Article 1.　The purpose of this Law is to provide for loss compensation and interest subsidy by way of a financial aid of the Government to the owners of the wooden vessels (excluding the ships and the fishing vessels (meaning the fishing vessels as determined in Article 2 paragraph 1 of the Fishing Vessel Law (Law No.178 of 1950) which are operated only by the scull and oar or operated chiefly by the scull and oar);hereinafter the same) which were damaged by the typhoon of October, 1951, for the purpose of facilitating their rehabilitation from such damage.

Article 2.　The Government may, in case the financial institution as may be provided for by Cabinet Order (hereinafter referred to as "loaning agency" ) give a loan to such vessel owner as has suffered damage to the wooden vessel or vessels in his possession from the typhoon mentioned in the preceding Article and desires to receive a financial aid for his rehabilitation or to such cooperative association (hereinafter referred to as "association" ) based on the Smaller Enterprise, Etc. Cooperative Law (Law No.181 of 1949) as has the said vessel owner as its member and intends to finance him for the restoration of the said damage, conclude with the said loaning agency a contract stipulating a compensation for the loss cause by, and a subsidy for the interest receivable on, such loaning in accordance with the provisions of Cabinet Order.

2　The loaning which qualifies a loaning agency to conclude a contract with the Government in accordance with the provision of the preceding paragraph shall be confined to such loaning as is made during the period from April 1, 1952, to March 31, 1953, and provides for a term of repayment not extending beyond March 31, 1958.

3　The total amount of loans which may be contracted for by the Government in accordance with the provision of paragraph 1 shall be limited to three hundred and eighty million (380,000,000) yen.

Article 3.　The loss under paragraph 1 of the preceding Article shall mean any amount representing the whole or part of the principal and/or interest (including arrearage interest as may be provided for by Cabinet Order), which is not repaid before a period not exceeding one year as may be provided for by Cabinet Order elapses, after the expiration of the term of repayment of the principal.

2　The limit of the amount of the loss compensation payable by the Government on the basis of a contract under the provision of paragraph 1 of the preceding Article shall be an amount corresponding to thirty (30) per cent of the total amount loaned under the same paragraph (hereinafter referred to as "qualified loans" ) by each of the loaning agencies concerned.

Article 4.　The interest to be subsidized by the Government on the basis of a contract under the provision of Article 2 paragraph 1, shall be the amount calculated at the annual rate of four (4) per cent on the balance of the qualified loans made by a loaning agency in accordance with the provisions of Cabinet Order.

Article 5.　The rate of interest on qualified loans made by a loaning agency which has concluded a contract under the provision of Article 2 paragraph 1, shall be lower by four (4) per cent per annum than the rate usually charged by the said loaning agency in making loans of similar kind, and shall not exceed the rate which constitutes a condition of the contract concerned.

Article 6.　The rate of interest in the case where an association makes loans to its members from the qualified loans received from a loaning agency shall not exceed the interest rate payable on such qualified loans financed by the loaning agency.

Article 7.　A loaning agency shall, even after receiving the loss compensation under the provisions of this Law in reference to its qualified loans made on the basis of a contract under the provision of Article 2 paragraph 1, take steps to safeguard, with the care of a good administrator its credits in regard to the said loans and make effort to collect any outstanding amount due.

2　If, in the case under the preceding paragraph, there remains any balance after deducting the expenses necessary for the withdrawing of credits from the amount received by way of repayment of qualified loans, a loaning agency shall appropriate such balance for making up the loss not to be compensated, and, if there still remains any balance, shall pay such balance to the Government, untill the amount so paid reaches the amount corresponding to the loss compensation received from the Government in accordance with the provisions of this Law.

Article 8.　The Government, in case any loaning agency has violated the provisions of this Law or orders issued thereunder, or of a contract under the provision of Article 2 paragraph 1, withhold subsidies in whole or part of the interest to be subsidized, or compensation in whole or part of the loss to be compensated, or may order the return of the whole or part of the interest subsidies or the loss compensation already granted.

Article 9.　Other than those provided for by this Law, matters necessary for the enforcement of this Law shall be provided for by Cabinet Order.