1981 BANKING LAW. COPYRIGHT RODERICK H. SEEMAN

CHAPTER II BUSINESS

Article 10 (Scope of Business)

1. Banks can do the businesses listed in the following:

(1) The acceptance of deposits or installment savings, etc.

(2) The lending of funds or the discounting of notes.

(3) Exchange transactions.

2. Banks, in addition to the businesses listed in each of the Items of the previous Paragraph can engage in other businesses incidental to the banking business listed in the following items.

(1) The guaranteeing of debts or the acceptance of notes.

(2) The buying and selling of securities (Excluding those classifiable as monetary claims which are indicated through certificates provided in Item 5. Hereinafter in Item 6, the same), securities index futures transactions, securities options transactions, or foreign securities futures transactions (limited to those which have as their objective investment, or those calculated based on a written order received from the client.)

(3) The lending of securities.

(4) The underwriting of national government bonds, local government bonds or government guaranteed bonds (hereinafter in this Article and the next Article referred to as "national bonds, etc.,") (excluding those held for the objective of resale) or the handling of flotation in relation to the said national bonds, etc., which are related to the said underwriting.

(5) The acquisition or negotiation of monetary claims (including negotiable certificates of deposit and others indicated through certificates as determined by Ministry of Finance Ordinance)

(6) Handling of private placement of securities.

(7) Trust services related to the flotation of local government bonds, corporate bonds or other bonds.

(8) Representation of banks and other parties conducting financial business.

(9) The handling of the receipt of money or other matters related to money of the national government, local bodies, or corporations, etc.

(10) Safekeeping of securities, precious metals or other articles.

(11) Money exchange.

(12) Financial futures transactions, etc.

(13) Trust, etc. of financial futures transactions, etc.

3. The "securities index futures transactions," the "securities options transactions", or the "foreign securities futures transactions" of Item 2 of the previous Paragraph 2, shall mean the securities index futures transactions, the securities options transactions, or the foreign securities futures transactions provided for in Articles 24 to 26 (definitions) of the Securities Exchange Law (Law No. 25 of 1948).

4. The "government guaranteed bonds" of Paragraph 2, Item 4, means the debenture or other bonds where the government guarantees the payment of the principal and the payment of interest.

5. The business listed in Article 2, Paragraph 5, shall include the business carrying out the actions listed in any of the Items of Article 2, Paragraph 8 of the Securities Exchange Law, concerning from among the monetary claims which are indicated by a certificate as provided for in Article 2, Paragraph 5 (of this Law) those that are classifiable as securities.

6. The "handling of the private placement of securities" of Paragraph 2, Item 6, shall mean the transactions of the private placement of shares (meaning the private placement provided for in Article 2, Paragraph 8, Item 6 of the Securities Exchange Law (definitions)

7. The "financial futures transactions, etc." of Paragraph 2, Item 12 or the "trust, etc. of financial futures transactions, etc." of Item 13 of the same Paragraph, shall mean the financial futures transactions, etc. and the trust,etc of financial futures, as provided respectively in Article 2, Paragraph 7 and 8 (Definitions) of the Financial Futures Transactions Law (Law No. 77 of 1988).