(Purpose)
Article 1. The purpose of this Law is to contribute to the promotion of public interest by placing the postal savings (including the postal transfer savings;hereinafter the same), the accumulated reserves and surplus cash of the Special Accounts of the Government, excluding the U. S. Aid Counterpart Fund Special Account, and other funds entrusted to the Trust Fund Bureau in accordance with the provisions of Laws or Cabinet Orders, as well as the accumulated reserve and surplus cash of the Trust Fund Bureau Special Account, under unified administration in the form of the Trust Fund Bureau Fund and utilizing such funds in a sound and profitable manner.
(Obligation to Entrust with the Trust Fund Bureau)
Article 2. The funds received as the postal savings in excess of the funds necessary for the daily repayment shall be entrusted to the Trust Fund Bureau.
2 The accumulated reserves of surplus cash on the settlement of annual revenues and expenditures of the Special Accounts of the Government (excluding the Trust Fund Bureau Special Account) shall all be entrusted to the Trust Fund Bureau, provided that, the same shall not apply, in cases where the accumulated reserves belonging to the Post Office Life Insurance and Postal Annuity Special Account are used for loans to insurance policy-holders in accordance with the provisions of the Post Office Life Insurance Law (Law No.68 of 1949) and loans to annuity policy-holders, annuitants or successive annuitants in accordance with the provisions of the Post Office Annuity Law (Law No.69 of 1949).
(Utilization of Surplus Cash of the National Treasury Funds and the Special Accounts)
Article 3. The surplus cash of the National Treasury Funds may be entrusted to the Trust Fund Bureau.
2 The surplus cash of the Special Accounts of the Government (excluding the U. S. Aid Counterpart Fund Special Account and the Trust Fund Bureau Special Account) shall not be utilized in any manner other than the entrustment to the Trust Fund Bureau; provided that, the same shall not apply, in cases where the Special Account for National Debts Consolidation Fund holds the national bonds.
(Entrusted Funds of the Trust Fund Bureau)
Article 4. The contract term of entrustment (hereinafter in this Article referred to as "the contract term" in this Article) of the funds entrusted to the Trust Fund Bureau (hereinafter referred to as "the Entrusted Funds of the Trust Fund Bureau" ) in accordance with the provision of Article 2 and paragraph 1 of the preceding Article and the provisions of other Laws and Cabinet Orders shall not be less than three months.
2 For the repayment before the expiration of the contract term of the entrusted funds of the Trust Fund Bureau, the entrusting parties shall in advance notify the Minister of Finance to that effect before a period to be fixed by him within the limit of thirty days prior to the intended date of repayment.
3 The entrusted Funds of the Trust Fund Bureau shall bear interest according to the following rates:
(1) |
For a contract term of three months or more and less than one year 3 1/2% |
(2) |
For a contract trem of one year or more and less than three years 4 1/2% |
(3) |
For a contract term of three years or more and less than five years 5% |
(4) |
For the contract term of five years or more 5 1/2% |
4 The amount repaid before the expiration of the contract term in accordance with the provision of paragraph 2 shall bear no interest if the actual period of entrustment is less than three months and, if such period is three months or more, it shall bear interest at the following rates according to the length of such period, notwithstanding the provision of the preceding paragraph:
(1) |
If the actual period of entrustment is three months or more and less than one year 3% |
(2) |
If the actual period of entrustment is one year or more and less than three years 4% |
(3) |
If the actual period of entrustment is three years or more 4 1/2% |
5 The interest on the Entrusted Funds of the Trust Fund Bureau shall be paid on March 31 and September 30 of each year as provided for in paragraph 3 or the preceding paragraph for the elapsed period of entrustment of the particular Entrusted Fund if its contract term is one year or more, besides the date of expiraticular Entrusted Fund if its contract term is date of repayment before the expiration of the term under the provision of paragraph 2.
6 The Trust Fund Certificate shall be issued for the Entrusted Funds of the Trust Fund Bureau.
(Administrative Procedures of the Entrusted Funds of the Trust Fund Bureau)
Article 5. Other than those prescribed in the preceding Article, the procedures of administering the Entrusted Funds of the Trust Fund Bureau shall be determined by the Minister of Finance.
(Administration, Utilization and Separate Accounting of the Trust Fund Bureau Fund)
Article 6. The Entrusted Funds of the Trust Fund Bureau and the accumulated reserve and the surplus cash of the Trust Fund Bureau Special Account shall be the Trust Fund Bureau Funds, which shall be administered and utilized by the Minister of Finance.
2 The Trust Fund Bureau Fund shall be kept in an account separate from other Government Funds.
(Utilization of the Trust Fund Bureau Fund)
Article 7. The Trust Fund Bureau Funds may be invested in:
(2) Loans to the National Government;
(3) Debentures of corporations the budget of which requires resolution or approval of the National Diet as provided for by Law;
(4) Loans to the corporations prescribed in the preceding item;
(6) Loans to the local governments;
(7) Debentures of those corporations (excluding the corporations prescribed in item (3)) established by special Laws which have no investments other than those of the State, the corporations prescribed in item (3) and local public bodies and which are authorized to issue debentures by special Law;
(8) Loans to the corporations prescribed in the preceding item;
(9) Debentures issued by banks, the Central Bank for Agriculture and Forestry and the Central Bank for Commercial and Industrial Cooperatives (hereinafter referred to as "the financial institution" in this Article)(hereinafter referred to as "the financial debenture" ).
2 The amount of the Trust Fund Bureau Fund to be invested in the financial debenture according to the provision of the preceding paragraph shall not exceed one-third of the total amount of the Trust Fund Bureau Fund.
3 In cases where the Trust Fund Bureau Fund is invested in the financial debenture, the Trust Fund Bureau shall not underwrite, subscribe or purchase more than 50 per cent of the total of the financial debenture issued by one financial institution or more than 60 per cent of the financial debenture issued at one time by one financial institution. Moreover, the financial debentures underwritten, subscribed or purchased by the Trust Fund Bureau shall be of the same kind as those underwritten, subscribed or purchased by any party other than the Trust Fund Bureau in respect of the rate of interest, security method of redemption, term and other conditions.
(Establishment of the Council for Utilization of the Trust Fund Bureau Fund)
Article 8. For the proper utilization of the Trust Fund Bureau Fund, there shall be established a Council for Utilization of the Trust Fund Bureau Fund (hereinafter referred to as "the Council" ) as an auxiliary organ of the Prime Minister's Office.
(Powers of the Council)
Article 9. The Council shall, in response to the inquiries of the Minister of Finance, make study and deliberation on important matters concerning the utilization of the Trust Fund Bureau Fund in respect to the policy and conditions and others of the utilization of the Trust Fund Bureau Fund.
2 The Council may, at any time, express its opinion to the Minister of Finance in respect to the utilization of the Trust Fund Bureau Fund.
(Organization of the Council)
Article 10. The Council shall consist of the Prime Minister, the Minister of Finance, the Minister of Postal Services and members not exceeding ten in number.
2 The membership of the Council shall be filled by the following persons:
(1) Chairman of the Local Finance Commission;
(2) Administrative Vice-Minister of Finance;
(3) Administrative Vice-Minister of Welfare;
(4) Administrative Vice-Minister of Postal Services;
(5) Deputy Director-General of the Economic Stabilization Board;
(6) Deputy Secretary-General of the Board of Audit;
(7) Governor of the Bank of Japan;
(8) Persons of learning and experience persons, not exceeding three in number.
3 The members under item (8) of the preceding paragraph shall be appointed by the Prime Minister for a term of office of two years.
4 The members of the Council shall serve part-time.
(The Chairman and Vice-chairmen of the Council)
Article 11. The Prime Minister shall preside over the affairs of the Council as chairman.
2 The Minister of Finance and the Minister of Postal Services shall assist the Chairman as Vice-chairmen, and in case the chairman is prevented from discharging his duties, the Vice-chairmen designated by the Chairman shall discharge the duties of the Chairman.
(Inquiry into the Utilization Plan of the Trust Fund Bureau Fund)
Article 12. The Minister of Finance shall make a necessary plan regarding the utilization of the Trust Fund Bureau Fund for each fiscal year and refer it in advance to the Council. The same shall apply also when he intends to alter the plan.
(Report on Utilization of the Trust Fund Bureau Fund)
Article 13. The Minister of Finance shall prepare a Report on Utilization of the Trust Fund Bureau Fund for each fiscal year and submit it to the Council within four months from the lapse of the fiscal year concerned.
2 The Report under the preceding paragraph shall contain important matters concerning the status of utilization of the Trust Fund Bureau Fund and changes of operating assets in the fiscal year concerned, and shall be accompanied with the balance sheet of the Trust Fund Bureau Fund as of the end of the fiscal year concerned.
(Delegation to Cabinet Order of Provisions concerning Management of the Council)
Article 14. Other than those provided for in the preceding five Articles, necessary matters concerning management of the Council shall be provided for by Cabinet Order.
(Delegation of Power of Order to Execute Receipt and Disbursement of the Trust Fund Bureau Fund)
Article 15. The Minister of Finance may authorize the bureau and division chiefs the under him to give orders for the execution of receipt and disbursement of the Trust Fund Bureau Fund.
(Delegation of Affairs concerning Utilization of the Trust Fund Bureau Fund)
Article 16. The Minister of Finance may, as provided for by the Ministry of Finance Ordinance, cause the Bank of Japan to handle part of the affairs concerning the utilization of the Trust Fund Bureau Fund.
Supplementary Provisions:
1 This Law shall come into force as from April 1, 1951.
2 The Deposit Bureau Deposit Law (Law No.25 of 1925) shall be abolished.
3 The assets and liabilities belonging to the Deposit Bureau of the Ministry of Finance at the time of enforcement of this Law shall belong to the Trust Fund Bureau.
4 Out of the liabilities which have come to belong to the Trust Fund Bureau in accordance with the provision of the preceding paragraph, those of the receipts devised from the issuance of the certificates prescribed in Article 10-4 paragraph 1 and Article 10-5 paragraph 1 of the former Temporary Funds Adjustment Law (Law No.86 of 1937), the "Chochiku" Debenture and the "Hokoku" Debenture prescribed in Article 13 paragraph 1 of the same Law and the profit accruing from the redemption by purchase of such certificates or debentures, the unpaid principal or premium thereof (hereinafter referred to as "the debenture receipts, etc." ) which have been deposited with the Deposit Bureau from the Hypothec Bank of Japan in accordance with the provision of paragraph 4 of the Law concerning Measures to be Taken in Consequence of the Abolition of the Temporary Funds Adjustment Law (Law No.21 of 1948), shall, notwithstanding the provision of the same paragraph, all be repaid on the date of the enforcement of this Law.
5 The Hypothec Bank of Japan shall administer the fund comprising the debenture receipts, etc. which have been repaid according to the provision of paragraph 4 of the Law concerning the Measures to be Taken in Consequence of the Abolition of the Temporary Funds Adjustment Law and which it actually holds (hereinafter referred to as "the repaid money of debenture receipts, etc." ).
6 Necessary matters concerning the method of calculation of the profit and loss of the repaid money of debenture receipts, etc. and the allotment of the profit and loss concerned shall be provided for by Cabinet Order.
7 Other than the matters provided for in the preceding paragraph, necessary matters concerning the handling of the repaid money of debenture receipts, etc. shall be prescribed by the Minister of Finance.
8 In case the assets which have come to belong to the Trust Fund Bureau in accordance with the provision of paragraph 3 include the assets which are not those in which the Trust Fund Bureau Fund may be invested in accordance with the provision of Article 7, the holding of such assets shall be regarded as the investment of the Trust Fund Bureau Fund in the financial debenture as for the application of the provisions of paragraphs 1 and 2 of the same Article.
9 The securities and loans (excluding the securities and loans belonging to the accumulated reserve of the Post Office Life Insurance and Post Office Annuity Special Account) in which the accumulated reserve of the Special Accounts of the Government are invested at the time of the enforcement of this Law shall belong to the Trust Fund Bureau at their book values, and the funds belonging to the Special Account concerned in the amount corresponding to the book value of the said securities and loans shall be deemed to have been entrusted to the Trust Fund Bureau. In this case, if the securities and the loans which have come to belong to the Trust Fund Bureau, include the securities and loans other than those in which the Trust Fund Bureau Fund may be invested in accordance with the provision of Article 7, the provision of the preceding paragraph shall apply mutatis mutandis to the holding of such securities or the accommodating of such loans.
10 The provisions of Article 2 paragraph 2 shall not apply to the holding of securities belonging to the accumulated reserves of the Post Office Life Insurance and Post Office Annuity Special Account at the time of the enforcement of this Law and those loans belonging to the accumulated reserves of the above Special Account at the time of the enforcement of this Law other than the loans to insurance policyholders in accordance with the provisions of the Post Office Life Insurance Law and the loans to annuity policyholders, annuities or successive annuitants in accordance with the provisions of the Post Office Annuity Law.
11 Whenever the securities and loans held by the Post Office Life Insurance and Post Office Annuity Special Account in accordance with the provision of the preceding paragraph are redeemed, the amount redeemed shall be entrusted to the Trust Fund Bureau.
12 The term "the Deposit Bureau of the Ministry of Finance" as used in other laws and orders shall read "the Trust Fund Bureau" .
13 The Savings Bank Law (Law No.74 of 1921) shall be partially amended as follows:
In Article 9 paragraph 3, "paragraph 1" shall be amended as "the preceding paragraph" ;and paragraph 2 of the same Article shall be deleted.
In Article 11 paragraph 1 item 9, "or the Deposit Bureau of the Ministry of Finance" shall be deleted.
14 The Law concerning Central Bank for Agriculture and Forestry (Law No.42 of 1923) shall be partially amended as follows:
In Article 15 paragraph 1 item 2, "the Deposit Bureau of the Ministry of Finance or" shall be deleted.
15 The Law concerning Central Bank for Commercial and Industrial Associations (Law No.14 of 1936) shall be partially amended as follows:
In Article 29 paragraph 1 item 2, "the Deposit Bureau of the Ministry of Finance or" shall be deleted.
16 The Law concerning Concurrent Operation of Business of Savings Bank or Trust Business by Ordinary Banks, Etc.(Law No.43 of 1943) shall be partially amended as follows:
In Article 2 paragraph 3, "paragraph 1" shall be amended as "the preceding paragraph" ;and paragraph 2 of the same Article shall be deleted.
17 The Japan Education Work Association Law (Law No.30 of 1944) shall be partially amended as follows:
In Article 17, "from the Deposit Bureau of the Ministry of Finance or others" shall be deleted.
In Article 19 item 2, "deposit with the Deposit Bureau of the Ministry of Finance" shall be amended as "entrust to the Trust Fund Bureau" .
In Article 23, "in case borrowing is made from the Deposit Bureau of the Ministry of Finance, and others" shall be deleted.
18 The Post Office Life Insurance Law shall be partially amended as follows:
In the Contents, "Chapter V. Employment of Reserves (Article 69)" shall be deleted.
Next to Article 2, the following one Article shall be added:
(Guarantee for Payment of Insurance Benefits, Etc.)
Article 2-(2). The State shall make guarantee for the payment of insurance benefits, etc., on the basis of the Post Office Life Insurance contract (hereinafter referred to as "the insurance contract" ).
In Article 5, "Post Office Life Insurance contract (hereinafter referred to as" the insurance contract ") shall be amended as" the insurance contract".
CHAPTER V shall be deleted.
19 The Post Office Annuity Law shall be partially amended as follows:
In the Contents, "Chapter IV. Employment of Reserves (Article 42)" shall be deleted.
Next to Article 2, the following one Article shall be added:
(Guarantee for Payment of Annuity, Etc.)
Article 2-(2). The State shall make guarantee for the payment of annuity, etc., on the basis of the post office annuity contract (hereinafter referred to as "the annuity contract" ).
In Article 5 paragraph 1, "post office annuity contract (hereinafter referred to as" the annuity contract ")" shall be amended as "the annuity contract" .
CHAPTER IV shall be deleted.
20 The Law concerning Financial Business by Cooperatives (Law No.183 of 1949) shall be partially amended as follows:
In Article 4 item (2), "deposit with the Deposit Bureau of the Ministry of the Finance, or" shall be deleted.