Document:

Ex-4.C Cabinet Order for JFM

 

Exhibit 4C

(TRANSLATION)

CABINET ORDER FOR

JAPAN FINANCE CORPORATION FOR MUNICIPAL ENTERPRISES LAW

(Cabinet Order No. 79 of April 27, 1957)

AMENDMENTS

	 	 	 	 	 	 	 
	April 13, 1959	 	
Cabinet Order No. 121
	 	June 7, 1985
	 	Cabinet Order No. 168
	July 19, 1960	 	
Cabinet Order No. 213
	 	August 9, 1988
	 	Cabinet Order No. 240
	February 15, 1962	 	
Cabinet Order No. 23
	 	June 14, 1989
	 	Cabinet Order No. 171
	November 29, 1963	 	
Cabinet Order No. 369
	 	April 1, 1993
	 	Cabinet Order No. 127
	June 1, 1967	 	
Cabinet Order No. 126
	 	August 4, 1993
	 	Cabinet Order No. 273
	April 30, 1970	 	
Cabinet Order No. 103
	 	July 1, 1994
	 	Cabinet Order No. 220
	February 21, 1972	 	
Cabinet Order No. 18
	 	July 7, 1999
	 	Cabinet Order No. 222
	July 17, 1972	 	
Cabinet Order No. 284
	 	June 7, 2000
	 	Cabinet Order No. 304
	March 20, 1975	 	
Cabinet Order No. 41
	 	March 30, 2001
	 	Cabinet Order No. 145
	April 18, 1977	 	
Cabinet Order No. 97
	 	December 6, 2002
	 	Cabinet Order No. 363
	May 1, 1978	 	
Cabinet Order No. 154
	 	March 28, 2003
	 	Cabinet Order No. 122
	July 8, 1983	 	
Cabinet Order No. 157	 	 	 	 

The Cabinet established this Cabinet Order in accordance with the provisions of
Article 2, Item (1), Article 20, Paragraph 2 and Article 27 of Japan Finance
Corporation for Municipal Enterprises Law.

	Article 1	 	(Scope of Municipal Enterprises)

     The business to be provided for by the Cabinet Order specified in Article
2, Item (1) of Japan Finance Corporation for Municipal Enterprises Law
(hereinafter referred to as the “Law”) shall be as follows:

	 	(1)	 	Water supply projects;

	 	(2)	 	Industrial water supply projects;

	 	(3)	 	Transportation projects;

	 	(4)	 	Electricity supply projects;

	 	(5)	 	Gas supply projects;

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	 	(6)	 	Harbor improvement projects (which shall be limited to
reclamation projects and projects to lease cargo-handling machines,
barracks, warehouses, timber-yards, and pilot boats);

	 	(7)	 	Hospital projects;

	 	(8)	 	Nursing care service projects;

	 	(9)	 	Market projects;

	 	(10)	 	Slaughterhouse projects;

	 	(11)	 	Recreation facilities projects;

	 	(12)	 	Toll-road projects;

	 	(13)	 	Parking projects;

	 	(14)	 	Among land construction projects for regional development,
construction projects of littoral industrial areas and other littoral
areas, inland industrial areas, distribution business areas, lots to
be used for offices, shops, etc. and housing areas (including land
for facilities in connection with the above), and land construction
projects for housing concerned with land division adjustment
projects;

	 	(15)	 	Public and regional sewerage projects;

	 	(16)	 	Urban area revival projects;

	 	(17)	 	Public housing projects; and

	 	(18)	 	Industrial waste disposal projects.

	Article 1-2	 	(Projects to be provided for in Cabinet Order specified
in Article 19, Paragraph 4 of the Law)

     The projects to be provided for in Cabinet Order specified in Article 19,
Paragraph 4 of the Law shall be harbor improvement projects (which shall be
limited to reclamation projects) and construction projects of littoral and
inland industrial areas, distribution business areas and lots to be used for
offices, shops, etc. for regional development.

	Article 2 	 	(Particulars to be stated in the Statement of Business Procedures)

     The particulars to be stated in the Statement of Business Procedures
specified in Article 20, Paragraph 2 of the Law shall be as follows:

	 	(1)	 	Matters concerning providing funds:

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	 	(a)	 	the party to be provided funds;

	 	(b)	 	business requiring to be provided funds;

	 	(c)	 	use of funds;

	 	(d)	 	limitation on amount of funds;

	 	(e)	 	method of providing funds;

	 	(f)	 	interest rate;

	 	(g)	 	maturity;

	 	(h)	 	method of redemption; and

	 	(i)	 	matters required in connection with providing funds,
in addition to the matters specified in the provisions (a)
through (h) above;

	 	(2)	 	Matters concerning entrustment of business;

	 	(a)	 	scope of entrustment;

	 	(b)	 	commission of entrustment;

	 	(c)	 	expenses concerning entrusted business;

	 	(d)	 	duties of the trustee; and

	 	(e)	 	matters required concerning entrustment of business,
in addition to the matters specified in the provisions (a)
through (d) above.

	Article 3	 	(Kinds of the JFM Bonds)

     1.   The JFM Bonds (excluding those provided for in the following paragraph)
shall be in bearer form with interest coupons or without interest coupons.

     2.   The foreign JFM Bonds (which mean the JFM Bonds that are issued outside
Japan; the same shall apply hereinafter) shall be in bearer form or in
registered form with interest coupons or without interest coupons.

	Article 4	 	(Method of Issue of the JFM Bonds)

     The JFM Bonds shall be issued through offering.

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	Article 5	 	(Subscription Form of the JFM Bonds)

     1.   Anyone who will subscribe for the JFM Bonds shall indicate the number of the
bonds to subscribe for and his/her address on the subscription form thereof,
and he/she shall sign it or indicate his/her name and affix his/her seal
thereupon.

     2.   Anyone who will subscribe for the JFM Bonds to which the Law Concerning
Book-Transfer of Corporate and Other Debt Securities (Law No. 75 of 2001;
hereinafter referred to as the “Book-Transfer Law”) shall apply (such JFM Bonds
being referred to as the “Book-Transfer JFM Bonds” in Paragraph 2 of the
following article) shall indicate on the subscription form thereof the account
for book-transfer of such JFM Bonds established on his/her own behalf
(hereinafter referred to as the “Book-Transfer Account” in Paragraph 2 of such
article) in addition to the matters provided for in the immediately preceding
paragraph.

     3.   The subscription form of the JFM Bonds shall be prepared by Japan Finance
Corporation for Municipal Enterprises (hereinafter referred to as the
“Corporation”) and the matters to be entered in the subscription form shall be
as follows:

	 	(1)	 	name of the JFM Bonds;

	 	(1)-2	 	aggregate amount of the JFM Bonds;

	 	(2)	 	principal amount of each JFM Bonds;

	 	(3)	 	interest rate of the JFM Bonds;

	 	(4)	 	method and date of redemption of the JFM Bonds;

	 	(5)	 	method and date of payment of interest on the JFM Bonds;

	 	(6)	 	issue price of the JFM Bonds;

	 	(7)	 	if the Book-Transfer Law shall apply, indication to such
effect;

	 	(8)	 	if the Book-Transfer Law shall not apply, indication to the
effect that the JFM Bonds shall be in bearer form or in registered
form, and with interest coupons or without interest coupons;

	 	(9)	 	measures to be taken in case that the subscribed amount exceeds
the aggregate amount of the JFM Bonds;

	 	(10)	 	trade name of the company, if any, to which the offering or
administration of the JFM Bonds has been entrusted; and

	 	(11)	 	trade name of the registration agency provided for in the Law
Concerning Registration of Bonds, etc. (Law No. 11 of 1942).

     4.   In the event that the loan credit of the Corporation is trusted to trust
companies, etc. (which means the Trust Companies, etc. provided for in Article
26-2 of the Law; the same shall apply in this paragraph) for the purpose of
securing the obligations under the JFM Bonds

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pursuant to the said article of the Law, in addition to the matters provided
for in each item of Paragraph 2 above, the following matters shall be entered
in the subscription form of such secured JFM Bonds (hereinafter referred to as
the “JFM Bond Secured by Loan Credit”):

	 	(1)	 	trade name of the Trust Companies, etc. as the trustee of such
trust; and

	 	(2)	 	indication of summary of loan credit entrusted as a security.

	Article 6 	 	(Underwriting of the JFM Bonds)

     1.   No provisions specified in the immediately preceding article shall apply to
the JFM Bonds which the National Government or a local government will
underwrite or the company to which the offering of the JFM Bonds has been
entrusted will underwrite by itself.

     2.   In the case of the immediately preceding paragraph, the National Government
or local government which underwrites the Book-Transfer JFM Bonds or the
company to which the offering of the Book-Transfer JFM Bonds has been entrusted
shall notify the Corporation of the Book-Transfer Account upon underwriting.

	Article 7	 	(Exceptions concerning Issue of the JFM Bonds)

     In the event that the aggregate amount of the JFM Bonds which have already
been subscribed for does not reach the total principal amount thereof, the
aggregate amount of the JFM Bonds which have already been subscribed for shall
be, if such issue of the JFM Bonds has been authorized on the subscription form
of the JFM Bonds, the aggregate amount of the JFM Bonds to be issued.

	Article 8	 	(Payment of Subscription Monies of the JFM Bonds)

     The Corporation, on completion of the offering of the JFM Bonds, without
delay, shall request the payment of the subscription monies of each JFM Bond.

	Article 9	 	(Issue of the JFM Bonds)

     1.   The Corporation shall issue the JFM Bonds, without delay, upon the payment
specified in the immediately preceding article, except, however, where the
provisions of the Book-Transfer Law shall apply to the JFM Bonds or where the
person who will subscribe for or underwrite the JFM Bonds, upon the payment or
underwriting thereof, makes an application for registering the JFM Bonds in
accordance with the provisions of the Law Concerning Registration of Bonds,
etc.

     2.   On each of the JFM Bonds, the matters specified in Article 5, Paragraph 3,
Items (1) through (5) and Items (8), (10) and (11) (or, in the case of the JFM
Bonds Secured by Loan Credit, such matters and the matter specified in Article
5, Paragraph 4, Item (1)) and serial numbers shall appear, and the Governor of
the Corporation shall affix his/her name and seal thereto.

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	Article 10	 	(Original Register of the JFM Bonds)

	 	1.	 	The Corporation shall keep the original Register of the JFM Bonds at its office.

	 	2.	 	The original Register of the JFM Bonds shall include the following:

	 	(1)	 	date of issue of the JFM Bonds;

	 	(2)	 	total number of the JFM Bonds (or, if the provisions of the
Book-Transfer Law shall not apply, total and serial number of the JFM
Bonds);

	 	(3)	 	matters specified in Article 5, Paragraph 3, Items (1) through
(5) and Items (7), (8) (10) and (11) (or, in the case of the JFM
Bonds Secured by Loan Credit, such matters and the matters specified
in Article 5, Paragraph 4, Items (1) and (2)); and

	 	(4)	 	matters concerning payment of the principal and interest.

	Article 11	 	(JFM Bonds with Missing Coupons)

     1.   The Corporation, upon redemption of the JFM Bonds with interest coupons, may
deduct the amount equal to the missing coupons from the redemption price,
except, however, the coupons already exercised.

     2.   The Corporation shall pay the deducted amount, upon demand, to the
couponholders in the foregoing paragraph in exchange for the coupon.

	Article 11-2	 	(Exception of the Foreign JFM Bonds)

     Notwithstanding the provisions of Articles 4 through 11, the laws and
customs of the place of issue of the foreign JFM Bonds may be applied to the
issue of the foreign JFM Bonds, to the Register of the foreign JFM Bonds, to
the redemption of the foreign JFM Bonds, the coupons of which is and to the
payment to the holder of such missing coupons.

	Article 12	 	(Approval of Issue of the JFM Bonds)

     1.   When the Corporation wishes to obtain approval for issuance of the JFM Bonds
(excluding the foreign JFM Bonds; the same shall apply in this article)
pursuant to the provisions of Article 23, Paragraph 1 of the Law, the
application form for such approval sating the following matters shall be
submitted to the authorized ministers no later than one month before the
offering date of such JFM Bonds:

	 	(1)	 	reasons for the necessity of the issue of the JFM Bonds;

	 	(2)	 	matters specified in Article 5, Paragraph 3, Items (1) through
(8) and Item (11);

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	 	(3)	 	method of offering of the JFM Bonds;

	 	(4)	 	estimated amount of expenses required for the issue of the JFM
Bonds; and

	 	(5)	 	matters to be indicated on the JFM Bonds in addition to the
foregoing Item (2).

	 	2.	 	The following documents shall be attached to the said application:

	 	(1)	 	subscription form of the JFM Bonds to be prepared;

	 	(2)	 	document stating the use of proceeds to be procured through the
issue of the JFM Bonds; and

	 	(3)	 	document stating the expected underwriting of the JFM Bonds.

	Article 12-2	 	

     In the event that the Corporation wishes to obtain approval for issuance
of the foreign JFM Bonds pursuant to the provisions of Article 23, Paragraph 1
of the Law, the Corporation shall, pursuant to the directions of the authorized
ministers, submit to the authorized ministers an application form for such
approval stating the following matters, together with the documents stating the
use of the proceeds to be procured through the relevant issue of the foreign
JFM Bonds and any other document required in connection with the issue thereof
as specified by the authorized ministers:

	 	(1)	 	reasons for the necessity of the issue of the foreign JFM
Bonds;

	 	(2)	 	matters specified in Article 5, Paragraph 3, Items (1) through
(6);

	 	(3)	 	kinds of the foreign JFM Bonds;

	 	(4)	 	method of issue of the foreign JFM Bonds;

	 	(5)	 	estimated amount of the expenses for the issue of the foreign
JFM Bonds; and

	 	(6)	 	matters to be indicated on the foreign JFM Bonds in addition to
the foregoing Item (2).

	Article 12-3	 	(Issue of Replacement Bonds specified in Article 23, Paragraph 2
of the Law)

     1.   The issue of the JFM Bonds in accordance with the provisions of Article 23,
Paragraph 2 of the Law shall be limited to the issue of the foreign JFM Bonds.

     2.   The issue of the foreign JFM Bonds pursuant to the preceding Paragraph 1 may
be implemented only if a person who has had his/her foreign JFM Bonds stolen,
destroyed or lost requests the Corporation to deliver such foreign JFM Bonds
again, and a person whom the Corporation deems appropriate confirms the serial
number of such stolen, destroyed or lost foreign JFM Bonds and evidence that
they have been stolen, destroyed or lost is submitted to
the Corporation.

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In such event, the Corporation will, if necessary, collect a
guarantee letter which is deemed to ensure that if the Corporation redeem or
purchase for cancellation the stolen, destroyed or lost foreign JFM Bonds, or
pay the interest of the coupons attached to such foreign JFM Bonds, a person
whom the Corporation and the Government as the guarantor of the Corporation
deem appropriate should indemnify the Corporation for the amount equivalent to
the amount of redemption price or purchase price, or the amount of the interest
of the coupons.

	Article 13	 	(Handling of Business concerning Guarantee by the National
Government with respect to the Foreign JFM Bonds)

     A Japanese or foreign bank, trust company or securities firms appointed by
the Minister of Finance may handle the authentication or any other business
with respect to the guarantee by the Government of the obligations under the
foreign JFM Bonds pursuant to the provisions of Article 2, Paragraphs 2 or 3 of
the Law Concerning Special Measures with respect to Acceptance of Foreign
Capital from International Bank for Reconstruction and Development, etc. (Law
No. 51 of 1953), or Article 26 of the Law.

	Article 13-2	 	(Mandate to Ordinances of Authorized Ministries)

     In addition to those so provided for in Articles 3 through 13 above, the
matters being required with respect to the Foreign JFM Bonds shall be
prescribed in the Ordinances of authorized ministries.

	Article 14	 	(Accounts of Fund)

     The Corporation shall keep the accounts of the Fund for the Improvement of
Operations of Municipal Enterprises (hereinafter referred to as the “Fund”)
from the general accounts, and organize the accounts to clarify the following
matters:

	 	(1)	 	receipt of the contributions specified in Article 28-2,
Paragraph 2 of the Law;

	 	(2)	 	addition of the surplus into the Funds specified in Article
28-4, Paragraph 2 of the Law; and

	 	(3)	 	disbursement of the Funds specified in the proviso of Article
28-4, Paragraph 3 of the Law.

	Article 15	 	(Earnings Applied to Subtraction of Interest on Local Loans, etc.)

     The earnings specified in Article 28-4, Paragraph 2 of the Law shall be
the amount computed by subtracting the expenses for direct administration of
the Fund, from the aggregate amount of the balance of the Fund on each day in
the Fiscal Year which shall be divided by the number of the days therein and
thereafter multiplied by the operating interest rate of the funds of the
Corporation to be contributed to Local Loans (excluding those the issue of
which was approved before 1969 here and hereinafter).

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The expenses specified in
the same paragraph shall be the amount computed by multiplying the aggregate
amount of the balance on each day in the
Fiscal Year of the funds for Local Loans the interest of which has been
subtracted which shall be thereafter divided by the number of days therein by
the rate provided for by the competent ministers.

	Article 15-2	 	(Reserve for Covering Interest Loss)

     1.   In the event that the Corporation makes a loan with reduced interest
(hereinafter referred to as the “Loan with Reduced Interest” in this article),
the Corporation shall reserve the amount calculated pursuant to the provisions
of the Ordinances of competent authorities of the amount of interest to be
reduced with respect to the relevant Loan with Reduced Interest as the reserve
for covering interest loss in the business year in which such Loan with Reduced
Interest is made.

     2.   In the event that the Corporation changes the interest rate on the Loans
with Reduced Interest, or in any other event provided for in the Ordinances of
competent authorities whereby the reserve for covering interest loss set forth
in the immediately preceding paragraph needs to be increased or decreased, the
Corporation shall reserve in addition to, or reduce from, the reserve for
covering interest loss set forth in the immediately preceding paragraph, the
amount calculated pursuant to the provisions of the Ordinances of competent
authorities in the relevant business year in accordance with the provisions of
the Ordinances of competent authorities.

     3.   The Corporation shall write off such amount calculated pursuant to the
provisions of the Ordinances of competent authorities as deemed necessary to
appropriate to reduction of interest on the Loans with Reduced Interest, from
the reserve for covering interest loss set forth in Paragraph 1 above in each
business year.

     4.   The reserve for covering interest loss set forth in Paragraph 1 above shall
not be written off except for the cases provided for in Paragraphs 1 and 2
above; provided, however, that it may be written off with the consent of the
competent ministers thereto.

	Article 16	 	(Loss Reserve for Renewal of Bonds)

     1.   In the event that any profits are made in the Fiscal Year by renewal of the
JFM Bonds already issued, the Corporation shall, in each Fiscal Year, reserve
as the loss reserve for renewal of bonds, the amount which has been given the
consent of the competent ministers, up to the amount equal to 8.0% of the
aggregate amount of the loans made by JFM and the subscription by JFM for Local
Loans.

     2.   The loss reserve for renewal of bonds in the immediately preceding paragraph
may not be reduced, except that it may be appropriated to the compensation for
the losses caused by renewal of the JFM Bonds already issued. In case the
consent of the competent ministers are given, this will not apply.

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     3.   The methods of computation of the amounts of the profits or losses specified
in the immediately preceding two paragraphs shall be provided for by the
Ordinances of competent authorities.

	Article 17	 	(Delegation of Authority to the Prime Minister)

     The Authority of the competent ministers to make on-the-spot inspections
under Article 37, Paragraph 1 of the Law which relate to the management of risk
of loss related to the business of the Corporation shall be delegated to the
Prime Minister; provided, however, that the competent ministers may exercise
such authority by themselves.

	Article 18	 	(Delegation of Authority to the Director General of Local Finance Bureau)

     1.   The authority delegated to the Commissioner of the Financial Services Agency
under Article 37-2, Paragraph 3 shall be delegated to the Director General of
the Kanto Local Finance Bureau; provided, however, that the Commissioner of the
Financial Services Agency may exercise such authority by him/herself.

     2.   The authority provided for in the immediately preceding paragraph which
relates to any office of the Trustee provided for in Article 37, Paragraph 1 of
the Law (hereinafter referred to as “Trustee’s Office” in this article) may be
exercised by the Director General of the local finance bureau which has control
over the location of such Trustee’s Office (or, if such location is under the
control of the Fukuoka Local Finance Branch Bureau, the Director General of the
Fukuoka Local Finance Branch Bureau) as well as the Director General of the
Kanto Local Finance Bureau.

     3.   The Director General of a local finance bureau or the Fukuoka Local Finance
Branch Bureau which has made an on-the-spot inspection in accordance with the
provisions of the immediately preceding paragraph may make an on-the-spot
inspection in an office of the Corporation or another Trustee’s Office, when
he/she deems that such on-the-spot inspection is necessary.

	Article 19	 	(Competent Ministers, etc.)

     The competent ministers as used in this Cabinet Order shall be the
Minister of Public Management, Home Affairs, Posts and Telecommunications and
the Minister of Finance, and the Ordinances of Competent Authorities shall be
Ordinances of the Ministry of Public Management, Home Affairs, Posts and
Telecommunications and the Ministry of Finance.

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SUPPLEMENTARY PROVISIONS (Cabinet Order No. 145 of March 30, 2001)

	Article 1	 	(Effective Date)

     This Cabinet Order shall become effective as of the date of its
promulgation.

	Article 2	 	(Transitional Measures Concerning the Reserve for Covering Interest
Loss)

     The provisions of Article 15-2, Paragraph 1 of the Cabinet Order for Japan
Finance Corporation for Municipal Enterprises Law after amendment (hereinafter
referred to as the “New Cabinet Order” in the following article) shall apply to
the loans with reduced interest made by the Corporation on and after April 1,
2001 (hereinafter referred to as the “Loan with Reduced Interest”) in the
following article).

	Article 3	 	

     1.   The Corporation shall reserve the amount provided for in the Ordinances of
competent authorities from the aggregate amount of interest to be reduced with
respect to the Loans with Reduced Interest made before March 31, 2001 as the
reserve for covering interest loss provided for in Article 15-2, Paragraph 1 of
the New Cabinet Order in each business year from 2001.

     2.   The provisions of Article 15-2, Paragraph 2 of the New Cabinet Order shall
not apply to the Loans with Reduced Interest set forth in the immediately
preceding paragraph until the business year provided for in the Ordinances of
competent authorities.

     3.   With respect to the application of the provision of Article 1, Paragraph 2
of the Cabinet Order Concerning Payment into National Treasury by Public
Corporations (Cabinet Order No. 162 of 1951) until the business year provided
for in the Ordinance of competent authorities referred to in the immediately
preceding paragraph, “Article 15-2, Paragraph 1 or 2” in Item (3) of the said
paragraph shall be read as “Article 15-2, Paragraph 1 or 2 or Article 3,
Paragraph 1 of the supplementary provisions of the Cabinet Order for Partial
Amendment to the Cabinet Order for Japan Finance Corporation for Municipal
Enterprises Law (Cabinet Order No. 145 of 2001)”, and “Article 16, Paragraph 1
of the said Cabinet Order” shall be read as “Article 16, Paragraph 1 of the
Cabinet Order for Japan Finance Corporation for Municipal Enterprises Law”.

-11-Ex-4.D Excerpts from Law

 

Exhibit 4D

(SUMMARY TRANSLATION)*

EXCERPTS

FROM

LAW CONCERNING SPECIAL MEASURES WITH RESPECT TO

ACCEPTANCE OF FOREIGN CAPITAL FROM INTERNATIONAL BANK FOR

RECONSTRUCTION AND DEVELOPMENT, ETC.

(Law No. 51 of July 4, 1953)

AMENDMENTS

	 	 	 	 	 	 	 
	March 31, 1965	 	
Law No. 20
	 	December 5, 1997
	 	Law No. 108
	March 31, 1965	 	
Law No. 36
	 	April 23, 1999
	 	Law No. 35
	June 2, 1976	 	
Law No. 49
	 	June 11, 1999
	 	Law No. 73
	December 18, 1979	 	
Law No. 65
	 	July 30, 1999
	 	Law No. 117
	December 25, 1984	 	
Law No. 87
	 	December 22, 1999
	 	Law No. 160
	December 4, 1986	 	
Law No. 93	 	 	 	 

	Article 2	 	(Guarantee of Obligations in Foreign Currency)

1.   Notwithstanding the provisions of Article 3 of the Law Concerning
Restriction on Government Financial Aid to Juridical Persons (Law No. 24 of
1946), the Government may guarantee the obligations with respect to the
borrowings payable in foreign currency pursuant to the borrowing contract from
foreign capital with International Bank for Reconstruction and Development and
financial institutions of foreign governments (more than half of the capital
contribution to which is made by foreign governments and provided for by
Cabinet Order) (hereinafter referred to as “International Bank for
Reconstruction and Development, etc.) within the limit of the amount provided
in a budget (in case it is difficult to determine the amount for each of
juridical persons, the amount equal to the aggregate amount to be guaranteed;
in this case, as well as in the following paragraph, such aggregate amount).

	 	(1)	 	through (4) Deleted

	 	(5)	 	Japan Highway Public Corporation;

	 	(6)	 	Metropolitan Expressway Public Corporation;

	 	(7)	 	Electric Power Development Co. Ltd.;

	*	 	Provisions that are relevant only to other special public corporations or
certain other entities have been omitted.

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	 	(8)	 	Other juridical persons provided for by Cabinet Order.

2.   Notwithstanding the provisions of Article 3 of the Law Concerning
Restriction on Government Financial Aid to Juridical Persons, the Government
may guarantee the obligations with respect to the bonds issued by any of the
corporations enumerated below or by local governments payable in foreign
currency (with respect to local government bonds, limited to those prescribed
by Cabinet Order; hereinafter referred to as the “Bonds in Foreign Currency”
within the limit of the amount provided in a budget:

	 	(1)	 	Development Bank of Japan;

	 	(2)	 	Japan Bank for International Cooperation;

	 	(3)	 	and (4) Deleted

	 	(5)	 	Local governments;

	 	(6)	 	In addition to those enumerated in each of the preceding items, from
among the corporations enumerated below those prescribed by a Cabinet
Order:

	 	a.	 	the corporations whose budget requires resolution of
the Diet pursuant to provisions of statutes.

	 	b.	 	from among the corporations organized under special
laws (excluding those provided in a. above) none of whose capital
investment is held by any person other than the State, the
corporations provided in a. above and/or local governments, those
which are permitted by special laws to issue bonds.

3.   The Government may, in addition to the cases provided in the preceding
paragraph, guarantee the obligations under the Bonds in Foreign Currency issued
for the purpose of delivering them to the persons who have lost their Bonds in
Foreign Currency.

	Article 3	 	(Issuance of Debt Securities, etc.)

2.   The corporations enumerated in each of the items of Article 2, Paragraphs 1
and 2 may, unless otherwise provided in any other laws, entrust to any foreign
bank, trust company or securities firm all or part of business concerning the
issuance and redemption of, and the payment of interest on deliverable bonds
(bonds for delivery to the International Bank for Reconstruction and
Development, etc. pursuant to a foreign currency loan agreement with such bank,
hereinafter the same) or bonds in foreign currency (with respect to the Bonds
in Foreign Currency, limited to those guaranteed by the Government pursuant to
the same) or any other matters concerning deliverable bonds or the provisions
of Paragraph 1, 2 or 3 of Article 2; hereinafter in this paragraph, Bonds in
Foreign Currency after obtaining approval of the authorized ministers as
prescribed by Cabinet Order.

3.   The competent ministers referred to in the preceding paragraph shall consult
with the Minister of Finance before the approval referred to in the same
paragraph.

-2-

 

	Article 5	 	(Exemption from Tax with Respect to Interest, etc.)

1.   No tax or any other public charge shall be imposed with respect to interest
and premium on redemption (the excess of the amount received in redemption over
the issue price; hereinafter the same) of deliverable bonds issued by the
corporations enumerated in each of the items of Paragraph 1 of Article 2 and
relating to agreements for borrowing of funds from the International Bank for
Reconstruction and Development, etc. as well as Bonds in Foreign Currency
issued by any of the corporations enumerated in each of the items of Article 2,
Paragraph 2 and guaranteed by the Government pursuant to the provisions of
Paragraph 2 or Paragraph 3 of Article 2 (hereinafter referred to as the
“Bonds”); provided, however, that this shall not apply to such interest or
premium on redemption received by residents provided in Article 2, Paragraph 1,
Item (3) of the Income Tax Law (Law No. 33 of 1965), domestic corporations
provided in Article 2, Item (3) of the Corporation Tax Law (Law No. 34 of 1965)
and any other person who is prescribed by Cabinet Order as similar thereto.

SUPPLEMENTARY PROVISIONS

2.   Until otherwise determined, notwithstanding the provisions of Paragraph 1
(excluding the proviso thereof) of Article 5, the imposition of income tax in
connection with the interest payment on bonds provided for in the same
Paragraph (limited to those issued outside of the jurisdiction of the Income
Tax Law (Law No. 33 of 1965) (“outside of Japan”) and whose interest payment is
made outside of Japan) shall be governed by the Income Tax Law and the Special
Taxation Measures Law (Law No. 26 of 1957).

-3-

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