The Export Bank of Japan Law (Law No.268 of 1950) shall be partially amended as follows:
The Title shall be amended as follows:
The Export-Import Bank of Japan Law
In the main provisions, "The Export Bank of Japan" shall be amended as "The Export-Import Bank of Japan" .
In Article 1, "export trade" shall be amended as "foreign trade" , and "export financing" as "export and import financing" .
Article 4 shall be amended as follows:
(Capital)
Article 4. The capital of the Export-Import Bank of Japan shall be twenty-one billion (21,000,000,000) yen, the whole amount of which shall be invested by the Government, from the General Account and the U. S. Aid Counterpart Fund Special Account.
In Article 8 paragraph 2, "paragraph 1" shall be deleted.
In Article 10, "Managing Director" shall be amended as "Vice-President" .
Article 11 paragraph 2 shall be amended as follows:
2 The Vice-President shall, as prescribed by the President, represent the Export-Import Bank of Japan assist the President in managing the affairs of the Export-Import Bank of Japan, 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 Director shall, as prescribed by the President, represent the Export-Import Bank of Japan assist the President and Vice-President in managing the affairs of the Export-Import Bank of Japan, act on behalf of the President if he and the Vice-President are prevented from performing their duties, and execute his functions if his and Vice-President's post are vacant.
4 The Auditors shall audit the business of the Export-Import Bank of Japan.
In Article 12 paragraph 1, "The President and Auditors" shall be amended as "The president, Vice-President and Auditors" ;and in paragraph 2 of the same Article, "Managing Director and" shall be deleted.
In Articles 13 to 15 inclusive, "Managing Director" shall be amended as "Vice-President" .
In Article 18 paragraph 1 item (1), next to "hereinafter the same" shall be added ", except in the case provided for in Article 39 paragraph 1" ;and paragraph 1 item (4) of the same Article shall be made item (6) of the same paragraph, and next to item (3) of the same paragraph, the following two items shall be added:
(4) To make loans to, or to discount bills for banks in favor of, Japanese importers or manufacturers, for the purpose of facilitating a secured and timely import from abroad of raw materials, materials, and other goods (hereinafter referred to as "goods, etc." ) necessary for the promotion of export from Japan;provided, however, that, as to the loans, such loans shall be made only on a participation basis by the Export-Import Bank of Japan with ordinary banks and application for such loans shall be received through banks;
(5) To guarantee liabilities of Japanese exporters, importers or manufacturers, for the purpose of facilitating from Japan of equipment, etc. and of technical services connected therewith of Japanese corporations or individuals, or for the purpose of facilitating import from abroad of goods, etc.
In Article 18 paragraph 2 "(3)" shall be amended as "(5)" , "and discount" shall be amended as ", discount and liability guarantee" , "or import from Japan of equipment (including export or import of technical services connected therewith)" shall be amended as ", import from Japan of equipment (including export or import of technical services connected therewith) and import from abroad of goods, etc." , and "or settlement of bill" shall be amended as ", settlement of the discounted bill or enforcement of the liability guaranteed" ;and next to the same paragraph, the following one paragraph shall be added:
3 In addition to the case provided for in the preceding paragraph, loans or discounts of bill made for the purpose of facilitating imports of goods, etc. from abroad in accordance with the provision of paragraph 1 item (4) or guarantee of liabilities made for the purpose or facilitating import of goods, etc. from abroad in accordance with the provision of item (5) of the same paragraph may be made only in those cases where they fall under each of the following items:
(1) When a part of the prices is paid in advance in compliance with the import contract of goods, etc. from abroad and the fund paid in advance is appropriated by the party of contract who is to be paid in advance to the development of resources, etc. necessary for the export of goods, etc. to Japan in compliance with the said import contract;provided, however, that this shall be limited to the case where the party of the contract who is to be paid in advance is deemed sound with respect to his credit standing and where the fulfilment of obligations regarding the said advance is deemed reliable.
(2) When the said import from abroad of goods, etc. has been assured not to be made for the anticipatory, speculative, stock-piling and other unsound purposes.
Next to Article 18, the following one Article shall be added:
Article 18-(2). The aggregate amount of the outstanding amount of liabilities guaranteed under the provision of paragraph 1 item (5) of the preceding Article and the amount of borrowings under the provision of Article 39 paragraph 1 shall not exceed the aggregate amount of capital provided for in Article 4 and reserve provided for in Article 38.
In the heading of Article 19, "and Discount" shall be amended as ", Discount and Guarantee" , and in paragraph 1 of the same Article, "The rate of interest and discount" shall be amended as "The rate of interest, discount and the liability guarantee charges" , "paragraph 1 items (1) to (3) inclusive of the preceding Article" shall be amended as "Article 18 paragraph 1 items (1) to (5) inclusive" , "interest on loans and discount fees" shall be amended as "interest on loans, discount fees and guarantee charges" , "other expenses" shall be amended as "the interest on the borrowings provided for in Article 39 paragraph 1 and other incidental expenses" , and "the rates of interest and discount of the banks" , shall be amended as "the rate of interest, discount and of liability guarantee charges of banks," ;and in paragraph 2 of the same Article, "the rate of interest and discount" shall be amended as "the rate of interest, discount and liability guarantee charges" , "such loans and discounts" shall be amended as "such loans, discounts and liabilities guaranteed" , and next to "the term of the discounted bill" shall be added "and of liability guarantee" .
In the heading of Article 20, "and Discount" shall be amended as ", Discount and Guarantee" ;and in paragraph 1 of the same Article, "or the bills to be discounted" shall be amended as ", the bills to be discounted or the liabilities to be guaranteed" , and "items (1) to (3) inclusive" shall be amended as "items (1) to (5) inclusive" , and "or payment" shall be amended as "of loans, payment of bills or fullfilment of the guarantee," ;and in paragraph 2 of the same Article, next to "a term for retirement of more than three years and not more than five years" shall be added "or of more than three months and not more than six months" , and "or may be made of bills with a term for payment of more than three years and not more than five years" shall be amended as ", may be made of bills with a term for payment of more than three years and not more than five years or more than three months and not more than six months" , "difficult" shall be amended as "difficult and unsuitable for the practice of trade" , and next to "export or import of equipment or technical service" shall be added "or import of goods, etc." ;and next to the same paragraph the following two paragraphs shall be added:
3 The term of discount of bills which have been drawn for the renewal of bills which had been discounted in accordance with the provision of Article 18 paragraph 1 item (2) or (4) may be less than three months, notwithstanding the provisions of the preceding two paragraphs.
4 Guarantee of liabilities provided for in paragraph 1 which has been made for the purpose of facilitating export from Japan of equipment, etc. and of technical services connected therewith of Japanese corporations or individuals or of facilitating import from abroad of goods, etc. shall, notwithstanding the provision of the same paragraph, have a term of performance of more than three years and not more than five years, or of more than three months and not more than six months, in case it is considered difficult to comply with the provisions of the same paragraph or against the practice of trade because of the conditions of price payment prescribed in the contracts for the said export of equipment, etc. or of technical services or for the import of goods, etc. from abroad or because of other reasons.
In Article 21, "or discounts" shall be amended ", discounts or liabilities guarantee" .
In Article 22, "interest rate and term of making loans or discounts" shall be amended as "rate of interest on loan or discount or rate of guarantee charges, term of making loans, discounts or guarantees, items of goods, etc." , and next to "collecting the principal and interests" shall be added "and of performance of liability guarantee" .
In Article 24, "export finance" shall be amended as "export-import financing" .
In Article 26 paragraph 2, next to "discount fees" shall be added ", fees of liability guarantee" , and "and other miscellaneous incidental expenses including loss incurred with respect to the utilization of property" shall be amended as ", the interests on borrowings provided for in Article 39 paragraph 1 and other miscellaneous incidental expenses" .
In the heading of Article 38 shall be amended as "Disposal of Profit and Payment into the National Treasury" , and in paragraph 1 of the same Article, "shall accumulate it as Reserve Fund" shall be amended as "shall accumulate as Reserve Fund whichever the larger amount of the amounts provided for in each of the following items" ;and in the same paragraph shall be added the following items as items (1) and (2):
(1) The amount equivalent to 20% of the said profit;
(2) The amount equivalent to 0.7% of the aggregate amount of the outstanding amount of discounted bills as at the end of each business year (in case the said amount exceeds the said profit, the amount of the said profit)".
In Article 38, the following two paragraphs shall be added:
3 The Export-Import Bank of Japan shall pay, by May 31 of the following business year, into the National Treasury the residuary amount obtained by deducting, from the amount of profit, upon settlement of profit of each business year, the amount accumulated as Reserve Fund in accordance with the provision of paragraph 1.
4 The procedure for the payment of the amount to be paid into the National Treasury under the provision of the preceding paragraph, the Account or Accounts to which the said amount belongs and other necessary matters concerning the amount to be paid into the National Treasury shall be provided for by Cabinet Order.
Article 39 shall be amended as follows:
(Borrowing of Funds)
Article 39. The Export-Import Bank of Japan may borrow funds from the Government and borrow foreign funds from foreign bank and other financial institutions for the purpose of appropriating to the source of the fund necessary for conducting the business provided for in Article 18 paragraph 1.
2 The Government may make loans to the Expor-Import Bank of Japan.
3 Other than those cases provided for in paragraph 1, the Export-Import Bank of Japan shall not borrow funds.
In Article 43 paragraph 1, "President and Auditors" shall be amended as "President, Vice-President and Auditors," ;and in paragraph 2 of the same Article, "the Managing Director and" and "the Managing Director or" shall be deleted.
In Article 46 item (5), next to "Article 39" shall be added "paragraph 3" ;and the same item shall be made item (6) of the same Article;and the numbering of the succeeding items shall be moved down by one;and next to item (4) of the same Article, the following one item shall be added:
(5) When they have guaranteed liability or borrowed fund in excess of the amount provided for in Article 18-(2).
In Article 47, "Article 8" shall be amended as "Article 7" .
In paragraph 9 of the Supplementary Provisions, "The Export Bank of Japan" shall be amended as "the Export-Import Bank of Japan" .