1981 BANKING LAW. COPYRIGHT RODERICK H. SEEMAN
SUPPLEMENTARY PROVISIONS
Article-1 (Date of Enforcement)
This law shall go into effect on a date as determined by Cabinet Order which is within a period not exceeding one year calculated from the date of promulgation. However, the provisions of Article-9 of the Supplementary Provisions shall go into effect from the date of their proclamation.
Article 2 (Transitional Measures Concerning Business License)
Parties, at the time that this law goes into effect, who have received the license of the competent Minister of Article-2 of the pre-amendment Bank Law (hereinafter referred to as the "former law") (including parties who are regarded as having received the license of the competent Minister of Article-2 of the former law, based on the provisions of Article-39, Paragraph-2 of the former law or of laws other than the former law or on orders based on these, but excluding parties who have received the license of the Competent Minister of Article-2 of the former law based on the provisions of Article-32, Paragraph-1 of the former law), shall be regarded as parties who have received the license of Minister of Finance of Article-4, Paragraph-1 of the post-amendment law (hereinafter referred to as the "new law") at the time that this law goes into effect.
Article-3 (Transitional Measures Concerning the Amount of Capital)
Concerning banks which are regarded as ones which have received the license of the Minister of Finance of Article-4 of the new law based on the provisions of the previous Article (in the provisions of the next Article and Article-6, Paragraph-1; Article-8, Article-11, Article-16, Article-17, and Article-24 of the Supplementary Provisions, referred to as "Banks which have received the license of the former law" but which, at the time of the enforcement of the new law, have a capital amount which is lower than the amount as determined by Cabinet Order based on the provisions of Article-5, Paragraph-1 of the new law, the provisions of Article-5, Paragraph-1 shall not apply for a period until the elapse of 5 years as calculated from the date of the enforcement of this law (hereinafter referred to as "enforcement date").
Article-4 (Transitional Measures concerning validations related to Overseas Subsidiaries)
When at the time of enforcement of this law, a bank which has received the license of the former law holds stock or interests in a company provided for in Article-9, Paragraph-1 of the new law, which exceeds an amount obtained by multiplying the total number of issued shares or issued and outstanding shares or the total amount of investment in the said company, by a rate as determined by the ordinance of the Ministry of Finance, based on the provisions of the same Paragraph, the said bank which has received the license of the former law, must notify the Minister of Finance to that effect within a period of 3 months calculated from the date of enforcement.
2. When, at the time of the enforcement of this law, the receipt of validation listed in Item-1 by a bank which had received the license of the former law, or the notified acquisition of stock or an interest listed in Item-2 fall within the provisions of Article-9, Paragraph-1 of the new law, the said bank which has received the license of the former law, must notify the Minister of Finance to that effect within 3 months calculated from the date of enforcement.
(1) The validation based on the provisions of Article-21, Paragraph-2 (Capital Transactions Requiring the Validation of the Ministry of Finance) of the Foreign Exchange and Foreign Trade Control Law (Law No.228, 1949),
(2) Notifications based on the provisions of Article-22, Paragraph-1, Item-4 (Notifications related to Direct Overseas Investments by Residents) of the Foreign Exchange and Foreign Trade Control Law (limited to those situations where, concerning the said notification, the recommendation of the Minister of Finance, based on the provisions of Article-23, Paragraph-2 (Examinations and Alteration Recommendations, etc of the Substance of the Capital Transaction) of the same law, is received and the period during which the said stock or interest related to the said notification based on the provisions of Paragraph-1 of the same Article passes uneventfully, or those situations where the said recommendation is received and notice to the effect that consent will be given to the said recommendation is made.
3. Banks which have received the license of the former law and which have made the notification based on the provisions of the previous two Paragraphs, shall be regarded as parties which have received the validation of Article-9, Paragraph-1 of the new law, concerning the acquisition shares or interests related to the said notification.
Article-5 (Transitional Measures concerning the Business related to National Bonds, etc.)
In those situations where a bank is going to engage in the business related to national bonds, etc. as provided for in Article-11 of the new law based on the provisions of the same Article, the said bank for the time being, concerning the said business, which has as the other party thereto, unspecified and many parties, must decide on the substance and method thereof and receive the validation of the Minister of Finance. The same shall apply as well when there is going to be a change in the substance and method of the said business which has received the said validition.
2. Necessary matters concerning validation of the previous Paragraph shall be decided by the Ordinance of the Ministry of Finance.
Article-6 (Transitional Measures concerning the Provision of Credit to the Same Person)
The provisions of the main text of Article-13, Paragraph-1 of the new law shall not apply for a period of 3 months calculated from the date of enforcement, concerning the provision of credit as provided for in the main text of the same Paragraph to the same person at the time of the enforcement of this law, where the said provision of credit is by a bank which has received the license of the former law which exceeds the credit provision limit provided for in the main text of the same Paragraph.
2. The provisions of Articl-13 shall not apply for a period of five years calculated from the date of enforcement, concerning the branches of foreign banks.
Article-7 (Transitional Measures Concerning the Provision of Credit to Directors)
The provisions of Article-14 of the new law shall apply concerning the provision of credit that a director of a bank receives from the said bank after the date of enforcement, and, concerning the provision of the said credit which received the acknowledgment of the board of directors based on the provisions of Article-265 of the Commercial Code before the date of enforcement, it shall be based on examples heretofor.
Article-8 (Transitional Measures Concerning Extraordinary Suspensions of Business, etc.)
The provisions of Article-16 of the new law shall apply concerning the situations where a bank after the date of enforcement extraordinarily suspends, totally or in part, such business at such places of business or representative outlets, and concerning those situations where before the date of enforcement, a bank which had received the license of the old law, extraordinarily suspended business or suspended repayment of deposits, they shall be based on examples heretofore.
Article-9 (Transitional Measures, etc. Concerning Accounting)
Concerning the bank business years as provided for in Article-9 of the Bank Law which starts from April, 1981, regardless of the provisions of the same Article, in accordance with the Minister of Finance, it can be made from the same month until March, 1982.
2. Concerning the application of the provisions of Article-8 to the Banking Law to parties who will receive the application of the provisions of the previous Paragraph, the "every accounting term" in the midst of the same Article shall be made "the accounting term in relation to the said busines year" and "profit reserve" shall be made "when there is the distribution of money of Article-293, Paragraph-1 of the Commercial Code in the said business year, one-fifth of that distribution amount shall respectively be profit reserves".
The provisions of Article-17 and Article-18 of the new law shall apply concerning the business years which start April 1, 1982 and the provision for profit reserves in relation to the said business year, and concerning business years of before that same day and the provision for profit reserves in relation to the said business year, excluding those situations which receive the application of the provisions of the previous Article, they shall be based on examples heretofore.
3. The provisions of Article-19 through 22 of the new law shall apply concerning the documents provided for in those provisions in relation to business years (which start April 1, 1982) and, concerning the documents which are provided for in the provisions of Article-10 through Article-12-2 of the old law in relation to business years of before the same date, they shall be based on examples heretofore.
Article-11 (Transitional Measures of cancellations, etc. of licenses)
The provisions of Article-27 of the new law shall apply concerning the suspension of business of a bank, the dismissal of directors or auditor, and the cancellation of the license of the minister of Finance of Article 4, Paragraph 1, in relation to acts made after the date of enforcement and, concerning the suspension of business of a bank which has received the license of the old Law, the dismissal of directors or auditors and the cancellation of the old Law, the dismissal of directors or auditors and the cancellation of the license of the Competent Minister in relation to acts made before the date of enforcement. They shall be based on examples heretofore.
Article12 (Transitional Measures Concerning the Validation of the Transfer or Acquisition of Business, etc.)
The provisions of Article 30 Paragraph 2 or Paragraph 3 shall apply, concerning the transfer or acquisition of business or the acquisition of an enterprise in relation to the resolution of the general shareholders meeting or the board of directors meeting which is had after the date of enforcement.
Article 13 (Transitional Measure Concerning Notices Calling for Objections to Merger)
The provisions of Article 33 of the new Law shall apply concerning the call notification provided for in the same Article in those situations where a bank makes a resolution for merger as provided for in the same Article, after the date of enforcement, and concerning call notifications in relation to resolutions for merger made before the date of enforcement, they shall be made based on examples heretofore.
Article 14 (Transitional Measures Concerning Procedures in Accord with the Transfer or Acquisition of Business, etc.)
The provisions of Article 34 and Article 35 of the new Law shall apply concerning the public announcements in relation to the resolution of the general shareholders meeting or the board of directors meeting, and the call notifications and the objections of creditors which are made after the date of enforcement.
2. The provisions of Article 36 of the new Law shall apply concerning the transfer of business in relation to the resolution of the general shareholders meeting or the board of directors made after the date of enforcement.
Article 15 (Transitional Measure Concerning the Public Announcement, etc. of the Discontinuance of Business, etc.)
The provisions of Article 38 of the new Law shall apply concerning those situations where the validation of based on the provisions Article 37, Paragraph, of the new Law is obtained after the date of enforcement.
Article 16 (Transitional Measures Concerning Dissolutions, etc. Based on Cancellations of Licenses)
The cancellation of the license of the competent Minister, in relation to a bank which has received the license of the old Law, in those situations where it is based on examples heretofore, according to the provisions of Article 11 of the Supplementary Provisions, shall be regarded as the cancellation of the license of the Minister of Finance of Article 4, Paragraph 1, based on the provisions of Article 27 and Article 28 of the new Law, and the Provisions of Article 40 and Article 42 of the new Law shall be applied.
Article 17 (Transitional Measures Concerning the Loss of Validity of a License)
Article 18 (Transitional Measures Concerning Transfers, etc., to a Company of Another Industry)
The provisions of Article 43 of the new Law shall apply concerning those situations where a bank, after the date of enforcement, falls within the provisions of Article 41, Item 1 of the new Law and the license of the Minister of Finance of Article 4, Paragraph 1 of the new Law loses its validity, or those situations where a company other than a bank, etc. succeeds to the deposits or time deposits of a bank based on a merger, and, concerning the supervision of the Competent Minister of a company which is receiving the application of the provisions of Article 26 of the former Law prior to the date of enforcement, they shall be based on examples heretofore.
Article 19 (Transitional Measures Concerning the Appointment and Dismissals of Liquidators and the Supervision of Liquidation)
The provisions of Article 44 and Article 45 of the new Law shall apply concerning those situations where a bank is dissolved after the date of enforcement, and, concerning the dismissal, appointment and supervision of the liquidator as provided for in Article 27, Paragraph 2; Article 28 and Article 29 of the former Law, in relation to liquidations which were initiated prior to the date of enforcement, they shall be based on examples heretofore.
Article 20 (Transitional Measures Concerning the Opinion, etc. of the Minister of Finance in Liquidation Proceedings, etc.)
The provisions of Article 46 of the new Law shall apply concerning the liquidation procedures, bankruptcy procedures, composition procedures, reorganization procedures or rehabilitation procedures of a bank provided for in Paragraph 1 of the same Article, which was initiated after the date of enforcement, and, concerning the liquidations, bankruptcies and compulsory compositions, provided for in Article 30 and 31 of the former Law, which were initiated prior to the date of enforcement, they shall be based on examples heretofore.
Article 21 (Transitional Measures Concerning Business Licenses in Relation to the Branches of Foreign Banks)
Parties who, at the time of the enforcement of this Law, are in receipt of the license of the Competent Minister of Article 2 of the former Law based on the provisions of Article 32, Paragraph 1 of the former Law, shall be regarded as having the license of the Minister of Finance of Article 4, Paragraph 1 of the new law, based on the provisions of Article 47, Paragraph 1 of the new Law.
Parties who are regarded as having received the license of the Minister of Finance of Article 4, Paragraph 1 of the new Law based on the provisions of the previous Paragraph, must report to the Minister of Finance the name of the representative of the foreign bank branch related to the said license within 3 months, calculated from the date of enforcement.
Article 22 (Transitional Measures Concerning the Provision, etc. of Data of Foreign Bank Branches)
The provisions of Article 48, Paragraph 1 of the new Law shall apply concerning data as provided for in the same Paragraph in relation to business years starting from April 1, 1982.
Article 23 (Transitional Measures Concerning the Notification, etc. of the Establishment of Liaision Offices of Foreign Banks)
Foreign banks which have already established facilities provided for in Article 52, Paragraph 1 of the new Law at the time of the enforcement of new Law at the time of the enforcement of this law, must notify the minister of Finance as provided for in the same Paragraph of the substance of the business, the location of the facilities, and such other matters as determined by the Ordinance of the Minister of Finance concerning the said facilities, within 3 months, calculated from the date of enforcement.
Article 24 (Transitional Measures Concerning the Loss of Validity of Validations)
The provisions of Article 55 of the new Law shall apply concerning validations based on the provisions of the new Law which a bank receives after the date of enforcement, and, concerning validations based on the provisions of the old Law, which are provisions corresponding to the new Law, that a bank, which has received the license of the former Law, received prior to the date of enforcement, they shall be based on examples heretofore.
Article 25 (Validity of Dispositions or Procedures Based on the Provisions of the Former Law)
Validations, acknowledgements, and such other dispositions, and applications and such other procedures which were made prior to the date of enforcement based on the provisions of the former Law or based on the provisions of orders based hereon, which are ones for which there are corresponding provisions in the new Law or orders based thereon, shall be regarded as validations, acknowledgements and such other dispositions made based on the corresponding provisions of the new Law or orders based thereon, excepting those for which there are determinations separately made in these supplementary provisions.
Article 26 (Transitional Measures Concerning Penalty Provisions)
Concerning the application of the Penalty Provisions to acts before the enforcement of this Law, and to acts made after the enforcement of this Law in relation to matters which have been made, based on the provisions of the supplementary provisions, based on examples heretofore, they shall be based on examples heretofore.
Article 27 (Delegation to Cabinet Orders)
In addition to those matters decided in Article 2 through the previous Article of the Supplementary Provisions, necessary transitional measures related to the enforcement of this Law shall be decided by Cabinet Order.