Article 1The purpose of this Act is to protect Depositors, etc. and ensure settlement of funds pertaining to Failed Financial Institutions, by providing for the payment of deposit insurance proceeds and purchase of deposits and other claims necessary in the event that repayment of Deposits, etc. is suspended by a Financial Institution, and, regarding the resolution of Failed Financial Institutions, by establishing a system for providing appropriate financial assistance to facilitate mergers and other resolutions of Failed Financial Institutions, the public management of Failed Financial Institutions by financial administrators, the transfer of business of Failed Financial Institutions, and appropriate measures in response to financial crises, thereby contributing to the maintenance of an orderly financial system.

Article 1-2In the application of this Act, consideration shall be given to the autonomy of Financial Institutions.

Article 2(1)The term "Financial Institutions" as used in this Act refers to the following persons (excluding those whose head office is located outside the jurisdiction where this Act is effective):

(2)The term "Deposits, etc." as used in this Act means the following:

(3)The term "Depositors, etc." as used in this Act means depositors and other creditors pertaining to the Deposits, etc.

(4)The term "Failed Financial Institution" as used in this Act means a Financial Institution that has suspended repayment of Deposits, etc. (meaning the performance of obligations pertaining to Deposits, etc.; the same applies hereinafter) or is likely to suspend repayment of Deposits, etc. in light of the status of its business or property.

(5)The term "Bank Holding Company, etc." as used in this Act means the following:

(6)The term "Preferred Shares, etc." as used in this Act means preferred shares (meaning shares for which, at the time of issuance, there are no matters on which voting rights may be exercised, with preferred contents with regard to dividends of surplus and distribution of residual assets; the same applies hereinafter), subordinated bonds (meaning bonds with a special clause of subordinated contents with regard to the payment of principal and interest, and which fall under bonds specified by a Cabinet Order as contributing to the adequacy of equity capital of a Bank, etc., Bank Holding Company, etc. or The Shoko Chukin Bank, Ltd.; the same applies hereinafter), or preferred equity investments (meaning preferred equity investments prescribed in the Act on Preferred Equity Investment by Cooperative Structured Financial Institution (Act No. 44 of 1993, which is referred to as the "Preferred Equity Investment Act" in Article 107-4, paragraph (1); the same applies hereinafter).

(7)The term "Shares, etc." as used in this Act means Preferred Shares, etc. and other shares.

(8)The term "Subscription for Preferred Shares, etc." as used in this Act means subscription for Preferred Shares, etc. or loans for consumption made pursuant to subordinated loan agreements (meaning loans for consumption falling under those with a special clause of subordinated contents with regard to the payment of principal and interest, and which are specified by a Cabinet Order as contributing to the adequacy of equity capital of a Financial Institution or Bank Holding Company, etc.).

(9)The term "Subscription for Shares, etc." as used in this Act means Subscription for Preferred Shares, etc. or subscription for other shares.

(10)The term "Securing of Damage" as used in this Act means compensation to creditors, based on a contract concluded in advance, through partial repayment of an unpaid amount of a loan in cases where obligations under the loan have become unsatisfied in whole or in part.

(11)The term "Transfer of Insured Deposits" as used in this Act means assumption of obligations pertaining to the Deposits, etc. of a Failed Financial Institution by another Financial Institution, when such obligations include obligations pertaining to the Deposits, etc. corresponding to amounts of insurance proceeds calculated under the provisions of Article 54, paragraphs (1) to (3) (including the cases where the provisions of said paragraphs are applied mutatis mutandis pursuant to Article 54-2, paragraph (2)) and Article 54-2, paragraph (1) (hereinafter referred to as the "Insurance Claim Calculation Provision") (excluding those associated with the transfer or assumption of business (hereinafter referred to as "Business Transfer, etc.")).

(12)The term "Financial Institution under Management" as used in this Act means a Financial Institution that has become subject to the disposition ordering management prescribed in Article 74, paragraph (1) pursuant to the provisions of Article 74, paragraph (1) or (2) or Article 110, paragraph (1).

(13)The term "Bridge Bank" as used in this Act means a bank that has succeeded to the business of a Financial Institution under Management through the assumption of business, Transfer of Insured Deposits or merger (hereinafter referred to as "Assumption of Business, etc."), whose primary purpose is to maintain and continue said business on a temporary basis, and that has been established as a subsidiary company of the Deposit Insurance Corporation (meaning a company of which voting rights exceeding fifty hundredths of the voting rights held by all of its shareholders are held by the Deposit Insurance Corporation; the same applies hereinafter).

Article 69-2(1)With regard to obligations borne by a Financial Institution with regard to exchange transactions and other transactions specified by a Cabinet Order as transactions pertaining to the settlement of funds undertaken by a Financial Institution (excluding those for which payment is made in a foreign country, and limited to those resulting from entrustment by a Financial Institution and by other persons who engage in financial business other than persons specified by a Cabinet Order and to those specified by a Cabinet Order; hereinafter referred to as "Settlement Obligations" in this Chapter), other than those that will be extinguished if there is repayment of the Covered Deposits for Settlement (hereinafter referred to as "Specified Settlement Obligations" in this paragraph and paragraph (1) of the following Article), the Specified Settlement Obligations are to be deemed to be obligations pertaining to the Covered Deposits for Settlement, claims pertaining to the Specified Settlement Obligations are to be deemed to be claims pertaining to the Covered Deposits for Settlement, creditors pertaining to the Specified Settlement Obligations are to be deemed to be the Depositors, etc., the amount of the Specified Settlement Obligations is to be deemed to be the amount of the Covered Deposits for Settlement, and the repayment of the Specified Settlement Obligations is to be deemed to be the repayment of the Covered Deposits for Settlement, for the purpose of applying the provisions of this Act (excluding Article 58-2, this Chapter, Article 73, and Article 127 and penal provisions pertaining thereto).In this case, the term "insurance premiums pertaining to deposits that satisfy all of the following requirements (excluding foreign currency deposits and other deposits specified by a Cabinet Order; hereinafter referred to as "Deposits for payment and settlement purposes")" in Article 51-2, paragraph (1) is to be deemed to be replaced with "insurance premiums pertaining to the Specified Settlement Obligations," the term "insurance proceeds pertaining to the Deposits for payment and settlement purposes (excluding those held under the name of another person and other Deposits for payment and settlement purposes specified by a Cabinet Order; hereinafter referred to as "Covered Deposits for Settlement")" in Article 54-2, paragraph (1) is to be deemed to be replaced with "insurance proceeds pertaining to the Specified Settlement Obligations," and the term "the amount of the principal of" is to be deemed to be replaced with "the amount of," the term "the Covered Deposits for Settlement held thereby" in Article 54-2, paragraph (2) is to be deemed to be replaced with "the claims pertaining to the Specified Settlement Obligations held thereby," the term "Deposits, etc." in Article 55-2, paragraph (4) is to be deemed to be replaced with "Specified Settlement Obligations," and the term "Covered Deposits for Settlement" in Article 58-3, paragraph (1) is to be deemed to be replaced with "Specified Settlement Obligations."

(2)Where the Settlement Obligations will be extinguished if there is repayment of the General Deposits, etc., the General Deposits, etc. whose amount is equivalent to the amount of said Settlement Obligations are deemed to be the Deposits for payment and settlement purposes.

Article 69-3(1)In the event that the Corporation receives from any of the following persons an application for a loan of funds necessary for the repayment of the Settlement Obligations (limited to those carried out with respect to the Covered Deposits for Settlement or Specified Settlement Obligations corresponding to the amount of insurance proceeds calculated under Article 54-2, paragraph (1) and Article 54, paragraph (3) as applied mutatis mutandis pursuant to Article 54-2, paragraph (2)), the Corporation may, if it finds it necessary, and following a resolution of the Operation Committee, decide to provide the loan pertaining to said application up to the total amount of insurance proceeds pertaining to said Settlement Obligations calculated under Article 54-2, paragraph (1) and Article 54, paragraph (3) as applied mutatis mutandis pursuant to Article 54-2, paragraph (2):

(2)The provisions of Article 64, paragraph (3) apply mutatis mutandis to the cases where a decision is made under the preceding paragraph, and the provisions of Article 64, paragraph (4) apply mutatis mutandis to the cases where a decision to provide a loan is made under the preceding paragraph.In this case, the term "pertains to a merger, etc. to which ... is a party" in Article 64, paragraph (3) is deemed to be replaced with "pertains to ..."

(3)The loan provided under paragraph (1) to a person specified in each of the following items is to, in relation to creditors other than the Corporation in bankruptcy proceedings, reorganization proceedings, rehabilitation proceedings or special liquidation proceedings pertaining to said Financial Institution, be deemed to be provided prior to the decision prescribed in each respective item:

(4)The expected costs of the loan of funds provided pursuant to a decision under paragraph (1) are deemed to be the expected costs of the Financial Assistance prescribed in Article 64, paragraph (2) for the purpose of applying Article 64, paragraph (2).

(5)The person specified in paragraph (1), item (ii) or (viii) is deemed to be a Financial Institution for the purpose of the application of this Act pertaining to the loan prescribed in paragraph (1).

Article 69-4(1)In the event that a Financial Institution that owes the Settlement Obligations and settlement creditors (meaning other Financial Institutions that hold claims pertaining to said Settlement Obligations and also owe other Settlement Obligations to said Financial Institution (including other persons who have acquired from said other Financial Institutions the claims pertaining to said Settlement Obligations or assumed said other Settlement Obligations); hereinafter the same applies in this paragraph) have, prior to the occurrence of an insurable contingency pertaining to said Financial Institution, concluded a contract, under which the whole or part of the Settlement Obligations owed to each other is to be extinguished by way of continuous set-off thereof, if the Settlement Obligations subject to said contract arose after said Financial Institution's insolvency, etc. (meaning insolvency (meaning the condition in which said Financial Institution, due to the lack of ability to pay, is generally and continuously unable to pay its debts as they become due), suspension of payments, or a petition for the commencement of bankruptcy proceedings, commencement of reorganization proceedings, commencement of rehabilitation proceedings or commencement of special liquidation; hereinafter the same applies in this paragraph) and there has been a decision pertaining to said Financial Institution for the provision of a loan under paragraph (1) of the preceding Article (including the cases where it is applied mutatis mutandis pursuant to Article 127), said settlement creditors may, notwithstanding the provisions of Article 517 and Article 518 of the Companies Act, Article 71 and Article 72 of the Bankruptcy Act, Article 49 and Article 49-2 of the Corporate Reorganization Act (including the cases where these provisions are applied mutatis mutandis pursuant to Article 35 of the Act on Special Measures of Corporate Reorganization Proceedings and Other Insolvency Proceedings of Financial Institutions) and Article 93 and Article 93-2 of the Civil Rehabilitation Act, set off the Settlement Obligations specified in the following items that are owed by said Financial Institution pertaining to claims held by such creditors against the Settlement Obligations owed by such creditors prescribed in such item:

(2)The provisions of Article 653 of the Civil Code do not apply to a consignment contract concluded by said Financial Institution pertaining to the Settlement Obligations.

(3)When a decision has been made to loan funds under paragraph (1) of the preceding Article to a Failed Financial Institution that has become subject to an order for commencement of special liquidation, the court may, notwithstanding the provisions of Article 500, paragraph (1) and Article 537, paragraph (1) of the Companies Act, in response to a petition filed by said Failed Financial Institution, grant permission for the repayment of the Settlement Obligations prescribed in paragraph (1) of the preceding Article.

(4)The court shall, upon granting the permission under the preceding paragraph, specify the types of the Settlement Obligations to be repaid, limit of the amount of repayment, and period of repayment (in the case of the preceding paragraph, the last day of said period shall precede the date of notice under Article 549, paragraph (1) of the Companies Act).

(5)When specifying the types of the Settlement Obligations to be repaid, limit of the amount of repayment, and period of repayment under the preceding paragraph, the court shall hear the opinion of the Corporation in advance.

Article 70(1)In the cases prescribed in Article 57, paragraph (1) (including the cases where the Corporation finds it necessary for the protection of the Depositors, etc. of a Financial Institution subject to the Category One Insurable Contingency), the Corporation may, following a resolution by the Operation Committee, decide to purchase deposits and other claims pertaining to an insurable contingency prescribed in each item of Article 57, paragraph (1) (meaning claims pertaining to the Deposits, etc. held by the Depositors, etc. in the Financial Institution subject to the insurable contingency (excluding the Deposits, etc. specified by a Cabinet Order) that are not subject to a security interest; the same applies hereinafter).

(2)The purchase under the preceding paragraph is to be made within the purchase period publicly announced under Article 72, paragraph (1) or (3), upon request by the Depositors, etc. who hold deposits and other claims pertaining to the insurable contingency prescribed in the preceding paragraph based on an approximate estimate of said deposits and other claims; provided, however, that in the event that the Corporation has collected the deposits and other claims pertaining to the purchase, if an amount obtained by deducting from the amount so collected the amount of costs specified by a Cabinet Order as being required for said purchase exceeds the amount equivalent to estimated proceeds payment pertaining to said purchase, the Corporation is to pay such excess to said Depositors, etc.

(3)The amount of estimated proceeds payment prescribed in the preceding paragraph is to be calculated by deducting from the amount of deposits and other claims to be purchased by the Corporation from the Depositors, etc. the amount of interest, distribution of profits and any other amount equivalent thereto specified by a Cabinet Order corresponding to the period between the date of the insurable contingency and the date of said purchase, and multiplying the amount thus calculated by a rate determined by the Corporation under paragraph (1) of the following Article (hereinafter referred to as "Estimated Proceeds Payment Rate").

(4)The provisions of Article 53, paragraph (3) apply mutatis mutandis to the payment of an amount equivalent to estimated proceeds payment pertaining to the purchase under paragraph (2) (hereinafter referred to as "Estimated Proceeds Payment").

(5)When the Corporation finds that the Depositors, etc. did not make a request within the purchase period prescribed in paragraph (2) due to natural disaster or any other unavoidable reason, the Corporation may, notwithstanding the provisions of paragraph (2), purchase deposits and other claims of said Depositors, etc. even after the lapse of said purchase period.

Article 71(1)In making a decision under paragraph (1) of the preceding Article, the Corporation shall, following a resolution of the Operation Committee, specify the Estimated Proceeds Payment Rate for the purchase pertaining to said decision and obtain the authorization of the Prime Minister and the Minister of Finance for said decision.

(2)When making a decision on the Estimated Proceeds Payment Rate under the preceding paragraph, the Operation Committee shall take into consideration, in light of the financial conditions of the Financial Institution pertaining to the decision under paragraph (1) of the preceding Article, the expected amount of payment to be received for deposits and other claims pertaining to said Financial Institution in the event that it becomes subject to bankruptcy proceedings, and give due consideration to the efficient use of the Corporation's assets.

(3)When granting the authorization set forth in paragraph (1), the Prime Minister and the Minister of Finance shall obtain consent from the Minister of Health, Labour and Welfare if said Financial Institution is a labor bank or The Rokinren Bank, and shall obtain consent from the Minister of Economy, Trade and Industry if said Financial Institution is The Shoko Chukin Bank, Ltd.

Article 72(1)Upon receiving the authorization set forth in paragraph (1) of the preceding Article, the Corporation shall, following a resolution by the Operation Committee, promptly specify the period, location, and method of the Estimated Proceeds Payment pertaining to the purchase of deposits and other claims and other matters specified by a Cabinet Order and give public notice thereof together with the Estimated Proceeds Payment Rate pertaining to said authorization.

(2)If, after giving public notice under the preceding paragraph, there is public notice under Article 197, paragraph (1) of the Bankruptcy Act (including the cases where it is applied mutatis mutandis pursuant to Article 209, paragraph (3) of said Act), notice under Article 137-2, paragraph (2), or any other event specified by a Cabinet Order with respect to said Financial Institution, the Corporation may, pursuant to the provisions of a Cabinet Order, change the purchase period that was publicly announced under the provisions of the preceding paragraph.

(3)If the Corporation has changed the payment period under the preceding paragraph, the Corporation shall give public notice of matters pertaining to said change without delay.

(4)When making payment under the proviso to Article 70, paragraph (2), the Corporation shall, following a resolution of the Operation Committee, specify the amount and period of payment and other matters specified by a Cabinet Order and give public notice thereof in advance.

(5)The provisions of Article 56, paragraph (4) apply mutatis mutandis to cases where the Corporation has specified the matters prescribed in paragraph (1), changed the purchase period under paragraph (2), and specified the matters prescribed in the preceding paragraph.

Article 73(1)In the event that Depositors, etc. have received the Estimated Proceeds Payment for the deposits and other claims which they hold (excluding those pertaining to the Long-Term Credit Bank Bonds, etc. issued by means of a discount, among those listed in Article 2, paragraph (2), item (v); hereinafter the same applies in this Article), if the amount of said Estimated Proceeds Payment (hereinafter referred to as "Amount of Estimated Proceeds Payment" in this Article) is equal to or less than the amount specified by a Cabinet Order as the amount of principal of said deposits and other claims on the date of said Estimated Proceeds Payment (hereinafter referred to as "Amount of Principal on the Reference Date" in this Article), the Amount of Estimated Proceeds Payment is deemed to be the amount of principal to be repaid with respect to said deposits and other claims, and in the event that the Amount of Estimated Proceeds Payment exceeds the Amount of Principal on the Reference Date, the portion of said Amount of Estimated Proceeds Payment equivalent to said Amount of Principal on the Reference Date is deemed to be the amount of principal to be repaid with respect to said deposits and other claims, and the portion of said Amount of Estimated Proceeds Payment that exceeds said Amount of Principal on the Reference Date is deemed to be the amount prescribed in each of the following items according to the category of the Deposits, etc. pertaining to said deposits and other claims prescribed in each respective item, in applying the provisions of the Income Tax Act and other laws and regulations concerning income tax:

(2)In the event that the Depositors, etc. have received payment under the proviso to Article 70, paragraph (2), the amount of money received for deposits and other claims pertaining to said payment (hereinafter referred to as "Amount of Settlement Payment" in this paragraph) is deemed to be the amount prescribed in each of the following items according to the category prescribed in such item, in applying the provisions of the Income Tax Act and other laws and regulations concerning income tax:

(3)In the event that the provisions of the preceding two paragraphs applies, necessary matters for the application of the special provisions of Article 4-2 and Article 4-3 of the Act on Special Measures Concerning Taxation and other provisions of the preceding two paragraphs will be specified by a Cabinet Order.

Article 74(1)In cases where the Prime Minister (in the event that a Financial Institution pertaining to the disposition prescribed in this paragraph is a labor bank or The Rokinren Bank, the Prime Minister and the Minister of Health, Labour and Welfare, and in the event that such Financial Institution is The Shoko Chukin Bank, Ltd., the Prime Minister, the Minister of Finance, and the Minister of Economy, Trade and Industry; the same applies in the following paragraph, paragraph (4) (including the cases where it is applied mutatis mutandis pursuant to paragraph (2) of the following Article), paragraph (5), paragraph (1) of the following Article, Article 77, paragraphs (2) to (4), Article 79, paragraph (1) (including the cases where it is applied mutatis mutandis pursuant to Article 79, paragraph (3)), Article 80, Article 84, paragraph (1), and Article 90) finds that a Financial Institution is unable to satisfy its obligations in full with its assets, or that, in light of the status of its business or assets, a Financial Institution is likely to suspend repayment of Deposits, etc. or a Financial Institution has suspended repayment of Deposits, etc., and that any of the following requirements is satisfied, the Prime Minister may order that the business and property of said Financial Institution be placed under the management of a financial administrator (hereinafter referred to as "Disposition Ordering Management"):

(2)Upon receiving notification from a Financial Institution that a situation is likely to arise in which the Financial Institution is unable to satisfy its obligations in full with its assets, the Prime Minister may, if he/she finds that said situation is likely to arise and any of the requirements specified in the preceding paragraph is satisfied, issue the Disposition Ordering Management with respect to said Financial Institution.

(3)A Financial Institution (excluding Failed Financial Institutions) that has become subject to the Disposition Ordering Management under the provisions of the preceding two paragraphs is deemed to be a Failed Financial Institution for the purpose of the application of this Act.

(4)Upon issuing the Disposition Ordering Management, the Prime Minister shall give public notice thereof in the official gazette.

(5)A Financial Institution shall, if it is unable to satisfy its obligations in full with its assets or is likely to suspend repayment of Deposits, etc. in light of the status of its business or property, give written notification of such fact and reasons thereof to the Prime Minister.

Article 75(1)The Prime Minister shall rescind the Disposition Ordering Management, if he/she finds that there is no longer any need for said Disposition Ordering Management.

(2)The provisions of paragraph (4) of the preceding Article apply mutatis mutandis to the case referred to in the preceding paragraph.

Article 76(1)In the event that a Financial Institution under Management is a Bank, etc. or The Shoko Chukin Bank, Ltd., the Prime Minister may, if he/she finds it necessary, prohibit any entry of name change of shareholders.

(2)For the purpose of applying the provisions of the preceding paragraph, in the event that a Financial Institution under Management is The Shoko Chukin Bank, Ltd. as prescribed in said paragraph, the term "the Prime Minister" is deemed to be "the Prime Minister, the Minister of Finance, and the Minister of Economy, Trade and Industry."

Article 77(1)When a Disposition Ordering Management has been issued, the right to represent a Financial Institution under Management, execute its business, and manage and dispose of its assets is vested exclusively in a financial administrator. The same applies to the rights of a director and executive officer (in the event that the Financial Institution under Management is a Shinkin Bank, etc., a deputy governor) prescribed in Article 828, paragraphs (1) and (2) of the Companies Act (including the cases where these provisions are applied mutatis mutandis pursuant to Article 28 of the Shinkin Bank Act, Article 52-2 (including the cases where it is applied mutatis mutandis pursuant to Article 58, paragraph (7) of said Act) and Article 61-7 of said Act, Article 32 of the Small and Medium-Sized Enterprises Cooperatives Act, Article 57 (including the cases where it is applied mutatis mutandis pursuant to Article 57-3, paragraph (6) of said Act) and Article 67 of said Act, Article 28 of the Labor Bank Act, Article 57-2 (including the cases where it is applied mutatis mutandis pursuant to Article 62, paragraph (7) of said Act) and Article 65 of said Act), and Article 831 of the Companies Act (including the cases where it is applied mutatis mutandis pursuant to Article 24, paragraph (10) and Article 48-8 of the Shinkin Bank Act, Article 27, paragraph (8), Article 54, Article 82, paragraph (4) and Article 82-10, paragraph (4) of the Small and Medium-Sized Enterprises Cooperatives Act, and Article 24, paragraph (11) and Article 54 of the Labor Bank Act).

(2)The Prime Minister shall, at the time of issuing a Disposition Ordering Management, appoint one or more financial administrator.

(3)The Prime Minister may, if he/she finds it necessary, appoint another financial administrator after the appointment of a financial administrator under the preceding paragraph, or, if he/she finds that the financial administrator has failed to properly manage the business and assets of the Financial Institution under Management, dismiss the financial administrator.

(4)The Prime Minister shall, if he/she has appointed or dismissed a financial administrator under paragraph (2) or the preceding paragraph, notify the Financial Institution under Management to that effect and give public notice thereof in the official gazette.

(5)The provisions of Article 69, Article 70, Article 80, and Article 81, paragraphs (1) and (5) of the Corporate Reorganization Act apply mutatis mutandis to a financial administrator and the provisions of Article 78 of the Act on General Incorporated Associations and General Incorporated Foundations apply mutatis mutandis to a Financial Institution under Management.In this case, the term "the permission of the court" in Article 69, paragraph (1) of the Corporate Reorganization Act is deemed to be replaced with "approval from the Prime Minister" (in the event that the Financial Institution under the management of the financial administrator is a labor bank or The Rokinren Bank, of the Prime Minister and the Minister of Health, Labour and Welfare, and in the event that the Financial Institution is The Shoko Chukin Bank, Ltd., of the Prime Minister, the Minister of Finance, and the Minister of Economy, Trade and Industry; the same applies hereinafter), the term "trustee representative" in Article 70 of said Act is deemed to be replaced with "financial administrator representative," the term "the permission of the court" in Article 70, paragraph (2) of said Act is deemed to be replaced with "approval from the Prime Minister," the term "the court" in Article 81, paragraph (1) of said Act is deemed to be replaced with "the Prime Minister," the term "trustee representative" in Article 81, paragraph (5) of said Act is deemed to be replaced with "financial administrator representative," and the term "representative director and other representatives" in Article 78 of the Act on General Incorporated Associations and General Incorporated Foundations is deemed to be replaced with "financial administrator."

Article 78(1)A corporation may be appointed as a financial administrator or financial administrator representative.

(2)The Corporation may be appointed as a financial administrator or financial administrator representative and carry out the operations thereof.

Article 79(1)The Prime Minister shall, if he/she has issued a Disposition Ordering Management or rescinded a Disposition Ordering Management, immediately notify the district court having jurisdiction over the location of the head office or principal office of the Financial Institution under Management to that effect, attach a transcript of the written order to a written commission, and commission its registration in the registry office having jurisdiction over the location of the head office or principal office of the Financial Institution under Management.

(2)The registration under the preceding paragraph shall include the name and address of a financial administrator.

(3)The provisions of paragraph (1) apply mutatis mutandis to cases where any changes occur to the matters specified in the preceding paragraph.

Article 80The Prime Minister may, if he/she finds it necessary, request a financial administrator to report or submit material with regard to the status of business and property, etc. of a Financial Institution under Management or order a financial administrator to prepare and submit a plan for its management and take other necessary measures.

Article 81(1)A financial administrator may request a director, accounting advisor, corporate auditor, and accounting auditor (in the event that the Financial Institution under Management is a company with committees, a director, executive officer, accounting advisor and accounting auditor, and in the event that the Financial Institution under Management is a Shinkin Bank, etc., a deputy governor, inspector and accounting auditor; the same applies in Article 87, paragraph (5)), manager (in the event that the Financial Institution under Management is a credit cooperative, the Federation of Credit Cooperatives, labor bank or The Rokinren Bank, a counselor), and any other employee of a Financial Institution under Management, a Financial Institution agent (in the event that the Financial Institution agent is a corporation, an officer and employee) having a Financial Institution under Management as its principal Financial Institution, and a person who previously held any of these positions (with regard to any person who previously held any of these positions, limited to those items pertaining to matters that could have been known by him/her during the period when he/she was engaged in the operations of the Financial Institution under Management) to report on the status of business and assets of the Financial Institution under Management, or inspect the books, documents, and any other items of the Financial Institution under Management and the Financial Institution agent having the Financial Institution under Management as its principal Financial Institution.

(2)A financial administrator may, if it is necessary for carrying out his/her duties, inquire with, or request the cooperation of, government agencies, public entities, or any other person.

Article 82(1)A financial administrator and financial administrator representative (hereinafter referred to as "Financial Administrator, etc." in this Article) must not divulge any secret which may have come to his/her knowledge in the course of his/her duties. The same applies after a financial administrator, etc. resigns from office.

(2)If a financial administrator, etc. is a corporation, its officers and staff who are engaged in the duty of the financial administrator, etc. must not divulge any secret which may have come to his/her knowledge in the course of his/her duties. The same applies after said officers or staff members are no longer engaged in the duties of the financial administrator, etc.

Article 83(1)A financial administrator shall, in order to have a director, accounting advisor, corporate auditor or accounting auditor of a Financial Institution under Management (a director, executive officer, accounting advisor or accounting auditor in the event that the Financial Institution under Management is a company with committees, and a deputy governor, inspector or accounting auditor in the event that the Financial Institution under Management is a Shinkin Bank, etc.) or a person who previously held any of these positions perform civil liability based on a breach of obligations in the course of duties, file an action or take other necessary measures.

(2)A financial administrator shall, when by carrying out his/her duty he/she believes that an offense has been committed, take necessary measures toward filing an accusation.

Article 84(1)A financial administrator shall obtain approval from the Prime Minister when carrying out, for himself/herself or for a third party, any transaction with a Financial Institution under Management.In this case, Article 108 of the Civil Code does not apply.

(2)An act is null and void if the approval set forth in the preceding paragraph has not been obtained; provided, however, that it may not be duly asserted against a third party without knowledge of the requirement to obtain such approval.

Article 85Deleted.

Article 86(1)In a Financial Institution under Management, resolutions by a shareholders meeting or class meeting specified in Article 309, paragraph (2), item (iv), (v), (ix), (xi), or (xii) or Article 324, paragraph (2), item (i) or (iv) of the Companies Act, resolutions or decisions under Article 48-3 of the Shinkin Bank Act, Article 53 of the Small and Medium-Sized Enterprises Cooperatives Act, or Article 53 of the Labor Bank Act, and resolutions or decisions under Article 22, paragraph (2), Article 29, paragraph (4) or Article 35, paragraph (2) of the Act on Financial Institutions' Merger and Conversion may, notwithstanding these provisions, be made provisionally by two-thirds or more of the votes held by the shareholders, members, association members, substitute members, or representatives (referred to in paragraph (4) as "Shareholders, etc.") present.

(2)In a Financial Institution under Management, resolutions of a shareholders meeting or class meeting specified in each item of Article 309, paragraph (3) or Article 324, paragraph (3) of the Companies Act and resolutions under Article 22, paragraph (3) of the Act on Financial Institutions' Merger and Conversion may, notwithstanding these provisions, be made provisionally by a majority of the shareholders present and two-thirds or more of the votes held by the shareholders present.

(3)In a Financial Institution under Management, resolutions of a shareholders meeting under Article 309, paragraph (4) of the Companies Act may, notwithstanding the provisions of the same paragraph, be made provisionally by a majority of the shareholders present and three-quarters or more of the votes held by the shareholders present.

(4)In the event that a resolution or decision is provisionally made under paragraph (1) (hereinafter referred to as "Provisional Resolution, etc." in this paragraph and the following paragraph), the Financial Institution under Management shall notify its Shareholders, etc. of the purpose of said Provisional Resolution, etc. and shall call a subsequent shareholders meeting, etc. (meaning the shareholders meeting, etc. prescribed in Article 66, paragraph (2); the same applies in the following paragraph and paragraph (6) of the following Article) within one month of the date of adoption of said Provisional Resolution, etc.

(5)In the event that a Provisional Resolution is approved by a majority as prescribed in paragraph (1) at a shareholders meeting, etc. under the preceding paragraph, a resolution or decision pertaining to the matters of said Provisional Resolution, etc. is deemed to have existed when said approval was given.

(6)The provisions of the preceding two paragraphs apply mutatis mutandis to cases where a resolution is provisionally made under paragraph (2).In this case, the term "a majority prescribed in paragraph (1)" in the preceding paragraph is deemed to be replaced with "a majority as prescribed in paragraph (2)."

(7)The provisions of paragraphs (4) and (5) apply mutatis mutandis to cases where a resolution is provisionally made under paragraph (3).In this case, the term "a majority as prescribed in paragraph (1)" in paragraph (5) is deemed to be replaced with "a majority as prescribed in paragraph (3)."

Article 87(1)In the event that a Financial Institution under Management that is a Bank, etc. or The Shoko Chukin Bank, Ltd. is unable to satisfy its obligations in full with its property, said Financial Institution under Management may, notwithstanding the provisions of Article 447, paragraph (1), Article 467, paragraph (1), items (i) and (ii), and Article 471, item (iii) of the Companies Act, carry out the following matters with the permission of the court:

(2)In the event that a Financial Institution under Management that is a Shinkin Bank, etc. is unable to satisfy its obligations in full with its property, said Financial Institution under Management may, notwithstanding the provisions of Article 48-3 and Article 58, paragraph (1) of the Shinkin Bank Act, Article 53 and Article 57-3, paragraph (1) of the Small and Medium-Sized Enterprises Cooperatives Act, and Article 53 and Article 62, paragraph (1) of the Labor Bank Act, carry out the following matters with permission by the court:

(3)Notwithstanding the provisions of Article 339, paragraph (1) and Article 403, paragraph (1) of the Companies Act (including the cases where it is applied mutatis mutandis pursuant to the provisions of Article 347, paragraph (1) of said Act), Article 35-8, paragraph (1), of the Shinkin Bank Act, Article 42, paragraph (1) of the Small and Medium-Sized Enterprises Cooperatives Act, and Article 37-6, paragraph (1) of the Labor Bank Act, a financial administrator may, with the permission of the court, dismiss a director, accounting advisor, corporate auditor or accounting auditor of a Financial Institution under Management (in the event that the Financial Institution under Management is a company with committees, a director, executive officer, accounting advisor or accounting auditor, and in the event that the Financial Institution under Management is a Shinkin Bank, etc., a director, inspector or accounting auditor; the same applies in the following paragraph).

(4)In the event that a financial administrator intends to dismiss any director, accounting advisor, corporate auditor or accounting auditor of a Financial Institution under Management under the preceding paragraph, if the number of directors, accounting advisors, corporate auditors or accounting auditors fails to meet the number prescribed by an Act or by the articles of incorporation, the financial administrator may, notwithstanding the provisions of Article 329, paragraph (1) and Article 402, paragraph (2) of the Companies Act, Article 32, paragraph (3) of the Shinkin Bank Act, Article 35, paragraph (3) of the Small and Medium-Sized Enterprises Cooperatives Act, and Article 32, paragraph (3) of the Labor Bank Act, appoint a director, accounting advisor, corporate auditor or accounting auditor of the Financial Institution under Management with permission from the court.

(5)The director, accounting advisor, corporate auditor and accounting auditor of a Financial Institution under Management appointed under the preceding paragraph will resign at the conclusion of the first annual general meeting or ordinary general meeting (in cases where a general meeting of representatives is established, at which it is possible to appoint officers, the ordinary general meeting of representatives) convened after the end of the business year during which he/she was appointed, and an executive officer will resign at the completion of the first meeting of the board of directors held after the first annual general meeting convened after the end of the business year during which he/she was appointed.

(6)When the permission prescribed in paragraphs (1) to (4) has been granted (hereinafter referred to as "Substituted Permission" in this Article and the following Article), it is to be deemed that a resolution of a shareholders meeting, etc. or board of directors meeting has been adopted concerning matters pertaining to said Substituted Permission.

(7)The district court having jurisdiction over the location of the head office or principal office of a Financial Institution under Management will have jurisdiction over cases pertaining to the Substituted Permission.

(8)The court shall, when it has made a Substituted Permission, serve a written decision thereof on the Financial Institution under Management and give public notice of the gist of the decision.

(9)The public notice under the preceding paragraph will be published in the official gazette.

(10)A decision on the Substituted Permission will take effect as from the time of service thereof on the Financial Institution under Management under paragraph (8).

(11)Shareholders, members, or association members may make an immediate appeal against a decision on the Substituted Permission within an unextendable period of one week from the date of the public notice set forth in paragraph (8).In this case, if the immediate appeal is against a decision on the Substituted Permission pertaining to dissolution, it has the effect of a stay of execution.

(12)In addition to what is provided for in paragraph (7) to the preceding paragraph, Part I of the Non-Contentious Cases Procedure Act (Act No. 14 of 1898) (excluding Article 2 to Article 4, Article 15, Article 16, Article 18, paragraphs (1) and (2) and Article 20) apply mutatis mutandis to cases pertaining to the Substituted Permission.

Article 88In the event that a Substituted Permission pertaining to matters specified in item (i) or (iii) of paragraph (1) of the preceding Article or item (i) of paragraph (2) or matters prescribed in paragraph (3) or (4) of the preceding Article, a transcript or extract of a written decision of said Substituted Permission shall be attached to a written application for registration pertaining to said matters.

Article 89In the event that a Financial Institution under Management that is a Bank, etc. or The Shoko Chukin Bank, Ltd. has adopted a resolution for reduction in the amount of stated capital, the notice prescribed in Article 449, paragraph (2) of the Companies Act is not required to be given to the Depositors, etc. or any other creditors specified by a Cabinet Order.

Article 90A financial administrator is to conclude the management of a Financial Institution under Management by transferring its business or taking other measures within one year from the date of the Disposition Ordering Management; provided, however, that in cases where it is impossible to conclude the management within said period due to unavoidable circumstances, said period may be extended for a period not exceeding one year with approval from the Prime Minister.

Article 91(1)The Prime Minister may, if he/she finds it necessary to use a Bridge Bank for the succession of business of a Financial Institution under Management (meaning the succession of business by a Bridge Bank through the Assumption of Business, etc. and the provisional maintenance and continuation of said business by the Bridge Bank; hereinafter the same applies in this Chapter), make the following decisions:

(2)The Prime Minister may, if he/she finds it necessary, rescind or modify a decision under the preceding paragraph.

(3)A financial administrator may, if he/she finds it necessary, request the Prime Minister to make a decision under paragraph (1) or the preceding paragraph.

Article 92(1)When a decision prescribed in paragraph (1), item (i) of the preceding Article is made under paragraph (1) or (2) of the preceding Article, the Corporation shall, following a resolution by the Operation Committee on the details of contribution pertaining to said decision, become the incorporator of a stock company that is to become a Bridge Bank, and provide contribution for the incorporation of said stock company as a subsidiary company of the Corporation.

(2)Any contribution by the Corporation to the Bridge Bank prescribed in the preceding paragraph shall require a resolution by the Operation Committee.

(3)Upon providing the contribution prescribed in the preceding two paragraphs, the Corporation shall promptly report the details thereof to the Prime Minister and the Minister of Finance.

Article 93(1)When a decision specified in Article 91, paragraph (1), item (ii) is made under Article 91, paragraph (1) or (2), a financial administrator of the Financial Institution under Management is to select loan claims and other assets of said Financial Institution under Management to be succeeded to by the Bridge Bank pursuant to the succession of business prescribed in Article 91, paragraph (1) and request the Prime Minister to confirm that they are appropriate assets to be held by the Bridge Bank.

(2)Upon receiving the request prescribed in the preceding paragraph, the Prime Minister is to carry out the confirmation under the preceding paragraph from the viewpoint of facilitating the smooth succession of business and ensuring the sound and appropriate operation of the business of the Bridge Bank.

(3)The Prime Minister and the Minister of Finance shall prescribe standards in advance for carrying out the confirmation under the preceding paragraph and make the standards public.

(4)The standards prescribed in the preceding paragraph shall include standards concerning the status of performance by an obligor of obligations pertaining to claims subject to the confirmation prescribed in paragraph (2).

Article 94(1)The Corporation shall manage the Bridge Bank to ensure the proper performance of the following matters:

(2)The Corporation shall prepare guidelines for the administration of receipt and payment of the Deposits, etc., loan of funds, and other operations of a Bridge Bank in accordance with the following and, following approval from the Prime Minister, make such guidelines public:

(3)The Corporation may give instructions and advice necessary for the management of a Bridge Bank.

Article 95The provisions of Article 467, paragraph (1) of the Companies Act (limited to the part pertaining to item (v)) do not apply to the assets for which confirmation has been rendered under Article 93, paragraph (2) in the event that all of the issued shares of the Bridge Bank are held by the Corporation.

Article 96(1)The Corporation is to conclude the management of a Bridge Bank within two years from the date of the Disposition Ordering Management of the first Financial Institution under Management for which the Bridge Bank receives the transfer of business by taking the following measures; provided, however, that if said management cannot be concluded within said period due to unavoidable circumstances, the time limit may be extended for a period not exceeding one year.

(2)The Corporation shall, if it intends to conclude management under the main clause of the preceding paragraph or extend the time limit under the proviso to the preceding paragraph, obtain approval from the Prime Minister.

(3)The Corporation shall, when it has concluded the management of a Bridge Bank under paragraph (1) or transferred or made another disposition of shares of a Bridge Bank (including a bank that was formerly a Bridge Bank) (excluding those specified in paragraph (1), item (iii)), shall promptly report to that effect to the Prime Minister and the Minister of Finance.

Article 97(1)The Corporation is to conclude an agreement with the Bridge Bank including the following matters (hereinafter referred to as "Succession Agreement" in this Chapter):

(2)Upon concluding the Succession Agreement, the Corporation shall immediately report the details thereof to the Prime Minister and the Minister of Finance.

Article 98(1)In the event that the Corporation has received an application from a Contracted Bridge Bank for a loan of funds necessary to ensure the smooth execution of its business or for a guarantee of obligations pertaining to the borrowing of such funds by the Contracted Bridge Bank, the Corporation may, if it finds it necessary, provide said loan or guarantee of obligations, following a resolution by the Operation Committee.

(2)When the Corporation has concluded a contract with a Contracted Bridge Bank under the preceding paragraph for a loan or guarantee of obligations prescribed therein, the Corporation shall immediately report the details of the contract to the Prime Minister and the Minister of Finance.

Article 99When any loss is caused to a Contracted Bridge Bank, the amount of which is calculated pursuant to the provisions of a Cabinet Order, as a result of operations carried out under the Succession Agreement, the Corporation may, following a resolution by the Operation Committee, compensate the Contracted Bridge Bank for said loss within the scope of the amount prescribed in said Cabinet Order.

Article 100The Corporation may, if it finds it necessary for carrying out the operations prescribed in this Chapter, request the Bridge Bank to report on the implementation of the Succession Agreement or financial conditions in connection therewith.

Article 101(1)A Financial Institution that is undertaking a re-succession to business and is not a Bridge Bank (hereinafter referred to as "Re-assuming Financial Institution" in this Article), or a Bank Holding Company, etc. undertaking a re-succession to business (hereinafter referred to as a "Re-assuming Bank Holding Company, etc." in this Article) may apply to have the Corporation provide Financial Assistance (limited to that specified in Article 59, paragraph (1), item (iii), (vi) or (vii)) to support the re-succession to business.

(2)The term "re-succession to business" as used in the preceding paragraph means the following:

(3)The purchase of assets prescribed in paragraph (1) is to be conducted with respect to the assets prescribed in each of the following items according to the category of the re-succession of business specified in each respective item:

(4)The Securing of Damage prescribed in paragraph (1) is to be conducted with respect to loan claims that are the assets prescribed in each item of the preceding paragraph according to the category of the re-succession to business specified in each respective item of the preceding paragraph.

(5)The provisions of Article 59, paragraphs (3), (6) and (7) and Article 61, paragraph (1) apply mutatis mutandis to the application prescribed in paragraph (1), and the provisions of Article 61, paragraphs (2) to (4) and (6) to (8) apply mutatis mutandis to the authorization prescribed in Article 61, paragraph (1) as applied mutatis mutandis pursuant to this paragraph.In this case, the term "Assuming Financial Institution" in Article 59, paragraph (3) is deemed to be replaced with "Re-assuming Financial Institution," and the terms "merger, etc.," "Failed Financial Institution," "Assuming Financial Institution," and "Assuming Bank Holding Company, etc." in Article 61 are to be deemed to be replaced with "re-succession of business," "Bridge Bank," "Re-assuming Financial Institution," and "Re-assuming Bank Holding Company, etc.," respectively.

(6)Even in cases where no application is made under Article 61, paragraph (2) as applied mutatis mutandis pursuant to the preceding paragraph, the Prime Minister may, if he/she finds that a Bridge Bank satisfies the requirements specified in item (iii) of paragraph (3) as applied mutatis mutandis pursuant to the preceding paragraph, provide mediation in writing with regard to the re-succession to business (excluding the merger specified in item (ii) of paragraph (2) and limited to those that contribute to the protection of Depositors, etc. and other creditors and for which Financial Assistance by the Corporation is indispensable) between said Bridge Bank and another Financial Institution or said Bridge Bank and a Bank Holding Company, etc.

(7)The provisions of Article 62, paragraphs (2) and (4) to (6) apply mutatis mutandis to the mediation prescribed in the preceding paragraph, the provisions of Article 64 (excluding paragraph (2)) and Article 64-2 apply mutatis mutandis to the application prescribed in paragraph (1), the provisions of Article 65 and Article 66 apply mutatis mutandis to the Financial Institution or Bank Holding Company, etc. that has received the authorization prescribed in Article 61, paragraph (1) as applied mutatis mutandis pursuant to paragraph (5) or that has received the mediation prescribed in the preceding paragraph, the provisions of Article 67 apply mutatis mutandis to the Re-assuming Financial Institution, the provisions of Article 68 apply mutatis mutandis to the Financial Assistance provided by the Corporation for re-succession to business, and the provisions of Article 68-2 and Article 68-3 apply mutatis mutandis to the Re-assuming Financial Institution that has received said Financial Assistance (limited to those pertaining to the Subscription for Preferred Shares, etc.) (including the Financial Institutions established by the merger pertaining to said Subscription for Preferred Shares, etc.) or the Re-assuming Bank Holding Company, etc. (including the company prescribed in Article 68-2, paragraph (2) as applied mutatis mutandis pursuant to this paragraph in the event that the approval prescribed in Article 68-2, paragraph (1) as applied mutatis mutandis pursuant to this paragraph is granted, and the succeeding Financial Institution, etc. prescribed in Article 68-3, paragraph (4) as applied mutatis mutandis pursuant to this paragraph in the event that the approval prescribed in Article 68-3, paragraph (1) as applied mutatis mutandis pursuant to this paragraph is granted).In this case, the term "Article 59, paragraph (1) or Article 59-2, paragraph (1)" in Article 62, paragraph (2) is to be deemed to be replaced with "Article 101, paragraph (1)," the term "paragraphs (4) to (7)" in Article 62, paragraph (4) is to be deemed to be replaced with "paragraphs (4), (6) and (7)," the term "a Failed Financial Institution or a Financial Institution recognized as having a high probability of becoming a Failed Financial Institution" in Article 62, paragraph (5) is to be deemed to be replaced with "Bridge Bank," the term "merger, etc." in Article 64, paragraph (3) and (5) is to be deemed to be replaced with "re-succession to business," the term "Assuming Financial Institution" and "Assuming Bank Holding Company, etc." in Article 64-2, paragraphs (1) and (2) are to be deemed to be replaced with "Re-assuming Financial Institution" and "Re-assuming Bank Holding Company, etc.," respectively, and the term "merger, etc." in said paragraph is to be deemed to be replaced with "re-succession to business," the terms "merger, etc. (limited to those specified in Article 59, paragraph (2), item (ii)" and "said merger, etc." in Article 64-2, paragraph (4) are to be deemed to be replaced with "re-succession of business (limited to those specified in Article 101, paragraph (2), item (ii)" and "said re-succession of business," respectively, the terms "Assuming Financial Institution" and "Assuming Bank Holding Company, etc." in Article 64-2, paragraph (5) are to be deemed to be replaced with "Re-assuming Financial Institution" and "Re-assuming Bank Holding Company, etc.," respectively, and the term "merger, etc." in Article 65 and Article 68 is to be deemed to be replaced with "re-succession of business," and any other necessary technical replacement of terms will be specified by a Cabinet Order.

Article 102(1)If the Prime Minister finds that, if the measures specified in each of the following items are not taken with respect to the Financial Institution specified in each respective item, it may extremely seriously hinder the maintenance of an orderly credit system in Japan or in a certain region where said Financial Institution conducts its business, the Prime Minister may, following deliberation by a council for financial crises (hereinafter referred to as the "Council" in this Chapter), confirm the necessity to take said measures (hereinafter referred to as "Confirmation" in this Chapter):

(2)If the Prime Minister intends to give Confirmation with respect to a labor bank or The Rokinren Bank, he/she shall hear the opinion of the Minister of Health, Labour and Welfare in advance, and if he/she intends to give Confirmation with respect to The Shoko Chukin Bank, Ltd., he/she shall hear the opinion of the Minister of Economy, Trade and Industry in advance.

(3)Confirmation pertaining to the Measures Under Item (iii) may not be given unless the Prime Minister finds that the Measures Under Item (ii) cannot prevent the hindrance prescribed in paragraph (1).

(4)When giving Confirmation pertaining to the Measures Under Item (i), the Prime Minister shall specify a period of time within which an application under Article 105, paragraph (1) or (2) can be made by a Financial Institution subject to said Confirmation or Bank Holding Company, etc. which has said Financial Institution as its subsidiary company.

(5)Upon giving Confirmation, the Prime Minister shall announce such fact and, if the Confirmation is in relation to the Measures Under Item (i), the period of time specified under the preceding paragraph, to the Financial Institution subject to said Confirmation or Bank Holding Company, etc. which has said Financial Institution as its subsidiary company and the Corporation, and give public notice thereof in the official gazette.

(6)Upon giving Confirmation, the Prime Minister shall report the details of said Confirmation to the Diet.

Article 103(1)If, between the time of Confirmation pertaining to the Measures Under Item (i) and the decision under Article 105, paragraph (4), a Financial Institution subject to said Confirmation comes to fall under the Financial Institution specified in item (ii) of paragraph (1) of the preceding Article, the Prime Minister, following deliberation by the Council, is to rescind said Confirmation.

(2)The provisions of paragraphs (2), (5), and (6) of the preceding Article apply mutatis mutandis to the rescission of the Confirmation under the preceding paragraph.

Article 104(1)A Financial Institution subject to Confirmation pertaining to the Measures Under Item (i) shall, if said Financial Institution and Bank Holding Company, etc. which has said Financial Institution as its subsidiary company do not make an application prescribed in paragraph (1) or (2) of the following Article, submit a plan to the Prime Minister within the period prescribed in Article 102, paragraph (4), setting forth measures to enhance the adequacy of equity capital by a method other than the Measures Under Item (i).

(2)If the Prime Minister finds that the plan submitted under the preceding paragraph by the Financial Institution prescribed in said paragraph is appropriate, he/she is to, following deliberation by the Council, rescind the Confirmation pertaining to said Financial Institution.

(3)The provisions of Article 102, paragraph (2), (5) and (6) apply mutatis mutandis to the rescission of Confirmation under the preceding paragraph.

(4)In the event that a Financial Institution subject to Confirmation pertaining to the Measures Under Item (i) and Bank Holding Company, etc. which has said Financial Institution as its subsidiary company have not made an application prescribed in paragraph (1) or (2) of the following Article within the period prescribed in Article 102, paragraph (4), if said Financial Institution does not submit the plan prescribed in paragraph (1) within said period, the Prime Minister is to rescind said Confirmation.

(5)If the Prime Minister finds that the plan submitted by a Financial Institution under paragraph (1) is not appropriate, the Prime Minister is to rescind said Confirmation.

(6)If the Prime Minister intends to rescind the Confirmation pertaining to the Measures Under Item (i) under the provisions of the preceding two paragraphs, he/she shall hear the opinion of the Minister of Finance in advance.

(7)The provisions of Article 102, paragraphs (2), (5) and (6) apply mutatis mutandis to the rescission of the Confirmation pertaining to the Measures Under Item (i) under paragraph (4) or (5).

(8)In the event that Confirmation pertaining to the Measures Under Item (i) has been rescinded under paragraph (4) or (5), when a situation is likely to arise in which the Financial Institution subject to said rescission is unable to satisfy its obligations in full with its assets, the Prime Minister may, notwithstanding the provisions of Article 102, paragraph (1), give the Confirmation pertaining to the Measures Under Item (ii) with respect to said Financial Institution, following deliberation by the Council.

(9)The provisions of Article 102, paragraphs (2), (5) and (6) apply mutatis mutandis to the Confirmation pertaining to the Measures Under Item (ii) prescribed in the preceding paragraph.In this case, the term "Financial Institution subject to said Confirmation or Bank Holding Company, etc. which has said Financial Institution as its subsidiary company" in Article 102, paragraph (5) is to be deemed to be replaced with "Financial Institution subject to said Confirmation."

Article 105(1)In the event that Confirmation pertaining to the Measures Under Item (i) has been given, when the Corporation has received an application pertaining to the Measures Under Item (i) (limited to the Subscription for Shares, etc. for said Financial Institution; hereinafter the same applies in this paragraph) from the Financial Institution subject to said Confirmation within the period prescribed in Article 102, paragraph (4), the Corporation shall request a decision from the Prime Minister (in the event that the Financial Institution is a labor bank or The Rokinren Bank, from the Prime Minister and the Minister of Health, Labour and Welfare, and in the event that such Financial Institution is The Shoko Chukin Bank, Ltd., from the Prime Minister, the Minister of Finance, and Minister of Economy, Trade and Industry; the same applies in paragraphs (3) to (6), Article 108, and Article 110, paragraph (1)) in joint names with said Financial Institution as to whether or not to implement the Measures Under Item (i) pertaining to said application.

(2)In the event that Confirmation pertaining to the Measures Under Item (i) has been given, when the Corporation has received an application pertaining to the Measures Under Item (i) from the Bank Holding Company, etc. which has as its subsidiary company the Financial Institution subject to said Confirmation (limited to the subscription for shares issued by said Bank Holding Company, etc.; hereinafter the same applies in this paragraph) within the period prescribed in Article 102, paragraph (4), the Corporation shall request a decision from the Prime Minister in joint names with said Bank Holding Company, etc. as to whether or not to implement the Measures Under Item (i) pertaining to said application.

(3)A Financial Institution that has made an application prescribed in paragraph (1) or a Financial Institution subject to the Confirmation pertaining to the Measures Under Item (i) that is a subsidiary company of the Bank Holding Company, etc. and has made an application prescribed in the preceding paragraph (hereinafter referred to as "Subject Subsidiary Company" in this Chapter) is to submit to the Prime Minister a management soundness improvement plan (meaning a plan to ensure the soundness of business management; hereinafter the same applies in this Chapter) setting forth measures to ensure the rationalization of management and to establish a responsible management system (including, in the event that the Bank Holding Company, etc. has made an application prescribed in said paragraph, the management system of said Bank Holding Company, etc.) and other measures specified by a Cabinet Order.In this case, the Subject Subsidiary Company of the Bank Holding Company, etc. that is to make an application prescribed in said paragraph is to submit said plan in joint names with said Bank Holding Company, etc.

(4)The Prime Minister is to decide to take the Measures Under Item (i) pertaining to an application prescribed in paragraph (1) or (2) only if all of the following requirements are satisfied:

(5)The Prime Minister shall obtain consent from the Minister of Finance when making a decision under the preceding paragraph; provided, however, that this does not apply if said decision relates to The Shoko Chukin Bank, Ltd.

(6)Upon making a decision under paragraph (1) or (2), the Prime Minister shall report such fact to the Financial Institution that has made the application prescribed in paragraph (1) or the Bank Holding Company, etc. that has made the application prescribed in paragraph (2) and the Corporation.

(7)When a decision is made not to implement the Measures Under Item (i) pertaining to an application prescribed in paragraph (1) or (2), the Prime Minister is to immediately rescind the Confirmation pertaining to the Measures Under Item (i) with respect to the Financial Institution that has made the application prescribed in paragraph (1) or the Subject Subsidiary Company of the Bank Holding Company, etc. that has made the application prescribed in paragraph (2).

(8)The provisions of Article 102, paragraphs (2), (5) and (6), and paragraphs (6) and (8) of the preceding Article apply mutatis mutandis to the rescission of Confirmation under the preceding paragraph pertaining to the Measures Under Item (i) and the provisions of paragraph (9) of the preceding Article apply mutatis mutandis to Confirmation pertaining to the Measures Under Item (ii) under paragraph (8) of the preceding Article as applied mutatis mutandis pursuant to the provisions of this paragraph.

Article 106(1)In the event that an application prescribed in paragraph (1) or (2) of the preceding Article has been made (in the event that an application prescribed in paragraph (1) of the preceding Article has been made, limited to applications pertaining to subscription for shares), the Prime Minister may, if he/she finds it necessary in making a decision under paragraph (4) of the preceding Article pertaining to said application, require that said subscription for shares be conditioned upon a reduction in the amount of stated capital of a Bank, etc., Bank Holding Company, etc., the Subject Subsidiary Company of said Bank Holding Company, etc., or The Shoko Chukin Bank, Ltd. that is subject to said decision.

(2)The provisions of Article 89 apply mutatis mutandis to a reduction in the amount of stated capital in the event that a decision is made under paragraph (4) of the preceding Article whereby the subscription for shares is conditioned upon a reduction in the amount of stated capital being made pursuant to the provisions of the preceding paragraph.

(3)In the event that a decision is made under paragraph (4) of the preceding Article whereby the subscription for shares is conditioned upon a reduction in the amount of stated capital made pursuant to the provisions of paragraph (1), the Bank, etc. or Bank Holding Company, etc. or the Subject Subsidiary Company of said Bank Holding Company, etc. or The Shoko Chukin Bank, Ltd. that is subject to said decision shall, when it has obtained or failed to obtain a resolution of a shareholders meeting or class meeting with respect to said reduction in the amount of stated capital, immediately report such fact and submit the minutes of the shareholders meeting and other documents specified by a Cabinet Order to the Prime Minister, and shall also notify the Corporation to that effect.

(4)In the case prescribed in the preceding paragraph, if a resolution by a shareholders meeting or class meeting is not obtained for the reduction in the amount of stated capital that is prescribed as the condition under said paragraph, the Prime Minister is to rescind the Confirmation pertaining to the Measures Under Item (i) with respect to said Bank, etc., Subject Subsidiary Company, or The Shoko Chukin Bank, Ltd. and also rescind the decision under paragraph (4) of the preceding Article with respect to said Bank, etc., Bank Holding Company, etc., or The Shoko Chukin Bank, Ltd.

(5)The provisions of Article 102, paragraphs (5) and (6) and Article 104, paragraphs (6) and (8) apply mutatis mutandis to the rescission of Confirmation pertaining to the Measures Under Item (i) under the preceding paragraph, the provisions of Article 104, paragraph (9) (excluding the part pertaining to Article 102, paragraph (2)) apply mutatis mutandis to the Confirmation pertaining to the Measures Under Item (ii) under Article 104, paragraph (8) as applied mutatis mutandis pursuant to this paragraph, and the provisions of paragraph (6) of the preceding Article apply mutatis mutandis to the event that a decision under paragraph (4) of the preceding Article is rescinded pursuant to the provisions of the preceding paragraph.

(6)For the purpose of applying the provisions of paragraphs (1) and (3) in the event that a Financial Institution subject to a decision under paragraph (4) of the preceding Article is The Shoko Chukin Bank, Ltd., the term "the Prime Minister" in these provisions is to be deemed to be "the Prime Minister, the Minister of Finance, and the Minister of Economy, Trade and Industry."

Article 107(1)When a decision is made under Article 105, paragraph (4), the Corporation is to execute the Subscription for Shares, etc. in accordance with said decision.

(2)The Corporation shall, when it has executed the Subscription for Shares, etc. under the preceding paragraph, promptly report the details thereof to the Prime Minister and the Minister of Finance (in the event that the issuer of the Shares, etc. is a labor bank or The Rokinren Bank, the Prime Minister, the Minister of Finance, and the Minister of Health, Labour and Welfare, and in the event that the issuer of the Shares, etc. is The Shoko Chukin Bank, Ltd., the Prime Minister, the Minister of Finance, and the Minister of Economy, Trade and Industry).

(3)In the case of a Bank Holding Company, etc. that has made an application prescribed in Article 105, paragraph (2), if the Corporation has executed the subscription for shares issued by the Bank Holding Company, etc. in accordance with a decision under Article 105, paragraph (4), said Bank Holding Company, etc. shall execute the Subscription for Shares, etc. (limited to the cases where the amount of said Subscription for Shares, etc. is not less than the amount of said subscription for shares) without delay with respect to the Subject Subsidiary Company.

Article 107-2(1)In the event that an application prescribed in Article 105, paragraph (1) or (2) is for subscription for shares or subordinated bonds (limited to those with share options; hereinafter the same applies in this Article), when the Prime Minister (in the event that the issuer of shares or subordinated bonds is The Shoko Chukin Bank, Ltd., the Prime Minister, the Minister of Finance, and the Minister of Economy, Trade and Industry) has made a decision under Article 105, paragraph (4) pertaining to said application, if the total number of issued shares of the Financial Institution or Bank Holding Company, etc. that has made said application, the number of shares to be increased as a result of conversion pursuant to a request for conversion pertaining to said issued shares or conversion upon the occurrence of certain events, and the number of shares to be increased as a result of the delivery of shares following the exercise of share options which have already been issued, coupled with the number of shares pertaining to said subscription, the number of shares to be increased as a result of the issuance of shares pursuant to a request for conversion pertaining to said subscription, and the number of shares to be increased as a result of the issuance of shares following the exercise of share options attached to subordinated bonds pertaining to said subscription (hereinafter referred to as the "Total Number of Shares after Subscription" in this paragraph) exceeds the number four times the total number of issued shares, said Financial Institution or Bank Holding Company, etc. may, notwithstanding the provisions of Article 113, paragraph (3) of the Companies Act, increase the total number of shares issued by said Financial Institution or Bank Holding Company, etc. to the number equal to four times the Total Number of Shares after Subscription, on condition that the subscription for shares or subordinated bonds is executed in accordance with the decision under Article 105, paragraph (4).

(2)In the event that a Financial Institution or Bank Holding Company, etc. increases the total number of shares to be issued based on the provisions of the preceding paragraph, for the purpose of applying the provisions of Article 46, paragraph (2) of the Commercial Registration Act (Act No. 125 of 1963) concerning a written application for a registration of change due to said increase, the term "the minutes" in Article 46, paragraph (2) of said Act is to be deemed to be "the minutes and documents evidencing the subscription for shares or subordinated bonds in accordance with a decision under Article 105, paragraph (4) of the Deposit Insurance Act (Act No. 34 of 1971)."

Article 107-3(1)For the purpose of applying the provisions of Article 115 of the Companies Act, it is deemed that no shares with restricted voting rights (meaning the shares with restricted voting rights prescribed in Article 115 of said Act; hereinafter the same applies in this Article) have been issued in accordance with a decision under Article 105, paragraph (4) by a Financial Institution or Bank Holding Company, etc. that has said Financial Institution as its Subject Subsidiary Company and is subject to the Confirmation pertaining to the Measures Under Item (i).

(2)In the event that shares with restricted voting rights are issued in accordance with a decision under Article 105, paragraph (4) by a Financial Institution or Bank Holding Company, etc. referred to in the preceding paragraph, registration to that effect shall be made in registering a change resulting from the issuance of said shares with restricted voting right.

(3)For the purpose of applying the provisions of Article 56 of the Commercial Registration Act in the case referred to in the preceding paragraph, the term "the following documents" in said Article is to be deemed to be "the following documents and documents evidencing the fact that the issuance of shares with restricted voting right is in accordance with a decision under Article 105, paragraph (4) of the Deposit Insurance Act (Act No. 34 of 1971)."

Article 107-4(1)For the purpose of applying the provisions of Article 4, paragraph (2) of the Preferred Equity Investment Act, it is deemed that no preferred equity investments have been issued in accordance with a decision under Article 105, paragraph (4) by a Financial Institution that is subject to the Confirmation pertaining to the Measures Under Item (i).

(2)In the event that preferred equity investments have been issued in accordance with a decision under Article 105, paragraph (4) by a Financial Institution referred to in the preceding paragraph, registration to that effect shall be made pursuant to the provisions of a Cabinet Order in registering a change resulting from the issuance of said preferred equity investments.

Article 108(1)The Prime Minister is to, upon making a decision under Article 105, paragraph (4), make public the management soundness improvement plan submitted under Article 105, paragraph (3); provided, however, that this does not apply to matters for which disclosure is likely to harm an orderly financial system, divulge any secret of Depositors, etc. or business customers of a Financial Institution that has submitted the management soundness improvement plan (including a Bank Holding Company, etc. and its subsidiary company, etc. (meaning a subsidiary company, etc. that is a Bank, etc. prescribed in Article 52-25 of the Banking Act (including the cases where it is applied mutatis mutandis pursuant to Article 17 of the Long-Term Credit Bank Act)) that have submitted said management soundness improvement plan in joint names; hereinafter the same applies in this paragraph), or bring undue disadvantage to the conduct of business by said Financial Institution.

(2)Until such time when the Corporation makes a disposition or receives a redemption or repayment with respect to the whole of acquired Shares, etc. or acquired loan claims (meaning loan claims acquired by the Corporation pursuant to the Measures Under Item (i); hereinafter the same applies in this Chapter), the Prime Minister may request a Financial Institution subject to Confirmation pertaining to said Measures Under Item (i) (including the Bank Holding Company, etc. that has submitted a management soundness improvement plan under Article 105, paragraph (3) in joint names with said Financial Institution) to report the status of implementation of the management soundness improvement plan submitted under Article 105, paragraph (3) and make such report public.

(3)The term "acquired Shares, etc." as used in the preceding paragraph means the following:

Article 108-2(1)A Financial Institution or Bank Holding Company, etc. (including a company prescribed in item (i) of the following paragraph in the event that the authorization set forth in this paragraph is given) with respect to which the Corporation has executed the Subscription for Shares, etc. in accordance with a decision under Article 105, paragraph (4), which has issued acquired Shares, etc. (meaning acquired Shares, etc. prescribed in paragraph (3) of the preceding Article; hereinafter the same applies in this Chapter) actually held by the Corporation (hereinafter referred to as "Issuing Financial Institution, etc." in this Article and the following Article) shall obtain authorization from the Prime Minister in advance if said Financial Institution or Bank Holding Company, etc. intends to effect a share exchange (limited to those through which the Issuing Financial Institution, etc. becomes a wholly owned subsidiary company in share exchange) or share transfer (hereinafter referred to as "Share Exchange, etc." in this Article).

(2)The Prime Minister is to give the authorization set forth in the preceding paragraph only if all of the following requirements are satisfied:

(3)When the Issuing Financial Institution, etc. has executed a Share Exchange, etc. following the authorization set forth in paragraph (1), said Issuing Financial Institution, etc., a Financial Institution that is a subsidiary company of said Issuing Financial Institution, etc. with respect to which the Corporation has executed the Subscription for Shares, etc. in accordance with a decision under Article 105, paragraph (4), or the Subject Subsidiary Company (including the succeeding subsidiary company prescribed in paragraph (4) of the following Article) of the Bank Holding Company, etc. with respect to which the Corporation has executed the subscription for shares in accordance with a decision under Article 105, paragraph (4) shall submit to the Prime Minister, in joint names with a company that has become, through said Share Exchange, etc., a wholly owning parent stock company in a share exchange or wholly owning parent company incorporated through a share transfer of said Issuing Financial Institution, etc., a new management soundness improvement plan to replace the management soundness improvement plan that has been implemented (meaning the plan submitted under Article 105, paragraph (3), this paragraph, or paragraph (3) of the following Article as applied mutatis mutandis pursuant to the provisions of paragraph (4) of the following Article), stating, in addition to the measures stated in said management soundness improvement plan (excluding the part pertaining to the management system of the Bank Holding Company, etc. in joint names with whom said management soundness improvement plan was submitted), measures to establish a responsible management system in a company that has become, through the Share Exchange, etc., a wholly owning parent stock company in a share exchange or wholly owning parent company incorporated through a share transfer of said Issuing Financial Institution, etc., and other measures specified by a Cabinet Order.

(4)The provisions of the preceding Article apply mutatis mutandis to the management soundness improvement plan submitted to the Prime Minister under the preceding paragraph.In this case, the term "Financial Institution ... (... that has submitted a management soundness improvement plan under Article 105, paragraph (3)" in paragraph (2) of the preceding Article is to be deemed to be replaced with "Financial Institution ... that has submitted a management soundness improvement plan under Article 108-2, paragraph (3) (... that has submitted said management soundness improvement plan."

Article 108-3(1)A Financial Institution (including a Succeeding Financial Institution prescribed in item (i) of the following paragraph in the event that the authorization set forth in this paragraph is given) with respect to which the Corporation has executed the Subscription for Shares, etc. in accordance with a decision under Article 105, paragraph (4), which is an issuer of acquired Shares, etc. or obligor of acquired loan claims actually held by the Corporation (hereinafter referred to as "Subject Financial Institution" in this Article) shall, if it intends to undertake the succession to business through a merger, company split, or Business Transfer, etc. (hereinafter referred to as "Corporate Reorganization" in this Article), obtain authorization from the Prime Minister (in the event that the Subject Financial Institution is a labor bank or The Rokinren Bank, the Prime Minister and the Minister of Health, Labour and Welfare, in the event that such Financial Institution is The Shoko Chukin Bank, Ltd., the Prime Minister, the Minister of Finance, and the Minister of Economy, Trade and Industry; the same applies in the following paragraph and Article 151, paragraph (1)) in advance.

(2)The Prime Minister is to give the authorization set forth in the preceding paragraph only if all of the following requirements are satisfied:

(3)In the event that the Subject Financial Institution has conducted the Corporate Reorganization following the authorization set forth in paragraph (1), when there is any Succeeding Financial Institution pertaining to said Corporate Reorganization, said Succeeding Financial Institution shall submit a management soundness improvement plan, setting forth measures to achieve the rationalization of management, measures to establish a responsible management system, and other measures specified by a Cabinet Order, to the Prime Minister (in the event that said Succeeding Financial Institution is a labor bank or The Rokinren Bank, the Prime Minister and the Minister of Health, Labour and Welfare, and in the event that such Financial Institution is The Shoko Chukin Bank, Ltd., the Prime Minister, the Minister of Finance, and the Minister of Economy, Trade and Industry; the same applies in paragraph (8)).

(4)The provisions of the preceding three paragraphs apply mutatis mutandis to the Subject Subsidiary Company of the Bank Holding Company, etc. with respect to which the Corporation has executed the subscription for shares in accordance with a decision under Article 105, paragraph (4) or the Financial Institution (including the Succeeding Financial Institution) with respect to which the Corporation has executed the Subscription for Shares, etc. in accordance with a decision under Article 105, paragraph (4) that has ceased to be a Subject Financial Institution as a result of said share exchange or share transfer effected by said Financial Institution (including a succeeding subsidiary company (meaning another Financial Institution prescribed in item (i) of paragraph (2) as applied mutatis mutandis pursuant to this paragraph; hereinafter the same applies in this Article); hereinafter referred to as "Subject Subsidiary Company, etc." in this Article) that has been implementing a management soundness improvement plan (meaning a plan submitted under Article 105, paragraph (3), paragraph (3) of the preceding Article (including the cases where it is applied mutatis mutandis pursuant to paragraph (8)), the preceding paragraph as applied mutatis mutandis pursuant to this paragraph, or paragraph (7)).In this case, the term "if it intends to undertake the succession to business through a merger, company split" in paragraph (1) is to be deemed to be replaced with "until such time that the Corporation has made a disposition or received a redemption or repayment with respect to all of the acquired Shares, etc. or acquired loan claims pertaining to the Financial Institution or Bank Holding Company, etc. that has executed the Subscription for Shares, etc. in accordance with a decision under Article 105, paragraph (4) pertaining to the relevant management soundness improvement plan, if it intends to undertake the succession to business through a merger, company split," the terms "A corporation who is to become an issuer of acquired Shares, etc. or obligor of acquired loan claims held by the Corporation after the Corporate Reorganization is the Subject Financial Institution or is another... (meaning the plan submitted under Article 105, paragraph (3) or the following paragraph) that has been implemented by said Subject Financial Institution (meaning the plan submitted under Article 105, paragraph (3) or the following paragraph) that has been implemented by said Subject Financial Institution (hereinafter referred to as "Management Soundness Improvement Operations" in this paragraph)" and "including the Succeeding Financial Institution" in paragraph (2) are to be deemed to be replaced with "A Bank Holding Company, etc. that has submitted said management soundness improvement plan in joint names with said Subject Subsidiary Company, etc. is a Bank Holding Company, etc. having as its subsidiary ... (hereinafter referred to as "Management Soundness Improvement Operations" in this paragraph) or to said Subject Subsidiary Company, etc.", and "including a succeeding subsidiary company," respectively, and the terms "Succeeding Financial Institution" and "setting forth measures to achieve the rationalization of management" in the preceding paragraph are to be deemed to be replaced with "succeeding subsidiary company" and "in joint names with the Bank Holding Company, etc. prescribed in item (i) of paragraph (2), setting forth measures to achieve the rationalization of management" respectively.

(5)The Issuing Financial Institution, etc. other than the Subject Financial Institution (including another Bank Holding Company, etc. prescribed in item (i) of the following paragraph in the event that the authorization set forth in this paragraph is granted, or company prescribed in item (i) of paragraph (2) of the preceding Article as applied mutatis mutandis pursuant to paragraph (8) in the event that the authorization set forth in paragraph (1) of the preceding Article as applied mutatis mutandis pursuant to paragraph (8) is granted which is an issuer of acquired Shares, etc. actually held by the Corporation (hereinafter referred to as "Issuing Bank Holding Company, etc. after Corporate Reorganization" in this Article); the same applies in the following paragraph) shall, if it intends to conduct Corporate Reorganization, obtain authorization from the Prime Minister in advance.

(6)The Prime Minister is to give the authorization set forth in the preceding paragraph only if all of the following requirements are satisfied:

(7)In the event that the Issuing Financial Institution, etc. other than the Subject Financial Institution or the Issuing Bank Holding Company, etc. after Corporate Reorganization has conducted Corporate Reorganization following the authorization set forth in paragraph (5), if there is another Bank Holding Company, etc. prescribed in item (i) of the preceding paragraph, said Issuing Financial Institution, etc. or the Subject Subsidiary Company, etc. pertaining to the Issuing Bank Holding Company, etc. after Corporate Reorganization shall submit to the Prime Minister, in joint names with said another Bank Holding Company, etc., a new management soundness improvement plan to replace the management soundness improvement plan that has been implemented (meaning the management soundness improvement plan prescribed in paragraph (4)), stating, in addition to the measures stated in said management soundness improvement plan (excluding the part pertaining to the management system of the Bank Holding Company, etc. in joint names with whom said management soundness improvement plan was submitted), measures to establish a responsible management system in said another Bank Holding Company, etc., and other measures specified by a Cabinet Order.

(8)The provisions of Article 108, paragraph (1) apply mutatis mutandis to the management soundness improvement plans submitted to the Prime Minister under paragraph (3) (including the cases where it is applied mutatis mutandis pursuant to paragraph (4)) or the preceding paragraph, the provisions of Article 108, paragraph (2) apply mutatis mutandis to the Financial Institution (including the Bank Holding Company, etc. in joint names with whom these management soundness improvement plans have been submitted) that has submitted these management soundness improvement plans, and the provisions of Article 108-2 apply mutatis mutandis to a Succeeding Financial Institution that is an issuer of acquired Shares, etc. actually held by the Corporation or the Issuing Bank Holding Company, etc. after Corporate Reorganization.In this case, the terms "a Financial Institution that is a subsidiary company of said Bank Holding Company, etc. with respect to which the Corporation has executed the Subscription for Shares, etc. in accordance with a decision under Article 105, paragraph (4), or the Subject Subsidiary Company (including the succeeding subsidiary company prescribed in paragraph (4) of the following Article)" and "the plan submitted under Article 105, paragraph (3), this paragraph, or paragraph (3) of the following Article as applied mutatis mutandis pursuant to the provisions of paragraph (4) of the following Article" in Article 108-2, paragraph (3) are to be deemed to be replaced with "the Subject Subsidiary Company, etc.," and "the plan submitted under Article 108-3, paragraph (3) (including the cases where it is applied mutatis mutandis pursuant to Article 108-3, paragraph (4)), Article 108-3, paragraph (7), or Article 108-2, paragraph (3) as applied mutatis mutandis pursuant to Article 108-3, paragraph (8)" respectively.

Article 109(1)The Corporation shall, if it intends to transfer or make any other disposition of acquired Shares, etc. or acquired loan claims, obtain approval from the Prime Minister and the Minister of Finance (in the event that an issuer of said acquired Shares, etc. or obligor of acquired loan claims is a labor bank or The Rokinren Bank, from the Prime Minister, the Minister of Finance, and the Minister of Health, Labour and Welfare, and in the event that an issuer of said acquired Shares, etc. or obligor of acquired loan claims is The Shoko Chukin Bank, Ltd., from the Prime Minister, the Minister of Finance, and the Minister of Economy, Trade and Industry; the same applies in the following paragraph).

(2)Upon making a disposition prescribed in the preceding paragraph, the Corporation shall promptly report the details thereof to the Prime Minister and the Minister of Finance.

Article 110(1)When Confirmation pertaining to the Measures Under Item (ii) is given under Article 102, paragraph (1) or Article 104, paragraph (8) (including the cases where it is applied mutatis mutandis pursuant to Article 105, paragraph (8) and Article 106, paragraph (5)), the Prime Minister is to, notwithstanding the provisions of Article 74, paragraph (1) and (2), immediately issue a Disposition Ordering Management with respect to the Financial Institution subject to said Confirmation.

(2)For the purpose of applying this Act in the event that a Disposition Ordering Management is issued under the preceding paragraph, the Financial Institution (excluding the Failed Financial Institution) subject to said Disposition Ordering Management is deemed to be the Failed Financial Institution.

(3)The provisions of Article 64, paragraph (2) do not apply to cases where a resolution by the Operation Committee prescribed in Article 64, paragraph (1) is to be adopted with respect to the Financial Assistance for a merger, etc. in which a Financial Institution that is subject to a Disposition Ordering Management under paragraph (1) is deemed to be the Failed Financial Institution.In this case, the Operation Committee may, if it finds, in light of the financial conditions of said Financial Institution, that the Financial Assistance does not exceed the scope necessary to carry out said merger, etc., adopt a resolution to provide Financial Assistance.

Article 111(1)The Prime Minister is to, at the time of granting the Confirmation pertaining to the Measures Under Item (iii), decide that the Corporation will acquire shares of the Bank, etc. subject to the Confirmation (referred to as "Decision on Commencement of Special Crisis Management" in the following paragraph).

(2)Upon making the Decision on Commencement of Special Crisis Management, the Prime Minister shall notify the Corporation and the Bank, etc. subject to said Decision on Commencement of Special Crisis Management (hereinafter referred to as "Bank Under Special Crisis Management") to that effect and give public notice thereof in the official gazette.

Article 112(1)When public notice is given under paragraph (2) of the preceding Article, the shares of the Bank Under Special Crisis Management will be acquired by the Corporation at the time of said public notice (hereinafter referred to as "Time of Public Notice" in this Chapter).

(2)Share certificates for the shares acquired by the Corporation under the preceding paragraph become invalid at the Time of Public Notice.

(3)The provisions of the main clause of Article 128, paragraph (1) and Article 130, paragraph (1) of the Companies Act do not apply to the acquisition of shares under paragraph (1).

(4)Any pledge and other security interest in the shares acquired by the Corporation under paragraph (1) will be extinguished at the Time of Public Notice.

(5)When the articles of incorporation of the Bank Under Special Crisis Management has provisions prescribed in Article 108, paragraph (2) of the Companies Act (limited to the part pertaining to item (ix)), said provisions are deemed to be abolished at the Time of Public Notice.

Article 113Upon giving public notice under Article 111, paragraph (2), the Prime Minister is to make public the conditions of assets and liabilities of the Bank Under Special Crisis Management as of the Time of Public Notice pursuant to the provisions of a Cabinet Office Ordinance and an Ordinance of the Ministry of Finance.

Article 114(1)Notwithstanding the provisions of Article 329, paragraph (1) and Article 402, paragraph (2) of the Companies Act, the Corporation may, based on the designation of the Prime Minister, appoint a director, executive officer, accounting advisor, corporate auditor and accounting auditor of the Bank Under Special Crisis Management.In this case, documents evidencing such designation and appointment shall be attached to a written application for a registration of change of director, executive officer, accounting advisor, corporate auditor or accounting auditor of the Bank Under Special Crisis Management.

(2)Notwithstanding the provisions of Article 339, paragraph (1) and Article 403, paragraph (1) of the Companies Act, the Corporation may, with approval from the Prime Minister, dismiss a director, executive officer, accounting advisor, corporate auditor or accounting auditor of the Bank Under Special Crisis Management.

(3)When an appointment under paragraph (1) or dismissal under the preceding paragraph is made, it is to be deemed that there has been a resolution by shareholders meeting prescribed in Article 329, paragraph (1) or Article 339, paragraph (1) of the Companies Act or resolution by the board of directors prescribed in Article 402, paragraph (2) or Article 403, paragraph (1) of said Act.

Article 115The Prime Minister may, if he/she finds it necessary, request the Bank Under Special Crisis Management and a Financial Institution agent having said Bank Under Special Crisis Management as its principal Financial Institution to submit reports or materials concerning the status of business and property, etc. or order the preparation and submission of a management plan and other necessary measures.

Article 116(1)The Bank Under Special Crisis Management shall, in order to have its director, executive officer, accounting advisor, corporate auditor or accounting auditor or a person who previously held any of these positions perform civil liability based on a breach of obligations in the course of duties, file an action or take other necessary measures.

(2)A director, executive officer, accounting advisor, corporate auditor and accounting auditor of the Bank Under Special Crisis Management shall, when by carrying out his/her duty he/she considers that an offense has been committed, he/she shall take necessary measures toward filing an accusation.

Article 117The provisions of Article 89 apply mutatis mutandis to cases where the Bank Under Special Crisis Management has adopted a resolution for reduction in the amount of stated capital.

Article 118(1)An Assuming Financial Institution or Assuming Bank Holding Company, etc. undertaking a merger, etc. (limited to those specified in Article 59, paragraph (2), items (i), (ii) and (iv); the same applies in paragraph (5)) in which the Bank Under Special Crisis Management is the Failed Financial Institution may, notwithstanding the provisions of Article 59, paragraph (1), apply for the Corporation, in joint names with said Bank Under Special Crisis Management, to provide Financial Assistance (limited to those specified in Article 59, paragraph (1), item (i); the same applies in paragraphs (3) to (5)) to said Bank Under Special Crisis Management.

(2)The provisions of Article 59, paragraphs (6) and (7) and Article 61, paragraph (1) apply mutatis mutandis to an application under the preceding paragraph and the provisions of Article 61, paragraphs (2), (3) and (6) to (8) apply mutatis mutandis to the Confirmation prescribed in Article 61, paragraph (1) as applied mutatis mutandis pursuant to this paragraph.In this case, the term "Failed Financial Institution" in Article 61, paragraphs (1) to (3) and (8) is to be deemed to be replaced with "Bank Under Special Crisis Management," and any other necessary technical replacement of terms will be specified by a Cabinet Order.

(3)Even in cases where no application is made under Article 61, paragraph (2) as applied mutatis mutandis pursuant to the preceding paragraph, the Prime Minister may, if he/she finds that the Bank Under Special Crisis Management satisfies the requirements specified in Article 61, paragraph (3), item (iii) as applied mutatis mutandis pursuant to the preceding paragraph, provide mediation in writing with regard to a merger, etc. (limited to those specified in Article 59, paragraph (2), items (i) and (iv) and those that contribute to the protection of the Depositors, etc. and other creditors and for which the Financial Assistance by the Corporation is indispensable) between said Bank Under Special Crisis Management and another Financial Institution or said Bank Under Special Crisis Management and Bank Holding Company, etc.

(4)The provisions of Article 62, paragraphs (2) and (4) to (6) apply mutatis mutandis to the mediation prescribed in the preceding paragraph, the provisions of Article 64 (excluding paragraphs (2) and (5)) apply mutatis mutandis to the application prescribed in paragraph (1), the provisions of Article 65 and Article 66 apply mutatis mutandis to the Financial Institution or Bank Holding Company, etc. that has received the Confirmation prescribed in Article 61, paragraph (1) as applied mutatis mutandis pursuant to paragraph (2) or that has received the mediation prescribed in the preceding paragraph, and the provisions of Article 68 apply mutatis mutandis to the Financial Assistance prescribed in paragraph (1).In this case, the term "Article 59, paragraph (1) or Article 59-2, paragraph (1)" in Article 62, paragraph (2) is to be deemed to be replaced with "Article 118, paragraph (1)," the term "paragraph (1)" in Article 62, paragraphs (4) to (6) is to be deemed to be replaced with "Article 118, paragraph (3)," the term "paragraphs (4) to (7)" in Article 62, paragraph (4) is to be deemed to be replaced with "paragraphs (6) and (7)," and any other necessary technical replacement of terms will be specified by a Cabinet Order.

(5)In the event that a resolution by the Operation Committee prescribed in Article 64, paragraph (1) as applied mutatis mutandis pursuant to the preceding paragraph is to be adopted with respect to the Financial Assistance prescribed in paragraph (1), the Operation Committee may, if it finds that, in light of the financial conditions of the Bank Under Special Crisis Management, the Financial Assistance does not exceed the scope necessary to carry out said merger, etc., adopt a resolution to provide Financial Assistance.

Article 119The provisions of Article 110, paragraph (3) apply mutatis mutandis to the Financial Assistance pertaining to an application under Article 59, paragraph (1) for a merger, etc. in which the Bank Under Special Crisis Management is the Failed Financial Institution.

Article 120(1)The Prime Minister is to conclude the Measures Under Item (iii) as promptly as possible by causing the Corporation or Bank Under Special Crisis Management to take the following measures:

(2)The Bank Under Special Crisis Management shall, if it intends to take the measures specified in items (i) to (iii) of the preceding paragraph, report to that effect to the Prime Minister and shall also notify the Corporation thereof.

(3)Upon receiving notice under the preceding paragraph, the Corporation shall immediately report to that effect to the Minister of Finance.

(4)Upon taking the measures specified in paragraph (1), item (iv), the Corporation shall promptly report to that effect to the Prime Minister and the Minister of Finance.

Article 121(1)When Financial Assistance is provided pursuant to a resolution under Article 110, paragraph (3) (including the cases where it is applied mutatis mutandis pursuant to Article 119) or Article 118, paragraph (5), the Corporation is to transfer from an account (hereinafter referred to as "Crisis Management Account") pertaining to operations specified in Article 40-2, item (ii) (hereinafter referred to as "Crisis Management Operations") to a general account the amount remaining after deducting expected costs for the payment of insurance proceeds with respect to an insurable contingency of the Financial Institution pertaining to said Financial Assistance from the expected costs of said Financial Assistance.

(2)Any transfer from the Crisis Management Account to the general account under the preceding paragraph is deemed to be the Crisis Management Operations.

Article 122(1)When public notice is given under paragraph (4) of the following Article (including the cases where it is applied mutatis mutandis pursuant to Article 124, paragraph (3)), a Financial Institution shall, during the period specified in said public notice, pay contributions to the Corporation to cover the costs incurred in carrying out the Crisis Management Operations.

(2)When public notice is given under the preceding paragraph, a Financial Institution is to submit documents specified by a Cabinet Office Ordinance and an Ordinance of the Ministry of Finance and pay contributions to the Corporation by the last day of each business year included in the period specified in said public notice.

(3)The amount of contributions prescribed in paragraph (1) is to be calculated for each Financial Institution by dividing by twelve the total amount of its liabilities outstanding on the last day of the business year immediately preceding the business year that includes the due date for payment of said contributions (excluding those specified by a Cabinet Office Ordinance and an Ordinance of the Ministry of Finance), multiplying the resulting amount by the number of months in the business year that includes the due date for payment of said contributions, and multiplying the resulting amount by the contribution rate specified under paragraph (2) of the following Article.

(4)The provisions of Article 50, paragraph (2) and Article 52 apply mutatis mutandis to the contributions prescribed in paragraph (1).

Article 123(1)Within three months of the end of each business year, the Corporation shall report the following matters to the Prime Minister and the Minister of Finance with regard to income and expenditure in the Crisis Management Account during said business year:

(2)In the event that a report prescribed in the preceding paragraph is received, the Prime Minister and the Minister of Finance are to, if they find it necessary, prescribe a contribution rate and payment period for contributions to be paid by a Financial Institution under paragraph (1) of the preceding Article (hereinafter referred to as "Contributions") in each business year following the business year that includes the time of receipt of said report (hereinafter referred to as "Time of Report" in this paragraph); provided, however, that in any business year preceding the business year in which the Time of Report falls, when a contribution rate and payment period for the Contributions in each business year after the business year in which the Time of Report falls are prescribed, the contribution rate and payment period after the business year in which said Time of Report falls are to be prescribed by changing said contribution rate and payment period.

(3)The contribution rate and payment period shall be established by taking the following matters into consideration and in a manner that covers loss in the Crisis Management Account with the Contributions and does not subject any specific Financial Institution to discriminatory treatment.

(4)Upon prescribing a contribution rate and payment period under paragraph (2), the Prime Minister and the Minister of Finance shall give public notice thereof in the official gazette.

(5)The Prime Minister and the Minister of Finance may, if they find it necessary, request the Corporation to state its opinion or submit reports or materials in order to prescribe the contribution rate and payment period under paragraph (2).

Article 124(1)When it becomes evident that there will be an excess or deficiency in the Contributions due to fluctuations in interest on the borrowings of the Corporation, government subsidies prescribed in paragraph (1) of the following Article, or other causes (excluding those pertaining to the matters specified in each item of paragraph (1) of the preceding Article), the Corporation shall report to that effect to the Prime Minister and the Minister of Finance.

(2)The Prime Minister and the Minister of Finance may change a contribution rate and payment period prescribed under paragraph (2) of the preceding Article to the extent necessary to make adjustments for any excess or deficiency in the Contributions pertaining to the report prescribed in the preceding paragraph.

(3)The provisions of paragraphs (4) and (5) of the preceding Article apply mutatis mutandis to cases where the Prime Minister and the Minister of Finance change a contribution rate and payment period under the preceding paragraph.

Article 125(1)The government may provide subsidies to the Corporation for part of the costs required for the Crisis Management Operations within the limit specified in a budget, only if it is found that, if the costs of such operations are to be funded solely with the Contributions, the financial conditions of a Financial Institution would deteriorate significantly and it may cause an extremely serious hindrance to the maintenance of an orderly credit system in Japan.

(2)In any business year in which no Contributions are paid (limited to the business year following the business year that includes the day on which a government subsidy is received under the preceding paragraph), if there is any amount calculated as profit in the Crisis Management Account resulting from the settlement of profits and losses pursuant to the provisions of a Cabinet Office Ordinance and an Ordinance of the Ministry of Finance, the Corporation shall pay said amount to the national treasury after deducting the amount already paid to the national treasury under this paragraph from the total amount of government subsidies already received under the preceding paragraph.

(3)Procedures for payment and other necessary matters concerning the amount prescribed in the preceding paragraph will be specified by a Cabinet Order.

Article 126(1)The Corporation may, if it finds it necessary for carrying out the Crisis Management Operations, borrow funds (including refinancing) from the Bank of Japan, a Financial Institution, or any other person or issue the Corporation Bonds (including issuance for the purpose of refinancing the Corporation Bonds) up to the amount specified by a Cabinet Order with authorization from the Prime Minister and the Minister of Finance.

(2)The provisions of Article 42, paragraph (4) and Article 42-2 apply mutatis mutandis to cases where the Corporation borrows funds or issues the Corporation Bonds under the preceding paragraph.

(3)The Corporation Bonds to be issued under paragraph (1) are deemed to be the Corporation Bonds issued under Article 42, paragraph (1) for the purpose of applying the provisions of Article 42, paragraphs (5) to (9).

Article 127The provisions of Article 69-3 apply mutatis mutandis to cases where an application is received from a person specified in each item of Article 69-3, paragraph (1) for the loan of funds necessary for the repayment of the covered Deposits, etc. (limited to the repayment for the covered Deposits, etc. corresponding to the amount of insurance proceeds calculated under the Insurance Claim Calculation Provision).In this case, the term "pertaining to said Settlement Obligations calculated under Article 54-2, paragraph (1) and Article 54, paragraph (3) as applied mutatis mutandis pursuant to Article 54-2, paragraph (2)" in Article 69-3, paragraph (1) is to be deemed to be replaced with "pertaining to said covered Deposits, etc calculated under the Insurance Claim Calculation Provision."

Article 127-2The provisions of Article 69-4, paragraphs (3) to (5) apply mutatis mutandis to cases where a decision has been made to make the loan of funds under Article 69-3, paragraph (1) as applied mutatis mutandis pursuant to the preceding Article.In this case, the term "the repayment of the Settlement Obligations prescribed in paragraph (1) of the preceding Article" in Article 69-4, paragraph (3) is to be deemed to be replaced with "the repayment of the Deposits, etc. prescribed in paragraph (1) of the preceding Article as applied mutatis mutandis pursuant to Article 127," the terms "the types of the Settlement Obligations to be repaid", "repayment" and "repaid" in Article 69-4, paragraphs (4) and (5) are to be deemed to be replaced with "the types of the Deposits, etc. to be returned," "return" and "returned", respectively.

Article 128The provisions of Article 69-3 (excluding paragraphs (3) and (4)) apply mutatis mutandis to cases where an application is received from a person specified in each item of Article 69-3, paragraph (1) (in the case of any person specified in Article 69-3, paragraph (1), item (i), limited to the time after a petition is filed for the commencement of bankruptcy proceedings, commencement of reorganization proceedings or commencement of rehabilitation proceedings or after an order for commencement of special liquidation is issued) for the loan of funds necessary to prevent a decline in the value of loan claims or other assets held by such person.In this case, the term "up to the total amount of insurance proceeds pertaining to said Settlement Obligations calculated under Article 54-2, paragraph (1) and Article 54, paragraph (3) as applied mutatis mutandis pursuant to Article 54-2, paragraph (2)" in Article 69-3, paragraph (1) is to be deemed to be replaced with "within the limit necessary."

Article 129(1)In addition to cases prescribed in Section 4 of Chapter III, the Corporation may purchase assets held by a Contracted Bridge Bank or Bank Under Special Crisis Management.

(2)In cases where the Corporation is to purchase assets under the preceding paragraph, it shall comply with standards prescribed and publicly announced in advance by the Prime Minister and the Minister of Finance.

(3)Upon receiving an application under paragraph (1) for the purchase of assets from a Contracted Bridge Bank or Bank Under Special Crisis Management, the Corporation shall, following a resolution of the Operation Committee, decide without delay whether or not to carry out the purchase of assets pertaining to said application.

(4)Upon making a decision under the preceding paragraph, the Corporation shall immediately report matters pertaining to the decision to the Prime Minister and the Minister of Finance.

(5)Upon making a decision to purchase assets under paragraph (3), the Corporation is to conclude a contract for the purchase of assets with said Contracted Bridge Bank or Bank Under Special Crisis Management.

Article 130(1)Notwithstanding the provisions of Article 45 of the Shinkin Bank Act, Article 49 of the Small and Medium-Sized Enterprises Cooperatives Act, and Article 49 of the Labor Bank Act, a general meeting of a Shinkin Bank, etc. that has received the Authorization of Eligibility, etc. may be held without the procedures of calling if all members (in the case of a labor bank, excluding individual members prescribed in Article 13, paragraph (1) of the Labor Bank Act) or all association members consent, for the purpose of adopting a resolution to approve a Business Transfer, etc. and any amendment to the articles of incorporation necessary to carry out the Business Transfer, etc.

(2)The provisions of the preceding paragraph apply mutatis mutandis to a general meeting of representatives for the purpose of adopting a resolution to approve the matters prescribed in the preceding paragraph.In this case, the terms "all members (in the case of a labor bank, excluding individual members prescribed in Article 13, paragraph (1) of the Labor Bank Act) or all association members" and "Article 45 of the Shinkin Bank Act, Article 49 of the Small and Medium-Sized Enterprises Cooperatives Act, and Article 49 of the Labor Bank Act" in said paragraph are to be deemed to be replaced with "all representatives" and "Article 45 of the Shinkin Bank Act as applied mutatis mutandis pursuant to Article 49, paragraph (5) of said Act, Article 49 of the Small and Medium-Sized Enterprises Cooperatives Act as applied mutatis mutandis pursuant to Article 55, paragraph (6) of said Act, and Article 49 of the Labor Bank Act as applied mutatis mutandis pursuant to Article 55, paragraph (5) of said Act", respectively.

Article 131(1)When a decision to provide Financial Assistance is made under Article 64, paragraph (1) for the purpose of supporting a Business Transfer, etc. or a Transfer of Insured Deposits prescribed in Article 59, paragraph (2), item (iii), the assumption of obligations pertaining to said Business Transfer, etc. or the Transfer of Insured Deposits may be carried out without consent from creditors pertaining to obligations assumed by the Assuming Financial Institution through said Business Transfer, etc. or the Transfer of Insured Deposits (referred to as "Transfer Creditors" in paragraph (5)).

(2)The provisions of Article 34 and Article 35 of the Banking Act (including the cases where these provisions are applied mutatis mutandis pursuant to Article 17 of the Long-Term Credit Bank Act, Article 89, paragraph (1) of the Shinkin Bank Act, Article 6, paragraph (1) of the Act on Financial Business by Cooperatives, and Article 94, paragraph (1) of the Labor Bank Act) do not apply to the Business Transfer, etc. pertaining to a decision under the preceding paragraph.

(3)Upon executing the Business Transfer, etc. or the Transfer of Insured Deposits pertaining to a decision under paragraph (1), the Failed Financial Institution and Assuming Financial Institution shall, within two weeks of the day of said execution, give public notice of the gist of the contents of said Business Transfer, etc. or the Transfer of Insured Deposits and to the effect that any creditors who have any objection thereto should state the objection within a specified period of time, and shall also give notice of the same individually to each known creditor other than the Depositors, etc. and other creditors specified by a Cabinet Order.

(4)The period under the preceding paragraph cannot be less than one month.

(5)Notwithstanding the provisions of paragraph (3), if a Failed Financial Institution and Assuming Financial Institution give public notice under that paragraph by the method of public notice prescribed in the articles of incorporation, in addition to the official gazette, the Failed Financial Institution and Assuming Financial Institution will not be required to give separate notices under the provisions of that paragraph.

(6)In the event that the Transfer Creditors state objections within the period under paragraph (3), the assumption of obligations pertaining to said Transfer Creditors will lose its effect retroactively as of the time of said assumption of obligations; provided, however, that this does not prejudice the rights of a third party.

(7)In the event that creditors of a Failed Financial Institution (limited to creditors pertaining to the obligations of the Failed Financial Institution other than those assumed by the Assuming Financial Institution through the Business Transfer, etc. or the Transfer of Insured Deposits prescribed in paragraph (1)) state objections within the period under paragraph (3), when any amount is owed to creditors with respect to their claims that can no longer be satisfied due to the Business Transfer, etc. or the Transfer of Insured Deposits prescribed in paragraph (1), said creditors may claim the payment of said amount from the Assuming Financial Institution.

(8)In the event that creditors of an Assuming Financial Institution (limited to creditors pertaining to the obligations of the Assuming Financial Institution other than those assumed by the Assuming Financial Institution through the Business Transfer, etc. or the Transfer of Insured Deposits prescribed in paragraph (1)) state objections within the period under paragraph (3), the Assuming Financial Institution shall make payment or provide equivalent security to such creditors or entrust equivalent assets to a trust company or Financial Institutions that conducts trust business for the purpose of ensuring that such creditors receive the payment; provided, however, that this does not apply when said Business Transfer, etc. or the Transfer of Insured Deposits is unlikely to be detrimental to such creditors.

Article 132(1)Notwithstanding the provisions of Article 56, paragraph (1) and Article 57, paragraph (1) and paragraph (2) of the Trust Act (Act No. 108 of 2006) and Article 7 of the Act on Charitable Trusts (Act No. 62 of 1922), when there is a decision to provide Financial Assistance under Article 64, paragraph (1) to support the transfer of business of a Failed Financial Institution that conducts trust business under Article 1, paragraph (1) of the Act on Provision, etc. of Trust Business by Financial Institutions to a Financial Institution that conducts trust business under Article 1, paragraph (1) of said Act, said Failed Financial Institution may, under a contract for the transfer of business with an Assuming Financial Institution pertaining to said Financial Assistance (hereinafter referred to as "New Trustee" in this Article and the following Article), effect a change of trustee for trusts that have been assumed.

(2)When a change of trustee is effected under the preceding paragraph, the New Trustee (excluding the New Trustee of the special purpose trust (meaning those prescribed in Article 2, paragraph (13) of the Act on Securitization of Assets (Act No. 105 of 1998); the same applies in the following Article); hereinafter the same applies in this Article) shall immediately give public notice to the effect that any consignors of a trust subject to said change (hereinafter referred to as "Transfer Consignors" in this Article) or beneficiaries (hereinafter referred to as "Transfer Beneficiaries" in this Article) who have any objection thereto should state the objection within a specified period of time, and shall also give notice of the same individually to all known Transfer Consignors and Transfer Beneficiaries other than those pertaining to loan trusts and other trusts specified by a Cabinet Order as trust pertaining to standard trust contracts (referred to as "Standard Trusts" in paragraph (5)).

(3)The period under the preceding paragraph cannot be less than one month.

(4)Notwithstanding the provisions of paragraph (2), if the New Trustee gives public notice under that paragraph by the method of public notice prescribed in the articles of incorporation, in addition to the official gazette, the New Trustee will not be required to give separate notices under the provisions of that paragraph.

(5)The Transfer Beneficiaries of loan trusts, etc. (meaning the Standard Trusts specified by a Cabinet Order as those to which consignors are entitled to all profits derived therefrom) who have raised objections within the period under paragraph (2) may demand that the New Trustee purchase the beneficiary rights of said Transfer Beneficiaries at a fair price to which they would have been entitled if the change prescribed in paragraph (1) had not occurred.

(6)If a demand is made under the preceding paragraph, the New Trustee shall purchase beneficiary rights subject to said demand with the New Trustee's own assets.In this case, Article 11 of the Loan Trust Act (Act No. 195 of 1952) does not apply.

(7)The provisions of Article 75, paragraph (1), Article 76 and Article 77 of the Trust Act apply mutatis mutandis to cases where the change prescribed in paragraph (1) is made, and the provisions of Article 103, paragraph (6) and (7), Article 104, paragraphs (1) to (10), Article 262, paragraph (1) and (2), Article 263, and Article 264 of said Act apply mutatis mutandis to the purchase demand of own beneficiary rights under paragraph (5).In this case, any necessary technical replacement of terms will be specified by a Cabinet Order.

Article 132-2(1)In the event that a change is made under paragraph (1) of the preceding Article with respect to a Failed Financial Institution that is a trustee of a special purpose trust, the New Trustee shall convene a meeting of rightholders (meaning the meeting of rightholders prescribed in Subsection 1 of Section 3 of Chapter III of Part III of the Act on Securitization of Assets; the same applies in the following paragraph) without delay and seek approval for said change.In this case, the provisions of Article 244, paragraph (3) of said Act do not apply.

(2)When a meeting of rightholders rejects a proposal for the approval prescribed in the preceding paragraph, the duties of the New Trustee pertaining to said special purpose trust will end.

(3)The provisions of the main clause of Article 59, paragraph (4) of the Trust Act apply mutatis mutandis to the New Trustee whose duties have ended pursuant to the preceding paragraph.

(4)The provisions of Article 75, paragraph (1), Article 76 and Article 77 of the Trust Act apply mutatis mutandis to cases where a change is made under paragraph (1) of the preceding Article with respect to a Failed Financial Institution that is a trustee of a special purpose trust.

Article 133(1)When a Financial Institution under Management intends to assign a revolving mortgage together with all of the claims it should secure before the principal is established, through the transfer of business to a Bridge Bank or another Financial Institution (hereinafter referred to as the "Succeeding Financial Institution" in this Article), said Financial Institution under Management and the Succeeding Financial Institution may give public notice to the effect that any revolving mortgagors who have any objection to the following matters should state the objection to said Financial Institution under Management within a specified period of time, or may give individual notice of the same:

(2)The period under the preceding paragraph cannot be less than two weeks.

(3)Notwithstanding the provisions of paragraph (1), if a Financial Institution under Management and the Succeeding Financial Institution give public notice under that paragraph by the method of public notice prescribed in the articles of incorporation, in addition to the official gazette, said Financial Institution under Management and Succeeding Financial Institution will not be required to give separate notices under the provisions of that paragraph.

(4)When a revolving mortgagor pertaining to the public notice or notice under paragraph (1) does not raise any objections with respect to the matters prescribed in each item of that paragraph within the period under that paragraph, it is deemed that the revolving mortgagor has consented to the matters specified in item (i) of paragraph (1) and that there has been an agreement on the matters specified in item (ii) of paragraph (1) between the revolving mortgagors and the Succeeding Financial Institution pertaining to the public notice or notice prescribed in paragraph (1).

(5)When the revolving mortgagor has stated its objection to part of the matters specified in each item of paragraph (1), it is deemed that it has stated objections to all of the matters specified in such item.

(6)The provisions of all preceding paragraphs apply mutatis mutandis to cases where a Bridge Bank or Bank Under Special Crisis Management seeks to assign the revolving mortgage together with all of the claims to be secured thereby, before the principal is established through the transfer of business to another Financial Institution.

Article 134(1)An application for registration of a transfer of a revolving mortgage in the cases prescribed in paragraph (4) of the preceding Article (including the cases where it is applied mutatis mutandis pursuant to Article 133, paragraph (6)) shall be accompanied by information proving that public notice or individual notice was given and that the revolving mortgagors did not raise any objection within the period under paragraph (1) of the preceding Article (including the cases where it is applied mutatis mutandis pursuant to Article 133, paragraph (6)).

(2)An application for the registration of transfer of a revolving mortgage to the effect of adding claims pertaining to transfer to the scope of claims to be secured by the revolving mortgage in the cases prescribed in paragraph (4) of the preceding Article (including the cases where it is applied mutatis mutandis pursuant to Article 133, paragraph (6)) may be made by the revolving mortgagee alone when the application is accompanied by the information prescribed in the preceding paragraph.

Article 135(1)The registration under Article 79 is not subject to the registration and license tax.

(2)In the event that a Bridge Bank has acquired any right relating to real property through the Assumption of Business, etc. of a Financial Institution under Management based on a decision specified in Article 91, paragraph (1), item (ii) under Article 91, paragraph (1) or (2) (referred to as "Assumption of Business, etc. Based on Decision" in the following paragraph) (limited to those that have been confirmed as appropriate assets to be held by said Bridge Bank under Article 93, paragraph (2)), the registration of said right relating to real property transfer is not subject to the registration and license tax, as long as such registration is made within one year from said acquisition as pursuant to the provisions of an Ordinance of the Ministry of Finance.

(3)For the purpose of applying to a Bridge Bank, the provisions of Article 62-3, Article 63, Article 68-68, and Article 68-69 of the Act on Special Measures Concerning Taxation, the transfer of land or any right on land acquired through the Assumption of Business, etc. Based on Decision (limited to those that have been confirmed as appropriate assets to be held by said Bridge Bank under Article 93, paragraph (2)) (meaning the transfer prescribed in Article 62-3, paragraph (2), item (i), (a) of said Act) do not constitute the transfer of land, etc. under Article 62-3, paragraph (2), item (i) of said Act.

Article 136(1)The Prime Minister (in the case of a labor bank or The Rokinren Bank, the Prime Minister and the Minister of Health, Labour and Welfare, and in the case of The Shoko Chukin Bank, Ltd., the Prime Minister, the Minister of Finance, and the Minister of Economy, Trade and Industry; the same applies in the following paragraph and the following Article) may, if he/she finds it necessary to ensure the smooth implementation of this Act, require a Financial Institution (including a Financial Institution agent) or Bank Holding Company, etc. to report or submit material with regard to the status of its business and property.

(2)The Prime Minister may, when and to the extent that he/she finds it particularly necessary to ensure the smooth implementation of this Act, require a subsidiary company of the Financial Institution or Bank Holding Company, etc. (hereinafter referred to as "Financial Institution, etc." in this Article and the following Article) (meaning a subsidiary company prescribed, respectively, in Article 2, paragraph (8) of the Banking Act in the event that the Financial Institution, etc. is a bank or bank holding company (meaning a bank holding company prescribed in Article 2, paragraph (5), item (i)), in Article 13-2, paragraph (2) of the Long-Term Credit Bank Act in the event that the Financial Institution, etc. is a Long-Term Credit Bank or Long-Term Credit Bank holding company (meaning a Long-Term Credit Bank holding company prescribed in Article 2, paragraph (5), item (iii)), in Article 32, paragraph (6) of the Shinkin Bank Act in the event that the Financial Institution, etc. is a Shinkin Bank or Federation of Shinkin Bank, in Article 4, paragraph (1) of the Act on Financial Business by Cooperatives in the event that the Financial Institution, etc. is a credit cooperative or Federation of Credit Cooperatives, in Article 32, paragraph (5) of the Labor Bank Act in the event that the Financial Institution, etc. is a labor bank or The Rokinren Bank, and in Article 23, paragraph (2) of The Shoko Chukin Bank, Ltd. Act in the event that the Financial Institution, etc. is The Shoko Chukin Bank, Ltd. (including a company that is deemed to be a subsidiary company); the same applies in the following paragraph and the following Article) or a person to whom business has been entrusted by the Financial Institution, etc. (excluding a Financial Institution agent; the same applies in the following paragraph and paragraphs (2) and (5) of the following Article) to report or submit material with regard to the status of business and property of said Financial Institution, etc.

(3)A person to whom business has been entrusted by a subsidiary of the Financial Institution, etc. or the Financial Institution, etc. may, if there are justifiable grounds, refuse to report or submit material under the preceding paragraph.

Article 137(1)The Prime Minister may, if he/she finds it necessary to ensure the smooth implementation of this Act, authorize his/her officials to enter a business office (in the case of a Shinkin Bank, etc., an office) or any other facilities of a Financial Institution, etc. (including a Financial Institution agent) and ask questions on the status of its business and property or inspect books, documents, and other items.

(2)The Prime Minister may, when and to the extent he/she finds it particularly necessary in authorizing the entry, questioning, or inspection under the preceding paragraph, authorize said officials to enter the facilities of a subsidiary company of the Financial Institution, etc. or the person to whom business has been entrusted by the Financial Institution, etc. and ask necessary questions concerning the questioning or inspection of said Financial Institution, etc. or inspect books, documents, and other items.

(3)In the case referred to in the preceding two paragraphs, the officials shall carry a certificate of identification and produce it if requested by those concerned.

(4)The authority to conduct on-site inspections prescribed in paragraphs (1) and (2) must not be construed as given for any criminal investigation.

(5)The provisions of paragraph (3) of the preceding Article apply mutatis mutandis to the questioning and inspection under paragraph (2) of a person to whom business has been entrusted by a subsidiary of the Financial Institution, etc. or the Financial Institution, etc.

(6)The Prime Minister may, if he/she finds it necessary, authorize the Corporation to conduct the entry, questioning, or inspection (limited to those conducted to investigate the following matters) under paragraph (1) or (2).In this case, the Corporation is to authorize its officials to conduct said entry, questioning, or inspection.

(7)The provisions of paragraph (3) to (5) apply mutatis mutandis to the entry, questioning, or inspection under the preceding paragraph.

Article 137-2(1)When a ruling for the commencement of bankruptcy proceedings is made with respect to a Financial Institution, the court clerk shall notify to that effect the Prime Minister (in the case of a labor bank or The Rokinren Bank, the Prime Minister and the Minister of Health, Labour and Welfare, and in the case of The Shoko Chukin Bank, Ltd., the Prime Minister, the Minister of Finance, and the Minister of Economy, Trade and Industry).

(2)In bankruptcy proceedings of a Financial Institution, when notice is given under Article 197, paragraph (1) of the Bankruptcy Act (including the cases where it is applied mutatis mutandis pursuant to Article 209, paragraph (3) of said Act) or Article 204, paragraph (2) of the Bankruptcy Act, or permission is granted under Article 208, paragraph (1) of said Act, a bankruptcy trustee shall notify the Corporation to that effect.

Article 138In addition to what is provided for in this Act, necessary matters for the implementation of this Act will be specified by a Cabinet Order.

Article 139(1)The Prime Minister delegates the authority under this Act to the Commissioner of the Financial Services Agency, except those specified below:

(2)The Commissioner of the Financial Services Agency may, pursuant to the provisions of a Cabinet Order, delegate part of the authority that has been delegated under the preceding paragraph to the Director-Generals of Local Finance Bureaus or Director-Generals of Local Finance Branch Bureaus.

Article 140When enacting, revising or abolishing an order pursuant to this Act, necessary transitional measures (including transitional measures concerning penal provisions) may be provided for by that order, to the extent considered reasonably necessary for its enactment, revision or abolition.

Article 141(1)Any financial administrator or financial administrator representative who has accepted, solicited, or promised to accept a bribe in connection with his/her duties will be punished by imprisonment with work for not more than three years or a fine of up to one million yen.

(2)When a financial administrator or financial administrator representative is a corporation, any officer or staff member of such financial administrator or financial administrator representative who has accepted, solicited, or promised to accept a bribe in connection with his/her duties will be punished by imprisonment with labor for not more than three years or a fine of up to one million yen. The same applies when, in the event that a financial administrator or financial administrator representative is a corporation, any officer or staff thereof has caused the financial administrator or financial administrator representative to accept, solicit an offer of or promise of a bribe in connection with the duties of a financial administrator or financial administrator representative.

(3)Any bribe accepted by an offender or financial administrator or financial administrator representative who is a corporation will be confiscated. If it is not possible to confiscate the whole or part of the bribe, an equivalent value thereof will be collected.

Article 142Any person who has given, or offered or promised to give the bribe prescribed in paragraph (1) or (2) of the preceding Article will be punished by imprisonment with labor for not more than three years or a fine of up to one million yen.

Article 143(1)Any person who has failed to submit reports or materials under Article 136, paragraph (1) or (2) or submitted false reports or materials will be punished by an imprisonment with labor for not more than one year or a fine of up to three million yen.

(2)The provisions of the preceding paragraph apply to any person who has refused to answer questions or given false answers to the officials or staff of the Corporation under Article 137, paragraph (1), (2) or (6) or has refused, obstructed, or avoided any inspection under these provisions.

Article 144Any person who has divulged any secret which may have come to his/her knowledge in the course of his/her duties in violation of the provisions of Article 22 (including the cases where it is applied mutatis mutandis pursuant to Article 33) or Article 82 will be punished by an imprisonment with labor for not more than one year or a fine of not more than five hundred thousand yen.

Article 145(1)Any director, executive officer or deputy governor, accounting advisor (in the event that the accounting advisor is a corporation, a member who is to perform the duties of the accounting advisor), corporate auditor, accounting auditor (in the event that the accounting auditor is a corporation, a member who is to perform the duties of the corporate auditor), any inspector, manager, counselor, or any other employee of a Failed Financial Institution, a Financial Institution agent having said Failed Financial Institution as its principal Financial Institution (in the event that the Financial Institution agent is a corporation, any of its officers and employees), or a person who previously held any of these positions has failed to submit reports or submitted false reports under Article 37, paragraph (3) or refused, obstructed, or avoided any inspection under Article 37, paragraph (3) will be punished by an imprisonment with work for not more than one year or a fine of not more than five hundred thousand yen.

(2)The provisions of the preceding paragraph apply to any director, executive officer or deputy governor, accounting advisor (in the event that the accounting advisor is a corporation, a member who is to perform the duties of the accounting advisor), corporate auditor, accounting auditor (in the event that the accounting auditor is a corporation, a member who is to perform the duties of the corporate auditor), inspector, manager, counselor, or any other employee of a Financial Institution under Management, a Financial Institution agent having the Financial Institution under Management as its principal Financial Institution (in the event that the Financial Institution agent is a corporation, any of its officers and employees), or a person who previously held any of these positions who has failed to submit reports or submitted false reports under Article 81, paragraph (1) (including the cases where it is applied by replacing the term pursuant to the provisions of Article 77, paragraph (1); hereinafter the same applies in this paragraph) or refused, obstructed, or avoided any inspection under Article 81, paragraph (1).

Article 146Any person who falls under any of the following items will be subject to a fine of not more than five hundred thousand yen:

Article 147Any officer or staff of the Corporation who has committed any of the following violations is subject to a fine of not more than five hundred thousand yen:

Article 148Any person who has failed to submit materials or submitted false materials under Article 37, paragraph (1) or Article 55-2, paragraph (2) will be charged with a fine of not more than 300,000 yen.

Article 149(1)When a representative (including an administrator of an Association Without Legal Personality, etc.) of a corporation (including an association or foundation which is not a corporation but for which a representative or an administrator has been designated (hereinafter referred to as an "Association Without Legal Personality, etc." in this Article); hereinafter the same applies in this paragraph) or an agent, employee, or other worker of a corporation or individual has committed any violation specified in each of the following items with regard to the business or property of such corporation or individual, not only the offender will be punished, but also said corporation will be charged with the fine set forth in each respective item and said individual will be charged by the fine prescribed in the respective Articles.

(2)In the event that the provisions of the preceding paragraph apply to an Association Without Legal Personality, etc., its representative or administrator will represent the Association Without Legal Personality, etc. in its procedural action, and the provisions of Acts concerning criminal procedure in the cases where a corporation is accused or suspected will be applied.

Article 150(1)The crimes set forth in Article 141 apply to any person who has committed these crimes outside Japan.

(2)The crimes set forth in Article 142 are governed by Article 2 of the Penal Code.

Article 151(1)Any director, executive officer or deputy governor of a Financial Institution or Bank Holding Company, etc. who has committed any of the following violations will be charged with a non-criminal fine of not more than one million yen; provided, however, that this does not apply when such act should be made subject to a criminal punishment:

(2)When a financial administrator fails to transfer his/her affairs to a director, executive officer, deputy governor, or liquidator of a Financial Institution under Management despite the rescission of a Disposition Ordering Management under Article 75, such financial administrator will be charged with a non-criminal fine of not more than one million yen; provided, however, that this does not apply when a criminal punishment should be imposed for the act in question.

(3)A financial administrator of the Financial Institutions specified in each of the following items will be charged with a non-criminal fine of not more than one million yen if he/she falls under any of the provisions prescribed in each respective item; provided, however, that this does not apply when a criminal punishment should be imposed for the act in question:

(4)A financial administrator of a credit cooperative or Federation of Credit Cooperatives who falls under any item of Article 115, paragraph (1) of the Small and Medium-Sized Enterprises Cooperatives Act will be charged with a non-criminal fine of not more than 200,000 yen; provided, however, that this does not apply when a criminal punishment should be imposed for the act in question.

Article 152Any officer of the Corporation who falls under any of the following items will be charged with a non-criminal fine of not more than 200,000 yen:

Article 153Any person who has violated the provisions of Article 6, paragraph (2) will be charged with a non-criminal fine of not more than 200,000 yen.