Article 37Records of Securities, etc.

①The method specified by Cabinet Order prescribed in Article 10, paragraph (1), item (ii) (Nontaxability of Interest Income from Small Amounts of Deposits Held by Persons with Disabilities and Other Eligible Persons) of the Act is, when an individual entrusts money to a Loan Trust or a specific form of Bond-Based Investment Trust Under Public Offering for which the individual wishes to receive the application of that paragraph at the business office of a financial institution or other such place referred to in that item, a method by which the beneficial interest in that Loan Trust or specific form of Bond-Based Investment Trust Under Public Offering is entered or recorded in the transfer account book of a financial institution pertaining to the business office of that financial institution or other such place (where the beneficiary certificate representing that beneficial interest is in registered form, a method by which, for that beneficiary certificate, an entry or record to the effect that the provisions of Article 10, paragraph (1) of the Act apply is made at the business office of that financial institution or other such place in the books under Article 48, paragraph (3) (Organization and Retention of Books Concerning Tax-Exempt Savings at the business office of a Financial Institution or Other Such Place)).

②The method specified by Cabinet Order prescribed in Article 10, paragraph (1), item (iii) of the Act is, when an individual purchases Securities for which the individual wishes to receive the application of that paragraph at the business office of a financial institution or other such place referred to in that item, a method by which those Securities are entered or recorded in the transfer account book of a financial institution pertaining to the business office of that financial institution or other such place; provided, however, that where the Securities are long-term credit bank debentures under the provisions of Article 8 (Issuance of Long-Term Credit Bank Debentures) of the Long Term Credit Bank Act, specified corporate bonds under the provisions of Article 8, paragraph (1) (Issuance of Specified Corporate Bonds) of the Act on Financial Institutions' Merger and Conversion (including as applied mutatis mutandis pursuant to Article 55, paragraph (4) (Conversion of a Long Term Credit Bank into an Ordinary Bank) of that Act), national federation bonds under the provisions of Article 54-2-4, paragraph (1) (Issuance of National Federation Bonds) of the Shinkin Bank Act, Norinchukin Bank bonds under the provisions of Article 60 (Issuance of Norinchukin Bank Bonds) of the Norinchukin Bank Act (Act No. 93 of 2001), or Shoko Chukin bonds under the provisions of Article 33 (Issuance of Shoko Chukin Bonds) of the Shoko Chukin Bank Limited Act, the method is any one of a method by which they are entered or recorded in the transfer account book of that financial institution, a method by which they are kept at the business office of that financial institution or other such place, or, where the business office of that financial institution or other such place is not a person that handles payments pertaining to the interest on those Securities (hereinafter referred to as a "person handling payments" in this Section), a method by which they are kept by that person handling payments through the business office of that financial institution or other such place.

③Where an individual purchases Securities prescribed in the proviso to the preceding paragraph for which the individual wishes to receive the application of the provisions of Article 10, paragraph (1) of the Act and entrusts their custody to the person handling payments referred to in the preceding paragraph, the head of the business office of the financial institution or other such place referred to in the preceding paragraph that acts as intermediary for the custody must, when acting as intermediary for the custody, notify that person handling payments that those Securities are subject to the application of the provisions of Article 10, paragraph (1) of the Act.

④The head of the business office of a financial institution or other such place referred to in paragraph (1), the head of the business office of a financial institution or other such place referred to in paragraph (2) (excluding one that acts as intermediary for the custody referred to in that paragraph), or a person handling payments that has received the notice under the preceding paragraph must state or record, in the books concerning the transfer of beneficial interests in Loan Trusts or specific forms of Bond-Based Investment Trusts Under Public Offering or Securities or the books concerning the custody of Securities, that those beneficial interests or Securities are subject to the application of the provisions of Article 10, paragraph (1) of the Act.