Principal Terms and Conditions Pertaining to the Sale of Bills
|April 27, 2000|
|Revision:||October 13, 2000|
|March 19, 2001|
|September 18, 2002|
|September 19, 2007|
These Terms and Conditions prescribe the principles for the Bank of Japan's sale of bills issued by the Bank with the aim of facilitating money market operations.
2. Location of the Operations
At the Head Office (Operations Department) of the Bank.
3. Eligible Counterparties
Eligible counterparties shall, pursuant to the Bank's relevant rules, be selected from financial institutions (as defined in Article 37, Paragraph 1 of the Bank of Japan Law, Law No. 89, 1997, excluding the Resolution and Collection Corporation and bridge banks [as defined in Article 2, Paragraph 13 of the Deposit Insurance Law, Law No. 34, 1971]), financial instruments firms (Article 10, Paragraph 1, Clause 2 of the Bank of Japan Law Enforcement Order [Order No. 385 of 1997]) that conduct the first financial instruments business (Article 28, Paragraph 1 of the Financial Instruments and Exchange Law, Law No. 25, 1948), securities finance companies (Article 10, Paragraph 1, Clause 3 of the Order), and tanshi companies (Article 10, Paragraph 1, Clause 4 of the Order).
4. Bills to be Sold
The Bank shall sell bills whose drawers, drawees, and payees are the Bank itself, and whose acceptance the Bank has completed. The date of maturity of the bills must be within three months from the next date of sale.
5. Selling Method
Bills shall be sold through a discount method. The rate of discount is determined by multiple-rate competitive auction.
6. Dates for sales, Amount of Bills to be Sold, etc.
Taking into account conditions in financial markets, the Bank shall determine specifications necessary for sales, including dates for sales, amount of bills to be sold, and counterparties, for each sale.