Page:Japan by the Japanese (1904).djvu/411
To make loans on the security of immovable property, redeemable in annual instalments within a period of not more than fifty years; to make loans on a similar security, redeemable at a fixed term within a period of not more than five years, provided the total amount of such loans does not exceed one-tenth of the total amount of loans redeemable in annual instalments (the amounts of loans made on the security of any immovable property may not exceed two-thirds the value thereof, as appraised by the bank); to make loans without security to prefectures, districts, cities, towns, and other public bodies organized by law; to take up the mortgage debentures of Agricultural and Industrial Banks; to accept the custody of gold and silver bullion and negotiable instruments.
The bank is authorized, when at least one-fourth of its nominal capital is paid up, to issue mortgage debentures up to an amount not exceeding ten times its paid-up capital, provided the amount of such debentures does not exceed the total amount of outstanding loans redeemable in annual instalments and the debentures of Agricultural and Industrial Banks in hand. These debentures shall be redeemed at least twice a year by means of drawings in proportion to the total amount of redemption of loans redeemable in annual instalments in the same year, and the debentures of Agricultural and Industrial Banks in hand. Besides, for each issue of debentures, premiums of various amounts varying from 10 to 1,000 yen, are allotted to a certain number of the debentures determined by drawings. This is the single exception to the general prohibition of lottery or any lottery-like system, specially allowed to the Hypothec Bank, in order to attract smaller capitals to the subscription of its debentures.
The Industrial Bank of Japan, established in accordance with the Law of the Industrial Bank of Japan (Law No. 70, 1900) promulgated in 1900, is a joint stock company of a capital of 10,000,000 yen, of which 2,500,000 yen are paid up. As the Hypothec Bank and the Agricultural and Industrial Banks are intended to furnish long and cheap loans on the security of immovable property for agricultural and industrial enterprises, especially for the former, the Industrial Bank has for its special object the handling of bonds and shares of various kinds. It may be regarded as a kind of crédit mobilier, while the former are crédits fonciers with special forms and purposes. The business allowed to the bank by the law are:
- To make loans against the pledge of public loan bonds, local loan bonds, companies’ debentures and shares.