Article 1.　The purpose of the Japan Development Bank is to supplement and encourage the financing of ordinary financial institutions by supplying the long-term funds, in order to promote the economic reconstruction and industrial development of Japan.

Article 2.　The Japan Development Bank shall be a juridical person in public Law.

Article 3.　The Japan Development Bank shall have its principal office in Tokyo.

2　The Japan Development Bank may have its subordinate office wherever it is deemed necessary.

Article 4.　The capital of the Japan Development Bank shall be the total of the amount of ten billion (10,000,000,000) yen to be invested by the Government from the U. S. Aid Counterpart Fund Special Account and the amount to be considered to have been invested by the Government from the General Account in accordance with the provision of Article 47 paragraph 1 or 3.

2　The amount invested from the U. S. Aid Counterpart Fund Special Account under the preceding paragraph shall be invested in the fiscal year 1951-52.

3　The Japan Development Bank may increase its capital, if necessary, with the approval of the Minister of Finance.

4　In case the Japan Development Bank increases its capital in accordance with the provision of the preceding paragraph, the Government may invest in the Japan Development Bank within the limits of the amount appropriated in the budget.

5　None other than the Government may invest in the Japan Development Bank.

Article 5.　The Japan Development Bank shall provide for the following matters in its Articles of Corporation:

2　In case the Japan Development Bank has changed the Articles of Corporation, it shall report to that effect to the Minister of Finance without delay.

Article 6.　The Japan Development Bank shall make registration as provided for by Cabinet Order.

2　The matters to be registered in accordance with the provision of the preceding paragraph cannot be set up against a third party unless they have been registered.

Article 7.　None other than the Japan Development Bank shall use the name of the Japan Development Bank or any other like names.

2　The provisions of Article 4 paragraph 2 of the Banking Law (Law No.21 of 1927) shall not apply to the Japan Development Bank.

Article 8.　The dissolution of the Japan Development Bank shall be provided for by Law separately.

2　In case the Japan Development Bank is dissolved, the residual property shall belong to the National Treasury as prescribed by Law separately.

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 Japan Development Bank.

Article 10.　The Japan Development Bank shall have one President, one Vice-President, not more than seven Directors, not more than two Auditors and not more than five Councillors as its officers.

Article 11.　The President shall represent the Japan Development Bank and exercise general control over its affairs.

2　The Vice-President shall represent the Japan Development Bank as prescribed by the President, assist the President in managing the affairs of the Japan Development Bank, act on behalf of the President if he is prevented from performing his duties, and execute his functions if his post is vacant.

3　The Directors shall represent the Japan Development Bank as prescribed by the President, assist the President and Vice-President in managing the affairs of the Japan Development Bank, act on behalf of the President if he and the Vice-President are prevented from performing his duties, and execute his functions if his and the Vice-President's post are vacant.

4　The Auditors shall audit the business of the Japan Development Bank.

5　The councillors may, in response to the inquiry of the President, express their opinions on the important matters concerning the business of the Japan Development Bank or express freely their opinions concerning the business of the Japan Development Bank.

Article 12.　The President, Vice-President and Auditors shall be appointed by the Prime Minister.

2　The Directors and Councillors shall be appointed by the President.

Article 13.　The term of office of the President, Vice-President, Directors and Auditors shall be four years and that of the Councillors shall be two years.

2　The President, Vice-President, Directors, Auditors and Councillors may be reappointed.

3　In case the post of President, Vice-President, Director, Auditor and Councillor 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.

Article 14.　With respect to the matters on which the interest of the Japan Development Bank and the President, Vice-President or Directors conflict with each other, those persons shall have no right of representation. In this case, the Auditors shall represent the Japan Development Bank.

Article 15.　The President, Vice-President and Directors may appoint from among the employees of the Japan Development Bank an attorney or attorneys with full power to act for the Japan Development Bank generally or before the court with respect to the business of its subordinate offices.

Article 16.　The employees of the Japan Development Bank shall be appointed by the President.

Article 17.　The officers and employees of the Japan Development Bank 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.

Article 18.　In order to attain the purpose mentioned in Article 1, the Japan Development Bank shall be engaged in the following business:

2　Making of loans or subscribing for debentures provided for in items (1) to (3) inclusive of the preceding paragraph may be done only in cases where the redemption of the loans and of the debentures subscribed for is deemed to be reliable.

Article 19.　The interest rates on loaned funds provided for in paragraph 1 item (1) or (3) of the preceding Article shall be so fixed as to yield sufficient interests on loaned funds, and sufficient interests of debentures subscribed for in accordance with the provisions of items (2) and (3) of the same paragraph to cover the operating expenses of the Japan Development Bank, its entrusting commissions, interests on Government loans provided for in Article 46 paragraph 1 and other incidental expenses and loss incurred with respect to the utilization of assets, taking into consideration the interest rates on loans of the banks.

2　The rates of interest on loan of the Japan Development Bank under the preceding paragraph shall be equal for such loaning of funds, as are of the same kind in regard to the object of loaning, the term of redemption of loans and its security, etc.

Article 20.　The Japan Development Bank shall prepare the statement of business methods and state therein the methods, the interest rate and the term of loans, the methods of subscribing for debentures, the methods of collecting the principal and interest, other methods of operations and the working rules of the entrusting of business, etc.

Article 21.　The Japan Development Bank may entrust its business referred to in each item of Article 18 paragraph 1 to none other than the banks.

2　In case the banks are entrusted with the business of the Japan Development Bank, the officers and employees of such entrusted bank engaged in its 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.

Article 22.　In view of the purpose mentioned in Article 1, the Japan Development Bank shall not compete with the banks and other financial institutions with respect to its business operations.

Article 23.　The business year of the Japan Development Bank shall commence in April every year and end in March of the following year.

Article 24.　The Japan Development Bank shall draft a budget of the revenues and expenditures for each business year and submit it to the Minister of Finance.

2　The revenues under the preceding paragraph shall be the interest on loans, the interest on debentures, the revenues from other utilizations of assets and other miscellaneous incidental revenues, and the expenditures under the same paragraph shall be the expenses for business and entrusting business, the interest on Government loans provided for in Article 46 paragraph 1 and other miscellaneous incidental expenses.

3　On 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.

5　The form and contents of the budget and the procedure for its drafting and submission shall be determined by the Minister of Finance.

Article 25.　The Japan Development Bank may include a reserve fund in its budget to cover such shortage of appropriations as may arise on account of unforeseeable causes.

Article 26.　The decision of the budget of the Japan Development Bank by the Diet shall follow the instance of the decision of the national budget.

Article 27.　In case the budget has been decided upon by the Diet, the Cabinet shall notify to that effect to the Japan Development Bank without delay through the Minister of Finance.

2　The Japan Development Bank shall not put the budget into effect unless it has received the notification under the provision of the preceding paragraph.

3　In case the notification under the provision of paragraph 1 has been made, the Minister of Finance must notify to that effect to the Board of Audit without delay.

Article 28.　Only in those cases where there exists the necessity on account of such inevitable causes as may have arisen after the drafting of the budget, the Japan Development Bank may draft a supplementary budget and submit it to the Minister of Finance.

2　Besides the cases under the preceding paragraph, the Japan Development Bank may revise the budget and submit it to 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 24 paragraphs 2 to 5 inclusive and the preceding two Articles shall apply mutatis mutandis to the supplementary budget and the revision of the budget under the preceding two paragraphs.

Article 29.　The Japan Development Bank may, as occasion may require, draft a provisional budget for a specified period within a business year and submit it to the Minister of Finance.

2　The provisions of Article 24 paragraphs 2 to 5 inclusive, Articles 26 and 27 shall apply mutatis mutandis to the provisional budget under the provision of the preceding paragraph.

3　The provisional budget shall become ineffective when the budget for each 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.

Article 30.　With respect to the appropriations for expenditure, the Japan Development Bank shall not use them for purposes other than specified in the relevant budget.

Article 31.　With respect to the amount of expenditure specified in the budget, the Japan Development Bank 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 must immediately notify to that effect to the Board of Audit.

Article 32.　When the reserve fund is to be used, the Japan Development Bank must immediately notify to that effect to the Minister of Finance.

2　Upon receipt of the notification under the provision of the preceding paragraph, the Minister of Finance must immediately notify to that effect to the Board of Audit.

Article 33.　The Japan Development Bank shall prepare every business year the inventory and balance sheet, for the half terms from April to September and from October to March, 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 or the relevant business year.

2　In case the Japan Development Bank has submitted the financial statements under the provision of the preceding paragraph, it shall give public notice of such financial statements and keep them in each office.

Article 34.　The Japan Development Bank must complete the settlement of its accounts for each business year not later than July 31 of the following business year.

Article 35.　After the settlement of accounts has been completed, the Japan Development Bank 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 33 paragraph 1.

2　On receipt of the report of settlement of accounts and financial statements under the provision of 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.

Article 36.　If there is profit upon settlement of profit and loss accounting each business year, the Japan Development Bank shall accumulate it as Reserve Fund.

2　Reserve Fund under the preceding paragraph shall not be disposed of unless it is devoted to compensation for losses.

Article 37.　The Japan Development Band shall not borrow funds.

Article 38.　The Japan Development Bank shall not make use of temporarily dormant business funds, except in the following manner:

Article 39.　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 Japan Development Bank with its business.

Article 40.　The Minister of Finance shall supervise the Japan Development Bank in accordance with the provisions of this Law.

2　The Minister of Finance may, if it is deemed necessary for the enforcement of this Law, give the Japan Development Bank such orders concerning its business as are necessary for supervision, on the basis of the reports submitted by the Japan Development Bank and/or the result of the examination under the provision of Article 42 paragraph 1.

Article 41.　In case the President, Vice-President and Auditors of the Japan Development Bank have come under one of the following items, the Prime Minister may discharge them:

2　When the Directors or Councillors of the Japan Development Bank have come under any of the items of the preceding paragraph, the Prime Minister may order the President to discharge the Directors or Councillors concerned.

Article 42.　The Minister of Finance may, if it is deemed necessary, cause the Japan Development Bank to make reports or cause the officials under him to enter offices of the Japan Development Bank 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.

Article 43.　The Reconversion Finance Bank shall be dissolved on the date prescribed by Cabinet Order by March 31, 1952, and its right and obligation (excluding those on Government investment) shall be taken over by the Japan Development Bank on the same day.

2　The amount equivalent to the amount of reserves of the Reconversion Finance Bank at the time of dissolution thereof shall be deemed to be the reserves which have been set aside in accordance with the provision of Article 36 paragraph 1 on the day when the Japan Development Bank has taken over right and obligation in accordance with the provision of the preceding paragraph.

3　In cases where the Reconversion Finance Bank has been dissolved, if the total amount of the amount of surplus as provided for in Article 2 of the Law concerning Government Investment, Etc. to the Reconversion Finance Bank (Law No.114 of 1949;hereinafter referred to as "the Law concerning Government Investment, Etc." ) which accrued in the fiscal year 1951-52 and the amount of the said surplus which accrued in the fiscal year 1950-51 and which has not been required to pay into the National Treasury in accordance with the provision of paragraph 4 of the Supplementary Provisions of the Law for Partial Amendments to the Law Concerning Government Investment, Etc. to the Reconversion Finance Bank (Law No.107 of 1951;hereinafter referred to as "the Law No.107 of 1951" ) has come to exceed 4,532,802,000 yen the amount equivalent to the excess shall be deemed to have been set aside as reserves in accordance with the provision of Article 36 paragraph 1 on the day prescribed in the preceding paragraph.

Article 44.　When the Japan Development Bank has taken over the credits and liabilities of the Reconversion Finance Bank in accordance with the provision of paragraph 1 of the preceding Article, the Bank may, in addition to the business prescribed in each item of Article 18 paragraph 1, carry out the business on the liquidation thereof.

2　The Japan Development Bank may entrust the business provided for in the preceding paragraph with none other than banks and the Central Co-operative Bank for Commerce and Industry.

3　The provisions of Article 21 paragraph 2 and Article 39 shall apply mutatis mutandis to the Central Co-operative Bank for Commerce and Industry in case it is entrusted with business provided for in paragraph 1.

Article 45.　The amount of capital of the Reconversion Finance Bank at the time of its dissolution shall be the amount of capital at the end of the fiscal year 1950-51 less the amount cut off in accordance with the provision of the proviso to Article 3 of the Reconversion Finance Bank Law (Law No.34 of 1946), less the amount paid into the National Treasury in the fiscal year 1951-52 in accordance with the provisions of Article 3 of the Law concerning Government Investment, Etc., less the amount paid into the National Treasury by the Reconversion Finance Bank in the fiscal year 1950-51 in accordance with the provisions of the same Article, which is paid into the National Treasury in accordance with the provision of paragraph 4 of the Supplementary Provisions of Law No.107 of 1951, the amount paid into the National Treasury in Accordance with the provision of paragraph 5 of the Supplementary Provisions of the same Law and less the amount of its unpaid capital.

Article 46.　The Government investment to the Reconversion Finance Bank at the time of its dissolution shall be regarded as Government loan obtained by the Japan Development Bank on the day prescribed in Article 43 paragraph 1, notwithstanding the provision of Article 37.

2　The Japan Development Bank shall pay every business year (excluding the fiscal year 1951-52), interest on the Government loan under the preceding paragraph, according to the rates, method of calculation and procedures prescribed by Cabinet Order.

Article 47.　In case there are collections out of such credits taken over by the Japan Development Bank from the Reconversion Finance Bank as credits on the accommodated funds, credits obtained as the result of the performance of guarantee for liabilities, and credits on the expenses necessary for securing the credits as prescribed by Cabinet Order (hereinafter referred to as "collections of the Reconversion Finance Bank" ) in each quarter of the fiscal year (excluding quarters of the fiscal year 1951-52) the Government loan as prescribed in paragraph 1 of the preceding Article equivalent to such collections of the Reconversion Finance Bank shall be considered to have been repaid in the relevant quarter, and the amount equivalent to the Government loan which is thus considered to have been repaid shall be considered to have been invested to the Japan Development Bank from the General Account of the Government in the relevant quarter of the year.

2　In so far as the fiscal year 1951-52 is concerned, the Japan Development Bank shall pay into the National Treasury by April 30, 1952, as the repayment of the Government loan as prescribed in paragraph 1 of the preceding Article, out of the assets taken over in accordance with the provision of Article 43 paragraph 1, the collection or the repayments prescribed in items (1) to (3) inclusive and the collections prescribed in item (4)(hereinafter generally referred to as "collections, etc. of the Reconversion Finance Bank" in this Article) up to the limit of 7,619,633,000 yen (in cases where there is an amount paid into the National Treasury by the Reconversion Finance Bank in the fiscal year 1951-52 in accordance with the provisions of Article 3 of the Law concerning Government Investment, Etc. or paragraph 5 of the Supplementary Provisions of Law No.107 of 1951 or the amount which has been paid into the National Treasury in accordance with the provision of paragraph 4 of the Supplementary Provisions of Law No.107 of 1951 out of the amount which ought to have been paid into the National Treasury in the fiscal year 1950-51 under the provisions of Article 3 of the Law concerning Government Investment, Etc., the total of such amounts shall be deducted therefrom;hereinafter the same in this Article):

3　In case the collections etc. of the Reconversion Finance Bank for the fiscal year 1951-52 under the preceding paragraph exceed 7,619,633,000 yen, the Government loan provided for in Article 46 paragraph 1 reaching the amount equivalent to the excess shall be considered to have been repaid on March 31, 1952, and the amount equivalent to the amount of Government loan considered to have been repaid shall be considered to have been invested by the Government from the General Account on the same day.

Article 48.　Money to be paid into the National Treasury in accordance with the provision of paragraph 2 of the preceding Article shall be the revenues of the General Account in the fiscal year 1951-52.

2　The procedures of payment of money into the National Treasury provided for in the preceding paragraph shall be prescribed by Cabinet Order.

Article 49.　Other than those provided for by this Law, matters necessary for the taking over of the business of the Reconversion Finance Bank by the Japan Development Bank shall be prescribed by Cabinet Order.

Article 50.　In case the officers and employees of the Japan Development Bank have made false reports on the matters to be reported according to the provision of Article 42 paragraph 1, they shall be punished with a fine not exceeding 30,000 yen.

Article 51.　In the following cases, the officers and employees of the Japan Development Bank shall be punished with a non-penal fine not exceeding 30,000 yen:

Article 52.　A person who has violated the provision of Article 7 paragraph 1 shall be punished with a non-penal fine not exceeding 10,000 yen.