(Purpose)
Article 1. The purpose of this Law is to provide the provisions necessary for the mutual loans and savings bank in order to contribute to smooth flow of finance for the national in general, to increase of the savings thereof, to maintenance of public confidence in such business, supervising effectively thereon, in view of the public nature of financial business and to protecting the depositors, etc.
(Business of Mutual Loans and Savings Bank)
Article 2. A mutual loans and savings bank may conduct the following business and the business incidental thereto:
(1) To accept instalment during a fixed period, upon the contract to make presentation of a fixed amount of money during or at the end of such fixed period;
(2) To receive deposit and instalment savings;
(3) To loan money or discount bills;
(4) To safe-keep securities, jewel and other valuable goods;
(5) Transaction of receiving money paid for security or paying the principal, interest or dividend thereof.
2 The body of Article 1 paragraph 2 (Restriction on Business) of the Savings Banks Law (Law No.74 of 1921) shall not apply to a mutual loans and savings bank.
(License of Business)
Article 3. The business of mutual loans and savings bank may not be conducted without obtaining the license of the Minister of Finance.
2 The persons who intend to obtain the license under the preceding paragraph shall submit to the Minister of Finance the application together with the articles of incorporation, the document showing the kind of business and method to transact the business and the business plan.
(Prohibition on Business by Those other than Mutual Loans and Savings Bank)
Article 4. No person other than a mutual loans and savings bank which has obtained the license of the Minister of Finance in accordance with the provisions of the preceding Article, shall conduct the business prescribed in Article 2 paragraph 1 item (1).
(Capital)
Article 5. The business of mutual loans and savings bank shall be conducted by a joint stock company the capital of which is more than the amount prescribed in any one of the following items:
(1) Thirty million yen for a mutual loans and savings bank which has its principal office in Tokyo-To or in a city, designated by the Minister of Finance, and with more than five hundred thousand in population;
(2) Twenty million yen for a mutual loans and savings bank other than those prescribed in the preceding item.
(Trade Name)
Article 6. A mutual loans and savings bank shall have the words Sogo Ginko (Mutual Loans and Savings Bank) in its trade name.
2 No one other than a mutual loans and savings bank shall have in its trade name any words which intimate being a mutual loans and savings bank.
3 The provision of Article 4 paragraph 2 (Trade name) of the Banking Law (Law No.21 of 1927) shall not apply to a mutual loans and savings bank.
(Prohibition on Other Business)
Article 7. A mutual loans and savings bank may not conduct the business other than business as prescribed in Article 2.
(Business Area)
Article 8. A mutual loans and savings bank shall decide its business area by the articles of incorporation.
2 No mutual loans and savings bank shall conduct its business outside its business area.
3 In case a mutual loans and savings bank intends to alter its business area, it shall obtain the authorization of the Minister of Finance for it.
(Authorization to Change the Fundamental Matters)
Article 9. A mutual loans and savings bank shall obtain the authorization of the Minister of Finance, in the following case:
(1) In the case of changing the trade name;
(2) In the case of changing the capital amount;
(3) In the case of changing the kind and method of business;
(4) In the case of establishing its branch office and other office;
(5) In the case of changing the location of its principal office and other office;
(6) In the case of changing its office other than branch office to a branch office.
(Restriction on Prestation, Etc. to a Person)
Article 10. In case the congregated amount of an amount, obtained by deducting an amount of the instalment or instalments already paid from an amount of presentation done to a person pursuant to the contract under Article 2 paragraph 1 item (1), and amount to be loaned (including the discount of bills;hereinafter the same) exceeds an amount equivalent to ten per cent of the congregated amount of an amount of the capital and an amount of the reserve fund (meaning an amount which was reserved from the profit under whatever title, such as, reserve fund, accumurated reserve fund, or others, and which belongs to the account of shareholder), the mutual loans and savings bank shall not make a presentation or loan to such person.
Article 11. No mutual loans and savings bank shall make a prestation under the contract stipulated in Article 2 paragraph 1 item (1), unless the receiving of the instalments after making the prestation under the said contract is secured on a sound basis.
(Maximum Amount of Prestation)
Article 12. The aggregate amount of the prestation to be made by a mutual loans and savings bank in accordance with the contract under the provision of Article 2 paragraph 1 item (1) shall not exceed the combined amount of the instalments received under the contract mentioned in the said item and of equivalent of fifty per cent (50%) of the total deposits in the nature of time deposit held by the bank.
(Reserve Fund for Covering Deposits)
Article 13. As a reserve fund for covering deposits, a mutual loans and savings bank shall hold an amount not less than the equivalent of ten per cent (10%) of the total deposits in the nature of time deposit, plus thirty per cent (30%) of the total deposits other than those in the nature of time deposit, held by the bank, in cash, deposits with or loans to other bank or banks, national or local loan bonds, or some other securities as may be designated by the Minister of Finance.
(Scope of Deposits in the Nature of Time Deposit)
Article 14. The deposits in the nature of time deposit as mentioned in the preceding two Articles shall be those having a time stipulation for the repayment thereof or such other deposits analogous in nature, as may be designated by the Minister of Finance.
(Amalgamation, Transferring or Taking over of Business)
Article 15. The amalgamating, transferring or taking over of the whole or part of the business of a mutual loans and savings bank shall not take effect without the authorization of the Minister of Finance.
2 A mutual loans and savings bank may, besides the case as provided for in the preceding paragraph, take over the whole or part of the business from a Credit Association or a Credit Cooperative, after having obtained the authorization of the Minister of Finance.
(Procedures for Transferring or Taking over of the Whole Business and Others)
Article 16. In case a mutual loans and savings bank has made a resolution of transferring or taking over of the whole business or taking over of the whole business of a Credit Association or a Credit Cooperative, it shall make a public notice, within two weeks after the date of resolution, stating the gist of resolution and notifying that a creditor should state the objection, if any, to the transferring or taking over of business or project to the mutual loans and savings bank within a certain period;and, the mutual loans and savings bank shall make premonitory notice separately to known creditors other than depositors and instalment payers; provided that, the period shall not be less than one month.
2 In case a creditor has failed to raise objection within the period as prescribed in the preceding paragraph he shall be deemed to have consented to the transferring or taking over of the whole business.
3 In case a creditor has raised an objection within the period as prescribed in paragraph 1, a mutual loans and savings bank intending to transfer or take over the whole or a part of the business or project shall repay its obligations to the creditors or furnish them with adequate collaterals or trust adequate property to a bank operating trust business with a view to having a creditor receive the repayment.
Article 17. In case a mutual loans and savings bank has transferred its whole business, it shall make a public notice to that effect without delay.
2 In case the public notice under the preceding paragraph has been made, it shall be regarded as the notification made by the certificate with the kakutei-hizuke (a notarial act) under Article 467 (Condition to set up against an assignment of a nominative debt) of the Civil Code (Law No.89 of 1896) to a depositor or instalment payer of the mutual loans and savings bank which have transferred the whole business. In this case, date of the public notice shall be regarded as kakutei-hizuke.
(Annulment of Business License or Authorization)
Article 18. In case a mutual loans and savings bank does not commence its business within six months after the date of business license, its effect shall come into annulment.
2 In case mutual loans and savings bank does not execute the licensed matters within six months after the date of authorization under this Law, its effect shall come into annulment.
3 In case the consent of the Minister of Finance has been previously obtained under an unavoidable cause, the provision of the preceding two paragraphs shall not apply.
(Matters to Be Reported)
Article 19. A mutual loans and savings bank shall, in the case of the commencement of the business or in the case of the execution of matters having been authorized by the Minister of Finance in accordance with this Law, report its effect to the Minister of Finance without delay.
(Application Mutatis Mutandis of the Banking Law)
Article 20. The provisions of Articles 8 to 13 inclusive (Reserve Fund, Business Year, Accounting Tables, Restriction on the Additional Post of Officers), 15 (Peremptory Notice of Objection for Amalgamation), 16 (Procedure of Amalgamation), 18 to 31 inclusive (Holiday, Business Close, Suspension of Repayment, Supervisory Authority, Etc. of the Minister of Finance and the Juridical Court) and 37 (Public Notice) of the Banking Law shall apply mutatis mutandis to a mutual loans and savings bank. In this case, "depositor" as mentioned in Article 15 of the same Law shall read "depositor and instalment payer" .
(Enforcement Provision)
Article 21. The Minister of Finance may provide for the necessary procedures of the application for licence or authorization, the report, submission of business report, other documents and etc. under this Law in order to enforce the Law.
(Partial Delegation of Powers)
Article 22. The Minister of Finance may have chiefs of the regional bureaus to execute a part of the authority vested by this Law.
(Penal Provisions)
Article 23. Any person who has conducted the business of a mutual loans and savings bank without the license of the Minister of Finance shall be punished with penal servitude not exceeding three years or a fine not exceeding three hundred thousand yen or both of them.
Article 24. In case an officer, manager or any other employee of a mutual loans and savings bank has committed such an act which falls under any of the following items, they shall be punished with penal servitude not exceeding one year or a fine not exceeding ten thousand yen, or both:
(1) In case he has deceived the administration authority or the general public by describing a false statement in the business report under the provision of Article 10 of the Banking Law which applies mutatis mutandis in Article 20 (hereinafter referred to as "the Banking Law" in this Article and Article 26) or in the audit report under the provision of Article 12 of the Banking Law, or by any other means;
(2) In case he has disturbed the inspection conducted under the provision of Article 21 of the Banking Law at the time of the inspection, by concealing the books and documents, stating falsehood, or by any other means.
Article 25. In case an officer or manager of a mutual loans and savings bank has committee an act which falls under any of the following items, the officer or manager concerned shall be punished with a fine not exceeding ten thousand yen:
(1) In case he has violated the provision of Article 7;
(2) In case he has conducted the business outside the business area in violation of the provision of Article 8 paragraph 2;
(3) In case he has violated the provision of Article 9;
(4) In case he has taken over the whole or a part of the business in violation of the provision of Article 16 paragraph 2;
(5) In case he has neglected or falsely made the public notice under the provisions of Article 16 paragraph 1 or Article 17 paragraph 1 of this Law or the provisions of Article 16 or Article 19 of the Banking Law;
(6) In case he has violated the provision of Article 16 paragraph 3;
(7) In case he has violated the provision of Article 8 of the Banking Law;
(8) In case he has failed to prepared books to be prepared at a mutual loans and savings bank in accordance with this Law, has, neglected to submit the documents to be submitted to the Minister of Finance, or has described no matter required to be described or has entered false statement;
(9) In case he has engaged in regular business of other company in violation of the provision of Article 13 of the Banking Law;
(10) In case he has violated the order issued by the Minister of Finance or a juridical court in accordance with the provisions of Articles 22, 23, 26 or 29 of the Banking Law.
Article 26. Any person who has violated the provision of Article 6 paragraph 2 shall be punished with a non-criminal fine not exceeding ten thousand yen.
Article 27. In case a representative of a juridical person or a proxy, an employee or any other worker of a juridical person or natural person has performed the unlawful act under Article 23 or Article 24 to the business of the juridical person or natural person, not only the person who has performed such act but also the said juridical person or natural person shall be punished with a fine mentioned in each of the Articles concerned.
Supplementary Provisions:
1 This Law shall come into force as from the day of its promulgation.
2 The Mutual Loan Business ( "Mujingyo" ) Law (Law No.42 of 1931) shall be partially amended as follows:
In Article 1 paragraph 1, "to make a presentation of money" shall be amended as "to make a prestation of property other than money" , and "to make a presentation of money, securities and other property" shall be amended as "to make a prestation of property other money" ;and paragraph 2 of the same Article shall be deleted.
Article 5 paragraph 1 shall be amended as follows;paragraph 2 shall be deleted;and paragraph 3 shall be made paragraph 2:
Mutual loan (Mujin) company shall have the word "Mujin" and the word which shows the kind of principal property to be presented in its trade name.
In Article 10 paragraph 1 item 6, "property other than money and securities" shall be amended as "property other than money" .
In Article 10 paragraph 1, items 1 to 3 inclusive shall be deleted;item 4 shall be made item 1, and the numbering of the succeeding items shall be moved up;and paragraphs 2 and 3 shall be deleted.
In Article 40, "Article 5 paragraph 3" shall be amended as "Article 5 paragraph 2" .
3 With regard to the mutual loan ( "Mujin" ) company (excluding a mutual loan ( "Mujin" ) company which makes a prestation of property other than money;hereinafter referred to as "existing mutual loan (" Mujin ")), which has been actually under the license for business issued in accordance with the provisions of the Mutual Loan Business (Mujingyo) Law prior to the amendments (hereinafter referred to as" the former Law") at the time of enforcement of this Law, the former Law shall still be effective within the limit of three years from the date of enforcement of this Law, and the provision of Article 4 of this Law shall not apply thereto.
4 In case an existing mutual loan ( "Mujin" ) company has submitted an application for the business license within the limited period mentioned in the preceding paragraph in accordance with the provision of Article 3, the Minister of Finance shall grant the licence, if the said company is deemed proper to conduct the business of mutual loans and saving bank.
5 A mutual loans and saving bank may receive the transfer of whole or a part of the business of existing mutual loan ( "Mujin" ) company; provided that, unless the authorization of the Minister of Finance is obtained, it shall not come into effect.
6 With regard to a company which, being an existing mutual loan ( "Mujin" ) company, has obtained the license of a mutual loans and savings bank, the authorization, consent, order, disposition or others which has been granted, issued or done in accordance with the provisions of the former Law (including the orders issued under the same law;the same in paragraph 7 or the Supplementary Provisions) shall be regarded as having been granted, issued or done in accordance with the provisions of this Law in case there are corresponding provisions in this Law (including the provisions of the Banking Law which apply mutuatis mutandis in Article 20;hereinafter the same).
7 With regard to the authorization or consent which has been done in accordance with the provisions of the former Law and has been regarded as having been done in accordance with the provisions of this Law, the time of effect, if prescribed by this Law, of the authorization or consent concerned shall be reckoned from the date of authorization or consent done in accordance with the provisions of the former Law.
8 The National Savings Association Law (Law No.64 of 1941) shall be partially amended as follows:
Next to Article 2 paragraph 1 item 2, the following one item shall be added:
2-(2) Deposit, instalment savings, or payment of instalment to a mutual loans and savings bank.
In Article 4 paragraph 1, next to "deposit to a savings bank," shall be added "deposit to a mutual loans and saving bank" .
9 The Ministry of Finance Establishment Law (Law No.144 of 1949) shall be partially amended as follows:
In Article 4, item (37), next to "banking" , shall be added "mutual loans and savings banking" ;and in Article 12 paragraph 1 item (8), next to "banking business" shall be added "business of mutual loans and savings bank," .
10 With regard to the application of penal provisions to the acts performed prior to enforcement of this Law (in the case of an existing mutual loan ( "Mujin" ) company, prior to the extinction of validity of the former Law which remains in force in accordance with the provision of paragraph 3 of the Supplementary Provisions), the former provisions shall still prevail even after the enforcement of this Law (in the case of a existing mutual loans ( "mujin" ) company, after extinction of validity of the former Law which remains in force in accordance with the provision of paragraph 3 of the Supplementary Provisions).