Principal Terms and Conditions Pertaining to the Sale of Bills
(For immediate release)
April 27, 2000
Bank of Japan
Unless otherwise stipulated, these Terms and Conditions govern the Bank of Japan's sale of bills issued by it, with the aim of facilitating money market operations.
2. Location of the Operations
At the Bank of Japan's head office (Operations Department).
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), domestic and foreign securities companies (Article 10, Paragraph 1, Clause 2 of the Bank of Japan Law Enforcement Order <Order No.385 of 1997> and Article 10, Paragraph 1, Clause 4 of the same Order, respectively), securities finance companies (Article 10, Paragraph 1, Clause 3 of the Order), and tanshi companies (Article 10, Paragraph 1, Clause 5 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 maturity date of the bills must be within three months starting from the next date of sale.
5. Selling Method
Bills shall be sold through a discount method.The rate of discount is determined by the conventional method in competitive auction.
6. Sale Dates and Amount of Bills to be Sold
Taking into account the situation in financial markets, the Bank shall determine necessary details, including sale dates, amount of bills to be sold, and counterparties every time it conducts.
These Terms and Conditions shall become effective on April 27, 2000.