Article 1.　The purpose of the Housing Loan Corporation is to finance the fund which is needed for the construction of dwelling units suitable enough for the mass of the people to maintain wholesome and cultured living and is difficult to be financed by banks and other ordinary financial institutions.

Article 2.　The term "dwelling unit" as used in this Law shall mean a building or a part of building provided for the use of dwelling.

Article 3.　Housing Loan Corporation (hereinafter referred to as the "Corporation" ) shall be the juridical person of the Public Law.

Article 4.　The Corporation shall have its principal office in Tokyo-To.

2　The Corporation may have subsidiary offices at necessary places with the approval of the competent Minister.

Article 5.　The initial authorized capital of the Corporation shall be five billion yen and shall be subscribed by the Government in full amount.

2　The Corporation, when it is deemed necessary, may increase its authorized capital with the approval of the competent Minister.

3　In the case where the Corporation increases its capital under the provision of the preceding paragraph, the Government may subscribe it within the limit of the amount fixed in the budget.

4　The Government may grant necessary amount of money from the U. S. Aid Counterpart Fund Special Account to the Corporation within the limits of the amount fixed in the budget for the purpose of assigning it to the fund for the business provided for in Article 17 paragraphs 1 and 2.

5　When the Corporation receives the grant of the funds from the U. S. Aid Counterpart Fund under the provision of the preceding paragraph, the amount equivalent to the amount of such grant shall be deemed to have been subscribed by the Government as provided for in paragraph 3.

6　The fund subscribed to the Corporation by the Government shall be used for business as prescribed by Article 17 excepting the case provided for in Article 28, the case of acquisition of immovable assets necessary for carrying on its business within the amount approved by the resolution of the Diet or the case of assigning it to the business expenditure through the resolution of the Diet.

Article 6.　The Corporation shall, according to the procedures prescribed by Cabinet Order, register its establishment.

2　In the registration of establishment referred to in the preceding paragraph, the following matters shall be stated:

3　The Corporation shall effect registration concerning the alteration of registered matters prescribed in the preceding paragraph, establishment of new subsidiary offices, name and address of representatives who will be authorized to act in all matters pertaining to the law suit or in all matters not pertaining to the law suit in respect to the business of the subsidiary offices, offices which have the representative, alteration of registered matters concerning the representatives and lapse of power of representation, according to the procedures prescribed by Cabinet Order.

4　Matters required to be registered in accordance with the provisions of the preceding paragraphs can not be set up against a third party before such registration.

Article 7.　Persons other than the Corporation shall not be allowed to use the name of the Housing Loan Corporation or any similar name.

Article 8　The provisions of Articles 44, 50 and 54 of the Civil Law (Law No.89 of 1896) shall apply mutatis mutandis to the Corporation.

Article 9.　The Corporation shall have, as its officers, one President, five Directors or less, and two Auditors or less.

Article 10.　The President shall represent the Corporation and shall preside over its business.

2　Directors shall, as may be directed by the President, represent the Corporation, assist the President in the management of its business, act on behalf of the President in case the President is prevented from performing his duties, and act as the President in case of vacancy in his position.

3　Auditors shall audit the business of the Corporation.

Article 11.　The President and Auditors shall be appointed by the competent Minister after obtaining the approval of the Cabinet.

2　Directors shall be appointed by the President with the approval of the competent Minister.

Article 12.　The term of office of the President, Directors and Auditors shall be 4 years, provided that the term of office of two of the Directors and one of the Auditors of initial appointment shall be 2 years.

2　President, Directors and Auditors may be reappointed.

3　In case of vacancy in the posts of President, Directors and Auditors, an officer filling the vacancy shall be appointed without delay. The term of office of a substitute shall be the remaining term of office of his predecessor.

Article 13.　As regards the matters in which the interests of the President or any Director are contradictory to those of the Corporation, such officer shall not have the power to represent the Corporation. In this case, the auditors shall represent the Corporation.

Article 14.　The President and the Directors may appoint, from among the employees of the Corporation, representatives who will be authorized to act in all matters pertaining to the law suit or in all matters not pertaining to the law suit in respect to the business of the subsidiary offices.

Article 15.　Employees of the Corporation shall be appointed by the President.

Article 16.　Officers and employees of the Corporation (hereinafter the term "employees" means those who work for the Corporation on a permanent basis and receive fixed remuneration, but does not include temporary employees who are employed for a period not exceeding two months;hereinafter the same) shall be deemed the national public service personnel.

Article 17.　In order to attain the aims enumerated in Article 1, the Corporation shall conduct the loaning of funds necessary for construction of dwelling units (including purchase of dwelling units newly built and not yet provided for the use of dwelling;hereinafter the same) to those enumerated below:

2　In case a person enumerated in each of the items of the preceding paragraph needs to acquire the site or leasehold in connection with construction of the dwelling unit, the Corporation may extend loans necessary for the acquisition of the dwelling unit.

3　In addition to the business prescribed in the preceding two paragraphs, the Corporation may also conduct the following business with the approval of the competent Minister:

Article 18.　In case the Corporation conducts the business of loaning funds prescribed in the preceding Article paragraphs 1 and 2, the Corporation shall select the loanees fairly by examining fully and respectively the amount of loan money requested by the applicants, anticipation of the applicants refundment of the principal and its, interest, reason for needing the dwelling units as regards the applicants falling under the provision of the preceding Article paragraph 1 item (1), reason for needing the dwelling units by the members of Housing Associations as regards the applicant Housing Associations falling under the provision of item (2) of the same paragraph, contents of business as regards the applicants falling under item (3) of the same paragraph, and taking into consideration the total number of applicants and the total amount of loan money requested in the applications.

Article 19.　The dwelling unit for which the Corporation can extend the loan in accordance with the provisions of the preceding Article paragraph 1, shall be the one of which the floor area per unit does not exceed 100 sq. m. and of which the building cost (purchase price, in a case of purchase;hereinafter the same) does not exceed the amount of 1.2 times the standard building cost provided for in Article 20 paragraph 1.

Article 20.　The amount of loan per unit under the provision of Article 17 paragraph 1 shall be 75 per cent or less of the building cost of the dwelling unit, provided that in case the building cost exceeds the standard building cost, the amount of loan shall not exceed the amount equivalent to 75 per cent of the standard building cost.

2　In case the floor area of the dwelling unit exceeds 60 sq. m. in the case of the preceding paragraph, the floor area concerned shall, in calculation, be deemed to be 60 sq. m.

3　The amount of loan per unit under the provision of Article 17 paragraph 2 shall be 75 per cent or less of the price of the site or the leasehold, provided that in case the price of the site or the leasehold exceeds the amount of the standard price of the site or the leasehold, the amount of loan shall not exceed the amount equivalent to 75 per cent of the standard price of the site or the leasehold.

4　The standard building cost mentioned in paragraph 1 shall be fixed by taking into consideration the ordinary cost, for each classified geographical district and structure of the dwelling unit, which is necessary for the construction of a dwelling unit suitable enough for the mass of the people to maintain wholesome and cultured living;and the standard price mentioned in the preceding paragraph shall be fixed by taking into consideration the average market price per unit area of the site or the leasehold for each classified geographical district as well as the floor area of the dwelling unit to be built or already built on the site, respectively by the Corporation with the approval of the competent Minister. The same shall apply to the case of changing the above standard building cost or the standard price.

5　The Corporation, upon fixing or changing the standard building cost or the standard price under the provision of the preceding paragraph, shall make public announcement to that effect according to the procedure to be fixed by the competent Ministerial Ordinance.

Article 21.　The interest rate of loans mentioned in Article 17 paragraphs 1 ane 2 shall be 5.5 per cent per annum, and its term of refundment shall be as follows:

2　Necessary technical matters concerning the structural classification of dwelling units mentioned in the preceding paragraph shall be fixed by the competent Ministerial Ordinance.

3　The refundment of the loan extended by the Corporation shall be made by instalments, provided that a person who obtains a loan from the Corporation (including the successor in succession en bloc;hereinafter referred to as the "loanee" ) may, at any time, make full-settlement prior to the term of payment or due date of payment.

4　Notwithstanding the provision of the preceding paragraph, the Corporation may at any time demand full-settlement of the outstanding loan from the loanee in the following cases, provided that the amount of such settlement, in cases of falling under the provision of item (5) or (6), shall not exceed the amount of loan pertinent to the dwelling unit or the site or the leasehold for which the loan was made and in case of falling under the provision of item (7), it shall not exceed the amount pertinent to the dwelling unit for which the loan was made:

5　In case the person responsible for the refundment failed to make payment after demand in accordance with the provision of the preceding paragraph, the Corporation may foreclose the mortgage set up to cover the loan.

Article 22.　In the case where the loanee finds it extremely difficult to pay the principal and its interest, due to a disaster or other special sort of reason, the Corporation may, with the approval of the competent Minister, alter the conditions of the loan or the payment method of the principal and its interest in arrears.

Article 23.　The Corporation may, with the approval of the competent Minister, entrust the business concerning the receiving and examining of applications for loan, the loaning, the collection of the principal and its interest, and other business concerning the loaning and collection to banks (excluding the Bank of Japan) or other financial institutions (hereinafter to be collectively referred to as the "financial institution" ) having necessary and adequate organization and competency to be entrusted with the abovementioned business, and the inspection of construction work of dwelling units built with the loan, to local public bodies, provided that this shall not apply to the decision of whether or not to extend a loan.

2　In case the Corporation intends to entrust a part of its business as provided for in the preceding paragraph, it shall prescribe standard rules concerning the entrusted business to those to whom the business is entrusted (hereinafter referred to as "trustee" ).

3　In case the Corporation has entrusted its business in accordance with the provision of paragraph 1, it shall pay a commission to the trustee.

4　The rate of commission under the preceding paragraph for the entrusted business, excepting the collection of the principal and its interest, shall be fixed by the Corporation after obtaining the approval of the competent Minister on the basis of the amount of expenditure needed in connection with such business;and that for the business relating to the collection of the principal and its interest, on the basis of the amount of expenditure needed in connection with such business plus the amount computed by applying the ratio, which shall be fixed by the Corporation according to the collection percentage of the principal and interest (this shall mean the percentage of the amount of the principal and its interest collected to its amount to be collected).

5　The Corporation may, when it deems it necessary, order submission of reports from the trustee with respect to the management of the entrusted business or order its officers or employees to conduct necessary investigation with respect to the entrusted business.

6　The officers or the employees engaging in the entrusted business under the provision of paragraph 1 of the financial institution which is a trustee, shall be regarded as the personnel engaged in the public service by laws and orders in respect to the application of the provision of the Penal Code (Law No.45 of 1907) or other penal provisions.

Article 24.　The Corporation shall prepare in writing, at the opening of its business, methods of conducting business and submit it to the competent Minister for approval. The same shall apply to the case where any alteration thereof is made.

2　In the business methods mentioned in the preceding paragraph there shall be stated the methods of loans of the fund, the methods of collection of the principal and its interest, the criteria for size and standard of dwelling units for which loans can be made, the standard rules concerning the entrusted business mentioned in the preceding Article paragraph 2, as well as requirement of a mortgage, conclusion of a fireinsurance contract, obligation of maintenance and repair of the dwelling units constructed with the loan from the Corporation, permission of the Corporation for major repair or rebuilding of the dwelling units constructed with the loan from the Corporation, and other conditions of loans of the fund.

Article 25.　The Corporation, in each business year, shall obtain the approval of the competent Minister by submitting the business plan and the finance plan of each quarter year so as to fit the plan prescribed in the annexed papers of the budget of the business year concerned. The same shall apply to the case where the Corporation intends to alter these plans.

2　The Corporation shall, in preparing the business plan and the finance plan mentioned in the preceding paragraph, fix the ratio of the total amount of loans to those falling under Article 17 paragraph 1 item (3) in any business year to the total amount of loans for the business year concerned so as not to exceed 30 per cent.

Article 26.　The Law concerning Temporary Measures for the Budget and Settlement Account of Kodan, etc.(Law No.27 of 1948) shall apply to the budget and settlement of accounts of the Corporation.

Article 27.　In case there remains a profit as a result of the settlement of account of each business year, the Corporation shall turn over such profit to the National Treasury.

Article 28.　The Corporation may, with the unemployed funds of its business, hold national loan bond or deposit it in the Deposit Division of the Ministry of Finance.

2　The Corporation may deposit the cash pertaining to its business in the National Treasury.

3　The Corporation may, when it deems it necessary for carrying on its business, deposit its business fund, within the limit of the amount necessary for the financial institution which is a trustee to carry on its entrusted business, in the said financial institution.

Article 29.　The Corporation shall prepare necessary books as prescribed by the competent Ministerial Ordinance in order to show properly and clearly the nature and details of its business and conditions of business operation and accounting.

Article 30.　The Board of Audit may, when it deems it necessary, inspect the accounting concerning the entrusted business of the financial institution which is a trustee.

Article 31.　The Corporation shall be placed under the supervision of the competent Minister, provided that the Corporation shall be under the supervision of the Attorney-General with regard to litigation in which the Corporation is a party or intervener.

2　The competent Minister may, when he deems it necessary for the enforcement of this Law, issue to the Corporation orders necessary from the standpoint of supervision over its business.

Article 32.　In case the officer of the Corporation has come to fall under any one of the following items, the competent Minister may dismiss him:

2　In case of dismissing the President and Auditors in accordance with the provision of the preceding paragraph item (1) or (4), the competent Minister shall obtain the approval of the Cabinet.

Article 33.　When the competent Minister deems it necessary, he may request the Corporation or the financial institution which is a trustee to submit report, or may let his staff enter the office of the Corporation or the financial institution which is a trustee to audit the condition of business, or books, documents, and other relevant matters, provided that regarding financial institution which is a trustee it shall be limited to the scope of the entrusted business concerned.

2　In the case where a staff member enters for the purpose of examination in accordance with the provision of the preceding paragraph, he shall carry a certificate to indicate his official status and present it upon request of interested parties.

3　The authority to make examination by entering the office as prescribed in paragraph 1 shall not be interpreted as being authorized for criminal investigation.

Article 34.　The loanee shall not use the loan money for any purpose other than that of the loan.

2　The Corporation may, in order to prevent the use of the loan money for purposes other than the purpose of the loan, adopt suitable means, as occasion demands, concerning the paying out of the loan money, such as paying out the money directly to the executor of the work constructing the dwelling units with the loan money.

Article 35.　A loanee who falls under the provision of Article 17 paragraph 1 item (3) shall rent the dwelling units which were constructed with the loan from the Corporation to persons in need of dwelling units for their own dwelling use, in compliance with the standard concerning requirement of tenant, method of selecting the tenant, and other conditions of renting to be fixed by the competent Ministerial Ordinance.

2　A loanee who falls under the provision of Article 17 paragraph 1 item (3) shall not make a contract for, nor receive, the amount of rent exceeding the amount to be fixed by the competent Ministerial Ordinance within the limit of the controlled price prescribed by the Rent Control Ordinance (Imperial Ordinance No.443 of 1946) with respect to the dwelling unit which was constructed with the loan from the Corporation.

Article 36.　In case the ratio of (A) the amount for each business year of the profit payable as dividend or the surplus distributable to (B) the total of (a) the capital (meaning total amount of stocks, total amount of investment, sum total of total amount of stocks and total amount of investment, or total amount of endowment) and (b) the reserve funds (meaning reserve funds provided for in Article 16 of the Corporation Tax Law (Law No.28 of 1947)), both (a) and (b) at the beginning of the business year, multiplied by the number of months of the said business year and divided by twelve exceeds 10/100-that is, in case the ratio of (A) to (B) exceeds 10/100, a loanee who falls under Article 17 paragraph 1 item (3) shall not give any dividend or share out of the money in excess of 10/100 to any of the stock-holders, members or other investors before he completes the redemption of the loan from the Corporation. However, in case the amount of payable or distributable money equivalent to the said amount of money in excess was less than the said ratio in any preceding business years, the same shall not apply to the amount of money up to the total amount (excepting the amount of money equivalent to the money paid or distributed in the preceding business year in accordance with the provisions of the proviso of this paragraph) of the deficit (in case there was no money payable or distributable, the amount of money equivalent to the said ratio).

Article 37.　The Board of Audit, when it deems it necessary, may inspect the accounts of the loanee.

Article 38.　The Appeal Law (Law No.105 of 1890) and the Law for Special Regulations concerning Procedure of Administrative Litigations (Law No.81 of 1948) shall apply, in accordance with the provision of Cabinet Order, to the Corporation, which is deemed to be an administrative agency of the state.

Article 39.　Officers and employees of the Corporation shall be regarded as the employees of the Government who receive remuneration from the National Treasury, and the provisions of the National Public Service Mutual Aid Association Law (Law No.69 of 1948) shall apply to them. In this case, "each Ministry and Agency" in the same Law shall read "the Housing Loan Corporation" , "Head of each Ministry and Agency" shall read "the President of the Housing Loan 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 Housing Loan Corporation" , and "a person representing the Government" in Article 73 paragraph 2, Article 75 paragraph 2 and Article 98, shall read "a person representing the Housing Loan Corporation" .

Article 40.　The National Treasury shall bear, for the Mutual Aid Association established in the Corporation, the expenses provided for in Article 69 paragraph 1, item (3) of the National Public Service Mutual Aid Association Law.

Article 41.　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 Pension Insurance Law (Law No.60 of 1941).

Article 42.　Officers and employees of the Corporation shall be regarded as the employees of the Government who receive remuneration from the National Treasury for the purpose of the application of the Law concerning Emergency Measure of Allowances to Government Personnel in accordance with Enforcement of the Labor Standard Law and Others (Law No.167 of 1947), in so far as their accident compensation is concerned.

2　The enterprise of the Corporation shall be regarded as the enterprise directly undertaken by the Government for the purpose of the application of Article 3 paragraph 3 of the Worker's Accident Compensation Insurance Law (Law No.50 of 1947).

3　Expenses needed for the compensation under the provisions of paragraph 1 shall be borne by the Corporation.

Article 43.　Officers and employees of the Corporation shall be regarded as the employees of the Government for the purpose of the application of Article 7 of the Unemployment Insurance Law (Law No.146 of 1947).

Article 44.　In case the Corporation pays to its officers and employees benefits exceeding the amount of the benefits prescribed in the Unemployment Insurance Law, the National Treasury shall, with respect to the part corresponding to the benefits prescribed in the said Law, bear an amount computed by applying the same ratio of the burden of the National Treasury provided for in Article 28 paragraph 1 of the said Law.

Article 45.　The competent Minister in this Law is the Minister of Construction and the Minister of Finance, and the competent Ministerial Ordinance is the Ministry of Construction and the Ministry of Finance Ordinance.

Article 46.　Any person who has acted in contravention of the provision of Article 35 shall be subjected to a fine not exceeding 100 thousand yen.

2　In the case where any representative of a juridical person, proxy, employee or other worker of a juridical person has acted in contravention of the preceding paragraph concerning the business of the juridical person not only the offender shall be punished, but also the juridical person, shall be subjected to the fine mentioned in the same paragraph, unless it is proved that due care and supervision have been exercised over the business in order to prevent the aforesaid contravention committed by the proxy, employee or other worker of the juridical person.

Article 47.　In case the officers or employees of the financial institution which is a trustee have not submitted the report or have submitted a false report or refused, obstructed or evaded the examination, in contravention of Article 23 paragraph 5, they shall be subjected to a fine not exceeding 30 thousand yen.

Article 48.　In case the officers or employees of the Corporation or the officers, or employees of the financial institution which is a trustee have not submitted the report or have submitted a false report or refused, obstructed or evaded the examination, in contravention of Article 33 paragraph 1, they shall be subjected to a fine not exceeding 30 thousand yen.

Article 49.　In any of the following cases, the officer or employee of the Corporation who perpetrated such violation shall be subjected to a non-penal fine not exceeding 30 thousand yen:

Article 50.　Any person who used the name of the Housing Loan Corporation or a similar name, in contravention of Article 7, shall be subjected to a non-penal fine not exceeding 10 thousand yen.