Article 1.　The purpose of this Law is to make proper disposal of those claims of the State, other than tax claims and loan claims, the money relating to which is found extremely difficult to be paid to the State by the obligors under such claims on account of their lack of solvency.

Article 2.　The heads of the respective Ministries and Agencies (meaning the heads of the respective Ministries and Agencies prescribed in Article 20 paragraph 2 of the Finance Law (Law No.34 of 1947);hereinafter the same) or the officials under delegation by them (hereinafter referred to as "the heads, etc. of the respective Ministries and Agencies" ) may, if there is a claim of the State, other than a tax claim and loan claim, the money relating to which is found extremely difficult to be paid to the State by the obligor under such claim on account of their lack of solvency, convert it into a loan repayable by periodic installments (hereinafter referred to as "the time loan" ) or a loan repayable upon the rehabilitation of his solvency (hereinafter referred to as "the deferred loan" ).

Article 3.　The heads, etc. of the respective Ministries and Agencies shall, if they have converted a claim of the State into the time-loan or deferred loan in accordance with the provision of the preceding Article, transfer such claim to the Minister of Finance as provided for Cabinet Order.

2　In the case under the preceding paragraph, to heads, etc. of the respective Ministries and Agencies, etc. shall be authorized not to transfer such claim to the Minister of Finance regardless of the provision of the preceding paragraph, if it belongs to a Special Account.

Article 4.　The Minister of Finance shall, if he has taken over the time-loan or deferred loan from the heads, etc. of the respective Ministries and Agencies in accordance with the provision of paragraph 1 of the preceding Article, administer it as provided for by Cabinet Order.

2　The time-loan or deferred loan belonging to a Special Account which is not transferred in accordance with the provision of paragraph 2 of the preceding Article shall be administered by the heads of the respective Ministries and Agencies administering the Special Account concerned.

Article 5.　Those who administer the time-loan or deferred loan in accordance with the provisions of the preceding Article (hereinafter referred to as "the administrators" ) may entrust a part of the affairs concerning the administration of the claims concerned with the other officials.

Article 6.　The administrators may, if, in regard to the time-loan or deferred loan under their administration, it is found necessary for securing the claim concerned or for facilitating the payment to the State of the money relating to the claim concerned in cases where the obligor's solvency has been rehabilitated or where the state of his solovency has deteriorated, change the terms of such loan.

Article 7.　The administrators may, if the timeloan or deferred loan under their administration falls under any of the cases mentioned in the following items and if it is found that there is no prospect for the rehabilitation of the obligor's solvency, release the obligor from the obligations relevant to such claim: