4.Protection Method

In case of a failure of any agricultural or fishery cooperative (hereinafter “AFC”) in Japan, depositors are protected through the following methods.

(1) Insurance payout (Insurance payout method)
The Agricultural and Fishery Co-operative Savings Insurance Corporation (hereinafter “SIC”) directly pays the insurance to the depositors of the failed AFC to the extent that the savings are protected.

(2) Repayment of savings (Financial assistance method)
The savings in the failed AFC are repaid through merger with or business transfer to other sound AFC.
In that case, SIC provides financial assistance such as monetary grant to the sound AFC.