall be made to be paid;provided that in case the total sum of the former military claims for one obligor is less than 10,000 yen, the hypothecation may be exempted.

3　In case the obligors, when a special contract is made for the payment in instalment under the provision of paragraph 1, default in paying the instalment money, the competent Minister may make the advanced collection of the balance of this obligations.

Article 2.　In case the court (including the mediation committee;hereinafter the same in the present Article) conducts arbitration or reconciliation concerning the former military claims, the Attorney-General or the official designated by him may, regardless of the provision of the preceding Article, make special concession in accordance with the advice of the court.

Article 3.　In case five years have elapsed since the date of the demand made under the provision of Article 6 paragraph 1 for the payment of the receipts concerning the former military claims, the competent Minister may, when it is deemed impossible to collect the receipts because the address of the obligor is unknown, exempt his obligation.

2　The notice of the exemption of obligation under the provision of the preceding paragraph may be made by means of the public notice in the Official Gazette. In this case, the said notice shall be deemed to have reached the obligor when two weeks lapsed from the date of the public notice made in the Official Gazette.

Article 4.　The competent Minister or the official entrusted by him may, in case the address of the obligor of the former military claims is unknown, make the payment notice of receipts concerning the said claims by means of the public notice.

2　The provision of paragraph 2 of the preceding Article shall apply mutatis mutandis to the public notice under the preceding paragraph.

Article 5.　In case the obligor makes recognition in writing of the obligation concerning the former military claims, the said claim shall become confirmed and the competent Minister or the official entrusted by him may dispose of it under the provisions of Articles 6 and 7.

2　Except the case where the confirmation of obligation under the preceding paragraph is made, the competent Minister or the official entrusted by him shall notify by means of the peremptory notice note stating the amount and other contents of the obligation to the obligor of the former military claims to the effect that he shall express within a certain term whether or not he shall recognize the obligation;provided that the said term shall not be less than a month.

3　In case the address of the obligor is unknown, the competent Minister or the official entrusted by him may make the peremptory notice under the preceding paragraph by means of the public notice.

4　The provision of Article 3 paragraph 2 shall apply mutatis mutandis to the public notice under the preceding paragraph.

5　In case the obligor did not express any objection in writing within the term prescribed in paragraph 2, it shall be considered that he has made the recognition of obligation under paragraph 1.

Article 6.　In case the obligor fails to make the full payment until the time-limit of payment of the receipts concerning the claims confirmed in accordance with the provision of the preceding Article, the competent Minister or the official entrusted by him shall demand by means of the demand-note than the payment shall be made within the term designated by him.

2　In the demand-note under the preceding paragraph shall be stated that in case the full payment is not made within the term under the same paragraph the disposition for collection shall be made in accordance with this Law.

3　In case of the demand made in accordance with the provision of paragraph 1, ten yen shall be collected as the charge for demand.

4　In case the address of the obligor is unknown, the competent Minister or the official entrusted by him may make the demand under paragraph 1 by means of the public notice.

5　The provision of Article 3 paragraph 2 shall apply mutatis mutandis to the public notice under the preceding paragraph.

Article 7.　In case the obligor received the demand under the provision of paragraph 1 of the preceding Article and does not make the full payment within the term under the same paragraph, the competent Minister or the official entrusted by him may cause his subordinates to make the disposition for collection of receipts concerning the claims concerned in accordance with the procedures provided for in Chapter III (coercive Collection) of the National Tax Collection Law (Law No.21 of 1897)(excluding Articles 13, 19 and 28) with necessary modifications. In this case, in the same Law, "taxcollector" shall read "official concerned" , arrears "shall read" indemnities for arrears "," tax "shall read" receipts (inclusive of interest thereon) ";and in Article 26 of the same Law," officials, officials of public bondies and employees engaged in the tax collection "shall read" officials engaged in disposition for collection of receipts concerning the former military claims".

2　The provision of the preceding paragraph does not recognize the priority of payment for the former military claims over other obligations and shall not permit the application of the provisions of Article 47 (extent of claims of foundation), Article 71 paragraph 1 (effect of the bankruptcy decree against coercive collection) of the Bankruptcy Law (Law No.71 of 1922) and other laws and orders that provide for special treatments concerning the claims which may be collected in accordance with the example of the national tax collection or the national tax coercive collection or concerning the coercive collection in accordance with the example of the national tax collection.

3　In case there is any provision concerning the prohibition, suspension or lapse of effect of the compulsory execution in other laws and orders such as Article 383 of the Commercial Code (Law No.48 of 1899), Article 40 of the Composition Law (Law No.72 of 1922), the disposition for collection under paragraph 1 shall be deemed to be the compulsory execution and the provisions concerned shall apply.

4　The procedure concerning the request for distribution by other creditors against proceeds from disposition such as the proceeds from the sale of the property and the assignment of the said proceeds from disposition in case of the disposition for collection is made under the provision of paragraph 1 shall be provided for by Cabinet Order in accordance with the procedure of coercive execution with necessary modifications.

5　As regards the former military claims confirmed under provisions of Article 5 paragraphs 3 and 5, the provision of paragraph 1 may not apply during the period when the address of the obligor is unknown;provided that this shall not apply to persons who have kept their address unknown for the purpose of evading the disposition for collection prescribed in this Law.

Article 8.　The obligor may file an action of objection in a court against the State as defendant concerning the obligation confirmed in accordance with the provisions of Article 5 regardless of the provision of the same Article.

2　The action under the preceding paragraph shall be under the jurisdiction of the District Court of the locality of the administrative organ to which belongs the official who disposed of the business concerning the recognition of obligation provided for in the provisions of Article 5.

3　The provisions of Article 545 paragraph 3, Article 547 paragraphs 1 to 3 inclusive and Article 548 (action of objection concerning claims) of the Code of Civil Procedures (Law No.29 of 1890) shall apply mutatis mutandis to the action under paragraph 1. In this case, in Article 547 paragraphs 1 and 2 of the same Law, "compulsory execution" shall read "disposition for collection of receipts concerning the former military claims" .

Article 9.　The provisions of the preceding four Articles shall not apply to the former military claims with the executive titles of debt.

Article 10.　In case there exists any provisions restricting or prohibiting acts extinguishing obligations such as the repayment of obligations in other laws and orders such as the Closed Institution Ordinance (Imperial Ordinance No.74 of 1947), this Law shall not affect the application of such provisions.