I hereby promulgate the Credit Association Law. Signed:HIROHITO, Seal of the Emperor This fifteenth day of the sixth month of the twenty-sixth year of Showa (June 15, 1951) Prime Minister YOSHIDA Shigeru Law No.238 The Credit Association Law Contents Chapter I General Provisions (Articles 1-9) Chapter II Membership (Articles 10-21) Chapter III Establishment and Application for Business License (Articles 22-30) Chapter IV Administration (Articles 31-52) Chapter V Business (Articles 53·54) Chapter VI Accounting (Articles 55-57) Chapter VII Merger and Transfer or Taking Over of Business (Articles 58-62) Chapter VIII Dissolution and Liquidation (Articles 63·64) Chapter IX Registration (Articles 65-85) Chapter X Miscellaneous Provisions (Articles 86-89) Chapter XI Penal Provisions (Articles 90-93) Supplementary Provision CHAPTER I General Provisions

(Purpose) Article 1. The purpose of this Law is to establish the system of a credit association on a cooperative basis in order to contribute to smooth financing and to the increase of savings for the general public;to exercise effective supervision over such association in view of the public nature of financial business;and tend to maintain public confidence in financial business and protect the interest of depositors and others.

(Character) Article 2. A credit association and a federation of credit associations (hereinafter collectively referred to as "association" ) shall be a juridical person.

(Domicile) Article 3. The domicile of an association shall be the seat of its principal office.

(License of Business) Article 4. The business of an association may not be performed without getting a license from the Minister of Finance.

(Minimum of Total Amount of Shares) Article 5. The total amount of shares of a credit association shall never be less than the amount prescribed in the following items: (1) Ten million yen (10,000,000 yen) for an association having its principal office in an area containing at least one special ward of Tokyo-To or in a city with the population of five hundred thousand inhabitants or more designated by the Minister of Finance; (2) Five million yen (5,000,000 yen) for an association other than that prescribed in the preceding item. 2 The total amount of shares of a federation of credit associations shall never be less than one hundred million yen (100,000,000 yen).

(Title) Article 6. An association shall use the following words in its title: (1) In a credit association, the words "Shin-yo Kinko (credit association)" ; (2) In a federation of credit associations, the words "Shin-yo Kinko Rengo-kai (federation of credit associations)" . 2 No person other than an association established under this Law shall use in its title any word which indicates that it is a credit association or a federation of credit associations. 3 The provisions of Articles 19 to 21 inclusive (Firm name) of the Commercial Code (Law No.48 of 1899) shall apply mutatis mutandis to the title of an association.

(Relations with the Law relating to Prohibition of Private Monopoly and Methods of Preserving Fair Trade) Article 7. The following associations shall be deemed to satisfy the requirements under each item of Article 24 of the Law relating to Prohibition of Private Monopoly and Methods of Preserving Fair Trade (Law No.54 of 1947): (1) A credit association of which any member is not a business operator who regularly employs more than one hundred (100) workers; (2) A federation of such credit associations as are provided in the preceding item.

(Registration) Article 8. Matters required to be registered in accordance with the provisions of this Law shall have no force on a third person until such registration is made.

(Supervisory Authority) Article 9. An association shall be subject to the supervision of the Minister of Finance in accordance with the provisions of this Law.

CHAPTER II Membership

(Eligibility for Membership) Article 10. Persons eligible for membership in a credit association shall be those who are mentioned hereunder, and who are provided for by the articles of association;provided that those under items (1) and (2) shall not include a business operator who regularly employs more than one hundred (100) workers: (1) A person who has his domicile or residence within the business area of the credit association; (2) A person who has his business office within the business area of the credit association; (3) A person who is engaged in labor within the business area of the credit association. 2 Persons eligible for membership in a federation of credit associations shall be those credit associations whose business areas are parts of the area of the federation, and which are provided for by the articles of association.

(Share) Article 11. Each member (meaning a member of a credit association or a federation of credit associations;hereinafter the same) shall hold at least one share. 2 The amount of each share shall be the same. 3 No member shall be allowed to hold more than ten per cent of the total number of shares of an association. 4 The liability of a member shall be limited to the amount of shares held by him. 5 No member may set off the payment of his shares against any credit due to him in an association.

(Voting Right) Article 12. Each member shall be entitled to one vote. 2 Any member may, in accordance with the provisions of the articles of association, exercise his voting right through his proxy on such matter as is previously notified to him in accordance with the provision of Article 45;provided, however, that no person shall become proxy unless he is a member of the association. 3 A person exercising the voting right in accordance with the provision of the preceding paragraph, shall be deemed present at the general meeting. 4 The proxy shall submit to the association the certificate showing his power of representation.

(Entrance to Association) Article 13. An applicant for membership of an association shall become a member when he has finished the payment of an amount corresponding to the number of shares to be held by him or when he has succeeded the whole or part of the shares of member, after getting approval of the association with regard to his entrance therein in accordance with the articles of association.

Article 14. Notwithstanding the provision of the preceding Article, in cases where a person who is a successor to a deceased member, and is eligible for membership, has proposed to be a member of an association within the period provided for by the articles of association, such person shall be deemed to have become member at the time of his succession. In this case, the member who is the successor shall succeed to the rights and duties of the deceased with respect to his shares. 2 In case there are two or more successors to a deceased member, the provision of the preceding paragraph shall apply to only one of them who has been elected with the joint consent of the said successors.

(Transfer of Shares) Article 15. Any member may transfer his share with approval of the association to another member or a person eligible for membership. 2 In case a person eligible for membership intends to obtain a share by transfer, he shall get the approval of the association. 3 The transferee of a share shall succeed to the rights and duties of the transferor with regard to the share. 4 No member shall jointly own a share.

(Withdrawal of One's Own Accord) Article 16. Any member may withdraw from the association at any time by transferring all his shares. In this case, if there is no person to receive the shares, the member may request the association to receive them within the period prescribed by the articles of association.

(Legal Withdrawal) Article 17. Any member shall withdraw from the association for any of the following causes: (1) Forfeiture of the qualification for membership; (2) Death or dissolution; (3) Bankruptcy; (4) Expulsion; (5) Loss of all shares. 2 Any member who falls under such case as is provided for by the articles of association may be expelled by a resolution of a general meeting. In this case, the association shall give notice to the member to that effect ten days or more before the general meeting and give him an opportunity to make an explanation at the meeting. 3 The validity of expulsion cannot be established against the person expelled unless he has been notified to that effect.

(Repayment concerning Shares Held by Persons Withdrawing from Association) Article 18. When any member has withdrawn from an association in accordance with the provisions of paragraph 1 items (1) to (4) inclusive of the preceding Article, he may request repayment in regard to the whole or part of his shares, as provided for by the articles of association. 2 The value of the shares under the preceding paragraph shall be determined in proportion to the properties of the association at the close of the business year in which the said person has withdrawn from the said association.

(Prescription) Article 19. The right to make request under the provision of paragraph 1 of the preceding Article shall be extinguished by prescription if such right is not exercised for two years after the withdrawal from an association.

(Suspention of Repayment) Article 20. The association may suspend repayment in regard to shares until the member who has withdrawn pays off his debt to the association.

(Prohibition of Acquisition of Shares by Association) Article 21. An association shall not acquire shares of its members or receive them as the object of pledge;provided that it shall not apply to the case where it is required to do so in order to exercise its rights or where it receive shares in accordance with the provision of Article 16. 2 In case of acquiring the shares of members in accordance with the proviso to the preceding paragraph, the association shall dispose of them without delay.

CHAPTER III Establishment and Application for Business License

(Promoter) Article 22. In order to establish a credit association, seven or more persons proposing to be its members shall be its promoters. 2 In order to establish a federation of credit associations, fifteen or more associations proposing to be its members shall be its promoters.

(Articles of Association) Article 23. Promoters shall prefare the articles of association and affix their signatures thereto. 2 The articles of association under the preceding paragraph shall contain the following matters: (1) Business; (2) Name; (3) Business area; (4) Name and location of the offices; (5) Provisions concerning the eligibility for membership; (6) Provisions concerning the entrance and withdrawal of members; (7) Amount of each share and the time and method of its payment; (8) Provisions concerning the disposal of a surplus fund and a loss; (9) Method of accumulation of the reserve fund; (10) Provisions concerning the fixed number and election of officers; (11) Business year; (12) Method of public notice; (13) Period of duration or cause for dissolution of the association in case such has been decided on. 3 The provision of Article 167 (Attestation of Article of Association) of the Commercial Code shall apply mutatis mutandis to the articles of association of the association.

(Inaugural General Meeting) Article 24. Promoters shall, after the completion of formulation of the articles of association, collect persons who want to become members and hold the inaugural general meeting, making public the articles of association as well as the date and place of such meeting. 2 The public notice under the preceding paragraph shall be given in a proper manner at least two weeks prior to the date of the meeting. 3 The approval of the articles of association formulated by the promoters, establishment of business program and determination of other matters required for the formation of an association shall be decided upon at the inaugural general meeting. 4 The articles of association under the preceding paragraph may be amended at the inaugural general meeting;provided that this shall not apply to the provisions concerning the business area and qualification for membership. 5 The proceedings of the inaugural general meeting shall be decided upon by a majority of twothirds or more of those present at the said meeting which shall be attended by one half or more of those qualified for membership who have given their consent for the formation of the association prior to the day of the said meeting. 6 The provisions of Article 12 of this Law and Article 239 paragraph 4, Article 240 (Votes of Interested Parties), Article 244 (Minutes) and Articles 247 to 253 inclusive (Annulment or Cancellation of Resolution) of the Commercial Codeshall apply mutatis mutandis to the inaugural general meeting. In this case, "Article 343" as stated in Article 247 paragraph 1 of the Commercial Code shall read "Article 48 of the Credit Association Law" .

(Transfer of Business of Directors) Article 25. Promoters shall, after the close of the inaugural general meeting, transfer without delay the business of the association to directors.

(Payment of Share) Article 26. Directors shall, in case they get the transfer under the provision of the preceding paragraph, cause members, without delay, to make payment of total amount of their shares.

(Time of Formation of Association) Article 27. The formation of an association shall become effective upon the completion of the registration of its formation at the seat of its principal office.

(Application Mutatis Mutandis of the Commercial Code) Article 28. The provision of Article 428 (Annulment of Formation of Company) of the Commercial Code shall apply mutatis mutandis to the formation of an association.

(Application for Business License) Article 29. Any association which intends to get a license under the provision of Article 4 shall submit an application for a business license to the Minister of Finance, together with the following documents: (1) Statement of reason for application; (2) Articles of association; (3) Statement of a business method (matters to be entered shall be the kind of deposit, the kind of exchange transactions and of other business, the calculation of deposit interest and loan interest, and the method of other business transactions); (4) Statement of a business plan (matters to be entered shall be the prospects of business and of revenue and outlay within three business years after the commencement of the business of the association); (5) Minutes of inaugural general meeting; (6) Documents stating the number of members and of shares held by them and the total amount; (7) Copy of the register; (8) Statement of daily balance; (9) Curriculum vitae of officers; (10) Document stating the location of the offices.

(Report on Commencement of Business and Lapse of Business License) Article 30. When an association has started its business, it shall report to that effect to the Minister of Finance without delay. 2 In case the association does not start its business within six months from the day the license is granted, such license shall become null and void. 3 The provision of the preceding paragraph shall not apply when the approval of the Minister of Finance has been obtained beforehand for unavoidable reasons.

CHAPTER IV Administration

(Approval of the Minister of Finance) Article 31. An association shall, in the following cases, obtain the authorization of the Minister of Finance: (1) In case the association intends to change the article of association; (2) In case the association intends to change the kind or method of the business; (3) In case the association intends to change the location of an office thereof.

(Officers) Article 32. An association shall have, as officers, directors and auditors. 2 The number of directors shall be five or more and the number of auditors shall be two or more. 3 Officers shall be elected by the resolution of the general meeting from among members or among officers executing the business of those juridical persons which are on membership;provided however, that the officers at the time of establishment shall be elected by the resolution of the inaugural general meeting from among those who intend to be members or among officers executing the business of those juridical persons which intend to be members. 4 In a federation of credit associations, notwithstanding the provision of the preceding paragraph, officers may be elected from among those other than the officers executing the business of credit associations which are on membership;provided, however, that the number of such officers shall not exceed one-fifth of the fixed number.

(Restriction on Interlocking or Directors or Auditors) Article 33. No officer, manager or any others employee engaged in the regular business of an association shall, at the same time, participate in the regular business of another association or a company or carry on any business on his own account;provided that this shall not apply when he gets the approval of the Minister of Finance. 2 No auditor shall concurrently be a director or an employee of the same association.

(Term of Office for Officers) Article 34. The term office for officers of an association shall be two years;provided, however, that any other term not exceeding three years is prescribed by the article of association, such term shall hold good. 2 Notwithstanding the provision of the preceding paragraph, the term of office for an officer filling a vacancy shall be the remaining part of the term of his predecessor. 3 Notwithstanding the provision of paragraph 1, the term of office for officers as of the establishment of an association shall be the one decided upon at the inaugural general meeting;provided that such term shall not exceed one year.

(Prohibition of Dual Capacity, Etc. of Directors) Article 35. In case a director of association conclude a contract with the association, an auditor shall represent the association. The same shall apply to any law-suit between the association and a director thereof.

(Keeping and Inspection of Articles of Association, and Other Documents) Article 36. Directors shall keep the articles of association and the minutes of general meetings at each office and the register of members at the principal office. 2 The register of members shall contain the following matters: (1) Personal name or title of corporation and domicile or residence of each member; (2) Date of entrance of each member; (3) Number of shares held by each member, amount thereof, and date of payment. 3 Any member or creditor of an association may request its directors at any time to let him inspect the documents mentioned in paragraph 1. In this case, directors shall not refuse the inspection without due reason.

(Submission, Keeping and Inspection of Documents concerning Account Settlements) Article 37. Directors shall submit to auditors seven days or more before an ordinary general meeting the business report, inventory, balance sheet, statement of profit and loss, and plan for disposal of a surplus fund or a loss, and shall keep them at the principal office. 2 Directors shall submit the documents under the preceding paragraph, together with the report of auditors, to the general meeting to obtain its approval. 3 Any member or creditor of an association may request its directors at any time to let him inspect the documents mentioned in paragraph 1. In this case, directors shall not refuse the inspection without due reason.

(Removal of Officers) Article 38. Members may request the removal of officers under the joint signature of one-fifth or more of the total members, and such officers shall be removed when the request is approved by a majority of the members present at a general meeting. 2 The request for removal under the provision of the preceding paragraph shall be made in respect to the directors or auditors as a whole, and at the same time;provided, however, that this shall not apply in the case where the request for removal is made on the ground of a violation of any laws orders or the articles of association. 3 The request for removal under the provision of paragraph 1 shall be made through submission to the association of a document stating the reason for removal. 4 When the request under paragraph 1 is received, the association shall put the request to the deliberation of a general meeting. The association shall send the document under the preceding paragraph to the officer concerned seven days or more before the general meeting and afford him an opportunity to make explanation at the meeting. 5 The provisions of Article 43 paragraph 2 and Article 44 shall apply mutatis mutandis to the case of the preceding paragraph.

(Application Mutatis Mutandis of the Civil Code and the Commercial Code to Officers) Article 39. The provisions of Article 254 paragraph 2 (Relations between Director and Company), Article 258 paragraph 1 (Measure to be Taken in case of Retirement of a Director), Article 266 (Liability of Director), Article 267 (Law-suit against Director) and Article 284 (Relieving Directors and Auditors of their Responsibility) of the Commercial Code shall apply mutatis mutandis to directors and auditors;the provisions of Article 55 (Delegation of Representative Right) of the Civil Code (Law No.89 of 1896), and the provisions of Articles 260 to 262 inclusive (Director's execution of Business and Representation of Company) of the Commercial Code shall apply mutatis mutandis to directors;and the provisions of Article 274 (Right to Request a Report and Make Inspection) and Article 278 (Joint Liability of Directors and Auditors) of the Commercial Code shall apply mutatis mutandis to auditors. In this case, "paragraph 1 of the preceding Article" as stated in Article 284 of the Commercial Code shall read "Article 37 paragraph 2 of the Credit Association Law" .

(Manager) Article 40. An association may have managers. 2 The provisions of Article 38 paragraphs 1 and 3, Article 39, Article 41 and Article 42 (Manager) of the Commercial Code shall apply mutatis mutandis to managers.

(Removal of Manager) Article 41. Members may request directors to remove a manager under the joint signature of one-tenth or more of the total members. 2 The request under the provision of the preceding paragraph shall be made through submission to directors of a document stating the reason for removal. 3 In case the request under the provision of paragraph 1 is made, directors shall decide whether or not to remove the manager concerned. 4 Directors shall send the document under paragraph 2 to the manager concerned seven days or more before the day when the decision under the preceding paragraph is made, and shall afford him an opportunity to make explanation.

(Convening of Ordinary General Meeting) Article 42. Directors of an association shall, in accordance with the provisions of the articles of association, convene the ordinary general meeting at least once every business year.

(Convening of Extraordinary General Meeting) Article 43. Directors may convene an extraordinary general meeting whenever they deem it necessary, in accordance with the provisions of the articles of association. 2 When members request to convene a general meeting after obtaining the consent of one-fifth or more of the total members, and submitting to directors a document setting forth the subjects of deliberation at the meeting and the reason for the convocation thereof, the directors shall convene an extraordinary general meeting within twenty days from the day such request is made.

(Convening of General Meeting by Proxy) Article 44. In cases where there is no person to perform the functions of directors or where directors fail, without due reason, to hold a general meeting when the request under paragraph 2 of the preceding Article is made, auditors shall convene a general meeting.

(Procedures of Convening General Meeting) Article 45. A general meeting shall be convened in accordance with the procedures provided for by the articles of association, with the subjects of deliberation at the meeting shown at least seven days before the date of the meeting.

(Notice or Peremptory Notice) Article 46. It shall be sufficient to address a notice or peremptory notice of an association to a member toward his domicile or residence entered in the list of members (in case a member has specified a place for receiving a notice or peremptory notice, the said place). 2 The notice or peremptory notice under the preceding paragraph shall be deemed to have reached in due course of time.

(Proceedings at General Meeting) Article 47. The proceeding at a general meeting shall be decided by a majority of votes of the members present, unless otherwise provided for by this Law or by the articles of association. 2 At a general meeting, only the matters informed of beforehand in accordance with the provision of Article 45 may be decided;provided that this shall not apply to the case where it is otherwise provided for by the articles of association.

(Special Resolution) Article 48. The following matters shall require a resolution adopted by two-thirds or more of the members present at a meeting which is attended by a majority of the total members: (1) Alteration of the articles of association; (2) Dissolution or merger of an association; (3) Expulsion of members; (4) Transfer of the whole business of an association.

(Application Mutatis Mutandis of the Commercial Code) Article 49. The provisions of Article 239 paragraph 4, Article 240 (Vote of Special Interests), Article 244 (Minutes of Shareholders'General Meeting) and Articles 247 to 253 inclusive (Revocation or Invalidity of Resolution at Shareholders'General Meeting) of the Commercial Code shall apply mutatis mutandis to the general meeting. In such case, "Article 343" as stated in Article 247 paragraph 1 of the Commercial Code shall read "Article 48 of the Credit Association Law" .

(Meeting of Representatives) Article 50. An association may have a meeting of representatives to substitute for a general meeting in accordance with the provisions of the articles of association. 2 Representatives shall be elected impartially from among members in accordance with the provisions of the articles of association. 3 The term of office for representatives shall be a period of time to be provided for in the articles of association within the limit of three years. 4 The provisions concerning the general meeting shall apply mutatis mutandis to the meeting of representatives. 5 Dissolution or merger of an association of the transfer of its whole business may not be decided at the meeting of representatives.

(Reduction of Amount of Share) Article 51. In case the general meeting decides to reduce the amount of each share, directors shall prepare an inventory and a balance sheet within two weeks from the date upon which such decision is made. 2 An association shall, within the period under the preceding paragraph, give public notice to its creditors to the effect that they are to file an objection, if any, within a stated period, furthermore, the association shall serve such notice with each of its known creditors other than depositors. 3 The stated period under the preceding paragraph, shall not be less than one month.

Article 52. In case a creditor does not file an objection within the stated period under paragraph 2 of the preceding Article, he shall be deemed to have approved the reduction of the amount of each share. 2 In case any creditor files an objection, the association shall pay a debt or offer an adequate security, or shall give in trust an adequate porperty with a bank carrying on trust business, in order that such creditor may receive repayment. 3 The provision of Article 380 (Invalidity of Reduction of Capital by Joint Stock Company) of the Commercial Code shall apply mutatis mutandis to the reduction of the amount of each share of an association.

CHAPTER V Business

(Business of Credit Association) Article 53. A credit association may perform the following business and the business incidental thereto: (1) To receive deposits or instalment savings; (2) To loan funds (the loan to non-members shall be restricted to a case where a loan is made on security of their deposits or instalment savings); (3) To discount bills for members; (4) Transaction of domestic exchanges for members; (5) Safe-keeping of securities, jewels and others, for members; (6) Agency for the People's Finance Corporation and others designated by the Minister of Finance. 2 A credit association shall obtain the authorization of the Minister of Finance in case of carrying the business prescribed in item (4) of the preceding paragraph.

(Business of Federation of Credit Associations) Article 54. A federation of credit associations may carry on for its members the following business and the business incidental thereto: (1) To receive deposits from members; (2) To loan funds or discount bills for its members; (3) Transaction of domestic exchanges; (4) Safe-keeping of securities. 2 A federation of credit associations may, in addition to the business prescribed in items (1) and (2) of the preceding paragraph, receive deposits from the government, local public entities and those juridical persons which do not aim at profit-making, or make a loan, on the authorization of the Minister of Finance, to persons other than members.

CHAPTER VI Accounting

(Business Term) Article 55. The business year of an association shall be a term from April 1 to March 31 of the following year.

(Legal Reserve Fund) Article 56. An association shall accumulate an amount corresponding to ten per cent or more of its surplus as a reserve fund each business year until such fund reaches the total amount of its shares. 2 The reserve fund under the preceding paragraph shall not be appropriated for any purpose except for making up for deficits.

(Allotment of Surplus) Article 57. An association shall not allot its surplus to members unless it has made up deficits and deducted the reserve fund under the preceding Article therefrom. 2 The allotment of surplus shall, in accordance with the provisions of the articles of association, be divided among members in proportion to the extent they utilize an association or to the amount of investment. 3 In case an association divides its surplus in proportion to the amounts of investment, the maximum limit of allotment ratio shall be provided for by the articles of association.

CHAPTER VII Merger and Transfer or Taking Over of Business

(Merger and Transfer or Taking Over of Business) Article 58. An association may, upon the decision at the general meeting, merge with any other association, or transfer the whole or part of its business to a bank or any other association. 2 An association may, upon the decision at the general meeting, taken over the whole or part of the business of any other association or a credit cooperative. 3 The merger or transfer of or taking over business under the preceding two paragraphs shall require the authorization of the Minister of Finance. 4 The provisions of Article 51 and Article 52 shall apply mutatis mutandis to the merger or transfer of or taking over the whole business under paragraphs 1 and 2.

Article 59. In order to establish an association through merger, the members of a formation committee who are elected by the general meeting of each association from among its members shall jointly prepare the articles of association and elect officers and make other acts necessary for the formation of an association. 2 The officers under the provision of the preceding paragraph shall be elected from among members, or among officers executing the business of juridical persons which are members, of those associations which intend to merge, and their term of officer shall be until the day of the first ordinary general meeting. 3 The provision of Article 48 shall apply mutatis mutandis to the election of the formation committee under the provision of paragraph 1.

(Effects of Merger) Article 60. The merger of associations shall become effective when the association which continues to exist after the merger or the association which comes into existence in consequence of the merger has effected at the seat of its principal office the registration provided for in Article 71. 2 The association which continues to exist after the merger or the association which comes into existence in consequence of the merger shall succeed to the right and obligation of the association which has ceased to exist in consequence of the merger.

(Application Mutatis Mutandis of the Commercial Code, Etc.) Article 61. The provisions of Articles 104 to 111 inclusive (Annulment of Merger) of the Commercial Code and the provisions of Article 135 (8)(Decision of Liabilities) of the Law of Procedure in Non-Contentious Matters (Law No.14 of 1898) shall apply mutatis mutandis to merger of associations.

(Sale of the Whole of Business) Article 62. In case a credit association have sold its whole business, it shall serve public notice to that effect without delay. 2 In the case public notice under the preceding paragragh is served, it shall be regarded as a notice, by note having a fixed dete under the provision of Article 467 (Counter Condition of Sale of Nominative Obligation) of the Civil Code, having been served to all the debtors of the association under the same paragraph. In this case, the date of the public notice shall be considered as the fixed date.

CHAPTER VIII Dissolution and Liquidation

(Causes of Dissolution) Article 63. An association shall be dissolved by any of the following causes: (1) Resolution adopted at a general meeting of members; (2) Merger; (3) Bankruptcy; (4) Expiration of the period of duration and occurrence of a cause of dissolution; (5) Seal of the whole business; (6) Cancellation of license of business.

(Application Mutatis Mutandis of the Commercial Code, Etc.) Article 64. The provisions of Article 116, Article 124, Article 125, Article 128, Article 129, Article 131, Articles 417 to 424, inclusive, Article 426 and Article 427 (Liquidation of Company) of the Commercial Code, and the provisions of Article 35 paragraph 2, Article 36, Article 37-(2), Article 136, Articles 137 to 138 inclusive, and Article 138-(3)(Supervision of Liquidation of Juridical Person) of the Law of Procedure in Non-Contentious Matters shall apply mutatis mutandis to dissolution and liquidation of the association;and the provisions of Articles 35 to 37 inclusive and Articles 42 to 44 inclusive of this Law and the provisions of Article 247 (Cancellation of Resolution), Article 254 paragraph 2 (Relation between Directors and Company), Article 266 (Liability of Director), Article 267 (Law Suit Against Director) and Article 284 (Relieving Director or Auditor of Responsibility) of the Commercial Code shall apply mutatis mutandis to liquidator of the association. In this case, "paragraph 1 of the preceding Article" as stated in Article 284 of the Commercial Code shall read "Article 37 paragraph 2 of the Credit Association Law which applies mutatis mutandis in Article 64 of the same Law" .

CHAPTER IX Registration

(Registration of Establishment) Article 65. The registration of establishment of an association shall be made at the seat of its principal office within two weeks from the date on which the payment by way of investment under the provision of Article 26 has been made. 2 The registration of establishment shall contain the following matters: (1) Business; (2) Name; (3) Business area; (4) Office; (5) Amount of one share of investment, total number of shares, and total amount of investment; (6) Period or existence or cause of dissolution, in case such are provided; (7) Names and addresses of officers; (8) In case there is a director not representing the association, name of director representing it; (9) In case it is provided for that several directors are to represent the association jointly with themselves, or jointly with managers, the said provisions; (10) Method of serving public notice. 3 The association, within two weeks from the date of the registration of establishment, shall register the matters mentioned in the preceding paragraph at the seat of its branch office.

(Registration of New Branch Office) Article 66. In case a branch office is set up after the establishment of the association, the registration of the setting up of the branch office shall be made at the seat of the principal office within two weeks;the registration of matters under paragraph 2 of the preceding Article shall be made at the seat of the branch office within three weeks;and the registration of the fact of having set up the said branch office shall be made at the seats of its other branch offices within the same period. 2 In case a new branch office is set up in the area of the registry office within exercises jurisdiction over the principal office or a branch office, it shall suffice to register only that fact of having set up the said branch office.

(Registration of Removal of Office) Article 67. In case the association has removed its principal office, the fact of removal shall be registered at the old seat within two weeks, and the matters under Article 65 paragraph 2 shall be registered at the new location within three weeks;and in case the association has removed its branch office, the fact of removal shall be registered at the old seat within three weeks, and the matters under the said paragraph shall be registered at the new seat within four weeks. 2 In case the principal office or a branch office has been removed within the area of a registry office, it shall suffice only to register the fact of removal.

(Registration of Changes) Article 68. Other than those provided for in the preceding two Articles, if any change is made in the matters under Article 65 paragraph 2, it shall be registered within two weeks at the seat of the principal office and within three weeks at the seat of the branch offices. 2 Of the matters under Article 65 paragraph 2 item (5), for the registration of change in the total number of shares of ivestment and the total amount of investment, it shall suffice to register as of the end of each fiscal year, notwithstanding the provision of the preceding paragraph, within four weeks at the seat of the principal office and five weeks at the seat of the branch office, after the close of a business year.

(Registration of Manager) Article 69. In case the association has elected a manager, the name and domicile of such manager and the office to which such manager has been assigned shall be registered at the seat of such office within two weeks;and in case it has been decided that several managers jointly exercise the right of representation, the registration shall be made to that effect within the same period. The same shall apply to a change in the registered matters and a lapse of the right of representation of managers.

(Registration of Dissolution) Article 70. In case the association has been dissolved, excepting the cases of merger and bankruptcy, the registration of dissolution shall be made at the seat of its principal office within two weeks and at the seat of its branch offices within three weeks.

(Registration in Case of Merger) Article 71. In case an association is to be merged, the registration shall be made of the changes in the case of the association which will continue to exist, of the dissolution in the case of the association which dissolves through the merger, and of the matters under Article 65 paragraph 2 in the case of the association which comes into being through the merger, within two weeks at the seat of its principal office and within three weeks at the seat of its branch office, after the procedure necessary for the merger, has been completed.

(Registration of Liquidator) Article 72. The liquidator shall register his name and domicile at the seat of its principal office within two weeks and at the seat of its branch office within three weeks from the date of his appointment. 2 As to the registration of changes in the matters registered in accordance with the provision of the preceding paragraph, the provision of Article 68 paragraph 1 shall be apply mutatis mutandis.

(Registration of Completion of Liquidation) Article 73. In case the liquidation has been completed, the registration of completion of liquidation shall be made at the seat of the principal office within two weeks and at the seats of the branch offices within three weeks from the day of completion of liquidation.

(Competent Registration Office and Registerbook) Article 74. As to the registration of the association, the Legal Affairs Bureau, the Local Legal Affairs Office, or its branch or sub-branch office which exercised jurisdiction over the seat of the associations office shall be the competent registry office. 2 Every registry office shall have a register-book for credit associations and a register-book for federation of credit associations.

(Application for Registration of Establishment) Article 75. The application for the registration of of establishment of an association shall be made jointly by all the officers of the association. 2 The application for the registration under the preceding paragraph shall be accompanied with the articles of association, a document attesting the status of the officers, and a document certifying the total number of shares and the payment by way of investment under the provision of Article 26 having been completed. 3 The application for the registration of the establishment of an association through merger shall be accompanied with, in addition to the documents under the preceding paragraph, a document certifying that the public notice or the peremptory notice under the provision of Article 51 paragraph 2, which applies mutatis mutandis in Article 58 paragraph 4, has been served, and also, in case there is a creditor taking the objection, a document certifying that he has been repaid, given a mortgage or a property has been given in trust in his favor.

Article 76. The registration under the provision of Article 65 paragraph 3 shall be made by the application of directors.

(Application for Registration of Establishment or Removal of Business Office or Other Change) Article 77. The registration of establishment or removal of a business office of an association or of any changes in matters under Article 65 paragraph 2 shall be made by the application of directors or liquidators. 2 The application for registration under the preceding paragraph shall be accompanied with a document certifying the establishment or removal of an office or the changes in registered matters. 3 The application for registration of the reduction in the amount of a share or that of the changes due to a merger of the associations shall be accompanied with, in addition to the documents under the preceding paragraph, a document certifying that a public notice and a peremptory notice under the provision of Article 51 paragraph 2 (including the case where this provision applies mutatis mutandis in Article 58 paragraph 4) and also, in case there is a creditor taking the objection, a document certifying that he has been repaid, given a mortgage or a property has been given in trust in his favor.

(Application for Registration of Manager) Article 78. The registration under the provision of Article 69, shall be made by application of the directors. 2 Of the registrations under the preceding paragraph, the application for registration of election of managers shall be accompanied with a document certifying the election of manager and also, in case the decision has been made that several managers are to jointly exercise the right of representation, a document certifying to that effect and the applications for other registrations shall be accompanied with documents respectively certifying the matters.

(Application for Registration of Dissolution) Article 79. The registration of dissolution under the provision of Article 70 shall be made by application of the liquidator. 2 The application for registration under the preceding paragraph, shall be accompanied with a document certifying the causes of dissolution.

Article 80. The registration of dissolution under the provision of Article 71 shall be made by application of the directors of the association which ceases to exist due to merger. 2 The provisions of Article 75 paragraph 3, and paragraph 2 of the preceding Article shall apply mutatis mutandis to the application under the preceding paragraph.

(Application for Registration of Liquidator) Article 81. To the application for registration under the provision of Article 72 paragraph 1, shall be accompanied with a document certifying of the qualification of the applicant, in case a director is not the liquidator. 2 The application for registration under the provision of Article 72 paragraph 2 shall be accompanied with a document certifying of change in the registration matters.

(Application for Registration of the completion of liquidation) Article 82. The registration of the completion of liquidation of an association, under the provision of Article 73, shall be made by application of the liquidator. 2 The statement of application under the preceding paragraph, shall be accompanied with a document certifying that the statement of the final accounts has been approved in accordance with the provision of Article 427 paragraph 1 of the Commercial Code, which applies mutatis mutandis in Article 64 of this Law.

(Procedure for Registration of Annulment of Establishment, Etc.) Article 83. The provision of Article 135-(6)(Registration of Annulment through Court Decision of the Establishment of a Company) of the Law of Procedure in Non-Contentious Matters shall apply mutatis mutandis to the registration which is required in case the Court has decided to annul the establishment, merger, or reduction in the amount of a share, or to revoke or annul the resolution of a general meeting of the association.

(Public Notice of Registered Matters) Article 84. The registered matters shall be announced by the public notice, without delay, at the Legal Affairs Bureau, Local Legal Affairs Office, or its branch or sub-branch office.

(Application Mutatis Mutandis or the Law of Procedure in Non-Contentious Matters) Article 85. The provisions of Article 139-(2), Articles 141 to 151-(6), inclusive, and Articles 154 to 157 inclusive (General provisions concerning registration of Commercial Matters) of the Law of Procedure in Non-Contentious Matters shall apply mutatis mutandis to the registration of an association.

CHAPTER X Miscellaneous Provisions

(Enforcement Provision) Article 86. The Minister of Finance may prescribe the procedures necessary for the enforcement of this Law, concerning the application or report, for license or authorization, the presentation of business report and other documents under this Law.

(Report on Execution of Authorized Matters and Annulment of Authorization) Article 87. In case an association has executed matters for which it got authorization under the provisions of this Law, it shall, without delay, report to that effect to the Minister of Finance. 2 In case an association fails to execute the authorized matters within six months from the date when it got the authorization under the provisions of this Law, such authorization shall become null and void. 3 The provision of Article 30 paragraph 3, shall apply mutatis mutandis to the case under the preceding paragraph.

(Partial Delegation of Power) Article 88. The Minister of Finance may delegate a part of his powers under this Law to the chief of a local office.

(Application Mutatis Mutandis of the Banking Law) Article 89. The provisions of Article 10 (Business report), Article 12 (Audit Report), Articles 18 to 26 inclusive, Article 27 paragraph 2, and Articles 28 to 31 inclusive (Off-days and Closing of Business, Suspension of Repayment, Supervisory Powers of the Minister of Finance and the Court, etc.) of the Banking Law (Law No.21 of 1927) shall apply mutatis mutandis to the association.

CHAPTER XI Penal Provisions

Article 90. In any one of the following cases, the officer, manager, or any other employee of the association, who has committed an offence shall be punished with penal servitude not exceeding one year or a fine not exceeding hundred thousand yen or both: (1) In case he has violated the provision of Article 4; (2) In case he has deceived the Government agencies or the general public through a false statement in the business report provided for in Article 10 of the Banking Law which applies mutatis mutandis in Article 89 (hereafter referred to as "Bank Law" in this Article and Article 91) or in the audit report provided for in Article 12 of the Bank Law or any other means; (3) In case the inspection provided for in Article 21 of the Bank Law, he has interfered with the inspection through concealment of books and documents, false declaration or any other means.

Article 91. In any one of the following cases, the officer or manager of the association, who has committed on offence shall be punished with a non-penal fine not exceeding ten thousand yen: (1) In case he has performed any business other then the one authorized for an association in accordance with the provisions of this Law; (2) In case he has neglected to make registration provided for by this Law; (3) In case he has violated the provision of Article 17 paragraph 2, Article 38 paragraph 4 or Article 41 paragraph 4; (4) In case he has acquired the share of a member or taken it in pladge, in violations of the provision of Article 21; (5) In case he has failed to prepare minutes of general meeting, inventory or balance sheet, or to make statement as required or has made false statement in such documents, in violation of the provision of Article 244 of the Commercial Code which applies mutatis mutandis in Article 24 paragraph 6 or Article 49 or of Article 419 of the Commercial Code which applies mutatis mutandis in Article 64 of this Law; (6) In case he has violated the provision of Article 31; (7) In case he has violated the provision of Article 33; (8) In the case he has failed to keep documents, failed to make therein statement as required, has made false statement therein, or has refused inspection of the documents without justifiable reasons, in violation of the provisions of Article 36 or 37 (including the case where the these provisions apply mutatis mutandis in Article 64; (9) In case he has obstructed the inspection under the provision of Article 274 of the Commercial Code which applies mutatis mutandis in Article 39 of this Law or of Article 419 paragraph 1 of the said Code which applies mutatis mutandis in Article 64 of this Law; (10) In case he has violated the provision of Article 42, Article 43 paragraph 2 or Article 44; (11) In case he has decreased the amount of a share, in violation of the provision of Article 51 or Article 52 paragraph 2, or has made a merger, or the transferring of or taking over of whole business, in violation of the provision of Article 51 or Article 52 paragraph 2 which applies mutatis mutandis in Article 58 paragraph 1; (12) In case he has failed to give public notice as prescribed in Article 51 paragraph 2 (including the case where this provision applies mutatis mutandis in Article 58 paragraph 4), Article 62 paragraph 1 of this Law, Article 421 paragraph 1 of the Commercial Code which applies mutatis mutandis in Article 64 of this Law, or Article 19 of the Bank Law, or has made false public notice; (13) In case he has violated the provision of Article 53 paragraph 2, or Article 54 paragraph 2; (14) In case he has violated the provisions of Article 56 or Article 57; (15) In case he has made merger or transferred or taken over business, in violation of the provision of Article 58 paragraph 3; (16) In case he has distributed the property of an association, in violation of the provision of 131 of the Commercial Code which applies mutatis mutandis in Article 64 of this Law; (17) In case he has determined inappropriately the period under Article 421 paragraph 1 of the Commercial Code which applies mutatis mutandis in Article 64 of this Law; (18) In case he has failed to keep the audit report as provided for in Article 12 of the Bank Law or has neglected to submit such documents and books to the Minister of Finance in accordance with the provision of Article 20 of the Bank Law;or has failed to make statements as required or has made false statement; (19) In case he has violated the orders issued by the Minister of Finance or the Court in accordance with the provisions of Article 22, Article 23, Article 26 or Article 29 of the Bank Law.

Article 92. Any person who has violated the provision of Article 6 paragraph 2 shall be punished with a non-penal fine not exceeding ten thousand yen.

Article 93. In case an official, a manager or an employee of an association has committed an act of offence under Article 90 in connection with the business of the said association, the said association, in addition to the offender, shall be punished with a monetary penalty under the same Article.

Supplementary Provision: This Law shall come into force as from the day of its promulgation. Attorney-General OHASHI Takeo Minister of Finance IKEDA Hayato Prime Minister YOSHIDA Shigeru