I hereby promulgate the Law concerning Security for Loan from U. S. Aid Counterpart Fund, Etc. for Electric Enterprise.
Signed:HIROHITO, Seal of the Emperor
This fourth day of the fifth month of the twenty-fifth year of Showa (May 4, 1950)
Prime Minister YOSHIDA Shigeru
Law concerning Security for Loan from U. S. Aid Counterpart Fund, Etc. for Electric Enterprise
Article 1. The State shall, as regards a loan to an electric enterprise from the operation of the U. S. Aid Counterpart Fund, have a right to receive a repayment of its own claim in preference to other creditors with respect to assets of the electric enterprise.
2 The Reconversion Finance Bank shall, as regards a loan to an electric enterprise, have a right to receive a repayment of its own claim in preference to other creditors with respect to assets of the electric enterprise.
3 The order of precedence of the preferential right as mentioned in the preceding two paragraphs shall rank next to the general preferential right as provided for by the Civil Code (Law No.89 of 1896).
Article 2. An electric enterprise that obtained a loan under paragraph 1 or paragraph 2 of the preceding Article shall make a public notice of the following matters within two weeks in accordance with a procedure to be determined by Ministry of International Trade and Industry Ordinance:
(1) Name and address of the electric enterprise;
(2) Loaner and amount of Loan;
(4) Method and term of repayment of loan;
(5) Method and term of payment of interest.
2 The electric enterprise that obtained a loan under paragraph 1 or paragraph 2 of the preceding Article shall enter, in addition, the loaner and the amount of the loan in a balance sheet of which a public notice shall be given in accordance with the provision of Article 283 paragraph 2 of the Commercial Code (Law No.48 of 1899).
Article 3. Directors and other officers in charge of affairs of the company shall be liable to a fine\100,000 in the following cases:
(1) Where they failed to give a public notice as provided for in paragraph 1 of the preceding Article or gave a false public notice;
(2) Where they failed to additionally enter as provided for in paragraph 2 of the preceding Article or made a false additional entry.
Supplementary Provisions:
1. This Law shall come into force as from the day of its promulgation.
2. This Law shall apply to a loan under Article 1 paragraph 1 or paragraph 2 which an electric enterprise obtained prior to the enforcement of this Law;provided that the period as mentioned in Article 2 paragraph 1 shall be counted as from the date of enforcement of this Law.
3. Any provision in a contract that promised offering a security in rem for the loan under Article 1 paragraph 1, which an electric enterprise obtained prior to enforcement of this Law, shall lose effect on the date of enforcement of this Law.
Attorney-General UEDA Shunkichi
Minister of Finance, pro tempore Minister of State UEDA Shunkichi
Minister of International Trade and Industry TAKASE Sotaro
Prime Minister YOSHIDA Shigeru