BANK OF JAPAN LAW

(Law No. 67, Feb. 24, 1942)

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CHAPTER 1 GENERAL PROVISIONS

Article 1. The Bank of Japan has, for its object, the regulation of the currency, the control and facilitation of credit and finance, and the maintenance and fostering of the credit system, pursuant to the national policy, in order that the general economic activities of the nation might adequately be enhanced.

2. The Bank of Japan shall be a juridical person.

Article 2. The Bank of Japan shall be managed solely for achievement of national aims.

Article 3. The Bank of Japan shall, in accordance with the provisions of laws and ordinances, handle affairs of the State relating to currency and finance.

2. The expenses incurred in handling the affairs prescribed in the preceding paragraph shall, in accordance with the provisions of laws and ordinances, be borne by the Bank of Japan.

Article 4. The Bank of Japan shall have its head office in Tokyo.

2. The Bank of Japan may, with the permission of the competent Minister, establish branches and sub-branches at such places as it may deem necessary, or the Bank may have a part of its business handled by such agents as shall be designated by the competent Minister.

Article 5. The capital of the Bank of Japan shall be ~ 100,000,000, divided into 1,000,000 units of n subscription of :Y 100 each.

2. The Government shall subscribe to the capital of the Ban k of Japan to the amount of 55,000,000, in accordance with the provisions of Imperial Ordinance.

Article 6. Deleted.

Article 7. The Bank Or Japan shall issue subscription certific ates to the subscribers.

2. All necessary matters relating to subscription certificates mentioned in the preceding paragraph sh all be prescribed by Imperial Ordinance.

Article 8. The subscriber may transfer his holdings in accordance with the provisions of imperial Ordinance.

Article 9. The Bank of Japan n shall prescribe in the By Laws the following matter:

( 1) Object;
(2) Name;
(3) Location of the head office, branches and sub-branches;
(4) Matters relating to the capital, subscriptions and assets;
(4)-2 Matters relating to the Policy Board;
(S) Matters relating to the officers;
(6) Matters relating to its business and execution thereof;
(7) Matters relating to banknote issue;
(8) Business period;
(9) Matters relating,, to accounting;
( 10) Mode of public notification.

2. No alteration of the By-Laws shall be valid without the permission of the competent Minister.

Article 10. The Bank of Japan is required to register in accordance with the provisions of Imperial Ordinance.

2. Regarding matters to be registered in accordance with the preceding paragraph, the Bank shall have no recourse against a third party until after the registration.

Article 11. Deleted.

Article 12. In case circumstances require the dissolution of the Bank of Japan, the procedure to be taken in such an eventuality shall be prescribed by a separate law.

2 In the event of the dissolution of the Bank of Japan, any property remaining in excess of the paid-up capital shall come into the possession of the National Treasury.

Article 13. The pro-visions of Articles 44, 50, 54 and 57 of the Civil Code and of Article 35 paragraph 1 of the Law of Procedure in Non-Contentions Matters shall apply mutatis mutandis to the Bank of Japan.

CHAPTER I-II POLICY BOARD

Article 13-2. There shall be established a Policy Board in the Bank of Japan. It shall be the duty of the Policy Board to formulate, direct and/or supervise currency regulation, credit control and other basic monetary policies pertaining to; (1) the operation of the business of the Bank of Japan as prescribed in items (1) of Article 13-3, (2) the functions or the Bank of Japan as the central bank, and (3) its contractual relations with other financial institutions; so as to meet the requirements of the national economy.

Article 13-3. The Policy Board shall be charged with the following matters:

(1) Deciding on basic policies for The operation of the business of the Bank of Japan to be executed by officers and staff prescribed in Chapter II;

(2) Fixing or changing of the rates for the discounts mentioned in Article 20 items (1) and of rates of interest on loans mentioned in items (2) of the same Article;

(3) Deciding on or changing of the kinds and qualifications of bills to be discounted by the Bank of Japan pursuant to the provisions of article 20 items ( 1), and of the kinds, qualifications and value 0r the collaterals for loans made by the Bank of Japan pursuant to the provisions of items (2) of the samt Article;

(4) Deciding on or changing of the kinds, qualifications and value of cable transfers, bankers' acceptance, bills of exchange and securities to be purchased or sold by the Bank of Japan pursuant to the provisions of Article 20 item (5), either from or to domestic financial institutions, foreign banks, firms, corporations or individuals, or the time to start or suspend such open market operations;

(5) Fixing, changing or abolishing of the maximum rates of interest of the financial institutions prescribed in Article 2 of the Temporary Interest Rate Adjustment Law;

(6) Establishment, change or abolition of the reserve rate or the standard day, etc. in accordance with the pro-visions of Article 4 of the Law concerning reserve Deposit Requirement System;

(7) Deciding on or changing of control over loans and investments made to securities dealers (meaning the securities dealers defined by Article 2 paragraph 9 of the Securities and Exchange Law and foreign securities dealers defined by Article 2 item (2) of the Law concerning Foreign Securities Dealer) by banks (exclusive of the Bank of Japan), trust companies, insurance companies, mujin companies, Central Bank for Agriculture and Forestry, Central Bank for Commercial and Industrial associations or other deposit-receiving associations, or the kinds, qualifications and limit of the value of collateral for such loans;

(8) Deciding on the estimate of expenditures, appraisal of assets, settlement of accounts and other matters relating to the accounting of the Bank of Japan;

(9) Beside those enumerated above, such matters of policy pertaining to credit control and examination of financial institutions as are entrusted to the Policy Board l y virtue of other laws under contractual relationships;

(10) Making of annual reports to the Diet through the competent Minister with respect to:

a. The condition and operation of financial institutions;
b. Necessary changes in laws;
c. Changes in supervisory policies during the year;
d. Policy actions taken and reasons therefor.

Article 13-4. The Policy Board shall be composed of seven members.

2. The members of the Board shall be as follows:

(1) The Governor of the Bank of Japan;
(2) A person representing the Ministry of Finance;
(3) A person representing the Economic Project Board;
(4) Two persons of superior financial experience and knowledge of financial business; one to be experienced in and having knowledge of banking in a country bank and the other in a large city bank;
(5) A person of superior experience and knowledge of commerce and industry;
(6) A person of superior experience and knowledge of agricul ture.

3. Those members coming under items (4) to (6) inclusive of the preceding paragraph (hereinafter to be called appointive members) shall be appointed by the Cabinet with the consent of both Houses of the Diet.

4. The appointive members shall be deemed as being engaged in public service by virtue of the provisions of laws and ordinances.

5. The expenses of the Policy Board, including allowances for appointive members, shall be borne by the Bank of Japan.

Article 13-5. The term of office of the appointive members shall be for four years, provided that any member selected to fill a vacancy shall serve for the remainder of the term of his predecessor.

2. The members shall be eligible for reappointment.

3. In case the term of office of any appointive member expires while the Diet is not in session or the House of Representatives is dissolved, he shall continue to serve until his successor is appointed by the Cabinet with the consent of both houses at the first session of the Diet immediately following the expiration of his term, notwithstanding the provisions of paragraph 1.

4. Appointive members serving less than the full term of four years shall be ineligible for two years after their retirement to hold any office or position in any financial institution supervised by the Policy Board.

Article 13-6. Except in cases coming under any one of the following items, appointive members shall not be dismissed against their will during their tenure of office:

(1) In case of having been adjudicated incompetent, quasi incompetent or bankrupt;

(2) In case of having been sentenced to imprisonment or having been inflicted any other heavier punishment;

(3) In case of having been deemed incapable of discharging their duties by the Cabinet, because of physical or mental disorders;

(4) In case of having been deemed disqualified for member ship by the Cabinet, owing to violation of their official duties; Should any of the appointive members come under any one of the preceding categories, he shall be dismissed from office by the Cabinet.

Article 13-7. There shall be a chairman in the Policy V I (AA 5) Board. 2. The cl1airlnall silall be elecLed by mutunl v0Le o~ t~lC melrll)ers willlin thirty days after the estab1ishment of the Policy Board or within thirLy days after the occurrence of a vacancy in l11e post of chairman. Fillin6 tllis, the Cabinet shnll nominate the c11airn~an from amon6 the members. 3. Tl~e chairman shnll preside over tlle busir1ess of and represent tlle Policy Board. (~) Article13-~3. The members mentioned in Article 13-~ I)arll6raph 2 items (2) and (3) sha11 hnve no voting rigl1ts at the meetin~s of the Policy ~3oard. 2. The proceedings of the Policy Board shall be decided l~y mnjority vote of llle members having voting ri6hLs. (~) ~rLiclc 13-9. The D.ppointive members may not, during their lerm of office, pursue any of the following actiYities: ( 1) Become ~ candidate for lhe Nntional Diet or the ns semblies or any local public body or of any elective public office, or positively enga6e in political aclivilies; (2) En6age in any other remunerative work, except when permitted by the Cabinet; (3) Engage in commerce or other business for pecuniary gains. (~) C~I~PTI;~ I1 OI; FICE;I~S AND ST~F ~rliclc 14. The officers of the Bank of Japan shall be eomposed of a Governor, a Vice-Governor, three or more Directors, two or more Auditors and a number of Advisers. ~rtiele 15. The Governor shall represent Lhe Bank of Japan and execute its entire business in accordance wilh the policies decided by tlle Policy Board. 2. T~le Vice-Govcrnor shall, whenevcr t1-c Governor i9 prevcnle(l ~rom allen(lin6 to his dulies, act in placc of thc latter. \VIIcrlever a vacancy occurs in thc office 0r Governor, t11c ViceGovcrnor shall exercise the dutics appcrlainin6 lo tl1e said o~fice. 3. Tlle Yicc-Governor and thc Direclors shall assist tl1e Governor and exccule the business of the Bank of Japan in nccordance witl1 the provisions of the By-Laws. ~. Tllc Audilors sha11 inspect the business of thc Bank of ~ u~)3n. -~ YI (~A 6) 5. Tlle /~dvisers shall respond to the consultations 0r the Governor, and may express to the GoYcrnor thcir vicws on any in~portant arfairs concerning the business of thc I3ank of Japan Article16. The Governor and tl-e Vice-Go~ernor shall be appointed by tlle Cnbinet. 2. The Directors shall be appointed l)y tl-e competent Minister from nmong r)ersons recommended ~y ll-e Governor. 3. Tl-e Auditors shall be appointed by thc compelent Minister. 4. The Advisers shal1 be appointed by the competent Minister from among persons engaged in finance or industry, or men of learning and experience. 5. The term of office sllall l)e for five years for the GoY ernor and the Vice-Governor, four year for the Directors, three years for the Auditors nnd two years for the Advisers. (~) ~rtiele 17. The Governor may appoint representaLives authorized to take all actions in or out of tlle court o~ la~Y in eonnection wiLh thc business of the head office, branches or subbranches of the Bank of Japan. Article1~. The Governor, the Vice-Governor, the Direc tors and the Auditors may not engage in any other oeeupations provided that this restriction shall not apply in case permission of the competent Minister has been obtained. Article19. Tlle offieers and staff of the Bank of Japan sllall be deemed as being engaged in public service by virtue of the pro~risions of laws and ordinances. 2. The officers and staff mentioned in the preceding pa ragraph sllall be delimited by Imperial Ordinance. Cl-I~PTE~ III BUSINI~SS ~rtiele 20. The I~nnk of Japan shall undertake the follow ing business: (1) Discounting of commercial paper, bankels' acceptance~ and other bills or notes; (2) Making loans against collnterals in the rorm of bills or notes, GoYernment bonds and oblig~tions, and other VI (AA 7) (3) (~) (5) negotiable securities, gold and ~ilver bullion, or merchandise; Receivin~ money for deposit; Dealing in domestic exch3n~,e; Buying and selling of commerci31 paper, bankers' acceptances and other bill9 or no~es, GovernmenL bonds and obligations, 3nd other bonds or debentures; (6) Buying snd selling ¡f gold an~l silver bullion; (7) Collection of bills or nolcs, aceepting custody or articles of value and performinO other business incidentul to tllC business enumerated in the preceding items. (~ Ar~ie1e 21. The Bank of Japan shall determine the rates of discount to serve us the basis for the discounts in iLem (1) of the preceding ~rticle, 3nd the rates of inlerest on loans to serve ns the basis for the 103ns in item (2) of the s3id Ar~icle, and make public notifieation thereof. (~) ~rtiele 22. The Bank of Japan may make advances to the Government without taking any collateral. 2. The Bank of Japan may subseribe to or take up GoYern ment loan issues. Article 23. The Bank of Japan may, wheneYer deemed necessary, buy or sell foreign exchanges. Artiel~ 24. The Bank of Japan may, whenever deemed necessary for inLernational financial transactions, and with the permission of tl-e competent Minister, make contribution of eapital or advances to any foreign financial institutions or undert~ke excllange elearin6 transactions wit11 sueh foreign instilutions. ~r~iele 25. Tlle Bank of Jupun may, with the permission of the eo mpelent Minisler, undertake suell businesses as are nece ssary for tlle mainlen3nce and fostering of the credit system. ~rtiele 26. T1-e Bunk of Jap3n sl-all undertake the managemen~ of Treasury funds in accordance with the provisions of 1u~vs and ordinances ~rtiele 27, The Bunk of Jap~n may not undertake uny business otll er tllan those prescribed in tl1e present 1uw, provi ded t~lat this restriction shall not apply in ease the Bank, deeming it necessary for attainment of the objeet of the Bank, has obtained t11e permission of ~he compe~ent Minister. ~iele 2~. The competent Ministes muy, wheneYer deemed VI (AA 8) neee~sary for the attl~;nment of the object 0r ~11e l ~nk of Japan, order banks and other financial institutions to cooper3te in the execution of the business of the Bank of Japnll. C~PTER IV B~N~ NOTI~:S ~rliclc 29. The Bank of Japan is a ulhorized to issue bank-notes. 2. The bank-notes of the preceding paragra~ll shall hnve an unlimited eirculation for all transactions both public and privnte. Article30. The competent Minister sh311, upon approval of the Cabinet, fi~c a maximum limit for the b~nk-note issue provided in pnragraph 1 of the preceding Article. 2. The competent Minister shall make a public notificalion upon fi~cing the issue limit provided in lhe preceding pnra~raph. Ar~iclc 31. The Bank of Japan mny, whenever deemed neces~ary, issue bank-notes in e~ee~s of the limit prescribcd in paragraph 1 of the preeeding Artiele, provided that the Bank of Japan shall obtain the permission of the eompetent Minister when intending to eontinue such an excess issue beyond fifteen eonseeutive dnys. (~ ~rtiele 31-2. In case the Bank of Japan shall h~ve con tinued the issue of bank-notes in excess of the prescribed limit beyond fifteen ConseCUtiYe dnys, i~ shall pay an issuing tax, at A rate fixed by the eompetent Min!ster, on the nmount of such bank-notes issued in e~eess of t}-e said limit, ns from the si~cteenth dny, for each day the e~ceess issue wn~ continued. (~ Article 32. The Bnnk of Japnn is re(1uired to maint3in a reserve for bank-notes equiYalent in Yalue to the amount of notes issued. 2 The reserYe mentioned in the precedin6 ~)nrn6raph shall be limited to the following: (1) Commercial paper, b3nkers' acceptances and other bills or note~; (2) Lonns made in accordance with the proYision~ of Ar ticIe 20 item (2), or Article 22 parngrnph 1; VI (AA 9) (3) Go~ernment bonds and ol~ ations; (~) 0L]ler ~onds or (lebentures, ns nlentioned in Article 2() i~CI~ (5); (5) 1~ orei~n excl-3n,~e; (6) Gokl n~ silver bullion, includin~ ~old nn(l silver coins. 3. }3ills or noles, lo~ns nnd forei~n exchan6e, melltiollecl in ilems (1), (2) nn(l (5) of tlle prece(lin~ par3~r;lpll, ure rcquire~l to mnture in not more th~n three months, provide(l tllnt tllis reslriction sll;lll not apply wllere l11e per1llission of l1-e compelcnt ~inister has been obt3ined 4. In case cnpital h3s been contributed to foreign financi31 institutions in nccord3nee Witll the pro~isions of ArLicle 24, or when otllerwise deemed particulary neeessary, the Bank of Jnpan m3y, Witll the permission of the eompetent ~inister, use otller securities or claims not comin~ under any of ~he items enumerated in tllC second pnragr3pll ns the reserve mentioned in tlle first par3grnph. 5. Tlle B~nk of Japan sh311 de(ermine, for the purpose of lhe reser~e, the ~31ue of eaeh item enumerated in the second parn~r~ph 3nd of th~t of the preeedin~ pnra~raph, and submit the s3me to the competent Minister for his permission. 6 The competent Minister shall fi~c, for eaeh of items (1) to (~) inclusive of parn~raph 2 ~nd for par36rnph 4, the mnximum nmount which mny be nssi6ned to the reser~e. (~ ~r~iclc 33. The kinds nnd forms of the b3nk-notes sl I)e deci~led upon by tlle competent Minisler. 2. Upon deciding as to tlle kinds nnd forms of the bank notes, the competen~ Minister sh311 make a public notification thereof. Article34. The Bank of Japan s}lall, in nccord3nce with tilC prescriptions of tlle competent Minister, make public the nmount of the bank-notes issued. ~r-ieIe 35. Tl-e Bank o~ Jap~n 5h311, in nccordnnce with the prescriptions of tlle compelent Minisler, exchnn~e without fces at i~ he~d office, br3nches or su~)-branehes nny of its banknotes ren(lered unfil for further cireulation due to defncement, mutilation or other c~uses. ~r~iclc 36. The Bank of Japan sll~ll determine the pro cedure as re63rds the printin~, nnd cancellation of the bnnk-note~, VI (M 10) nnd submit the s~me to the competent Minisler for hi~ permisClI~l~Tl~l~ V ACCOUNTING Article37. The B3nk of Japan ~h311, in nccordance with thc prescriptions of the competent Minisler, make an estimalc f the expenditures for each business period, an(l submit the same to tlle competent Minister for his permission prior to the commencement of the business period. This provisions sllall apply also to cases where any important slterations in the estimate are to be mnde. Article3~. The Bank of Japan shall, in nccordance ¥ ith tllC prescriptions of the competent Minister, make nn inven~ory, a bal3 nce-slleet nnd a profit ancl 1099 ncco-Lnt for C;lCh busi ness period, and submit the s3me to the competent A~inister for his approval within two months after the end of each business period. Article39. The Bank of Japan shall set apart one-twentieth of the surplus for each busines~ period as a res~erve fund for cov ering losses and for dividends. 2. In nddition to the rese rve fund prescribed in the preceding paragrnph, the Bank of Japan may, With thC PCr;niSSiOn of the c ompetent Minister, establish special reserves for specific purposes. 3. The Bank of Japan shall obtain the permission of the competent Minister when making dividend payments ou~ of the surplus on t he paid-up amount of the capital subscriptions, proYid ed that the rate of 8UCh dividends may not e~ceed five per cent per annum. 4. The Bank of Jnpan shall, after deducting from the surplus the reserve funds prescri~ed in paragraphs 1 and 2, and the dividen ds provided for in the preceding paragraph, pay the r emainder to the Gover~lment within two months after the end of the business period. 5. The amount paid to the Government pursuant to the provisions of the preceding paragraph ~hall, in aceordance with VI (AA 11) the provisions of Imperial Ordinance, be counlend as losses in computin~ income under tlle Corporation 'ra~ Law, an~/or inconle un(ler the Local Tax L3~Y (Law No 226 of 1950) in case enterprise tax is levie(l pursu3nt to the said L~w. ~) o Article qO. Deleted. (~) Article 41. The Bank of J3pan shall n~ake public a state l11CI1t of t11e ~enernl condition of the oper3tioll of the Bank for each business period in aecordance with the prescriptions of t11e compelen~ Minisler. CHAPTEI~ ~rI SUP~ ISIOI~ Article ~12. The Bank of Jap3n sh311 be under the super trision of the competent Minister. ~rtiele 43. Thc compeLent Minister may, if deemed par ticularly necess3ry for thc attainment of the object of the Bank of Jap3n, or(ler the Bank to underLuke uny necessary business, or order alterations in the By-Laws as well as other necessary actions Article 4~. The competent Minister may require the Bank of Jn~p3n to make reports on the condition of its business and property, make inspection of the B3nk's affairs, or issue orders or take such actions ns are necessary in tlle exercise of his Hupcrvi9ion. Article 45. The competent Minister shall inter alia appoinl tl~e Comptroller of the Bank of Jap3n to oversee the business of the B3nk. Article4 6. The Comptroller of the Bank of Japan is empowered at uny-time to inspect the condition of the business and property of the Bank. 2 The Comptroller of the Bank of Jap3n may, whenever (Ieemed necessary, order the Bank to make reports on the condition of lhe business and property of the Bank. 3. The Comptroller of the Bank of Japan may attend all the meetings of the Bank and express his views Article47. ~henever the actions of tlle officers of the Bank of Jspan eontraYene the laws and ordinances, the By-Law~, or orders of the eompetent Minister, or prejudice public inter VI (AA 12) ~ts, or whenever it is deemed parLicularly necess3ry for the attaillment of the object Or tl~e Uank, they may l>c dismissed ~)r the Cabinet in the case of the Governor and the Vice-Covernor and by the competent Minister in the case of thc Directors, tlle Audilors and the Advisers. (~) CHATEI~ VI1 l>ENALT~ Article4U. Whenever the Bank of Japan contravenes the present law or orders issued under this law or any actions taken under sL!cll orders, the Governor or the Vice-Governor e~ercising the duties of or actin, in place of the Governor shall be liable to a fine of no~ more than ;Y 5,000, or when such violation concerns the business entrusted to the Vice-Govonor or the Directors, the Vice-Governor or the Directors in charge sll311 be liable to a like fine. SUPPLEMENTARY PROVISIONS: Artiele 49. The present l~w shall become effective on th~ day fixed by Imperial Ordinance in respect o feach Article Article50. The Bank of Japan organized under the Bank of Japan Act (h ereinafter called the old Banlc of lapan) shall, in accorda nce with the provisions of Articles 51 to 60 inclusive, become the Bank of Japan under the present Inw (hereinafter called the Bank of Jnpan) A.rticlc 51. The old Bank of Japan shall suspend transfer of its shares in accordance with the provisions of lmperial Ordinance . Article 52. The compeLent Minister shall apoint the Re or~anization Committee and cause it to attend to such a~airs as are neces sary in transforming the old Bank of J~pan into the Bank of Japan. Ar~iele 53. The Reorganiwtion Committee shall draw up the By-Laws and submit the same to the competent Minister for his permissio n. Artiele 5~. Upon obtaining ~he permission of the pr eceding Article, the Reorganiwtion Committee s11all make allotmeDt of the su bscriptions to the capital of the Bank of Japan against t he VI (AA 13) ~hnrcs of the old Bank of Jnpan 2. The allotmcnt mentioned in tl~e prcccding para~r~ph shnll l~c cffcc~cd nt tl-c rntc of two units of thc fully-paid sul~scriptions of the Bnnk of Japan to onc fully-paid sl-are of the old llank of Japan, and of onc unit of t}lC fully-paid subscriptions of tlle Bsnk ~f Japan to onc partly-E)ai(l sh;re of tl~c okl Bunk of Jnpan. ,Article55. Upon ol)tainin6 thc pcrmission mcntioncd in Article 53, tl-c l~corganization Commiltcc shall without dela~ rcqucst tllc Governmcnt to take up the subscriptions on thcir part. ~rtielc 56. The momcnt the allotment of Article 54 pa rngraph 1 shall haYc bccn complcted and tlle request mcntioncd in thc prcceding ~rticle complied with, thc Governor, the ViccGovernor, the Dircctors and the Auditors of the old Bank of Japan tllcn in officc shall bc dccmcd to havc assumcd tlicir posts respcctivcly as thc Govcrnor, thc Vicc-Govcrnor, tllc Dircctors and ~uditors of the ~ank of Japan for thc rcmaindcr of Illcir tcrms of officc. Article57. Upon the complction of tl-c allotmcnt of Article54 par3graph 1, 3nd of thc subseriptions by thc Govcrnmcnt mentioned in f~rticle 55, the Rcorganization Committcc shall hnnd oYcr it9 nffairs to thc Governor of thc Bnnk of Jnpnn. Article5~. ~Yhcn thc Govcrnor of thc Bank of Jnpan shnll lln~rc reccivcd thc trnnsfcr of nffairs proYidcd in the prcccdin g Article, 11C shall rcgister tllc organizatioll of thc Bank nt the scat of tllc hc3d office. 2. Thc B3nk of Japan shall havc its organization completcd by thc rcgistration mcntioncd in thc prcceding paragrnph. ~rtie lc 59. Upon thc organization of the Bank of Japan, tllc ol d Bank of Japan shall bc absorbcd into tllc formcr, and nll r ights and ol~ligaliolls appcrtaining to thc old Bank of Japan shall be succecded to by thc Bank of Jnpan Article60. Except for the provision~ in the prescnt law, nll mattcrs ncccssary in conncction with thc old Bank of Japan bcc oming thc Bnnk of Jnpan shnll bc prcscrided by Impcrinl Or dinancc. Article 61. All permissions, dispositions and other actions VI (~A 14) performcd or ~ivcn undcr the pro~isions of Ihe nnnk of Japan Act, thc Lnw No 1~ of the 16th ycar of Shown (1941 )and other laws and ordinnnces shall l~e dcemcd as hn~ing l)ecn ~erformcd or given under thc present law, in so fnr as there are corresponding provisions in this Law. 1Article62. The provisions relating to t}-c old ~ank of Jnpan or its officers and starf containcd in other laws and ordinances ~hall bc decmed as thc provisions relating ~o thc Bank of Ja~an or its officcrs nnd staff. Article63. The convertiblc bank-notes issued by ~he old Bank of Japan shall be dcemcd ns the bank-notes issued by the Bank of Japan under tlle prescnt law. 2. Thc Bank of Japan may, for the timc bcing, and not withstanding the provisions of Article 33 paragraph 1, issue, a~ thc bank-notes undcr the present law, bank-notes of the kinds nnd forms idcntical with the convertible bank-no~es issucd by llc old Bank of Japan Artielc 6~. Upon ~hc old Bank of Japnn l~ecoming tlle Bank of Jnpan, thc fully-paid old Bank of Japan share ccrtificates shall be decmcd as thc fully-paid Bank of Japan subscription certificntes of so many units at the rate of two units per shnre; likewise the partly-paid old Bank of Japan share certitica~es sllall be dcemed as the ~ully-paid Bank of Japan subscription certificates of so many units at the rate of one unit per share. ~rtielc 65. The right of pledge and other similar rights with respect to the old Bank of Japan sharcs shall continue to exist on the new holdings of ~llC subscriptions nllottcd to such sharcs. Article66. Upon the old Bank of Japan becoming the Bank of Jap an, the Bank of Japan shall without dclny make a pub lic notification thercof in accordance with Illc proYiSiOnS of Imperial Ordinancc. ~rlicle 67. In the case of t}lC Bank of Japnn succecding to thc rights relating to immoYable property from thc old Bank of Japan in accordance with thc provisions of Article 59, on Registration Tax shall be imposcd on the registration relating to their acquisition 2. In respect of the transfer of ~ecurities to the Bank of VI (AA 15) Jap3n from the old Bnnk of Japan in accordance with tlle provi: sions of Article 59, no Sccuritics 'rrnnsfcr Tax shall bc i~nposcd. Article 6U. Tl~c l~ank Or Jar3an sllall pay colnpcnsation to pcrsons bccoming ~ub-3cril3crs of tllc Bank of 3apan in accor~lancc Witll Article 5~ par36raph 1. 2 Thc basis of COlllpUtill~, thc amount of the compcnsa tion mcntiollcd in tlle prcceding paraOrral)ll shall bc ~Ictcrllline~l by the colnpctent Ministcr by takinO into considcration thc currcnL prices of thc okl Bank of Japan sharcs ~luring the 15th an~l 16th years of Showa (1940-1941) D.nd thc value of tllc hol(lillgs of the subscriL3crs on the day of thc organization of thc Bank of Japan 3. Tllc compctcnt Minis~cr is required, in detcrmining tlle basis of tllc computntion mentioAcd in tilC prccedin6 parngrnpll, to consult thc Bank of Japnn Sharc Compcnsation InYcstigation Committcc. Thc composition and autllority Or ~hc Bank of Japan Shnrc Compcns~tion Invcsti6alioll Committcc sllnll bc prcscril3c(1 by Imr3erial Ordinancc. 5. Thc compensation mcntioncd in pnrngrnph 1 mny 13e delivered in thc form of Govcrnmcnt bonds. 6. Thc deliYcry value of the Government bonds to bc delivered pursuall~ to the provisions of the preceding parngrnyll sllall ~c detcrmincd by tllc compitcnt Minislcr taking thcir currcnt priccs into consider3tion 7. Tl-c B3nk of Japan may, notwitlistnnding thc provisions of Article 39 parngraph 1, make usc of thc rcscrve fund for tllc purposc of compensation payment men(ioncd in parn6rap 1. ~rticl~ 69. - The ~alidity of thc right of pledge and otllcr simil3r ri6hts cxisting on tllc subscrir3Lion hol(lings, in nccor(lnncc with tllc provisions of Article 65, shall cxtend to the compcnsation mcnLionc(l in yaraOrrapll 1 of thc prcccdin6 Article. Articl~ ~0. Income Tax shall not bc imposc(l in respcct of thc compensation mcntioned in Article 6~ ~3nragra~3h 1 ArLiclc ~1. In thc evcnt of the ol(l Bank of Japan bccom ing thc Bank of Jnpan during any busincss pcriod, the profits for tllc last busincss period of thc old Bank of Jnpan may not bc distributed i~ diYidends; proYided that, when mskin6 diYidend YI (AA 16) paylncnt from tllc surr31us for tlle fir~t ~3usillcss pcriod of thc Bank of ]apall, Illc sul3scriptions allottc~l to thc ol(l B~nk of Jnpan sllarcs sllall 13e dcalt ~Yitll, in colnpulinO the amount of ~ividcn(ls, as tllou~ll tllcrc wcre such sul)scriplions in tlle Bank of Japan from the bc6innin6 of the last business pcrio(l of tllC old Bank of Japan ~rLiclc 72. In tl-c evcnt of thc okl Bank of Japan bccomill~ thc Bank of Japan during any business pcriod, the duration from tbc bc6innin~ of thc last business period of tlle old Bnnk of Japan to tll e end of the firsl business period of the Bank of Japan shall, for tlle purpose of applying the provisions of Ar~icles 38 to 41 inclusive, bc ¥Icemed to constitute one busincss period of thc Bank of Japan 2. In Llle case of thc prcccding paragraph, the provisions of Article10 of thc Bank of Japan ~ct and tlle Law conccrnin6 Paymcnts to tlle Governlllel-t l>y the Bank of Japan shall not apply to the lD. st l)usine~s period of the okl ~ank of Jap~n 3 Upon tlle ol d I3ank of Japan ~ecoming tlle Bank or Japan, Ihe Bank of Japan shall without delay make nn cstimate of the expenditures for the first business period and submit the ~ame to the compelent Minister for his per~nission. This pro~ sions shall al~o apply to cases wllere any important alterations are to be made thercin Article73. Thc following amendlnent shall be Inade in the Rcgistration Tax Law: 2. In Article 19 item (7), inscrt thc wor(ls, "Thc Bank of Japan ", before " The Pension Bank "; nn(l the words, " The Bank of Japan Law, " before " The Pension Bank ~aw " Artiele 7~. The following amendlnent shall be made in the Stalnp Duties La w: 2. Add the follo~Ying item nfter ArLicle 5 itcm (4)-2; 3 The subscription certificates issued by the Bank of Japan ~r~iclc 75. In determinill,, the value of the gold bullion and gold coins held by the Bank of Japan in accordancc with the provisions of Article 32 paragraph Z, thc Bank is allowed for the timc ~cing not to abidc by the provisions of Article 2 of thc Coin~6e Law. 2. The Bank of Chosen and the Bank of Taiwan shall, for the present, appraise the value of the gold bullion and gold VI (AA 17) coins, which thcy hold pursuant to tllc proYisions of Article 2 I)nrnFraph 1 of the Law No. 15 of Illc 16tll year of Showa (1941), at the price permitled by the compc~cnt Minister, notwillLstanding the proYisions of Article 2 of thc Coinage Law. Article76. The pro~isions of Article 14 of the Coinn~e shnll not be enforced for thc time bcing. Article 77. The words, " Gold coins or the Bank of Jnpan convertible notes," in Article 21 paragraph 2 of the Bank of Chosen Law shall be amended to read, " the Bank of Japan notes," and the words, " the Bank of Japan convcrtible no~es," in Article 22 psraFraph 1 of the snid Law to rcad, " thc Bank of Japan notes "; also the words, " Gold coins or convcrtible ~ank-notes, " in ~rticle 8 paragraph 2 of thc Bank of Taiwan Law shall be amended to read, " the Bank of Japan notes," and thc words, " thc convertiblc bank-notes, " in Article 9 paragrapl 1 of thc said Law and in Article2 of tllc Law No. 15 Or the 16th ycar of Showa (1941) to rcad, " the Bank of Japan notcs " ~rli~lc 7~. Thc I3ank of Jnpnn Act, thc Convcrti~lc l~ank Notcs Rcgulation, the Lnw conccrning Payments to thc Govcrnment by thc 13nnk of Japan, Law No. 14 of the 16th ycar of Showa (1941) and the Gold Reserve Revaluation Law shall be annulled. SUPPLFMENT~RY PROVISIONS (Ministry of Financc Ordinance 101, Nov. 25, 1945): (~ This Ordinnnce shall come into force as from thc day of its promulgation. SUPPLEMENTAR~ PROVISI ONS (Law i~o. 46, Apr. 1 , 1947): o 1. The dnte of coming into force of this Law shall be fL7ced by Imperial Ordinance in respect of each provision thercof. 2. Tllc proYisions necessary for thc cnforcemcnt of t his Lnw shnll be stipuluted by Imperinl Ordinancc. 3. The revised p roYisions of Article39 pnragraph 3 nnd Illc provisions o f paragrnphs 5 and 6 of Lhc present SupplcmcD tary ProYisions shall be applicablc lo the busillcss per iod, which covers April 1 of the 20Lh year of Show~ (1945), and subsequent perlod~. VI (AA 18) 4. Thc Govcrnor and tllc Vice-Governor of thc Bank of Jnpan l~ol(lin6 Lllcir resl-ective Orriccs shall, ~Yh cn Illc rcvisc(l proYision~ of Article 16 takc ef~cct, be dccmcd as being in officc undcr thc same revised provision~ for tl~c remainder of thcir rcspcctivc Icrms. 5. Thc Bank of Japan sl~all, for tlae timc i~cin~ and so long as no dividcnd payment is madc out Or thc surplus, sct apart, as a spccial reservc fund, an amount equiYalcnt to five pcr ccnt per annum on the paid-up amou-nt of thc subscription, from the fiurplus remaining aftcr deductin~ sums required for purposes of the reserYe fund as prescribed in Article 39 paragraphs 1 and 2 of thc Bank of Japan Law. 6. In casc dividend paymcnt has becn out of the surplus by I he Bank of Japan, sllould thc amount paid in dividends b e less tllnn the amount to be set apart as n spcciD.I rescrvc fund, if Illc prcccding pnrngrap}l wcrc applicablc, an nmount corrcsponding to thc diffcrence sllall likcwisc be sct apnrt us prccribcd in tllc prcccding parngrnpll for thc timc bcing. 7. Thc special rescrve fund prescribcd in the preceding two paragraplls (hercinaftcr referred to ~9 the special rese rve fund) shall be deemed a9 the diyidcnds under the provisions of Article 39 paragraph 3 of the reYised Bank of Japan Law, so far ns the application of the pro~isions of paragraph 4 of the aaid Articleis concerned. 8. Thc spcciul reserve fund may not bc used e~ccept for coYe ring losses or for other purpose as dctermined by the co mpetcnt Minister. 9. In case the losses incurred in any business period are not fully covered eYen by making use of the reserve funds prescribcd in Article 39 paragraphs 1 and 2 of the Bank of Japan Law (witll rcgard to thc rcscrvc fund prescribcd in paragraph 2 of thc said ~rticle, only such portions us nrc avail?blc for covcring losscs or diYidends may bc so uscd) nnd of thc special rcscrvc fund hcreinbefore provided, the Govcrnmcnt shall make good thc dcficicncy for thc time bcing. 10. In thc cyent of the dissolution of thc Bank of Japan, any propcrty remaining wllich excecd~ the total amount of the paid-up capital and the spccinl reser~e fund, if nny, shall come into the posscnssion of thc National Treassury, notwithstanding VI (AA 19) the proYisions of Article 12 p3ragraph 2 of the Bank of Japan Lnw. 11. T}le B~nk Or Jnp3n Special Advnnces and Compcn~a tion L3w shall be amended in p3rt as follows: In Article 3, " 20 years " shall be amended to read, " 25 yenrs. " SUPPLE;MENTARY PROVISIONS (Law No. 197, Dec. 17, 1947): ~) The enforcement date of this Law shall be prescribed by Cabinet Order within the period of not e~ceeding three months as from the day of its promul~ation. SUPPLEM~:NTARY PROVISIONS (Law No. 110, July 7, 1948): (~) This Law shall come ineo force as from the day of iLs l~.r¡mul6ationSUPPLEMENTARY PROYISIONS (Law No. 191, June 3, 19~9): (~) 1. This Law shall come into force as from the date of its r)romulgation. 2. Concerning the appointment of the appointi~e members of the Policy Bo3rd for the first term, the appro~ral of both I~ouses therefor in the first session of the Diet immediateiy following their nppointment will suffice in case the Diet is not in session, notwithstanding the provisions of Article 13-4 paragraph 3. 3. ln case the approval of both Houses prescribed in the preceding paragr3ph fails to be obtained, the Cu.binet shall discharge the members in question. 4. Of the first appointive members of the Policy Board the term of office shall be for one year for one of the three members, two years for the seco~ld, and three ye~rs for the third, notwithst~nding the pro~ision~ of the te~ct of Article 13-5 paragraph 1. 5. The term of offioe of each of the member~ :prescribed in the preceding psragraph shall be design3ted by the Cabinet. 6. Tl~e appointment of the first appointive members of the V~ (AA 20) Policy Board sh3ll be m3de not 13ter than sixty d3ys from the date of promulg3tion of this Law. 7. The Tem~)orary Interest R~tc Adjustment L~w (Law No. 181 of the 22nd ye3r of Sllowa (1947)) shall be amended in part as follows: In Articles 2,3 and 6, " the GoYernor of tll~ Bank of Japan, " shall be amended to read, " the Policy Bo~rd of tlle ~3~nk of J~p~n. " SUPPL~ NT~RY PROVISIONS (Lnw No. 239, June 15, 1951): o This Law ~hall come into force a~ from the inforcement date of the Credit Associalion Law. SUPPLEMENTAR~ PROVISIONS (Law No. 270, July 31, 1952): (~) 1. This Law shall come into force a~ from ~u6ust 1, 1952. SUPPLEME:NTARY PROVISIONS (LAW No. 2~, luly 31, 1952): (~) 1. This Law shall come into force as from August 1, 1952. SUPPLEMENTARY PROVISIONS (Law No. 95, May 13, 1954) ~ (Enforcement d~te) 1. This L~w ~hall come into force as from the day of it~ promulgation. SUPPLEMENTARY PROVISIONS (Law No. 74, luly 20, 1955): ~ (Enforcement date) Article1. ThiC Law shall come into forc~ a~ from the day of i~ promulgation. SUPPLEMENTARY PROVISIONS (Law No. 135, May 27, l957): ~ (Enforcement date) Article 1. This Law shall come into force as from the day of its promulgation. VI (AA. 21) SUPPLEMENTARY PROVISIONS (Law No. 5, Mar. 3, 1971): @ (Enforccment date) 1. This Law shall comc into force as from the day prescribed by Cabinet Order within ~he scopc not excceding six rnonths counting from the day of its promulgation (enforced as from September 1, 1971 by Cabinet Order No. 266 of 1971) SUPPLEMENIARY PROVISIONS (Law ~o. 23, May 1, 1972): ~) 1. I~is Law shall come into force as from the day of its promulg~tion. VI (AA 22)