CHAPTER I General Provisions

(Purpose) Article 1. The purpose of the Export Bank of Japan is to supplement and encourage the export financing of ordinary financial institutions, in order to facilitate the export trade of Japan by giving and in financing.

(Status of Juridical Person) Article 2. The Export Bank of Japan shall be a juridical person in public law.

(Business Office) Article 3. The Export Bank of Japan shall have its principal office in Tokyo. 2 The Export Bank of Japan may have its subordinate office wherever it is deemed necessary.

(Capital) Article 4. The capital of the Export Bank of Japan shall be fifteen billion (15,000,000,000) yen, the whole of which shall be invested by the Government from the General Account and U. S. Aid Counterpart Fund Special Account. 2 Out of the capital provided for in the preceding paragraph five billion (5,000,000,000) yen will be invested in the fiscal year 1950-51 and ten billion (10,000,000,000) yen in the fiscal year 1951-52 respectively.

(Articles of Corporation) Article 5. The Export Bank of Japan shall provide for the following matters in its Articles of Corporation: (1) Purpose; (2) Name; (3) Places of Offices; (4) Capital; (5) Matters concerning Officers; (6) Matters concerning Business and its Execution; (7) Matters concerning Accounting; (8) Methods of Public Notice. 2. In case the Export Bank of Japan has changed the Articles of Corporation, it shall report the fact to the Minister of Finance without delay.

(Registration) Article 6. The Export Bank of Japan shall make registration as provided for by Cabinet Order. 2 Matters required to be registered in accordance with the provision of the preceding paragraph cannot be set up against a third party until after they have been registered.

(Limitation on the Use of the Name) Article 7. None other than the Export Bank of Japan shall use the name of the Export Bank of Japan or any other like names. 2 The provision of Article 4 paragraph 2 of the Banking Law (Law No.21 of 1927) shall not apply to the Export Bank of Japan.

(Dissolution) Article 8. The dissolution of the Export Bank of Japan shall be provided for by law separately. 2 In case the Export Bank of Japan is dissolved, the residual property shall belong to the General Account and to the U. S. Aid Counterpart Fund Special Account in proportion to the amount of the respective investments therefrom as provided for in Article 4 paragraph 1.

(Application Mutatis Mutandis of the Provisions concerning the Juridical Persons) Article 9. The provisions of Article 44 (Juridical Persons'Capacity for Torts), Articles 50 (Permanent Residence of Juridical Persons) and 54 (Limitation on Representation of Directors) of the Civil Code (Law No.89 of 1896) shall apply mutatis mutandis to the Export Bank of Japan.

CHAPTER II Officers and Employees

(Officers) Article 10. The Export Bank of Japan shall have one President, one Managing Director, not more than three Directors and not more than two Auditors as its officers.

(Function and Authority of Officers) Article 11. The President shall represent the Export Bank of Japan and exercise general control over its affairs. 2 The Managing Director and Directors shall represent the Export Bank of Japan as prescribed by the President and assist the President in managing the affairs of the Export Bank of Japan, the Managing Director shall act on behalf of the President if he is prevented from performing his duty, and execute his functions if his post is vacant;the Directors shall act on behalf of the President if he and the Managing Director are prevented from performing their duty, and execute their functions if their posts are vacant.

(Appointment of Officers) Article 12. The President and Auditors shall be appointed by the Prime Minister. 2 The Managing Director and Directors shall be appointed by the President.

(Terms of Office of Officers) Article 13. The term of office of the President, Managing Director, Directors and Auditors shall be four years. 2 The President, Managing Director, Directors and Auditors may be reappointed. 3 In case the post of President, Managing Director, Director or Auditor has become vacant, an officer filling the vacancy shall be appointed without delay. The term of office of an officer filling a vacancy shall be the remainder of his predecessor's.

(Limitation on the Right of Representation) Article 14. With respect to the matters on which the interest of the Export Bank of Japan and the President, Managing Director or Directors conflict with each other, those persons shall have no right of representation. In this case, the Auditors shall represent the Export Bank of Japan.

(Appointment of Attorney) Article 15. The President, Managing Director and Directors may appoint from among the employees of the Export Bank of Japan, an attorney or attorneys with full power to act for the Export Bank of Japan generally or before the court with respect to the business of its subordinate offices.

(Appointment of Employees) Article 16. The employees of the Export Bank of Japan shall be appointed by the President.

(Status of Officers and Employees) Article 17. The officers and employees of the Export Bank of Japan shall be deemed to be public officials engaged in public service in accordance with laws and orders in so far as the application of the Penal Code (Law No.45 of 1907) and other penal provisions is concerned.

CHAPTER III Business

(Scope of Business) Article 18. In order to attain the purpose mentioned in Article 1, the Export Bank of Japan shall be engaged in the following business: (1) To make loans to Japanese exporters or manufacturers of export goods for the purpose of facilitating the export from Japan of equipment (including ships and rolling stock) and parts and accessories thereof which have been manufactured or produced in Japan (hereinafter referred to as "equipment" ) and of technical services connected therewith of Japanese corporations or individuals. However, such loans shall be made only on a participation basis by the Export Bank of Japan with ordinary banks (meaning banks provided for in the Banking Law;hereinafter the same) and application for such loans shall be received through banks; (2) To discount bills for the banks in favor of Japanese exporters and manufacturers of export goods for the purpose of facilitating the export from Japan of equipment and of technical services connected therewith of Japanese corporations or individuals; (3) To make loans to foreign governments and their agencies, foreign local public entities, foreign banks or foreign firms in accordance with the provisions of laws and orders concerning control of foreign exchange, for the purpose of facilitating their purchase in Japan of equipment manufactured or produced in Japan and of technical services connected therewith of Japanese corporations and individuals, unless these borrowers come to violate the provisions of laws and orders in the country concerned because of borrowing funds; (4) The business incidental to the preceding items. 2 The loans and discount by the Export Bank of Japan provided for in items (1) to (3) inclusive of the preceding paragraph may be made only in these cases where the banks find it difficult to finance in an adequate amount on reasonable terms and where the contracts of export or import from Japan of equipment (including export or import of technical services connected therewith) have already been concluded or certain to be concluded and where the fulfilment of the obligations due to the contracts is deemed reliable and the repayment of loans or settlement of bills is reasonably assured.

(Rate of Interest and Discount) Article 19. The rate of interest and discount provided for in paragraph 1 items (1) to (3) inclusive of the preceding Article shall be so fixed as to yield sufficient interest on loans and discount fees to cover the operating expenses of the Export Bank of Japan, its commissions and other expenses and loss incurred with respect to the utilization of assets, taking into consideration the rates of interest and discount of the banks. 2 The rate of interest and discount provided for in the preceding paragraph shall be equal for such loans and discounts as are of the same kind in respect of the object of loan, the term of the discounted bill, securities therefor, etc.

(Term of Loan and Discount) Article 20. The loans to be made or the bills to be discounted in accordance with the provisions of Article 18 paragraph 1 items (1) to (3) inclusive shall have a term for retirement or payment of more than six months and not more than three years. 2 The loans and the discounts as provided for in the preceding paragraph may have a term for retirement of more than three years and not more than five years or may be made of bills with a term for payment of more than three years and not more than five years, regardless of the provision of the same paragraph, in cases where the compliance with the provision of the same paragraph is considered difficult on account of certain causes, such as the conditions of payment of the price stipulated in the contract of export or import of equipment or technical service for which loan has been furnished, or fund has been accommodated against the bill by the bank which has had the bill discounted.

(Term of Business) Article 21. The Export Bank of Japan shall not make new loans after the lapse of five years from the date of its establishment.

(Statement of Business Methods) Article 22. The Export Bank of Japan shall prepare the statement of business methods, and state therein the methods, interest rate and term of making loans or discounts, the methods of collecting the principal and interest and the working rules of the entrusted business, etc.

(Status of Officers and Employees of Bank Engaged in Entrusted Business) Article 23. In case the banks have been entrusted with the business of the Export Bank of Japan, the officers and employees of such banks engaged in the entrusted business shall be deemed to be public officials engaged in public service in accordance with laws and orders in so far as the application of the Penal Code and other penal provisions is concerned.

(Prohibition of Competition with Financial Institutions) Article 24. In view of the purpose mentioned in Article 1, the Export Bank of Japan shall not compete with the banks and other financial institutions with respect to export finance.

CHAPTER IV Accounting

(Business Year) Article 25. The business year of the Export Bank of Japan shall commence in April every year and end in March of the following year.

(Budget) Article 26. The Bank shall prepare a budget of the revenues and expenditures due to the business operation for each business year and submit it to the Minister of Finance. 2 The revenues under the preceding paragraph shall be the interest of loans, discount fees, revenues from other utilizations of property and other miscellaneous incidental revenues, and the expenditures under the preceding paragraph shall be the expenses for business and entrusting business, and other miscellaneous incidental expenses including loss incurred with respect to the utilizations of property. 3 Upon receipt of the budget according to the provision of paragraph 1, the Minister of Finance shall examine it and make necessary adjustment and obtain the decision of the Cabinet thereon. 4 In case the decision of the Cabinet under the provision of the preceding paragraph has been made, the Cabinet shall submit it to the Diet together with the national budget. 5 The form and contents of the budget and the procedure for its preparation and submission shall be determined by the Minister of Finance.

(Reserve Fund) Article 27. The Export Bank of Japan may include a reserve fund in its budget to cover such shortage of appropriations as may arise on account of unforeseen causes.

(Decision of Budget) Article 28. The decision of the budget by the Diet shall follow the instance of the decision of the national budget.

(Notification of Budget) Article 29. In case the budget has been decided upon by the Diet, the Cabinet shall notify to that effect to the Export Bank of Japan without delay through the Minister of Finance. 2 The Bank shall not put the budget into effect before it has received the notification in accordance with the provision of the preceding paragraph. 3 In case the notification has been made in accordance with the provision of paragraph 1, the Minister of Finance must notify to that effect to the Board of Audit without delay.

(Supplemental Budget and Revision of Budget) Article 30. Only in those cases where there exists the necessity on account of such inevitable causes as may have arisen after the preparation of the budget, the Export Bank of Japan may prepare a supplemental budget and submit it to the Minister of Finance. 2 Besides the cases under the preceding paragraph, the Export Bank of Japan may revise the budget and submit it the the Minister of Finance if there exists the necessity to alter the budget already determined on account of causes which have arisen after its determination. 3 The provisions of Article 26 paragraphs 2 to 5 inclusive and the preceding two Articles shall apply mutatis mutandis to the supplemental budget and the revision of the budget as provided for in the preceding two paragraphs.

(Provisional Budget) Article 31. The Export Bank of Japan may, as occasion may require, prepare a provisional budget for a specified period within a business year and submit it to the Minister of Finance. 2 The provisions of Article 26 paragraphs 2 to 5 inclusive, Article 28 and Article 29 shall apply mutatis mutandis to the provisional budget provided for in the preceding paragraph. 3 The provisional budget shall become ineffective when the budget for the relevant business year has been decided by the Diet, and if expenditure has been made on the basis of the provisional budget, it shall be considered to have been made according to the budget for that business year.

(Execution of Budget) Article 32. With respect to the appropriations for expenditure, the Export Bank of Japan shall not use them for purposes other than specified in the relevant budget.

Article 33. With respect to the amount of expenditure specified in the budget, Export Bank of Japan may not divert funds without the approval of the Minister of Finance. 2 In case the Minister of Finance has given his approval under the preceding paragraph, he shall immediately notify to that effect to the Board of Audit.

Article 34. When the reserve fund is to be used, the Export Bank of Japan shall immediately notify to that effect to the Minister of Finance. 2 Upon receipt of the notification in accordance with the provisions of the preceding paragraph, the Minister of Finance shall immediately notify to that effect to the Board of Audit.

(Financial Statements) Article 35. The Export Bank of Japan shall prepare every business year the inventory, balance sheet, and the statement of profit and loss for the half terms from April to September and from October to March next year, and the statement of profit and loss for each half term and for each business year and submit these papers (hereinafter referred to as "financial statements" ) to the Minister of Finance within two months after the end of the relevant half term or the relevant business year. 2 In case the Export Bank of Japan has submitted the inventory, balance sheet, and statement of profit and loss provided for in the preceding paragraph, it shall give public notice of such financial statements and keep them in each office.

(Settlement of Accounts) Article 36. The Export Bank of Japan shall complete the settlement of its accounts for each business year not later than July 31 of the following business year.

Article 37. After the settlement of accounts has been completed, the Export Bank of Japan shall prepare a report of settlement of accounts for each business year according to the classification in the budget and submit it to the Minister of Finance without delay, together with the financial statements submitted in accordance with the provision of Article 35 paragraph 1. 2 On receipt of the report of settlement of accounts and financial statements as provided for in the preceding paragraph, the Minister of Finance shall forward them to the Cabinet. 3 On receipt of the report of settlement of accounts and financial statements as provided for in the preceding paragraph, the Cabinet shall forward them to the Board of Audit not later than November 30 of the following business year and, after its examination, submit them to the Diet together with the settlement of the national revenues and expenditures. 4 The form and contents of the report of settlement of accounts provided for in paragraph 1 shall be determined by the Minister of Finance.

(Disposal of Profit) Article 38. If there is profit upon settlement of profit and loss accounting each business year, the Export Bank of Japan shall accumulate it as Reserve Fund. 2 Reserve Fund provided for in the preceding paragraph shall not be disposed of unless it is devoted to compensation for losses.

(Limitation of Borrowing of Funds) Article 39. The Export Bank of Japan shall not borrow funds.

(Use of Dormant Money) Article 40. The Export Bank of Japan shall not make use of temporary dormant business funds, except in the following manner: (1) Purchase of national bonds; (2) Deposit with the Deposit Bureau of the Ministry of Finance; (3) Deposit with the Bank of Japan.

(Audit by the Board of Audit) Article 41. The Board of Audit may, if it is deemed necessary, audit the accounting concerning the entrusted business of such banks as have been entrusted by the Export Bank of Japan with its business.

CHAPTER V Supervision

(Supervision) Article 42. The Minister of Finance shall supervise the Export Bank of Japan as prescribed in the provisions of this Law. 2 The Minister of Finance may, if it is deemed necessary for the enforcement of this Law, give the Export Bank of Japan such orders concerning its business as are necessary for supervision, on the basis of the reports submitted by the Export Bank of Japan and/or the result of the examination provided for in Article 44 paragraph 1.

(Discharge of Officers) Article 43. In case the President and Auditors of the Export Bank of Japan have come under one of the following items, the Prime Minister may discharge them: (1) In case they have violated this Law, Cabinet Orders issued thereunder, or orders of the Minister of Finance issued under such law and orders; (2) In case they have been sentenced guilty in a criminal case; (3) In case they have been declared bankrupt; (4) In case they cannot perform their duties of account of mental and/or physical disability. 2 When the Managing Director and Directors of the Export Bank of Japan have come under one of the items of the preceding paragraph, the Prime Minister may order the President to discharge the Managing Director or the Directors concerned.

(Collection of Report and Examination) Article 44. The Minister of Finance may, if it is deemed necessary, cause the Export Bank of Japan to make reports or cause the officials under him to enter offices of the Export Bank of Japan and examine the state of business or books, documents and other necessary items. 2 In case the officials make spot examination in accordance with the provision of the preceding paragraph, they shall carry with them identification cards certifying their status and present them to the parties concerned. 3 The authority to obtain reports and make spot examination under the provision of paragraph 1 shall not be construed to have been recognized for crime detection.

CHAPTER VI Penal Provisions

Article 45. In case the officers and employees of the Export Bank of Japan have made false reports on the matters to be reported according to the provision of paragraph 1 of the preceding Article, they shall be punished with a fine not exceeding 30,000 yen.

Article 46. In the following cases the officers and employees of the Export Bank of Japan shall be punished with a non-penal fine not exceeding 30,000 yen: (1) When they have failed to make report to the Minister of Finance in cases where such report is required by this Law; (2) When they have failed to obtain the approval of the Minister of Finance in cases where such approval is required by this Law; (3) When they have neglected to make registration in violation of the provision of Article 6 paragraph 1 or made false registrations; (4) When they have conducted business other than the business enumerated under the items of Article 18 paragraph 1; (5) When they have borrowed funds in violation of the provision of Article 39; (6) When they have utilized dormant business funds in violation of the provision of Article 40; (7) When they have violated the orders of the Minister of Finance as provided for in Article 42 paragraph 2.

Article 47. A person who has used the name of the Export Bank of Japan or a like name in violation of the provision of Article 8 paragraph 1 shall be punished with a fine not exceeding 10,000 yen.