1981 BANKING LAW. COPYRIGHT RODERICK H. SEEMAN

Chapter-9 Penalty Provisions

Article-61

Parties which have been conducting banking business but who have not received the license of the Minister of Finance of Article-4, Paragraph-1, shall be sentenced to a term of penal servitude of 3 years or less, or fined 3 million-yen or less, or a combination thereof.

Article-62

Parties who have violated conditions attached based on the provisions of Article-4, Paragraph-4 and parties who have violated the order to totally or partially cease business, based on the provisions of Article-26 and Article-27, shall be sentenced to a term of penal servitude of one year or less, or fined 1 million-yen or less,

Article-63

Parties who fall under any of the following shall be fined 500,000-yen or less.

(1) Parties who failed to file the mid-term business report or the business report based on the provisions of Article-69, or who failed to note important matters from among the matters which should be noted in those documents, but made untruthful notations concerning important matters.

(2)Parties who failed to file reports or data based on the provisions Article-24, Paragraph-1 (including those cases where such provisions apply Mutatis Mutandis according to Article-43, Paragraph-3), or who filed untruthful reports or data.

(3) Parties who did not answer the questions of the said employees according to the provisions of Article-25, Paragraph-1 (including those cases where such provisions apply Mutatis Mutandis according to Article-43, Paragraph-3) or Article-25, Paragraph-2, or answered the questions untruthfully, or refused, or hindered, or evaded the examination based on those provisions.

(4) Parties who violated the orders based on the provisions of Article-43, Paragraph-1 (including those cases where such provisions apply Mutatis Mutandis according to Paragraph-2 of the same Article) or Article-45.

(5) Parties who refused, hindered or evaded the examination based on the provisions of Article-45 or Article-46, Paragraph-1.

Article-64

When representatives of juridical persons (including those bodies which are not juridical persons but which have decided on a representative or manager.Hereinafter in this Paragraph the same) or the agents, employees or such other workers of a juridical person or natural person have committed an act in violation of the previous three Articles in relation to the business or assets of such juridical person or natural person, in addition to penalizing the party who committed such act, the penalties of each of the said Articles shall be imposed on that juridical person or that natural person.

2. In those situations where penalties are to be imposed on a body which is not a juridical person based on the provisions of the previous Paragraph, in addition to that representative or manager representing that body concerning those litigation activities, the provisions of the Law Concerning Criminal Litigation shall apply in those situations where the juridical person is a defendant or a suspect.

Article-65

In the situations listed in the following, the director, auditor, manager, representative shop (when the representative shop is a juridical person, the company employee, director or such other representative of the juridical person) or the liquidator of a bank (including the company which had been the said bank, in those situations where the license of the Minister of Finance of Article-4, Paragraph-1 had been cancelled based on the provisions of Article-27 and Article-28 and companies which have received the application of the provisions of Article-43, Paragraph-1 or Paragraph-2) which committed that act, or the representative, agent or of a foreign bank shall be fined a correctional, non-penal fine of 1 million-yen or less.

(1) The Committing of acts provided for in the provisions of Article-5, Paragraph-2, Article-6, Paragraph-3, Article-8 or Artcle-9, Paragraph-1 (including those situations where such provisions apply Mutatis Mutandis according to Paragraph-2 of the same Article, without having received the violation of the Minister of Finance based on those provisions.

(2) When they have been regularly employed at another company in violation of the provisions of Article-7.

(3) When they have been conducting other business in violation of the provisions of the provisions of Article-12.

(4) When they did not make notification, public announcement or posting of notice based on the provisions of Article-16; Article-34, Paragraph-1; Article-36, Paragraph-1; Article-38; Article-49; Article-52, Paragraph-1 or Paragraph-3; or Article-53, or made an untruthful notification, public announcement or posting of notice.

(5) When provisions for profit reserves were not made, in violation of the provisions of Article-18.

(6) When they did not make the public announcement based on the provisions of Article-20, or they failed to make notations of important matters matters which should be noted in the documents which must be publicly announced, or they made a public announcements in which were untruthful notations concerning important matters.

(7) When they committed violations of orders (excluding orders to totally or partially cease business) based on the provisions of Article-26, or orders based on the provisions of Article-29.

(8) When they have transferred or acquired business or an enterprise in violation of the provisions of Article-34, Paragraph-4 (including those situations where such provisions apply Mutatis Mutandis according to the provisions of Article-35, Paragraph-3).

(9) When they did not file the data according to the provisions of Article-48, Paragraph-1, or they did not make notations of important matters from among the matters that should be noted in the said data, or they filed the said data, having made untruthful notations concerning important matters.

(10) When they did not file a report or data based on the provisions of Article-48, Paragraph-2, or Article-52, Paragraph-2 or they filed untruthful reports or data.

(11) When they have violated the conditions or time limit attached (limited to those related to the validation based on the provisions of Article-8, Article-9, Paragraph-1 (including those situations where such provisions apply Mutatis Mutandis according to Paragraph-2 of the same Article); Article-30, Paragraph-1 through Paragraph-3; or Article37, Paragraph-1).

Article-66

Parties, in violation of the provisions of Article-6, Paragraph-2, who have used the characters for bank in their trade name shall be fined as a correctional, non-penal fine of 1 million-yen or less.