Document:

EX-4C EXCERPTS FROM LAW CONCERNING SPECIAL MEASURE

 

Exhibit 4(c)

(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
	 	April 23, 1999
	 	Law No. 35
	 
	 	 	 	 	 	 	 	 
	 

	 	March 31, 1965
	 	Law No. 36
	 	June 11, 1999
	 	law No. 73
	 
	 	 	 	 	 	 	 	 
	 

	 	June 2, 1976
	 	Law No. 49
	 	July 30, 1999
	 	Law No. 117
	 
	 	 	 	 	 	 	 	 
	 

	 	December 18, 1979
	 	Law No. 65
	 	December 22, 1999
	 	Law No. 160
	 
	 	 	 	 	 	 	 	 
	 

	 	December 25, 1984
	 	Law No. 87
	 	June 18, 2003
	 	Law No. 92
	 
	 	 	 	 	 	 	 	 
	 

	 	December 4, 1986
	 	Law No. 93
	 	June 9, 2004
	 	Law No. 102
	 
	 	 	 	 	 	 	 	 
	 

	 	December 5, 1997
	 	Law No. 108
	 	December 3, 2004
	 	Law No. 154
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	June 14, 2006
	 	Law No. 66

			
	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 by any of the corporations
prescribed by Cabinet Order, pursuant to the agreement for the borrowing of funds from the
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 those prescribed by Cabinet Order) (hereinafter referred to as “International Bank for
Reconstruction and Development, etc.”) within the limit of the amount provided in the budget (in
case it is difficult to determine the amount for each of the corporations, the amount equal to the
aggregate amount to be guaranteed; in this case, as well as in the following paragraph, such
aggregate amount.)

2. Notwithstanding the provisions of Article 3 of the Law Concerning Restriction on Government
Financial Aid to Juridical Persons, the Government may guarantee the

 

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

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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 the bonds issued by local governments,
limited to those prescribed by Cabinet Order; hereinafter referred to as the “Bonds in Foreign
Currency”) within the limit of the amount provided in the 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 Cabinet Order:

	 	a.	 	the corporations whose budget requires resolutions 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 prescribed by Cabinet Order referred to in Article 2, Paragraph 1 and the
corporations enumerated in each of the items of Article 2, Paragraph 2 may, unless otherwise
provided in any other laws, entrust to any foreign bank, trust business firm or securities firm all
or part of the 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 the agreement for borrowing of foreign currency fund from such banks, hereinafter
the same) or the Bonds in Foreign Currency (with respect to the Bonds in Foreign Currency, limited
to those guaranteed by the Government pursuant to Article 2, Paragraph 1, 2 or 3; the same shall
apply in this Paragraph) or all or part of the business concerning any other matters of deliverable
bonds or the Bonds in Foreign Currency, after obtaining the approval of the competent 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.

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

1. No tax or any other public charges shall be imposed with respect to interest and premiums on
redemption (the excess of the amount received in redemption over the issue price; hereinafter the
same shall apply in this Paragraph) of deliverable bonds issued by the corporations prescribed by
Cabinet Order referred to in Article 2, Paragraph 1 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 Article 2, Paragraph 2
or 3 (hereinafter referred to as the “Bonds”); provided, however, that this shall not apply to such
interest or premiums 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 persons who are prescribed by
Cabinet Order as similar thereto.

SUPPLEMENTARY PROVISIONS

2. Until otherwise determined, notwithstanding the provisions of Article 5, Paragraph 1 (excluding
the proviso thereof), the imposition of income tax in connection with the interest payment on the
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) (hereinafter referred to as “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-EX-4D STATEMENT OF BUSINESS PROCEDURES OF JAPAN FI

 

Exhibit 4(d)

(SUMMARY TRANSLATION)*

STATEMENT OF BUSINESS PROCEDURES

OF

JAPAN FINANCE CORPORATION FOR MUNICIPAL ENTERPRISES

(June 1, 1957)

(Amended as of April 1, 2006)

CHAPTER 1. GENERAL PROVISIONS

			
	Article 1	 	

     1. The object of Japan Finance Corporation for Municipal Enterprises (hereinafter referred to
as the “Corporation”) shall be, for contributing to the sound operation of Municipal Enterprises,
to finance local governments requiring stable funds of particularly low interest for Local Loans
for their Municipal Enterprises, in order to thereby develop Municipal Enterprises of local
governments and to contribute to the improvement of the welfare of local residents.

     2. The object of the Corporation shall be, in addition to the provisions of the preceding
paragraph, supplementing the financing provided by ordinary financial institutions, to finance
local toll-road public corporations requiring long-term funds, for the purpose of promoting the
construction of local principal roads implemented by local toll-road public corporations.

     3. The object of the Corporation shall be, in addition to the provisions of the preceding two
paragraphs, supplementing the financing provided by ordinary financial institutions, to finance
local land-development public corporations requiring long-term funds, for the purpose of promoting
the acquisition of land implemented by local land-development public corporations.

			
	Article 2	 	

     1. The Corporation, with a view to attaining the object specified in Paragraph 1 of the
previous article, shall provide funds or subscribe for bonds issued as Local Loans for local
governments which operate Municipal Enterprises.

     2. The Corporation, with a view to attaining the object specified in Paragraph 2 of the
previous article, shall provide funds for local toll-road public corporations.

     3. The Corporation, with a view to attaining the object specified in Paragraph 3 of the
previous article, shall provide funds for local land-development public corporations.

 

			
	*	 	Information regarding the effective dates
of various provisions as well as transitional provisions no longer effective
have been omitted from “Supplementary Provisions”.

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	Article 3	 	

     The Corporation, in the operation of its business, shall be attentive so that its business
will be in conformity with the policy concerning the development of Municipal Enterprises, etc. of
the Government, while being continuously attentive to the administrative authorities concerned.

CHAPTER 2. PROVIDING OF FUNDS

			
	Article 4	 	

     1. The funds (excluding the funds specified in Article 5 hereof) shall be provided pursuant to
each of the following items:

	 	(1)	 	Person to be provided with the funds

	 	(a)	 	local governments which have obtained consent or permission for
issuance of Local Loans for their Municipal Enterprises or are certain to obtain
the consent or permission
	 
	 	(b)	 	local toll-road public corporations which construct local highways
	 
	 	(c)	 	local land-development public corporations which operate business
similar to Municipal Enterprises

	 	(2)	 	Business to be provided with the funds

	 	(a)	 	local governments:
	 
	 	 	 	projects specified in the attached list
	 
	 	(b)	 	local toll-road public corporations:
	 
	 	 	 	projects concerning toll-roads (which shall be limited to development or
reconstruction projects of toll-roads provided for in Article 21, Paragraph 1 of
the Local Toll-Road Public Corporations Law (Law No. 82 of 1970) and further
provided for as the business regarding which funds are to be provided by the
Corporation in Article 20, Paragraph 1 of the Road Construction Project Special
Measures Law (Law No. 7 of 1956))
	 
	 	(c)	 	local land-development public corporations:
	 
	 	 	 	harbor improvement projects (which shall be limited to reclamation projects) and
construction projects for regional development of littoral and inland industrial
areas, distribution business areas and lots to be used for offices, shops, etc.

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	 	(3)	 	Use of the funds
	 
	 	 	 	The funds shall be used for facilities, for refund of Local Loans for facilities and
for payment of interest on Local Loans for facilities.
	 
	 	(4)	 	Limitation on the amount of the funds

	 	(a)	 	The amount of funds to be provided for local governments shall be
limited to the amount equivalent to the amount of Local Loans for which consent or
permission have been obtained or for which consent or permission are certain to be
obtained and will not be underwritten by Governmental funds.
	 
	 	(b)	 	The amount of funds to be provided for local toll-road public
corporations shall be limited to the amount equivalent to the funds which will be
necessary for construction of local highways and will not be financed by general
financial institutions or the Government.
	 
	 	(c)	 	The amount of funds to be provided for local land-development public
corporations shall be limited to the amount equivalent to the funds which will be
necessary for business corresponding to Municipal Enterprises and will not be
financed by general financial institutions.

	 	(5)	 	Method of providing with funds
	 
	 	 	 	The funds shall be provided with through lending securities and subscribing for bonds.
	 
	 	(6)	 	Interest rate
	 
	 	 	 	The interest rate for funds shall be, taking expenses necessary for raising funds and
other matters into consideration, as prescribed separately upon obtaining approval from
the competent ministers.
	 
	 	(7)	 	Maturity
	 
	 	 	 	The maturity of the funds shall be within twenty-eight (28) years from the following
day of the provision of the funds as prescribed separately.
	 
	 	(8)	 	Period of deferment
	 
	 	 	 	The period of deferment shall expire within five (5) years from the following day of
the provision of the funds as prescribed separately.
	 
	 	(9)	 	Method of redemption
	 
	 	 	 	The funds shall be redeemed in installments or in a lump sum; provided, however, that
the funds raised by the subscription of bonds shall be redeemed pursuant to the method
of redemption of the bonds.

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	 	(10)	 	Guarantee of borrowing
	 
	 	 	 	With respect to the funds provided to local toll-road public corporations and local
land-development public corporations (hereinafter referred to as the “Public
Corporations”), the Corporation shall have local governments which have established the
above Public Corporations guarantee the repayment of the borrowing.

     2. The Corporation may, notwithstanding the provisions of the foregoing paragraph, approve the
assumption by other local governments of the debts regarding the funds provided to the local
governments specified in Item (1) (a) of the same paragraph.

			
	Article 5	 	

     The provision of funds of short-term borrowing (which mean the funds to be repaid in the same
fiscal year) shall be made, within the limit that it shall not affect the provision of funds in the
foregoing article, as provided for in each of the following items:

	 	(1)	 	Person to be provided with funds
	 
	 	 	 	local governments with the necessity of the funds as short-term debts concerning
Municipal Enterprises
	 
	 	(2)	 	Use of funds
	 
	 	 	 	The funds shall be used for facilities and financial operations; provided, however,
that the funds to be used for facilities shall, as a principle, be provided only for
important long-term projects whose execution or continuation may be threatened without
the funds.
	 
	 	(3)	 	Limitation on the amount of funds
	 
	 	 	 	The funds to be provided for facilities shall not exceed the amount equivalent to the
amount of Local Loans for which consent or permission are certain to be obtained in the
relevant year, while the funds to be provided for the financial operation shall be the
amount which is necessary for the adjustment of a temporary shortage of cash
appertaining to revenue and expenditure of local governments.
	 
	 	(4)	 	Maturity
	 
	 	 	 	The funds shall be repaid within the period not exceeding three (3) months which is
necessary for adjustment of the temporary shortage of cash appertaining to revenue and
expenditure of local governments.
	 
	 	(5)	 	Refinancing
	 
	 	 	 	Notwithstanding the provision of the immediately preceding paragraph, the funds may be
refinanced for a period not exceeding three (3) months, if such refinancing is
inevitable.

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	 	(6)	 	Method of repayment
	 
	 	 	 	The repayment shall be made in a lump sum.
	 
	 	(7)	 	Others
	 
	 	 	 	Items (2), (5) and (6) of the foregoing Article shall be applied mutatis mutandis in
addition to each item of this article.

CHAPTER 3. ENTRUSTMENT OF BUSINESS

			
	Article 6	 	

     The Corporation may entrust a part of the business of investigation concerning the provision
of funds to prefectures.

			
	Article 7	 	

     The Corporation may entrust the business concerning provision of funds, collection of
principal and interest and other business in connection with provision and collection of funds to
financial institutions (hereinafter referred to as the “Trustee”), except for the decision for
providing funds.

			
	Article 8	 	

     The business shall be entrusted pursuant to each of the following items:

	 	(1)	 	The Corporation, in case of entrustment of business, shall make a contract of
business entrustment and pay the commission as prescribed separately.
	 
	 	(2)	 	The Trustee, after receiving the funds necessary for the entrusted business,
shall pay the interest to the Corporation as prescribed separately.
	 
	 	(3)	 	The expenses in connection with such entrusted business incurred by the Trustee
or the prefectures which have been entrusted with part of the investigation business
concerning the provision of funds shall, as a principle, be paid by such Trustee or
prefectures.
	 
	 	(4)	 	The Trustee shall keep a separate account regarding the entrusted business, and
shall report with respect thereto.

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Supplementary Provisions (Excerpts)

	1.	 	The Corporation for the time being will do the business of providing funds necessary for
afforestation, improvement, construction and reconstruction of pastures entrusted by the
Agriculture, Forestry and Fishery Finance Corporation.
	 
	2.	 	The Corporation may, in addition to the business provided for in Article 2 hereof and the
immediately preceding paragraph, provide funds for local loans (which shall mean local loans
other than those relative to Municipal Enterprises; hereinafter the same in this paragraph)
for the following types of projects, which are approved or permitted as especially necessary
for the smooth completion of construction projects implemented by local governments in view of
the actual situation of local finance, or subscribe for the bonds issued as such local loans:

	 	(1)	 	Local road construction projects;
	 
	 	 	 	which shall mean the construction projects of prefectural or municipal roads (excluding
those projects for which expenses are wholly or partially borne by the Government), for
which expenses are considered necessary to be financed especially through local loans
for the purpose of their smooth completion;
	 
	 	(2)	 	Watercourse improvement projects;
	 
	 	 	 	which shall mean the projects of construction works of watercourse administration
facilities (which shall mean the watercourse administration facilities specified in
Article 3, Paragraph 2 of the River Law (Law No. 167 of 1964)) or sand control
facilities (which shall mean the sand control facilities specified in Article 1 of the
Sand Control Law (Law No. 29 of 1897 )) or any other land conservation, or the
construction projects of urban sewers (which shall mean the urban sewers specified in
Article 2, Item (5) of the Sewerage Law (Law No. 79 of 1958)) (excluding those projects
for which expenses are wholly or partially borne by the Government), for which expenses
are considered necessary to be financed especially through local loans for the purpose
of their smooth completion.
	 
	 	(3)	 	High school construction projects;
	 
	 	 	 	which shall mean the construction projects of worn-out or dangerous facilities or
construction projects caused by the removal of high schools facilities (which shall
mean high schools, the upper half course of junior high schools and high school
classes of schools for the blind, the deaf or the handicapped specified in the School
Education Law (Law No. 26 of 1947)), for which expenses are considered necessary to be
financed especially through local loans for the purpose of their smooth completion.

	3.	 	The provisions of Article 4 hereof shall apply mutatis mutandis to the cases specified in
Paragraph 2 above. In such cases, “Local Loans for their Municipal Enterprises” referred to
in Item 1-(a), Paragraph 1 of the said article and “projects specified in the attached list”
referred to in Item 2-(a), Paragraph 1 of the said article shall be read respectively as
“local loans relating to each item, Paragraph 2 of the Supplementary Provisions” and “projects
specified in each item, Paragraph 2 of the Supplementary Provisions”.

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Attached List

	1.	 	Water supply projects
	 
	2.	 	Industrial water supply projects
	 
	3.	 	Transportation projects
	 
	4.	 	Electricity supply projects
	 
	5.	 	Gas supply projects
	 
	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
	 
	18.	 	Industrial waste disposal projects

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