Order for Enforcement of the Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities

Link to law: http://www.japaneselawtranslation.go.jp/law/detail_download/?ff=08&id=2095
Published: 2011

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now
Order for Enforcement of the Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities (Tentative translation)

(Financial Institution Pertaining to Issuance of Specified Letter of Credit)

Article 1 The financial institution specified by Cabinet Order as prescribed in Article 2, paragraph (13) of the Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities (hereinafter referred to as the "Act" except in Article 13, item (ix)) shall be as follows:

(i) bank;

(ii) Shokochukin Bank;

(iii) Development Bank of Japan;

(iv) Shinkin Bank and federation of Shinkin Banks;

(v) labor bank and federation of labor banks;

(vi) credit cooperative and federation of credit cooperatives;

(vii) agricultural cooperative and federation of agricultural cooperatives;

(viii) fisheries cooperative and federation of fisheries cooperatives;

(ix) Norinchukin Bank; or

(x) insurance corporation.

(Scope of Small and Medium-Sized Enterprise Operator)

Article 2 (1) The business type, the amount of stated capital or the total amount of contributions, and the number of employees specified by Cabinet Order for each business type as prescribed in Article 2, paragraph (17), item (v) of the Act shall be as in the following table:

||Business type|Amount of stated capital or total amount of contributions|Number of employees|

|(i)|rubber products manufacturing industry (excluding automobile or aircraft tire and tube manufacturing industry, and industrial belt manufacturing industry)|300,000,000 yen|900 employees|

|(ii)|software service industry or information processing service industry|300,000,000 yen|300 employees|

|(iii)|hotel business industry|50,000,000 yen|200 employees|

(2) the partnerships and their federations specified by Cabinet Order as prescribed in item (viii), paragraph (17) of Article 2 of the Act shall be as follows:

(i) business cooperatives, minor business cooperatives and federations of cooperatives;

(ii) fishery processing cooperatives and federations of fishery processing cooperatives;

(iii) commercial and industrial cooperatives and federations of commercial and industrial cooperatives;

(iv) shopping district promotion cooperatives and federations of shopping district promotion cooperatives;

(v) among environmental health industry cooperatives, minor environmental health industry cooperatives and federations of environmental health industry cooperatives, those of which not less than two thirds of the direct or indirect members are juridical persons whose amount of stated capital or total amount of contributions are not more than 50,000,000 yen (or 100,000,000 yen in the case of a business operator whose principal business is the wholesale business) or those who regularly employ not more than 50 employees (or 100 employees in the case of a business operator whose principal business is the wholesale or a service business);

(vi) among Sake brewer cooperatives, federations of Sake brewer cooperatives and the Japan Sake and Shochu Makers Association, those of which not less than two thirds of the direct or indirect members, which are Sake brewers, are juridical persons whose amount of stated capital or total amount of contributions are not more than 300,000,000 yen, or those who regularly employ not more than 300 employees, and among Sake merchant cooperatives, federations of Sake merchant cooperatives and Japan Sake merchant associations, those of which not less than two thirds of the direct or indirect members, which are Sake merchant business operators, are juridical persons whose amount of stated capital or total amount of contributions are not more than 50,000,000 yen (or 100,000,000 yen in the case of a Sake wholesale business operator), or those who regularly employ not more than 50 employees (or 100 employees in the case of a Sake wholesale business operator);

(vii) among coastal shipping cooperatives and federations of coastal shipping cooperatives, those of which not less than two thirds of the direct or indirect members, which are those engaged in the coastal shipping business, are juridical persons whose amount of stated capital or total amount of contributions are not more than 300,000,000 yen, or those who regularly employ not more than 300 employees; and

(viii) among technology research cooperatives, those of which more than two thirds of the direct or indirect members are the small and medium-sized enterprise operators set forth in items (i) to (vii) of Article 2, paragraph (17) of the Act.

(Procedures to Exclude from Business Revitalization)

Article 3 The Act specified by Cabinet Order as prescribed in Article 2, paragraph (23) of the Act shall be the Act on Special Treatment of Corporate Reorganization Proceedings and Other Insolvency Proceedings of Financial Institutions (Act No. 95 of 1996).

(Consultation with Fair Trade Commission)

Article 4 The cases specified by Cabinet Order as prescribed in Article 13, paragraph (1) of the Act shall be the following cases:

(i) cases where a business operator is required to notify said business reconstruction, etc. associated measures (meaning the business reconstruction, etc. associated measures set forth in Article 13, paragraph (1) of the Act; the same shall apply hereinafter in this Article) when it carries out said business reconstruction, etc. associated measures pursuant to the provisions of Article 10, paragraph (2) (including cases where it is applied pursuant to the provisions of paragraph (5) of the same Article), Article 15, paragraph (2), Article 15-2, paragraph (2) or paragraph (3), Article 15-3, paragraph (2) or Article 16, paragraph (2) of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Act No. 54 of 1947; hereinafter referred to as the "Antimonopoly Act" in this Article); and

(ii) cases where said business reconstruction, etc. associated measures are jointly carried out by two or more business operators, where any of said business operators has total domestic sales (meaning the total domestic sales set forth in Article 10, paragraph (2) of the Antimonopoly Act; the same shall apply hereinafter in this item) exceeding 20,000,000,000 yen and the other business operator has total domestic sales exceeding 5,000,000,000 yen (excluding cases where all business operators intending to carry out said business reconstruction, etc. associated measures belong to the same combined group of enterprises (meaning the combined group of enterprises set forth in the same paragraph).

(Technical Replacement of Terms When Applying the Provisions of the Companies Act to the Issuance of Shares by Stock Companies Which are Approved Business Operators or to the Disposition of Treasury Shares)

Article 5 The technical replacement of terms of the provisions of the Companies Act (Act No. 86 of 2005) pursuant to the provisions of Article 21-2, paragraph (1) of the Act when applying the provisions of the same Act pursuant to the provisions of the same paragraph shall be as in the following table:

|Provision of the Companies Act for which a term is deemed to be replaced|Term deemed to be replaced|Term deemed to replaced with|

|Article 199, paragraph (2)|each item of the preceding paragraph|each item of the preceding paragraph (excluding item (iii))|

|Article 201, paragraph (3)|item (iv), paragraph (1) of that article|Article 199, paragraph (1), item (iv) as applied by replacing the term pursuant to the provisions of Article 21-2, paragraph (1) of the Act|

|Article 208, paragraph (2)|Article 199(1)(iv)|Article 199(1)(iv) as applied by replacing the term pursuant to the provisions of Article 21-2, paragraph (1) of the Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities|

(Technical Replacement of Terms When Applying Mutatis Mutandis the Provisions of the Companies Act to the Issuance of Shares by Stock Companies Which are Approved Business Operators or to the Disposition of Treasury Shares)

Article 6 The technical replacement of terms of the provisions of the Companies Act pursuant to the provisions of Article 21-2, paragraph (3) of the Act when applying mutatis mutandis the provisions of the same Act pursuant to the same paragraph shall be as in the following table:

|Provision of the Companies Act for which a term is deemed to be replaced|Term deemed to be replaced|Term deemed to replace with|

|Article 309, paragraph (2), item (xii)|provisions of Part V|provisions of Part V (including cases where the provisions of Article 796, paragraph (4) is applied mutatis mutandis by replacing the term under the provisions of Article 21-2, paragraph (3) of the Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities)|

|Article 797, paragraph (3)|trade name|trade name or name|

|Article 798, paragraph (3)|that paragraph|the preceding paragraph|

(Technical Replacement When Applying the Provisions of the Companies Act to the Issuance and Acquisition of Class Shares Subject to Wholly Call)

Article 7 The technical replacement of terms of the provisions of the Companies Act pursuant to the provisions of Article 21-3, paragraph (1) of the Act when applying the provisions of the same Act pursuant to the provisions of the same paragraph shall be as in the following table:

|Provision of the Companies Act for which a term is deemed to be replaced|Term deemed to be replaced|読み替える字句 Term deemed to replace with|

|Article 155, item (v)|Where a resolution has been made under Article 176(1)|Where the matters listed in the items of Article 171, paragraph (1) are specified pursuant to the provisions of the same paragraph which is applied by replacing the term pursuant to the provisions of Article 21-3, paragraph (1) of the Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities|

(Special Provisions of the Small and Medium-Sized Enterprise Credit Insurance Act Pertaining to Management Resource Utilization-Related Guarantee)

Article 8 The ratio specified by Cabinet Order as prescribed in Article 35, paragraph (4) of the Act shall be 0. 41% (or 0.35% in the case of negotiable instrument discount special guarantees and overdraft special guarantees) for ordinary insurance (meaning the ordinary insurance set forth in Article 3, paragraph (1) of the Small and Medium-Sized Enterprise Credit Insurance Act; the same shall apply hereinafter) and unsecured insurance, or 0. 19% (or 0.15% in the case of negotiable instrument discount special guarantees and overdraft special guarantees) for special petty insurance (meaning the special petty insurance set forth in Article 3-3, paragraph (1) of the Small and Medium-Sized Enterprise Credit Insurance; the same shall apply hereinafter), per year during a guaranteed period of borrowings.

(Replacement of Terms When Applying the Japan Finance Corporation Act to Operations for Loss Compensation)

Article 9 The replacement of terms of the provisions of the Japan Finance Corporation Act (Act No. 57 of 2007; hereinafter referred to as the "Finance Corporation Act" except in Article 13, item (xi)) pursuant to the provisions of Article 24-2, paragraph (2) of the Act when applying the provisions of the Finance Corporation Act pursuant to the provisions of the same paragraph shall be in the following table:

|Provision of the Finance Corporation Act for which a term is deemed to be replaced|Term deemed to be replaced|Term deemed to replace with|

|Article 16, paragraph (3)|loan of specified funds, etc.|Loan of specified funds, etc. (or loan of specified funds, etc. and the contributions under Article 24-2, paragraph (1) of the Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities if a person who seeks designation intends to make the contributions provided for in the same paragraph)|

|Article 21, paragraph (1), item (ii)|payment of the amount of money|payment of the amount of money (or, if the Finance Corporation undertakes to cover the amount of losses pursuant to Article 24-2, paragraph (1) of the Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities, payment of said amount of money and payment of the amount equivalent to the amount of the losses calculated in accordance with what is specified by the competent minister where such losses have arisen with respect to contributions made by the designated financial institution provided for in the same paragraph as it has become difficult for the approved business operator or the affiliated business operator provided for in the same paragraph to continue business or on any other grounds, )|

|Article 21, paragraph (1), item (iii)|collection of claims|collection of claims or disposition at an appropriate value taking into consideration the market value (or the estimated disposition value if there is no market value) of shares or equity acquired through the contributions (limited to cases where said shares or equity are held at the time of receipt of said payment)|

|Article 21, paragraph (1), item (iv)|the amount|the amount, and, when shares or equity are disposed pursuant to the provisions of the same item, only where the amount obtained by deducting the amount of losses under item (ii) from the amount of contributions under the preceding item is below the amount of said disposition, the amount calculated pursuant to what is specified by the competent minister as the amount of the portion pertaining to the amount equivalent to assets acquired through said disposition|

|Article 22, paragraph (1)|When|When [the competent minister gives approval pursuant to the provisions of Article 11, paragraph (2)], and when the period under the provisions of Article 24-2, paragraph (1) of the Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities is specified pursuant to the provisions of Cabinet Order under the same paragraph|

||and|and contributions made by the specified financial institution provided for in the same paragraph, and|

|Article 22, paragraph (3)|when|when|

||details|details [of the provisions pursuant to the provisions of paragraph (1)], and, when the period under Article 24-2, paragraph (1) of the Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities is specified pursuant to the provisions of Cabinet Order under the provision of the same paragraph, the details of the provisions pursuant to the provisions of paragraph (1)|

(Approved Business Reconstruction, etc. Associated Measures)

Article 10 The measures specified by Cabinet Order as prescribed in Article 24-3, paragraph (1) of the Act shall be those which fall under all of the conditions listed in the following items:

(i) any act of merger, dismantling to a considerable extent of the facilities or disposal to a considerable extent of equipment (limited to cases where either of those acts is carried out by two or more business operators), company split, share exchange, share transfer, acceptance of a business or assets necessary for a business or transfer of a business or assets (including the equivalents in foreign countries), considerable increase in stated capital (limited to those pertaining to the management resource integration set forth in Article 2, paragraph (6) of the Act), acquisition of shares in another company (limited to cases where said another company is to become an affiliated business operator (meaning the affiliated business operator set forth in paragraph (2) of the same Article; the same shall apply hereinafter) through said acquisition), transfer of shares in an affiliated business operator (limited to cases where said affiliated business operator is to cease being an affiliated business operator through said transfer), acquisition of shares, equity, or those similar to them in a foreign juridical person (limited cases where said foreign juridical person is to become a foreign affiliated juridical person (meaning the foreign affiliated juridical person set forth in paragraph (3) of the same Article; the same shall apply in this item) through said acquisition), transfer of shares, equity, or those similar to them in a foreign affiliated juridical person (limited to cases where said foreign affiliated juridical person is to cease being a foreign affiliated juridical person through said transfer), establishment or liquidation of a company or a foreign juridical person, or contribution to a limited liability partnership (meaning the limited liability partnership set forth in Article 2 of the Limited Liability Partnership Act (Act No. 40 of 2005); and

(ii) any of the acts listed in Article 2, paragraph (4), item (ii), (a) to (e) of the Act or any equivalent thereto.

(Application of Order for Enforcement of the Japan Finance Corporation Act)

Article 11 In cases where operations for business reconstruction, etc. facilitation (meaning the operations for business reconstruction, etc. facilitation set forth in Article 24-3, paragraph (1) of the Act) are undertaken, the term "Article 59, paragraph (1) of the Act" in Article 30, paragraph (1), items of Article 31, paragraph (1) and paragraph (2) of the Order for Enforcement of the Japan Finance Corporation Act (Cabinet Order No. 43 of 2008) shall be replaced by "Article 59, paragraph (1) of the Act applied by replacing the term pursuant to the provisions of Article 24-3, paragraph (2) of the Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities (Act No. 131 of 1999)".

(Designated Financial Institution)

Article 12 The financial institution specified by Cabinet Order as prescribed in Article24-5, paragraph (1), item (i) of the Act shall be as follows:

(i) bank;

(ii) long term credit bank;

(iii) Shinkin Bank and federation of Shinkin Banks;

(iv) credit cooperative and federation of credit cooperatives (limited to those additionally engaged in businesses listed in items of (i) and (ii) of Article 9-9, paragraph (1) of the Small and Medium-Sized Enterprise Cooperatives Act (Act No. 181 of 1949; the same shall apply in Article 14, item (i));

(v) labor bank and federation of labor banks;

(vi) agricultural cooperative (limited to those additionally engaged in businesses listed in items (ii) and (iii) of Article 10, paragraph (1) of the Agricultural Cooperatives Act (Act No. 132 of 1947); the same shall apply in Article 14, item (iii)) and federation of agricultural cooperatives (limited to those additionally engaged in businesses listed in items (ii) and (iii) of the same paragraph; the same shall apply in Article 14, item (iii));

(vii) fisheries cooperative (limited to those additionally engaged in businesses listed in items (iii) and (iv) of Article 11, paragraph (1) of the Fisheries Cooperatives Act (Act No. 242 of 1948); the same shall apply in Article 14, item (iii)), federation of fisheries cooperatives (limited to those additionally engaged in businesses listed in items (iii) and (iv) of Article 87, paragraph (1) of the same Act; the same shall apply in Article 14, item (iii)), fishery processing cooperative (limited to those additionally engaged in businesses listed in items (i) and (ii) of Article 93, paragraph (1) of the same Act; the same shall apply in Article 14, item (iii)) and federation of fishery processing cooperatives (limited to those additionally engaged in businesses listed in items (i) and (ii) of Article 97, paragraph (1) of the same Act; the same shall apply in Article 14, item (iii));

(viii) Norinchukin Bank;

(ix) Shokochukin Bank; or

(x) Development Bank of Japan.

(Act Which Gives Basis for Designation as Designated Financial Institution)

Article 13 The Act specified by Cabinet Order as prescribed in Article 24-5, paragraph (4), item (i) of the Act shall be as follows:

(i) Agricultural Cooperatives Act;

(ii) Fisheries Cooperatives Act;

(iii) Small and Medium-Sized Enterprise Cooperatives Act;

(iv) Act on Financial Businesses by Cooperatives (Act No. 183 of 1949);

(v) Shinkin Bank Act (Act No. 238 of 1951);

(vi) Long Term Credit Bank Act (Act No. 187 of 1952);

(vii) Labor Bank Act (Act No. 227 of 1953);

(viii) Banking Act (Act No. 59 of 1981);

(ix) Act on Special Measures Concerning Revitalization of Industry and Innovation in Industrial Activities;

(x) Norinchukin Bank Act (Act No. 93 of 2001);

(xi) Japan Finance Corporation Act;

(xii) Shokochukin Bank Act (Act No. 74 of 2007); and

(xiii) Development Bank of Japan Act (Act No. 85 of 2007).

(Notification to the Prime Minister, etc.)

Article 14 When the competent minister has made the designation under the provisions of Article 24-5, paragraph (1) of the Act (hereinafter simply referred to as a "designation" in this Article), the authorization under Article 24-7, paragraph (1) of the Act, the order under the provisions of paragraph (2) of the same Article or Article 24-10 of the Act, or the rescission of designation under the provisions of Article 24-12, paragraph (1) of the Act (hereinafter collectively referred to as a "disposition" in this Article), or when he/she has received the notification under the provisions of Article 24-11, paragraph (1) of the Act (hereinafter simply referred to as a "notification" in this Article), he/she shall promptly make a notification thereof to the minister specified in each of the following items for the categories of cases where the designated financial institution which has been subject to said disposition or has made said notification falls under those listed in the respective items:

(i) bank, long term credit bank, Shinkin Bank, federation of Shinkin Banks, credit cooperative and federation of credit cooperatives: Prime Minister;

(ii) labor bank and federation of labor banks; Prime Minister and Minister of Health, Labour and Welfare;

(iii) agricultural cooperative, federation of agricultural cooperatives, fisheries cooperative, federation of fisheries cooperatives, fishery processing cooperative, federation of fishery processing cooperatives and Norinchukin Bank: Minister of Agriculture, Forestry and Fisheries and Prime Minister;

(iv) Shokochukin Bank: Minister of Economy, Trade and Industry, Minister of Finance and Prime Minister; or

(v) Development Bank of Japan: Minister of Finance (or Minister of Finance and Prime Minister if the Development Bank of Japan has obtained the approval under Article 9, paragraph (1) of the Development Bank of Japan Act).

(Specified Permission, etc. Pertaining to Small and Medium-Sized Enterprise Management Resource Utilization Plan)

Article 15 (1) The permission, etc. specified by Cabinet Order as prescribed in Article 31, paragraph (3) of the Act (hereinafter referred to as the "specified permission, etc." in this Article) shall be as follows:

(i) the permission under the provisions of Article 3, paragraph (1) of the Inns and Hotels Act (Act No. 138 of 1948);

(ii) the permission under the provisions of Article 3, paragraph (1) of the Construction Business Act (Act No. 100 of 1949);

(iii) the permission under the provisions of Article 3 of the Explosives Control Act (Act No. 149 of 1950);

(iv) the permission under the provisions of Article 5 of the Explosives Control Act;

(v) the permission under the provisions of Article 4, paragraph (1) of the Road Transportation Act (Act No. 183 of 1951);

(vi) the license under the provisions of Article 3 of the Gas Business Act (Act No. 51 of 1954);

(vii) the license under the provisions of Article 37-2 of the Gas Business Act;

(viii) the license under the provisions of Article 3 of the Heat Supply Business Act (Act No. 88 of 1972); and

(ix) the permission under the provisions of Article 3 of the Act on Service of Cargo Transportation by Automobiles (Act No. 83 of 1989).

(2) The administrative agency pertaining to the specified permission, etc. may specify documents necessary for obtaining the consent provided for in Article 31, paragraph (6) of the Act taking into consideration the purpose of the provisions on which the relevant specified permission, etc. is to be based.

(3) When any person who applies for the approval under Article 31, paragraph (1) of the Act states the status based on the specified permission, etc. for which the relevant administrative agency has specified the documents pursuant to the provisions of the preceding paragraph in a small and medium-sized enterprise management resource utilization plan (meaning the small and medium-sized enterprise management resource utilization plan set forth in Article 31, paragraph (1) of the Act) pertaining to said application, he/she shall attach said documents to said application.

(4) When a prefectural governor consults with the administrative agency that has given the specified permission, etc. pursuant to the provisions of Article 31, paragraph (6) of the Act, he/she shall send the documents attached pursuant to the provisions of the preceding paragraph to said administrative agency.

(Special Provisions of the Small and Medium-Sized Enterprise Credit Insurance Act Pertaining to Start-Up-Related Guarantee)

Article 16 The insurance relationships of unsecured insurance (meaning the unsecured insurance set forth in Article 3-2, paragraph (1) of the Small and Medium-Sized Enterprise Credit Insurance Act (Act No. 264 of 1950); the same shall apply hereinafter) designated by Cabinet Order as prescribed in Article 33, paragraph (4) of the Act shall be the insurance relationships pertaining to guarantees of obligations set forth in Article 3-2, paragraph (1) of the Small and Medium-Sized Enterprise Credit Insurance Act (excluding the guarantees of obligations set forth in acts other than the same Act and the management stabilization-related guarantees set forth in Article 12 of the same Act), the insurance relationships pertaining to the start-up, etc. related guarantees set forth in Article 4, paragraph (1) of the Act for Facilitating New Business Activities of Small and Medium-Sized Enterprises (Act No. 18 of 1999) and the insurance relationships pertaining to the start-up-related guarantees set forth in Article 33, paragraph (1) of the Act (hereinafter referred to as the "start-up-related guarantee"), and the limit designated by Cabinet Order as prescribed in paragraph (4) of the same Article shall be 80,000,000 yen.

Article 17 The ratio specified by Cabinet Order as prescribed in Article 33, paragraph (5) of the Act shall be 0. 29% (or 0.25% in the case of negotiable instrument discount special guarantees (meaning the negotiable instrument discount special guarantee set forth in Article 2, paragraph (1) of the Order for Enforcement of the Small and Medium-Sized Enterprise Credit Insurance Act (Cabinet Order No. 350 of 1950; the same shall apply hereinafter) and overdraft special guarantees (meaning the overdraft special guarantee set forth in Article 2, paragraph (1) of the same Order; the same shall apply hereinafter)) per year during a guaranteed period of borrowings (meaning the period of borrowings set forth in Article 2, paragraph (1) of the same Order; the same shall apply hereinafter).

(Special Provisions of the Small and Medium-Sized Enterprise Credit Insurance Act Pertaining to Small and Medium-Sized Enterprise Management Resource Utilization-Related Guarantee)

Article 18 The ratio specified by Cabinet Order as prescribed in Article 35, paragraph (4) of the Act shall be 0. 41% (or 0.35% in the case of negotiable instrument discount special guarantees and overdraft special guarantees) for ordinary insurance (meaning the ordinary insurance set forth in Article 3, paragraph (1) of the Small and Medium-Sized Enterprise Credit Insurance Act; the same shall apply hereinafter) and unsecured insurance, or 0. 19% (or 0.15% in the case of negotiable instrument discount special guarantees and overdraft special guarantees) for special petty insurance (meaning the special petty insurance set forth in Article 3-3, paragraph (1) of the Small and Medium-Sized Enterprise Credit Insurance Act); the same shall apply hereinafter), per year during a guaranteed period of borrowings.

(Specified Permission, etc. Pertaining to Small and Medium-Sized Enterprise Succeeding Business Revitalization Plan)

Article 19 (1) The permission, etc. specified by Cabinet Order as prescribed in Article 39-2, paragraph (3) of the Act (hereinafter referred to as the "specified permission, etc." in this Article) shall be as follows:

(i) the permission under the provisions of Article 3, paragraph (1) of the Inns and Hotels Act;

(ii) the permission under the provisions of Article 3, paragraph (1) of the Construction Business Act;

(iii) the permission under the provisions of Article 3 of the Explosives Control Act;

(iv) the permission under the provisions of Article 5 of the Explosives Control Act;

(v) the permission under the provisions of Article 4, paragraph (1) of the Road Transportation Act;

(vi) the license under the provisions of Article 3 of the Gas Business Act;

(vii) the license under the provisions of Article 37-2 of the Gas Business Act;

(viii) the license under the provisions of Article 3 of the Heat Supply Business Act; and

(ix) the permission under the provisions of Article 3 of the Act on Service of Cargo Transportation by Automobiles.

(2) The administrative agency pertaining to the specified permission, etc. may specify documents necessary to obtain the consent provided for in Article 39-2, paragraph (5) of the Act taking into consideration the purpose of the provisions on which the relevant specified permission, etc. is to be based.

(3) When any person who applies for the approval under Article 39-2, paragraph (1) of the Act states the status based on the specified permission, etc. for which the relevant administrative agency has specified the documents pursuant to the provisions of the preceding paragraph in a small and medium-sized enterprise succeeding business revitalization plan pertaining to said application, he/she shall attach said documents to said application.

(4) When the competent minister consults with the administrative agency that has given the specified permission, etc. pursuant to the provisions of Article 39-2, paragraph (5) of the Act, he/she shall send the documents attached pursuant to the provisions of the preceding paragraph to said administrative agency.

(Special Provisions of the Small and Medium-Sized Enterprise Credit Insurance Act Pertaining to Business Revitalization Facilitation-Related Guarantee)

Article 20 The ratio specified by Cabinet Order as prescribed in Article 51, paragraph (3) of the Act shall be 1. 69% (or 1.44% in the case of negotiable instrument discount special guarantees and overdraft special guarantees) for ordinary insurance and unsecured insurance, or 0. 4% (or 0.34% in the case of negotiable instrument discount special guarantees and overdraft special guarantees) for special petty insurance, per year during a guaranteed period of borrowings.

(Organization of Small and Medium-Sized Enterprise Revitalization Support Council)

Article 21 (1) The small and medium-sized enterprise revitalization support council (hereinafter referred to as "council") shall have five or more board members.

(2) The council shall have a chairperson, who shall be elected from among the board members.

(3) The chairperson shall preside over the affairs of the council.

(4) The council shall designate, in advance, a board member who shall perform the duties of the chairperson when the chairperson is prevented from attending to his/her duties.

(5) An approved support institution shall have a Secretariat for the council.

(Term of Office of the Board Members)

Article 22 (1) The term of office of the board members shall be three years; provided, however, that the term of office of a board member chosen to fill a vacancy shall be the remaining term of office of his/her predecessor.

(2) The board members may be reappointed.

(Dismissal of the Board Members)

Article 23 (1) The head of an approved support institution shall dismiss a board member if the member has received an order for commencement of bankruptcy proceedings or has been sentenced to imprisonment without work or a greater punishment.

(2) The head of an approved support institution may dismiss any board member when he/she considers said member is unable to perform his/her duties owing to a mental or physical disorder or when he/she considers said member has acted contrary to his/her duties or the behavior of said member is not acceptable as a member of the council.

(Quorum and Method of Resolution)

Article 24 (1) The council may neither meet nor vote unless a majority of the total of the board members and heads of approved support institutions are present.

(2) The resolution of the council shall be made by a majority of the votes of the board members and heads of approved support institutions present at the meeting. In the case of a tie, the chairperson shall make a decision.

(Scope of Limited Partnerships for Investment to Which the Organization for Small and Medium Enterprises and Regional Innovation Make Contributions)

Article 25 (1) The limited partnerships for investment specified by Cabinet Order as prescribed in Article 47 of the Act shall be limited partnerships for investment which have pledged to manage the whole or part of the businesses listed in the items of Article 3, paragraph (1) of the Limited Partnership Act for Investment (Act No. 90 of 1998) to a person listed in the following items:

(i) the approved business reconstruction business operators set forth in Article 6, paragraph (1) of the Act, the approved management resource reutilization business operators set forth in Article 8, paragraph (1) of the Act, the approved resource productivity innovation business operators set forth in Article 12, paragraph (1) of the Act, the approved business innovation equipment installation business operators set forth in Article 15, paragraph (1) of the Act or the approved small and medium-sized enterprise succeeding business revitalization business operators set forth in Article 39-3, paragraph (1) of the Act;

(ii) a business operator who falls under either of the following conditions in the respect that it is particularly necessary to undertake the business reconstruction (meaning the business reconstruction set forth in Article 2, paragraph (4) of the Act):

(a) the ratio of the amount listed in any of the following 1. to 3. to the amount of net assets (meaning the amount obtained by deducting the amount of liabilities from the amount of assets on the balance sheet) as of the final day of the previous business year exceeds two percent:

1. the amount of net loss arose in the previous business year;

2. the total amount of net loss arose in each business year for a period from any of three business years preceding the previous business year to the previous business year; or

3. the amount of deficit as of the final day of the previous business year; or

(b) The amount of liabilities exceeds the amount of assets on the balance sheet as of the final day of the previous business year; or

(iii) affiliated business operators of the business operators listed in the preceding two items.

(2) The method for calculating the amounts of net assets, net loss and deficit provided for in item (ii), (a) of the preceding paragraph and the amounts of liabilities and assets provided for in (b) of the same item shall be specified by an Ordinance of the Ministry of Economy, Trade and Industry.

(Procedures for Reduction in Patent Fees)

Article 26 (1) The accredited TLO set forth in Article 56 of the Act who intends to be granted a reduction of patent fees pursuant to the provisions of the same Article shall submit an application stating the following matters to the Commissioner of the Patent Office:

(i) the name, and the domicile or residence of an applicant;

(ii) the filing number of the relevant patent application; and

(iii) his/her intention to be granted a reduction of patent fees.

(2) A document evidencing that the relevant patent application pertains to the implementation of the specified university technology transfer operations set forth in Article 2, paragraph (1) of the Act on the Promotion of Technology Transfer from Universities to Private Business Operators (Act No. 52 of 1998) (referred to as the "specified university technology transfer operations" in Article 28, paragraph (2)) shall be attached to the application provided for in the preceding paragraph.

(Reduction in Patent Fees)

Article 27 When the application set forth in paragraph (1) of the preceding Article has been submitted, the Commissioner of the Patent Office shall reduce the amount equivalent to half of the amount of patent fees for each year from the first to third year provided for in Article 107, paragraph (1) of the Patent Act (Act No. 121 of 1959).

(Procedures for Reduction in Fees to Request Application Examination)

Article 28 (1) The accredited TLO set forth in Article 56 of the Act who intends to be granted a reduction in fees for requesting an examination of the application pursuant to the provisions of Article 57 of the Act shall submit an application stating the following matters to the Commissioner of the Patent Office:

(i) the name, and the domicile or residence of an applicant;

(ii) the filing number of the relevant patent application; and

(iii) his/her intention to be granted a reduction in fees for requesting an examination of the application.

(2) A document evidencing that the relevant patent application pertains to the implementation of the specified university technology transfer operations shall be attached to the application provided for in the preceding paragraph.

(Reduction in Fees to Request Application Examination)

Article 29 When the application provided for in paragraph (1) of the preceding Article has been submitted, the Commissioner of the Patent Office shall reduce the amount equivalent to half of the amount of the fees for requesting an examination of the application which are calculated pursuant to the provisions of item (vi) of the Table in Article 1, paragraph (2) of the Order for the Patent Act and Other Related Fees (Cabinet Order No. 20 of 1960).