Article 3Matters relating to the name, purpose, and the scope of business operations of the Incorporated Administrative Agency Nippon Export and Investment Insurance shall be governed by the provisions of this Chapter.

Article 4The name of the Incorporated Administrative Agency established pursuant to the provisions of this Act and the Act on General Rules for Incorporated Administrative Agency (Act No. 103 of 1999; hereafter referred to as the "Act on General Rules") and provided for by Article 2, paragraph (1) of the Act on General Rules shall be the Incorporated Administrative Agency Nippon Export and Investment Insurance.

Article 5The purpose of The Incorporated Administrative Agency Nippon Export and Investment Insurance (hereafter referred to as "NEXI") shall be the efficient and effective conducting of business activities for insurance against risks arising in external transactions for which ordinary insurance cannot provide relief.

Article 6The principal office of NEXI shall be located in the Tokyo Metropolis.

Article 7(1)The stated capital of NEXI shall be the amount determined as that to be contributed by the government pursuant to the provisions of Article 7, paragraph (2) of the supplementary provisions to the Act Revising a Section of the Trade Insurance and Investment Act (Act No. 202 of 1999).

(2)The government may contribute additional capital to NEXI, within the scope of the amount determined in its budget, when considered to be necessary.

(3)When a contribution by the government pursuant to the provisions of the preceding paragraph has been made, the stated capital of NEXI shall be increased by the amount of that contribution.

Article 8(1)NEXI shall have as its officers one chairman and CEO as its head, and two auditors.

(2)A maximum of three vice chairmen may be assigned to NEXI as officers.

Article 9(1)Vice Chairmen shall, under the direction of the Chairman and CEO, assist the Chairman and CEO in administering the business operations of NEXI.

(2)The officer prescribed by the individual method set forth in Article 19, paragraph (2) of the Act on General Rules shall be a vice chairman; provided, however, that it shall be an auditor when there is no vice chairman.

(3)In the case set forth in the proviso of the preceding paragraph, an auditor performing duties on behalf of the Chairman and CEO pursuant to Article 19, paragraph (2) of the Act on General Rules shall not perform the duties of an auditor during that period.

Article 10The term of office of officers shall be two years.

Article 11Officers and employees of NEXI and those who were formally in such positions shall not divulge or appropriate any confidential information they have become aware of during the course of their duties.

Article 12The officers and employees of NEXI shall be deemed to be employees engaged in public service, pursuant to the applicable Ordinance of the Ministry of Justice, with respect to the application of the Penal Code (Act No. 45 of 1907) and other penal provisions.

Article 13(1)In order to achieve the purpose set forth in Article 5, NEXI shall conduct the following business operations.

(2)NEXI may, in addition to the business operations set forth in the preceding paragraph, and insofar as it will not cause any hindrance to the business operations set forth in the same paragraph, underwrite reinsurance of insurance liabilities incurred by international organizations, foreign governments, etc., and foreign juridical persons conducting insurance business activities (including reinsurance) with respect to losses covered by trade insurance or other similar types of losses taken as counterparties.

(3)The reinsurance premium rate for reinsurance underwritten by NEXI pursuant to the provisions of the preceding paragraph shall be determined so as not to cause any hindrance to the sound operation of the business operations set forth in paragraph (1).

Article 14NEXI may, in addition to reinsurance taking the government as a counterparty pursuant to the provisions of Chapter IV, perform reinsurance of the insurance liabilities it incurs pursuant to this Act, taking an international organization, foreign government, etc., or foreign juridical person conducting insurance business activities (including reinsurance) with respect to losses covered by trade insurance or other similar types of losses as a counterparty.

Article 15(1)NEXI may entrust part of the business operations (excluding the conclusion of insurance contracts) set forth in item (i) of Article 13, paragraph (1), to a financial institution, subject to the authorization of the Minister for Economy, Trade and Industry.

(2)Financial institutions may, notwithstanding the provisions of other Acts, receive entrustment pursuant to the provisions of the preceding paragraph, and conduct said business operations.

(3)Officers and those employees of a financial institution which has received the entrustment of business operations pursuant to the provisions of paragraph (1) (hereafter referred to as an "entrusted financial institution") who are engaged in the relevant business operations shall be deemed to be employees engaged in public service, pursuant to the applicable Ordinance of the Ministry of Justice, with respect to the application of the Penal Code and other penal provisions.

Article 16(1)NEXI shall, after performing arrangements pursuant to the provisions of the main clause of Article 44, paragraph (1) or of paragraph (2) of the Act on General Rules (hereafter in this paragraph referred to as "the arrangements") pertaining to the final business year in the period for the mid-term target prescribed in item (i) of Article 29, paragraph (2) of the Act on General Rules (hereafter in this paragraph referred to as the "period for mid-term target"), in cases in which there are reserve funds pursuant to the provisions of paragraph (1) of Article 44 of that Act (hereafter in this paragraph referred to as "reserve funds"), at any time falling under the following items, with respect to the amounts prescribed in each respective item, make payment to the national treasury of an amount calculated pursuant to the standards prescribed by the applicable Ordinance of the Ministry for Economy, Trade and Industry.

(2)With respect to the application of the provisions of Article 30, paragraph (2) of the Act on General Rules relating to the mid-term objectives for NEXI prescribed in paragraph (1) of the same Article, the term "(vi) Use of Surplus (vii) Other matters relating to the operation of business specified in other applicable Ordinances of the competent ministry" in paragraph (2) shall be deemed to be replaced with "(vi) Other matters relating to the operation of business specified in other applicable Ordinances of the competent ministry."

(3)The provisions of the proviso of paragraph (1), and of paragraph (3) and paragraph (4) of Article 44 of the Act on General Rules shall not apply to NEXI.

(4)With respect to the first period for mid-term target for NEXI, the term "there were no reserve funds" in item (i) of paragraph (1) shall be deemed to be replaced with "there were no reserve funds, or the relevant period was the first period for mid-term target."

(5)In addition to what is provided in each of the preceding paragraphs, payment procedures and other necessary matters related to the appropriation of reserve funds shall be provided for by Cabinet Order.

Article 17(1)NEXI may, subject to authorization from the Minister of the Economy, Trade and Industry, undertake long-term borrowings or issue trade insurance bonds.

(2)When the Minister of the Economy, Trade and Industry is to give his or her authorization pursuant to the provisions of the preceding paragraph, he or she shall hear the opinions of the Ministry of Economy, Trade and Industry's Evaluation Committee for Incorporated Administrative Agencies in advance.

(3)Creditors holding trade insurance bonds pursuant to the provisions of paragraph (1) shall have the right to receive performance of their own claims in preference to other creditors, with respect to the assets of NEXI.

(4)The order of statutory liens set forth in the preceding paragraph shall come after general statutory liens pursuant to the provisions of the Civil Code (Act No. 89 of 1896).

(5)NEXI may, subject to authorization from the Minister of Economy, Trade and Industry, entrust all or part of affairs relating to the issuing of trade insurance bonds to a bank or trust company.

(6)The provisions of Article 705, paragraphs (1) and (2), and Article 709 of the Companies Act (Act No. 86 of 2005) shall apply mutatis mutandis with respect to banks or trust companies receiving entrustment pursuant to the provisions of the preceding paragraph.

(7)In addition to what is provided in each of the preceding paragraphs, necessary matters relating to trade insurance bonds shall be provided for by Cabinet Order.

Article 18(1)NEXI shall create a reimbursement plan for its long-term borrowings and trade insurance bonds every business year, and receive the authorization of the Minister of Economy, Trade and Industry.

(2)When the Minister of the Economy, Trade and Industry is to give his or her authorization pursuant to the provisions of the preceding paragraph, he or she shall hear the opinions of the Ministry of Economy, Trade and Industry's Evaluation Committee for Incorporated Administrative Agencies in advance.

Article 19(1)The Minister of Economy, Trade and Industry may, when it is considered necessary for the enforcement of this Act, have reports made by an entrusted financial institution regarding its entrusted business operations; or send an official to enter the office of an entrusted business operation and perform an inspection of the status of entrusted business operations, or of accounting books, written documents or other items.

(2)Officials performing on-site inspections pursuant to the provisions of the preceding paragraph shall carry a certificate of identification and show it to those concerned.

(3)The authority to perform on-site inspections pursuant to the provisions of paragraph (1) shall not be construed as being approved for the purposes of criminal investigation.

Article 20The Minister of Economy, Trade and Industry shall consult with the Minister of Finance in the following cases.

Article 21The competent minister, competent ministry and ordinance of the competent ministry contained in the Act on General Rules as they pertain to NEXI shall be the Minister of Economy, Trade and Industry, the Ministry of Economy, Trade and Industry, and Ordinances of the Ministry of Economy, Trade and Industry respectively.

Article 22Trade insurance shall consist of general export insurance, export payments insurance, exchange risk insurance, export bill insurance, export bond insurance, prepayment import insurance, intermediary trade insurance, overseas investment insurance, and overseas untied loan insurance.

Article 23(1)NEXI shall prescribe conditions relating to premium rates for trade insurance and other conditions (hereafter referred to as "cover conditions"), and shall notify the Minister of Economy, Trade and Industry pursuant to the provisions of the applicable Ordinance of the Ministry of Economy, Trade and Industry. This shall also apply when changes are to be made.

(2)When the Minister of Economy, Trade and Industry considers that a cover condition contained in a notification pursuant to the preceding paragraph does not fall under any of the following items, he may order NEXI to change such cover condition by a set date.

(3)NEXI shall not underwrite trade insurance under cover conditions other than those for which notification has been provided pursuant to the provisions of paragraph (1).

Article 24NEXI may, when a policyholder to a trade insurance contract, an insured person, or a person who is to receive an insurance payment has violated the provisions of this Act (including orders based on it), or has violated a trade insurance contract, decide not to pay all or part of any insurance claim payment based on the relevant insurance contract, or have all or part of any insurance claim payment returned, or cancel the relevant insurance contract into the future.

Article 25When, in cases in which the losses prescribed in Article 27 paragraph (2), Article 30 paragraph (2), Article 42 paragraph (2), Article 46 paragraph (2), Article 49 paragraph (2), Article 52 paragraph (2) or Article 54 paragraph (2) with respect to general export insurance, export payments insurance, export bond insurance, prepayment import insurance, intermediary trade insurance, overseas investment insurance, or overseas untied loan insurance have arisen; or cases in which the bank, etc. prescribed in Article 37, paragraph (1) could not receive payment upon maturity of a bill of exchange, or has paid a bill of exchange upon receiving a request for recourse, and NEXI has made an insurance payment to an insured person or a person who is to receive an insurance payment, NEXI shall acquire any rights held by the policyholders or insured persons against third parties, taking as a limit an amount equivalent to the amount of the relevant insurance payment.

Article 26(1)In cases in which a given contract falls under the definition of an export contract and a technical cooperation contract, or an export contract and an intermediary trade contract, or a technical cooperation contract and an intermediary trade contract, except for the cases prescribed in the following paragraphs, said given contract shall be deemed to be an intermediary trade contract when the amount of purchase monies for exported trade goods or the total sum of lease fees based on said contract (hereafter referred to as "export payments") exceeds the amount of the consideration for the provision of technologies or of services associated with the same based on said contract (hereafter referred to as "technical cooperation consideration"), or when the amount of purchase monies for intermediary trade goods or the total sum of lease fees based on said contract (hereafter referred to as "intermediary trade payments") is equal to or exceeds said amount of consideration; a technical cooperation contract when the technical cooperation consideration exceeds the export payments or the intermediary trade payments are equal to or exceed such export payments; or an intermediary trade contract when the intermediary trade payments exceed the export payments or the technical cooperation consideration.

(2)In cases in which a given contract falls under the definition of an export contract, a technical cooperation contract, and an intermediary trade contract, said given contract shall be deemed to be a technical cooperation contract when the technical cooperation consideration exceeds the export payments and is equal to or exceeds the intermediary trade payments; an intermediary trade contract when the intermediary trade payments exceed the export payments and the technical cooperation consideration; and an export contract at all other times.

(3)Persons who are parties to a given contract deemed to be an export contract pursuant to the provisions of the preceding two paragraphs and who export trade goods and engage in the provision of technologies or services associated with the same, or who engage in the sale or lease of intermediary trade goods, shall be deemed to be exporters.

(4)In cases in which a given contract has been deemed to be an export contract pursuant to the provisions of paragraph (1) or paragraph (2) with respect to the application of the provisions of Section 3, Section 4 and Section 6, the provision of technologies or services associated with the same, or the sale or lease of intermediary trade goods based on said contract, and the consideration for the provision of technologies or services associated with the same or purchase monies or lease fees for those intermediary trade goods shall be deemed to be the export of trade goods (in cases in which the provisions of Article 30, paragraph (2), Article 34, paragraph (2), or Article 42, paragraph (2) are applied, the trade goods provided for by Cabinet Order set forth in those paragraphs) and exported trade goods purchase monies respectively.

(5)In cases in which a given contract has been deemed to be a technical cooperation contract pursuant to the provisions of paragraph (1) or paragraph (2), with respect to the application of the provisions of Section 3, Section 4 and Section 6, those persons who are parties to said contract and who engage in the provision of technologies or services associated with the same, and who export trade goods or engage in the sale or lease of intermediary trade goods; and the export of trade goods or the sale or lease of intermediary trade goods based on said contract; and purchase monies or lease fees for those exported trade goods or purchase monies or lease fees for those intermediary trade goods shall be deemed to be technological providers; the provision of technologies or services associated with the same (in cases in which the provisions of Article 42, paragraph (2) are applied, that provision of technologies or services associated with the same in a foreign country which is provided for by Cabinet Order set forth in the same paragraph); and the consideration for them, respectively.

(6)In cases in which a given contract has been deemed to be an intermediary trade contract pursuant to the provisions of paragraph (1) or paragraph (2), with respect to the application of the provisions of Section 8, those persons who are parties to said contract and who engage in the sale or lease of intermediary trade goods and who engage in the export of trade goods or the provision of technologies or services associated with the same; and purchase monies or lease fees for those exported trade goods or the consideration for said provision of technologies or services associated with the same shall be deemed to be trade intermediaries and purchase monies for those intermediary trade goods respectively.

Article 27(1)NEXI may underwrite general export insurance.

(2)General export insurance shall mean trade insurance indemnifying losses (including, in cases in which the export of the relevant trade goods could be considered extremely difficult due to the arising of any reason falling under items (i) to (v) below, cases in which the export of said trade goods had not taken place by a date on which two months had passed after the shipping date provided in the intermediary trade contract) incurred through the inability to export goods by an exporter (including any person who is a party to a contract which is deemed to be a technical cooperation contract or an intermediary trade contract pursuant to the provisions of paragraph (1) or paragraph (2) of the preceding Article, and who exports trade goods; the same shall apply hereafter in this Section) based on an export contract (including a contract which is deemed to be a technical cooperation contract or an intermediary trade contract pursuant to the provisions of paragraph (1) or paragraph (2) of the preceding Article; the same shall apply hereafter in this Section) due to any reason falling under the following arising after the conclusion of an insurance contract; losses (excluding losses arising in association with the exported trade goods themselves) incurred through the inability to collect purchase monies for exported trade goods based on an export contract due to any reason falling under the following items (i) to (vii) arising after the conclusion of an insurance contract; losses (excluding losses arising in association with the exported trade goods themselves) incurred through the inability to deliver or collect purchase monies based on a supply contract for the relevant trade goods by a producer of trade goods provided for by Cabinet Order who is a party to a supply contract, due to such losses being incurred by an exporter; or losses incurred by an exporter through newly defrayed transportation costs or insurance premiums owing to navigational or route changes, due to any reason falling under items (i) to (vii) below arising after the conclusion of the insurance contract.

Article 28(1)The amount of indemnity to be provided by NEXI with regard to general export insurance for which an exporter is an insured person shall be the amount obtained by multiplying the specific ratio prescribed in the insurance contract (hereafter referred to as the "specified ratio") by the amount remaining after subtracting the amounts listed in each of the following items from the amount of purchase monies based on the export contract for trade goods that the exporter was unable to export due to any reason falling under any of the items in paragraph (2) of the preceding Article (including, in cases in which the export of the relevant trade goods could be considered extremely difficult due to the arising of any reason falling under items (i) to (v) of the same paragraph, trade goods which had not been exported by a date on which two months had passed after the shipping date provided in the export contract), or from the amount that the exporter was unable to collect from among the amounts of purchase monies for exported trade goods based on the export contract due to any reason falling under item (i) to (vii) in paragraph (2) of the preceding Article; or by the amount of increase of newly defrayed transportation costs or insurance premiums incurred by the exporter owing to navigational or route changes, due to any reason falling under items (i) to (vii) in the same paragraph arising after the conclusion of the insurance contract.

(2)The provisions of the preceding paragraph shall apply mutatis mutandis to amounts that are to be indemnified by NEXI regarding general export insurance to which the producer prescribed in paragraph (2) of the preceding Article is an insured person.

Article 29With respect to the application of the provisions of Article 27, paragraph (2) in cases in which an export contract is for the export of trade goods necessary for the performance of obligations based on a given contract (hereafter referred to as a "trade goods delivery contract") for the delivery of traded goods from a given region of a foreign country to another region of a foreign country based on said export contract to that party to the trade goods delivery contract who delivers trade goods (limited to those export contracts for which the standard is specified that the reception date of all or part of the consideration for the performance of obligations based on said trade goods delivery contract is the settlement deadline for all or part of any purchase monies for the exported trade goods), the term "export contract" in item (vi) and item (ix) of the same paragraph shall be deemed to be replaced with "export contract or trade goods delivery contract set forth in Article 29"; the term "counterparty to the export contract" in item (viii) of the same paragraph shall be deemed to be replaced with "counterparty (for a trade goods delivery contract, the party which receives the delivery of trade goods; the same shall apply hereafter in this item and the following item) to the export contract or trade goods delivery contract set forth in Article 29," the term "said export contract" shall be deemed to be replaced with "said export contract or trade goods delivery contract," and the term "exporter" shall be deemed to be replaced with "exporter or the party to a trade delivery contract set forth in Article 29 who receives the delivery of trade goods."

Article 30(1)NEXI may underwrite export payments insurance.

(2)Export payments insurance shall mean insurance indemnifying losses (excluding losses arising with respect to exported trade goods other than those losses which arise with respect to exported trade goods through war, revolution or insurrection occurring in the destination country) incurred through the inability of an exporter to collect purchase monies or lease fees for exported trade goods due to the arising of any reason falling under any of the following items in cases in which the relevant trade goods were provided for by Cabinet Order and exported based on an export contract; losses incurred through the inability of a technological provider to collect the consideration for the provision of technologies or of services associated with the same due to the arising of any reason falling under any of the following items in cases in which the relevant provision of technologies or of services associated with the same were provided based on a technical cooperation contract; or losses incurred through the inability of an export finance provider to collect a loan due to the arising of any reason falling under any of the following items in cases in which the relevant loan was issued based on an export finance contract.

(3)NEXI shall, when it has given consent to an application for an insurance contract, prepare and deliver an insurance policy to the policy holder.

Article 31For the purposes of export payments insurance, the insurable value shall be the amount of purchase monies or lease fees for exported trade goods based on an export contract, the consideration for technologies or provision of services based on a technical cooperation contract, or loans issued based on an export finance contract (when settlement of purchase monies or consideration or reimbursement of a loan is to be received divided between two or more time periods, the portion of said loan or said consideration or purchase monies for which settlement or reimbursement is to take place in one time period).

Article 32The amount of indemnity to be provided by NEXI with regard to export payments insurance shall be the amount obtained by multiplying the ratio of insurable value to insured amount by the amount remaining after subtracting the amounts listed in each of the following items from the amount of each purchase monies or lease fee or consideration, or loan, which could not be collected by the settlement deadline or reimbursement deadline by the exporter, technological provider or export finance provider respectively, due to a reason falling under any of the items in Article 30, paragraph (2) (in case of a reason falling under item (v) of the same paragraph, a time by which three months have passed after the settlement deadline or reimbursement deadline; the same shall apply hereafter in this Section).

Article 33With respect to the application of the provisions of Article 30, paragraph (2) and the preceding Article in cases in which an export contract or technical cooperation contract is for the export of trade goods, or the provision of technologies or services necessary for the performance of obligations based on a given contract (hereafter referred to as a "trade goods and provision contract") for the delivery of traded goods or the provision of technologies or services from a given region of a foreign country to another region of a foreign country based on said export contract to that party to the trade goods and provision contract who delivers the trade goods or provides technologies or services (limited to those export contracts or technical cooperation contracts for which the standard is specified that the reception date of all or part of the consideration for the performance of obligations based on said trade goods and provision contract is the settlement deadline for all or part of any purchase monies or lease fees for the exported trade goods or consideration for technologies or services provided), the term "or export finance contract" in item (iii) and item (v) of paragraph (2) of Article 30 shall be deemed to be replaced with ", export finance contract or trade goods delivery contract set forth in Article 33"; the term "or counterparty to an export finance contract" in item (iv) of the same paragraph shall be deemed to be replaced with "or counterparty (for a trade goods and provision contract, the party which receives the delivery of trade goods or provision of technologies or services; the same shall apply in the following item) to the export finance contract or trade goods and provision contract set forth in Article 33," and the term "corresponding settlement deadline" in the preceding Article shall be deemed to be replaced with "corresponding settlement deadline (in the cases prescribed in the following Article, this shall mean a settlement deadline using as a basis the date on which consideration for the performance of obligations based on the trade goods and provision contract set forth in the same Article was to be received; the same shall apply hereafter in this Article)."

Article 34(1)NEXI may underwrite exchange rate insurance.

(2)Exchange risk insurance shall mean, in cases in which an exporter exports trade goods based on an export contract (limited to those which pertain to the export of trade goods provided for by Cabinet Order, and for which all or part of the purchase monies and lease fees for those trade goods are expressed in a foreign currency provided for by Cabinet Order (hereafter referred to as a "specified foreign currency")), or a technological provider provides technologies or services associated with the same based on a technical cooperation contract (limited to those for which all or part of the consideration for the provision of technologies or services is expressed in a specified foreign currency), trade insurance indemnifying losses incurred with respect to any portion of purchase monies or lease fees for exported trade goods, or consideration for the provision of technologies or services that is expressed in a specified foreign currency (excluding those for which the settlement deadline expires between the date on which the application for the conclusion of the insurance contract was made and the passage of a time period provided for by Cabinet Order, and those for which the settlement deadline expires between the date on which the application for the conclusion of the insurance contract was made and a time period provided for by Cabinet Order has passed; hereinafter referred to as "purchase monies, etc."), through a decline of three percent or greater in the exchange rate listed in item (i) versus the exchange rate listed in item (ii).

Article 35The amount of indemnity to be provided by NEXI with regard to exchange risk insurance shall be the amount remaining after converting the amount of purchase monies, etc. collected by the exporter or technological provider as expressed in the relevant specified foreign currency (hereafter referred to as the "amount of purchase monies, etc. expressed in foreign currency") into Japanese currency based on the specified foreign currency exchange rate listed in item (ii) of paragraph (2) of the preceding Article (hereafter referred to as the "amount of purchase monies, etc. expressed in Japanese currency"), and then subtracting from this the sum total of the amount of purchase monies, etc. expressed in foreign currency converted into Japanese currency based on the specified foreign exchange rate set forth in item (i) paragraph 2 of the preceding Article and the amount of purchase monies, etc. expressed in Japanese currency multiplied by three percent (where said amount remaining exceeds the amount obtained by multiplying the amount of purchase monies, etc. expressed in Japanese currency by the ratio provided for by Cabinet Order, that amount).

Article 36When the specified foreign currency exchange rate on the date on which purchase monies, etc. are collected has made a steep gain exceeding three percent versus the specified foreign currency exchange rate listed in item (ii) of Article 34, paragraph (2), the policy holder shall pay to NEXI the amount remaining after subtracting the amount of purchase monies, etc. expressed in Japanese currency multiplied by one hundred and three percent, from the amount obtained by converting the collected amount of purchase monies, etc. expressed in foreign currency into Japanese currency based on the specified foreign currency exchange rate on the date of collection (where said amount remaining exceeds the amount obtained by multiplying the amount of purchase monies, etc. expressed in Japanese currency by the ratio provided for by Cabinet Order set forth in the preceding Article, that amount).

Article 37(1)NEXI may conclude insurance contracts for export bill insurance taking as a counterparty a bank prescribed in Article 2, paragraph (1) of the Banking Act (Act No. 59 of 1981) or a person provided for by Cabinet Order (hereafter referred to as a Bank, etc. in this Section), for every business year or semi-annual period.

(2)Export bill insurance shall mean trade insurance establishing insurance relations between NEXI and a Bank, etc. for the indemnification of amounts of payments which could not be received upon maturity of bills of exchange, or amounts for which payment was made on recourse demand for bills of exchange, by the Bank, etc., through notification to NEXI by the Bank, etc. that a bill of exchange issued for the collection of purchase monies for exported trade goods was negotiated from the issuer.

Article 38For the purposes of export bill insurance, the insurable value shall be the amount of the bill.

Article 39The amount of indemnity to be provided by NEXI based on export bill insurance relations shall be the amount obtained by multiplying the ratio of insurable value to insured amount by the amount remaining after subtracting the amount listed below from the amount of a payment which could not be received upon maturity of a bill of exchange or the amount which was paid after receipt of a demand for recourse on a bill of exchange by a Bank, etc., from within the insurable value.

Article 40NEXI shall not exercise the right of recourse with respect to amounts equivalent to insurance claims paid when a Bank, etc. has not received payment on maturity of a bill of exchange, or when the reasons regarding the receipt of a demand for recourse on a bill of exchange were not reasonably attributable to the issuer, in cases in which NEXI has made an insurance claim payment and acquired rights associated with said bill of exchange pursuant to the provisions of Article 25.

Article 41When the risks associated with a transaction are very high, and it is necessary for the operation of other trade insurance business activities, NEXI need not undertake to establish insurance relations based on an insurance contract for export bill insurance.

Article 42(1)NEXI may underwrite export bond insurance.

(2)Export bond insurance shall mean trade insurance indemnifying losses incurred through the performance, in accordance with the terms of a guarantee, of guarantee obligations upon receipt of a request from the counterparty to an export guarantee after the conclusion of an insurance contract, by a bank prescribed in Article 2, paragraph (1) of the Banking Act, or another person provided for by Cabinet Order (hereafter referred to in this Section as the "guarantor"), in any case falling under those set forth in the following items, with respect to export guarantees related to the export of trade goods provided for by Cabinet Order, or the provision of technologies in a foreign country or of services associated with the same provided for by Cabinet Order, issued to persons undertaking bids, exporters, or technological providers (hereafter referred to as a "bidder, etc.").

Article 43The insurable value of export bond insurance shall be the amount of guarantee of the export guarantee.

Article 44The amount of indemnity to be provided by NEXI with respect to export bond insurance shall be the amount obtained by multiplying the ratio of insurable value to insured amount by the amount remaining after the amount collected from the counterparty to the export guarantee (in cases in which said export guarantee is a guarantee set forth in item (i) or (ii) of Article 2, paragraph (9), when all or part of the principal obligations are performed in lieu of the payment of penalty fees or other similar monies on behalf of the principal obligor, or a third party has been made to perform the same, whichever is the smaller amount: the expenses required for said performance, or the penalty fees or other similar monies) has been subtracted from the amount paid from within the insurable value by the guarantor in accordance with the conditions of the guarantee after receipt of a demand from the counterparty to the export guarantee, in cases falling under any of those listed in each of the items of Article 42, paragraph (2).

Article 45In cases in which an insurance claim payment has been made and it has acquired the right to obtain reimbursement from a bidder, etc. who is a principal obligor that was acquired by a guarantor through the performance of guarantee obligations to an export guarantee, or the right to demand payment of monies pertaining to a guarantee given by a person who has made a guarantee with respect to compensatory obligations of said bidder, etc. in cases in which a guarantee listed in item (iii) of Article 2, paragraph (9) has been received, pursuant to the provisions of Article 25, NEXI shall not exercise those rights.

Article 46(1)NEXI may underwrite prepayment import insurance.

(2)Prepayment import insurance shall mean trade insurance indemnifying losses incurred through the inability of an importer to receive the return of purchase monies or lease fees paid prior to the shipping date of imported trade goods (hereafter referred to as "advance payments") based on a prepayment import contract due to any reason falling under the following, in cases in which it was not possible to import said imported trade goods based on said prepayment import contract.

Article 47The insurable value of prepayment import insurance shall be the amount of the advance payment.

Article 48The amount of indemnity to be provided by NEXI for prepayment import insurance shall be the amount obtained by multiplying the ratio of insurable value to insured amount by the amount remaining after subtracting the amounts listed in each of the following items from the amount of advance payments whose return could not be received by the prepaid importer by the deadline for return of advance payments, due to any reason falling under those listed in each item of Article 46, paragraph (2) (when due to a reason falling under item (v) of the same paragraph, the time at which three months have passed after the deadline for return of advance payments; the same shall apply in item (ii)) from within the insurable value.

Article 49(1)Nippon Export and Investment Insurance may underwrite Intermediary Trade Insurance.

(2)Intermediary Trade Insurance shall mean trade insurance indemnifying losses falling under any of the following items.

Article 50The insurable value of intermediary trade insurance pertaining to losses set forth in item (ii) of paragraph (2) of the preceding Article shall be the amount of the purchase monies or lease fees for intermediary trade goods based on the intermediary trade contract, or the amount of the loan based on the intermediary trade payment loan contract (when settlement of purchase monies or reimbursement for a loan is to be received divided between two or more time periods, the portion of said purchase monies or said loan for which settlement or reimbursement is to take place in one time period).

Article 51(1)The amount of indemnity to be provided by NEXI for intermediary trade insurance pertaining to the losses set forth in item (i) of Article 49, paragraph (2) shall be the amount obtained by multiplying the specified ratio by the amount remaining after subtracting the amounts listed in the following items from the amount of purchase monies based on the intermediary trade contract for intermediary trade goods which would not be sold or leased by a trade intermediary due to the arising of any reason falling under (a) to (i) of the same item (including, in cases in which the sale or leasing of the relevant intermediary trade goods could be considered extremely difficult due to the arising of any reason falling under (a) to (e) below, cases in which the sale or leasing of said intermediary trade goods had not taken place by a date on which two months had passed after the shipping date provided in the intermediary trade contract), or the amount of increase of newly defrayed transportation costs or insurance premiums owing to navigational or route changes due to any reason falling under (a) to (g) of the same item.

(2)The amount of indemnity to be provided by NEXI for intermediary trade insurance pertaining to the losses set forth in item (ii) of Article 49, paragraph (2) shall be the amount obtained by multiplying the ratio of insurable value to insured amount by the amount remaining after the amounts listed in the following items are subtracted from the amount of purchase monies or lease fees, or loans, which could not be collected by the settlement date or reimbursement date (when due to a reason falling under (e) of the same item, the time at which three months have passed after the settlement deadline or reimbursement deadline; the same shall apply in item (ii)) by the trade intermediary or intermediary trade payment loan provider respectively, due to any reason falling under (a) to (e) in the same item, from within the insurable value.

Article 52(1)NEXI may underwrite overseas investment insurance.

(2)Overseas investment insurance shall mean trade insurance indemnifying losses incurred through any reason falling under the following items by a party making an overseas investment.

(3)The insurance period for overseas investment insurance shall not exceed the period provided for by Cabinet Order by 10 years or more.

Article 53(1)The amount of indemnity to be provided by NEXI for overseas investment insurance pertaining to losses incurred due to any reason falling under items (i) to (iii) of paragraph (2) of the preceding Article shall be the amount obtained by multiplying the specified ratio by the amount remaining after subtracting the amounts listed in the following items from, for losses pertaining to the principal, whichever is the smaller: the amount appraised immediately prior to the arising of the reasons set forth in item (i) of the same paragraph with respect to the principal pertaining to said reasons or the arising of damages set forth in item (ii) of the same paragraph, or the amount of consideration for the acquirement of said principal; for losses pertaining to dividend payment claims, the amount appraised immediately prior to the arising of the reasons set forth in item (i) of the same paragraph with respect to the dividend payment claims pertaining to said reason or the arising of the damages set forth in item (ii) of the same paragraph; or for losses pertaining to rights relating to real estate, etc., whichever is the smaller: the amount appraised immediately prior to the arising of the reasons set forth in item (i) of the same paragraph with respect to rights relating to real estate, etc. pertaining to said reasons or the arising of the damages set forth in item (iii) of the same paragraph, or the amount of consideration for the acquirement of said rights relating to real estate, etc.

(2)The amount of indemnity to be provided by NEXI for overseas investment insurance pertaining to losses incurred due to any reason set forth in item (iv) of paragraph (2) of the preceding Article shall be the amount obtained by multiplying the specified ratio by the amount remaining after subtracting the amounts listed in the following items from, for losses pertaining to amounts acquired due to loss of principal or rights relating to real estate, etc. (hereafter referred to as "principal, etc."), whichever is smaller: the amount that was not possible to remit to Japan during a period equal to or greater than the period provided for by Cabinet Order set forth in the same item due to any reason falling under (a) to (e) in the same item (excluding amounts which were to have been remitted to Japan before the arising of that reason; hereafter this shall be referred to as the "non-remitted amount"), or the amount of consideration for the acquirement of said principal, and for losses pertaining to dividends on shares, etc., the non-remitted amount.

(3)The amount of indemnity to be provided by NEXI for overseas investment insurance pertaining to losses incurred due to a reason falling under item (v) of paragraph (2) of the preceding Article shall be the amount obtained by multiplying the specified ratio by the amount remaining after subtracting from the amount listed in each of the following items, for losses pertaining to the principal, the amount of consideration for the acquirement of principal pertaining to said reason; and for losses pertaining to dividend payment claims, the amount of dividends expected to be acquired based on the dividend payment claim pertaining to said reason.

(4)When the amount of indemnity to be provided by NEXI calculated pursuant to the provisions of the preceding three paragraphs with respect to the principal, etc., or its accumulated amount, exceeds the amount remaining after subtracting the amounts listed in the following items from the amount of consideration for the acquirement of said principal, etc., the amount of indemnity to be provided by NEXI shall, those provisions notwithstanding, be that remaining amount.

(5)NEXI shall, in addition to the amount of indemnity to be provided calculated pursuant to the provisions of paragraph (1) and the preceding two paragraphs, the provisions of paragraph (1) and the preceding two paragraphs notwithstanding, when there is an amount which was not possible to remit to Japan, due to the arising of any reasons falling under the following items (excluding amounts which were to have been remitted to Japan before the arising of that reason; hereafter this shall be referred to as the "non-remitted acquired amount"), from within the amount acquired or expected to be acquired due to the arising of any reason falling under items (i) to (iii) or item (v) of paragraph (2) of the preceding Article, provide indemnity for the difference between that amount and the amount of indemnity to be provided by it calculated under application of the provisions of paragraph (1) and the preceding two paragraphs deeming the amounts remaining after subtracting the non-remitted acquired amount from the amounts prescribed in item (ii) of paragraph (1), item (i) of paragraph (3) and item (ii) of the preceding paragraph to be the amounts prescribed in item (ii) of paragraph (1), item (i) of paragraph (3) and item (ii) of the preceding paragraph respectively.

Article 54(1)NEXI may underwrite overseas untied loan insurance.

(2)Overseas untied loan insurance shall be trade insurance indemnifying losses incurred due to the inability to collect the principal or interest on loans receivable (hereafter referred to as "loans, etc.") due to any reason falling under the following items by a party issuing an overseas untied loan, or losses incurred through the performance of guarantee obligations owing to the non-performance of obligations of principal obligor pertaining to a guarantee obligation due to any reason falling under items (i) to (iv), or losses incurred through the inability (limited to where this could not be considered attributable to the party taking on the guarantee obligation, and that situation spans a period from the date of acquisition of the right to obtain reimbursement to the date on which three months have passed) to collect an amount expected to be acquired based on a right to obtain reimbursement acquired due to the performance of guarantee obligations owing to the non-performance (excluding where it is due to any reason falling under items (i) to (iv)) of obligations of a principal obligor pertaining to a guarantee obligation.

Article 55The insurable value of overseas untied loan insurance shall be the amount of loans, etc. or guarantee obligations pertaining to the overseas untied loan (when reimbursement for a loan, etc. or performance of a guarantee obligation is to be received divided between two or more time periods, the portion of said loan, etc. or performance of a guarantee obligation for which reimbursement or performance is to take place in one time period).

Article 56The amount of indemnity to be provided by NEXI for overseas untied loan insurance shall be the amount obtained by multiplying the ratio of insured amount to insurable value by the amount remaining after subtracting the amounts listed in each of the following items from the amount of loans, etc. which could not be collected by the reimbursement deadline due to any reason falling under each item of Article 54, paragraph (2) by the party issuing the overseas untied loan from within the insurable value (when due to a reason falling under item (v) of the same paragraph, a time at which three months have passed after the reimbursement deadline; the same shall apply hereafter); or the amount paid as performance of a guarantee obligation due to the non-performance of an obligation of a principal obligor pertaining to a guarantee obligation due to any reason falling under items (i) to (iv) of the same paragraph or the amount which could not be collected (excluding amounts which could not be collected due to reasons that could not be attributed to the party taking on the guarantee obligation) by a date on which three months had passed from the date of acquisition of a right to reimbursement with respect to amounts expected to be acquired based on said right to reimbursement acquired due to the performance of a guarantee obligation owing to the non-performance (excluding when it is due to any reason falling under items (i) to (iv) of the same paragraph) of an obligation of a principal obligor pertaining to a guarantee obligation.