February 28, 2001
Revision:	June 28, 2001
	September 18, 2002
	April 11, 2006
	September 19, 2007
	May 22, 2009
	February 18, 2014
	August 7, 2015

1. Purpose

These Terms and Conditions prescribe the principles for a standby lending facility through which the Bank of Japan extends loans at the requests of counterparties with the conditions prespecified by the Bank, with the aim of facilitating money market operations and ensuring the smooth functioning and stability of financial markets.

2. Counterparties

(1)	Counterparties shall satisfy all the eligibility criteria listed below.

(a)	Counterparties shall satisfy one of the criteria listed below; however, the Resolution and Collection Corporation, bridge banks (as defined in Article 2, Paragraph 13 of the Deposit Insurance Act, Act No. 34, 1971), and specified bridge financial institutions (as defined in Article 126-34, Paragraph 3, Clause 5 of the Act) shall be excluded from these counterparties.
	i)	financial institutions (as defined in Article 37, Paragraph 1 of the Bank of Japan Act, Act No. 89, 1997)
	ii)	financial instruments firms (as defined in Article 10, Paragraph 1, Clause 2 of the Order for Enforcement of the Bank of Japan Act, Order No. 385,1997) that conduct the type I financial instruments business (as defined in Article 28, Paragraph 1 of the Financial Instruments and Exchange Act, Act No. 25, 1948)
	iii)	securities finance companies (as defined in Article 10, Paragraph 1, Clause 3 of the Order)
	iv)	tanshi companies (as defined in Article 10, Paragraph 1, Clause 4 of the Order

(b)	Counterparties shall have concluded agreements for bilateral electronic lending with the Bank.
(c)	Counterparties shall be deemed sufficiently creditworthy in light of their capital condition and other relevant information obtained through the Bank's on-site examinations.

(2)	Counterparties shall apply for access to the facility and be approved as eligible by the Bank in advance. In principle, the Bank shall review these approvals annually.

3. Location of Operations

(1)	The Bank's Head Office (Operations Department) or its branches.
(2)	Each counterparty shall specify in advance one business office from among the Bank's Head Office (Operations Department) and its branches as the location of operations.

4. Duration of Loans

Overnight.

5. Loan Rate and Collection of Interest

(1)	The interest rate applied shall be the basic loan rate, with the exception that the basic loan rate plus 2% shall be applied to counterparties who have used on a cumulative-business-day basis the facility longer than the maximum number of days stipulated in (2) during one reserve maintenance period (one month as defined in Article 7, Paragraph 3 of the Law Concerning Reserve Deposit Requirement System, Law No. 135 of 1957).
(2)	The maximum number of days for which counterparties can use the facility at the basic loan rate is 5, with the exception that, when deemed necessary in conducting money market operations, the Bank can raise the maximum number of days to more than 5, but within the limit of half the number of business days during the reserve maintenance period. In this case, the Bank shall announce the new maximum number of days accordingly.
(3)	The interest on a loan shall be calculated based on the rate determined by the method described in (1) for the number of days from the first day after the disbursement of the loan up to the maturity date, and the interest shall be collected after the loan reaches maturity.

6. Amount of Loans

The amount of loans shall be decided in accordance with the requests by counterparties; provided that the amount shall not exceed the value of collateral submitted by the counterparty to the Bank pursuant to item 7 of these terms and conditions.

7. Collateral

(1)	The Bank shall accept eligible collateral from counterparties in advance.
(2)	"Guidelines on Eligible Collateral" (Policy Board Decision on October 13, 2000) and "Collateral Guidelines on Eligible Foreign Bonds" (Policy Board Decision on May 22, 2009) shall apply to the collateral for the loans.

8. Access to the Facility

(1)	The Bank shall extend loans at the requests of counterparties.
(2)	Loans shall be provided in the form of electronic lending.

9. Exception

If the Bank specifically deems it necessary in order to conduct money market operations smoothly, it can make exceptions to the terms and conditions stipulated in 2, 3, 5 (3), 6, or 8 above, and, for example, set a limit to the amount of loans or reject requests for loans.