Article 1The purpose of the Nuclear Damage Compensation Facilitation Corporation is to help to ensure a Nuclear Operator's (meaning a Nuclear Operator as prescribed in Article 38, paragraph (1); hereinafter the same applies in Article 37) prompt and appropriate implementation of compensation for Nuclear Damage (meaning the Nuclear Damage prescribed in Article 2, paragraph (2) of the Act on Compensation for Nuclear Damage (Act No. 147 of 1961; hereinafter referred to as the "Act on Compensation"), the same applies hereinafter), the smooth management of a stable supply of electricity and other business connected with Reactor Operation, etc. (meaning Reactor Operation, etc. prescribed in Article 38, paragraph (1)), in the event that Nuclear Damage has occurred and the amount of compensation for which the Nuclear Operator is liable pursuant to the provisions of Article 3 of the Act on Compensation exceeds the Amount of Financial Security set forth in Article 7, paragraph (1) of the Act on Compensation (referred to simply as the "Amount of Financial Security" in Article 41, paragraph (1)), by granting the necessary funds for the relevant Nuclear Operator to compensate for damage and by conducting other that business, thereby stabilizing and improving the lives of the citizenry and contributing to the sound development of the national economy.

Article 2In view of the social responsibility that comes along with its having promoted a nuclear energy policy, the State is to take all necessary measures to enable the Nuclear Damage Compensation Facilitation Corporation to achieve the purpose described in the preceding Article.

Article 3The Nuclear Damage Compensation Facilitation Corporation (hereinafter referred to as the "Corporation") is a juridical person.

Article 4Only one Corporation may be established.

Article 5(1)The Corporation's stated capital is the total amount subscribed by both the government and non-governmental persons.

(2)The Corporation may, when necessary, increase its stated capital with the authorization of the competent minister.

Article 6(1)The Corporation must use the characters "原子力損害賠償支援機構" (pronounced "genshiryoku songai baisho shien kikou," and with a literal meaning of "nuclear damage compensation facilitation corporation") in its name.

(2)No person other than the Corporation may use the characters "原子力損害賠償支援機構" in its name.

Article 7(1)The Corporation must register pursuant to the provisions of Cabinet Order.

(2)The matters that require registration pursuant to the provisions of the preceding paragraph may not be duly asserted against a third party prior to the registration.

Article 8The provisions of Articles 4 and 78 of the Act on General Incorporated Associations and General Incorporated Foundations (Act No. 48 of 2006) apply mutatis mutandis to the Corporation.

Article 9For the Corporation to be established, it is required that three or more persons with expert knowledge and experience in the electricity business become its founders.

Article 10(1)The founders must promptly prepare articles of incorporation for the Corporation, and must solicit capital subscriptions in the Corporation from non-governmental persons.

(2)The articles of incorporation referred to in the preceding paragraph must state the following matters:

Article 11When the solicitation referred to in paragraph (1) of the preceding Article has ended, the founders must promptly submit the articles of incorporation to the competent minister and apply for authorization for establishment.

Article 12(1)When the founders have been granted authorization for establishment, they must, without delay, hand over their functions to the person who is to become the president of the Corporation.

(2)When the functions under the preceding paragraph have been handed over to the person who is to become the president of the Corporation, that person must, without delay, request payment for capital subscriptions from the government and from the non-government persons who have responded to the solicitation of capital subscriptions.

Article 13(1)When the payment for capital subscriptions under the provisions of paragraph (2) of the preceding Article has been made, the person who is to become the president of the Corporation must, without delay, register the establishment of the Corporation pursuant to the provisions of Cabinet Order.

(2)The Corporation is established through the registration of its establishment.

Article 14A Management Committee is established in the Corporation.

Article 15In addition to matters specified elsewhere in this Act, the following matters require a Management Committee resolution:

Article 16(1)The Management Committee comprises up to eight committee members, and the president and directors of the Corporation.

(2)The Management Committee has a chairperson, and the chairperson is decided through an election by and from among the committee members.

(3)The chairperson presides over the business of the Management Committee.

(4)The Management Committee must, in advance, decide on a person from among the committee members to perform the duties of the chairperson when the chairperson is prevented from attending to their duties.

Article 17A committee member is appointed by the president of the Corporation with the authorization of the competent minister, from among persons with expert knowledge and experience in the electricity business, economics, finance, law, or accounting.

Article 18(1)The term of office of a committee member is two years; provided, however, that the term of office of a substitute committee member appointed in the event of a vacancy among the committee members is the remaining term of the predecessor.

(2)A committee member may be reappointed.

Article 19The president of the Corporation may dismiss a committee member with the authorization of the competent minister if the committee member comes to fall under any of the following items:

Article 20(1)The Management Committee may not hold a meeting, nor may any matter be brought before it for a resolution, unless, in addition to the chairperson or the person performing the duties of the chairperson who is provided for in Article 16 paragraph (4), the majority of the committee members and the president plus the directors of the Corporation are present.

(2)Management Committee decisions are made by a majority of the committee members and the president plus directors of the Corporation who are present. When the votes are equally split, the chairperson makes the final decision.

Article 21A committee member may not divulge any secret learned in the course of their duties. The same applies even after a committee member has left that position.

Article 22With regard to the application of the Penal Code (Act No. 45 of 1907) and any other penal provisions, a committee member is deemed to be an employee engaged in public service pursuant to laws and regulations.

Article 23The Corporation has one president, up to four directors, and one auditor as its officers.

Article 24(1)The president represents the Corporation and presides over its business.

(2)As determined by the president of the Corporation, the directors represent the Corporation, assist the president in administering the business of the Corporation, act on behalf of the president when they are unable to attend to their duties, and perform the duties of the president when the position is vacant.

(3)The auditor audits the Corporation's business.

(4)If the auditor finds it to be necessary based on the results of an audit, the auditor may submit an opinion to the Management Committee, to the president, or to the competent minister.

Article 25(1)The president and the auditor are appointed by the competent minister.

(2)A director is appointed by the president with the authorization of the competent minister.

Article 26(1)The term of office of an officer is two years; provided, however, that the term of office of a substitute officer appointed in the event of a vacancy among the officers is the remaining term of the predecessor.

(2)An officer may be reappointed.

Article 27A national or local government official (excluding persons in part-time positions) may not become an officer.

Article 28(1)The competent minister or the president must dismiss the officer they have appointed if such officer comes to fall under the provisions of the preceding Article.

(2)The competent minister or the president may, in accordance with the rules under the provisions of Article 25, dismiss the officer they have appointed if such officer comes to fall under any of the items of Article 19, or if the competent minister or the president otherwise finds it to be inappropriate for such officer to remain an officer.

Article 29An officer (excluding a person in a part-time position) may not become the officer of a for-profit body, nor may such officer engage in business for profit; provided, however, that this does not apply if the officer obtains the recognition of the competent minister.

Article 30The auditor may not concurrently hold the position of the president, director, Management Committee member, or employee of the Corporation.

Article 31The president and directors have no representative authority with regard to a matter that constitutes a conflict of interests between the president or any director and the Corporation. In such a case, the auditor represents the Corporation.

Article 32The president may appoint an agent with the authority to undertake all acts in or out of court involved in a portion of the business of the Corporation, from among the employees of the Corporation.

Article 33The Corporation's employees are appointed by the president.

Article 34The provisions of Articles 21 and 22 apply mutatis mutandis to officers and employees.

Article 56The business year of the Corporation begins on April 1 and ends on March 31 of the following year.

Article 57(1)Every business year, the Corporation must prepare a budget and financial plan, and must obtain the authorization of the competent minister for the same before the start of that business year. The same applies if the Corporation intends to modify these.

(2)If the competent minister intends to give the authorization set forth in the preceding paragraph, the competent minister must, in advance, consult with the Minister of Finance.

Article 58(1)Every business year, the Corporation must prepare a balance sheet, profit and loss statement, documents on the disposition of profits or losses, any other documents prescribed by Order of the competent ministry, and their annexed detailed statements (hereinafter referred to as the "Financial Statements" in this Article), must submit them to the competent minister within three months after the end of that business year, and must obtain the recognition of the competent minister for the same.

(2)When the Corporation submits Financial Statements to the competent minister pursuant to the provisions of the preceding paragraph, it must attach a business report and statement of accounts based on the budget classifications for that business year, and the written opinion of the auditor in respect of the Financial Statements and statement of accounts, to the Financial Statements.

(3)When the Corporation receives the recognition of the competent minister under the provisions of paragraph (1), it must, without delay, give public notice of the Financial Statements in the Official Gazette, and must keep copies of business reports and statement of accounts prescribed in the preceding paragraph, and the written opinion of the auditor as well as Financial Statements at each office, and provide these for public inspection for a period of time prescribed by Order of the competent ministry.

(4)The Corporation must manage the calculation of each Nuclear Operator's contribution.

Article 59(1)For every business year that a profit arises in the profit and loss calculation, the Corporation must offset any loss carried over from the previous business year, and if there is any surplus even after offsetting the loss, the Corporation must keep this surplus amount as reserve funds.

(2)For every business year that a loss arises in the profit and loss calculation, the Corporation must fix this by reducing the reserve funds under the provisions of the preceding paragraph (1), and if there is any shortage after reducing the reserve funds, the Corporation must book the amount of this shortage as a loss carried forward.

(3)The Corporation may, within the limits of the amount prescribed by the budget, allocate the reserve funds under the provisions of paragraph (1) to the expenses necessary for the business set forth in Article 35, items (ii) and (iii).

(4)For every business year that the Corporation has conducted Granting Funds in connection with Special Financial Assistance and in which there is a surplus under the provisions of paragraph (1), the Corporation must pay into the Treasury up to a maximum of the amount calculated by deducting the amount that has been already paid into the Treasury pursuant to the provisions of this paragraph from the total amount of Japanese Government Bonds that have already been redeemed pursuant to the provisions of Article 49, paragraph (2). In this, the phrase "if there is any surplus even after offsetting the loss" in paragraph (1) is deemed to be replaced with "if there is any surplus even after offsetting the loss and even after deducting the amount that is to be paid into the Treasury pursuant to the provisions of paragraph (4)."

(5)Payment procedures and any other necessary matters concerning payment under the provisions of the preceding paragraph are prescribed by Cabinet Order.

Article 60(1)The Corporation may, with the authorization of the competent minister, borrow funds (including refinancing) from a financial institution or other person, or issue Nuclear Damage Compensation Facilitation Corporation Bonds (hereinafter referred to as "Corporation Bonds") (including issuing them in order to refund Corporation Bonds). In this, the Corporation may issue debenture certificates for the Corporation Bonds.

(2)If the competent minister intends to give the authorization set forth in the preceding paragraph, the competent minister must consult with the Minister of Finance in advance.

(3)The total of the current amount of the borrowings under the provisions of paragraph (1) and the current amount of the obligations connected with the principal of Corporation Bonds issued pursuant to the provisions of the same paragraph must not exceed the amount prescribed by Cabinet Order.

(4)The creditors of the Corporation Bonds under the provisions of paragraph (1) have the right to receive payment of their claims in preference to other creditors with regard to the property of the Corporation.

(5)The statutory lien referred to in the preceding paragraph is ranked next in priority to the general statutory lien under the provisions of the Civil Code (Act No. 89 of 1896).

(6)The Corporation may, with the authorization of the competent minister, entrust all or part of the functions involved in the issuance of Corporation Bonds to a bank or to a trust company.

(7)The provisions of Article 705, paragraphs (1) and (2), and Article 709 of the Companies Act (Act No. 86 of 2005) apply mutatis mutandis to a bank or a trust company that has been entrusted pursuant to the provisions of the preceding paragraph.

(8)In addition to what is provided for in paragraphs (1) and (2), and paragraphs (4) through (7), any necessary matters in connection with Corporation Bonds are prescribed by Cabinet Order.

Article 61Notwithstanding the provisions of Article 3 of the Act on Restrictions on Financial Assistance by the Government to Corporations (Act No. 24 of 1946), the government may guarantee obligations for the Corporation's borrowings or Corporation Bonds referred to paragraph (1) of the preceding Article, within the scope of the amount approved by Diet resolution.

Article 62The Corporation may not invest surplus funds from its business other than by the following means:

Article 63In addition to what is provided for in this Act, any necessary matters in connection with the Corporation's finances and accounting are prescribed by Order of the competent ministry.

Article 64(1)The Corporation is supervised by the competent minister.

(2)If the competent minister finds it necessary for the enforcement of this Act, the competent minister may issue the Corporation any order that is necessary for the supervision of its business.

Article 65(1)If the competent minister finds it necessary for the enforcement of this Act, they may order the Corporation to submit a report on its business, or may have ministry officials enter the Corporation's offices to inspect its books, documents, or any other objects.

(2)An official carrying out an entry or inspection pursuant to the provisions of the preceding paragraph must carry a certificate for identification, and present it to the relevant parties.

(3)The authority for an on-site inspection pursuant to the provisions of paragraph (1) must not be construed as having been accorded for a criminal investigation.

Article 66A modification of the articles of incorporation does not become effective without the authorization of the competent minister.

Article 67(1)If the Corporation has dissolved and there are residual assets after it has performed its obligations, the Corporation is to distribute these to each of the capital subscribers to the extent of the amounts of their capital subscription.

(2)In addition to what is specified in the preceding paragraph, matters concerning the dissolution of the Corporation are specified in a separate Act.

Article 68The government may grant the necessary funds to the Corporation within the scope of the amount set forth in the budget, but only if it is found that, in light of the occurrence of extremely large-scale Nuclear Damage or any other circumstances, setting the amount of contributions that would be sufficient for ensuring that the Corporation's business will be implemented properly and securely would obstruct the smooth management of the stable supply of electricity and other business connected with Reactor Operation, etc., or set an excessive amount of contribution that would impose an extreme burden on the users of the relevant business, and thereby pose the risk of causing serious disruption in the lives of the citizenry and the national economy.

Article 69(1)When a Nuclear Operator pays a contribution to be allocated to the expenses necessary for the Corporation's business for its business year based on the provisions of Article 38, the amount of the contribution it pays is included in the amount of deductible expenses for the calculation of the amount of the Nuclear Operator's income in the business year (meaning a business year as defined in Articles 13 and 14 of the Corporation Tax Act (Act No. 34 of 1965); the same applies in the following paragraph), or for the calculation of the amount of its Consolidated Income (meaning Consolidated Income as defined in Article 2, item (xviii)-4 of the same Act; hereinafter the same applies in the following paragraph) in the Consolidated Business Year (meaning a Consolidated Business Year as defined in Article 15-2 of the same Act; hereinafter the same applies in the following paragraph) to which the last day of the Corporation's business year belongs.

(2)If a Nuclear Operator has received the approval referred to in Article 45, paragraph (1), for the amount of its gains from the Special Financial Assistance (limited to the measure set forth in Article 41, paragraph (1), item (i)), the amount of funds it has been granted by the Corporation is included in the amount of gross revenue for the calculation of the amount of the Nuclear Operator's income in the business year, or for the calculation of the amount of its Consolidated Income in the Consolidated Business Year to which the day on which it received the relevant grant belongs.

(3)The necessary matters for the application of the provisions of the preceding two paragraphs are prescribed by Cabinet Order.

Article 70If the Corporation purchases assets from an Approved Operator that has received Granting Funds in connection with Special Financial Assistance pursuant to the provisions of Article 54, paragraph (1), the registration of a transfer of rights to real property in conjunction with the purchase of the relevant assets is not subject to the registration and license tax, provided that the registration is made within three months from the purchase pursuant to the provisions of Order of the Ministry of Finance.

Article 71In addition to what is set forth in this Act, any necessary matters in connection with the enforcement of this Act are prescribed by Order of the competent ministry.

Article 72The competent minister and Order of the competent ministry referred to in this Act are prescribed by Cabinet Order.

Article 73A person that has divulged a secret learned in the course of duties, in violation of Article 21 (including as applied mutatis mutandis pursuant to Article 34), is subject to imprisonment with work for up to one year or a fine of up to five hundred thousand yen.

Article 74A person that has failed to file a report under the provisions of Article 47, paragraph (1) or that has filed a false report is subject to a fine of up to five hundred thousand yen.

Article 75In a case that falls under any of the following items, the officer or employee of the Corporation who has committed such violation is subject to a fine of up to five hundred thousand yen:

Article 76A person that has failed to file a report or submit materials under the provisions of Article 37, paragraph (2), that has filed a false report, or that has submitted a false material is subject to a fine of up to three hundred thousand yen.

Article 77If the representative of a corporation or the agent, employee, or other worker of a corporation or individual has violated Article 74 or the preceding Article in connection with said corporation's or individual's business, in addition to the punishment to which the offender is subject, said corporation or individual is subject to the punishment prescribed in the same Article.

Article 78In a case that falls under any of the following items, the officer of the Corporation who has committed such violation is subject to a civil fine of up to five hundred thousand yen: