Atsumi & Sakai | 16 Apr 2010
The severe effects of the global financial crisis on the Japanese economy have led to the adoption of temporary legislation to protect small and medium-sized enterprises (SMEs) and mortgage borrowers. Among other things, the law provides that SMEs and mortgage borrowers may apply to financial institutions to revise their loan terms; lenders are required to help and advise borrowers in good faith.
Atsumi & Sakai | 15 Jan 2010
The enforcement of security interests has become a significant issue worldwide, with many receivables becoming uncollectable. Financial institutions providing financing to Japanese companies are looking for ways to create and manage security interests at the lowest cost. The security trust is an effective tool for doing precisely this.
Atsumi & Sakai | 9 Oct 2009
In light of the widely recognized need to promote financing for small businesses, new legislation has introduced a system for electronic monetary claims. Such claims are intended to accelerate accounts receivable financing, but they have many other potential uses, including the liquidation of syndicated loans and the stabilization of cash management systems.
Atsumi & Sakai | 10 Jul 2009
The Ministry of Justice has published a draft reform of the Law of Obligations, part of the Civil Code. The draft reform covers a wide range of topics, including several which could have a significant impact on banking practice: set-off, prescription, the assignment of claims and joint and several obligations.
Atsumi & Sakai | 3 Apr 2009
An amendment to the Ordinance on the Enforcement of Banking Law is the first provision in Japanese law that clearly allows a subsidiary of a bank or a bank holding company to conduct Islamic finance. It covers transactions that are loan transactions in substance, but not in form, including murabaha and ijara - both forms of financing for purchase or rental.