PART 535 -- IRANIAN ASSETS CONTROL REGULATIONS =============================================== Pt. 535 Subpart A -- Relation of This Part to Other Laws and Regulations Sec. 535.101 Relation of this part to other laws and regulations. Subpart B -- Prohibitions 535.201 Transactions involving property in which Iran or Iranian entities have an interest. 535.202 Transactions with respect to securities registered or inscribed in the name of Iran. 535.203 Effect of transfers violating the provisions of this part. 535.208 Evasions; effective date. 535.210 Direction for establishing an escrow agreement. 535.211 Direction involving transfers by the Federal Reserve Bank concerning certain Iranian property. 535.212 Direction to transfer property in which Iran or an Iranian entity has an interest by branches and offices of United States banks located outside the United States. 535.213 Direction involving property held by offices of banks in the United States in which Iran or an Iranian entity has an interest. 535.214 Direction involving other financial assets in which Iran or an Iranian entity has an interest held by any person subject to the jurisdiction of the United States. 535.215 Direction involving other properties in which Iran or an Iranian entity has an interest held by any person subject to the jurisdiction of the United States. 535.216 Prohibition against prosecution of certain claims. 535.217 Blocking of property of the former Shah of Iran and of certain other Iranian nationals. 535.218 Prohibitions and nullifications with respect to property described in 535.211, 535.212, 535.213, 535.214 and 535.215 and standby letters of credit. 535.219 Discharge of obligation by compliance with this part. 535.220 Timing of transfers required by 535.212. 535.221 Compliance with directive provisions. 535.222 Suspension of claims eligible for Claims Tribunal. Subpart C -- General Definitions 535.301 Iran; Iranian Entity. 535.308 Person. 535.310 Transfer. 535.311 Property; property interests. 535.312 Interest. 535.316 License. 535.317 General license. 535.318 Specific license. 535.320 Domestic bank. 535.321 United States; continental United States. 535.329 Person subject to the jurisdiction of the United States. 535.333 Properties. 535.334 Act of the Government of Iran. 535.335 Claim arising out of events in Iran. 535.337 Funds. Subpart D -- Interpretations 535.401 Reference to amended sections. 535.402 Effect of amendment of sections of this part or of other orders, etc. 535.403 Termination and acquisition of an interest of Iran or an Iranian entity. 535.413 Transfers between dollar accounts held for foreign banks. 535.414 Payments to blocked accounts under 535.508. 535.415 Payment by Iranian entities of obligations to persons within the United States. 535.416 Letters of credit. 535.420 Transfers of accounts under 535.508 from demand to interest-bearing status. 535.421 Prior contractual commitments not a basis for licensing. 535.433 Central Bank of Iran. 535.437 Effect on other authorities. 535.438 Standby letters of credit, performance or payment bonds and similar obligations. 535.440 Commercially reasonable interest rates. 535.441 Settlement Agreement regarding small claims. Subpart E -- Licenses, Authorizations and Statemens of Licensing Policy 535.502 Effect of license or authorization. 535.503 Exclusion from licenses and authorizations. 535.504 Certain judicial proceedings with respect to property of Iran or Iranian entities. 535.508 Payments to blocked accounts in domestic banks. 535.528 Certain transactions with respect to Iranian patents, trademarks and copyrights authorized. 535.531 Payment of certain checks and drafts. 535.532 Completion of certain securities transactions. 535.540 Disposition of certain tangible property. 535.566 Unblocking of foreign currency deposits held by U.S.-owned or controlled foreign firms. 535.567 Payment under advised letters of credit. 535.568 Certain standby letters of credit and performance bonds. 535.569 Licensed letter of credit transactions; forwarding of documents. 535.576 Payment of non-dollar letters of credit to Iran. 535.579 Authorization of new transactions concerning certain Iranian property. 535.580 Necessary living expenses of relatives of the former Shah of Iran. Subpart F -- Reports 535.601 Reports. 535.602 Reports to be furnished on demand. 535.615 Reports on Form TFR - 615. 535.616 Reports on Form TFR - 616. 535.618 Report of contested property. 535.619 Report on Form TFR - 619. 535.620 Report on transfer of domestic bank assets and financial assets held by nonbanking institutions. 535.621 Registration of bank claims against the escrow account at the Bank of England. 535.622 Registration of bank claims against the No. 1 Account, and the escrow account at the Bank of England (Dollar Account No. 2); registration of January Interest claims. 535.625 Reports on Form TFR - 625. Subpart G -- Penalties 535.701 Penalties. 535.702 Prepenalty notice. 535.703 Presentation responding to prepenalty notice. 535.704 Penalty notice. 535.705 Referral to United States Department of Justice. Subpart H -- Procedures 535.801 Licensing. 535.802 Unblocking. 535.803 Decision. 535.804 Records and reporting. 535.805 Amendment, modification, or revocation. 535.806 Rule making. 535.807 Rules governing availability of information. Subpart I -- Miscellaneous Provisions 535.901 Dollar accounts at banks abroad. 535.902 Set-offs by U.S. owned or controlled firms abroad. 535.904 Payment by Iranian entities of obligations to persons within the United States. 535.905 Paperwork Reduction Act notice. Authority: Secs. 201 - 207, 91 Stat. 1626; 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685. Source: 44 FR 65956, Nov. 15, 1979, unless otherwise noted. Subpart A -- Relation of This Part to Other Laws and Regulations 535.101 Relation of this part to other laws and regulations. (a) This part is independent of parts 500, 505, 515, 520 and 530 of this chapter. Those parts do not relate to Iran. No license or authorization contained in or issued pursuant to such parts shall be deemed to authorize any transaction prohibited by this part, nor shall any license or authorization issued pursuant to any other provision of law (except this part) be deemed to authorize any transaction so prohibited. (b) No license or authorization contained in or issued pursuant to this part shall be deemed to authorize any transaction to the extent that it is prohibited by reason of the provisions of any law or any statute other than the International Emergency Economic Powers Act, as amended, or any proclamation order or regulation other than those contained in or issued pursuant to this part. Subpart B -- Prohibitions 535.201 Transactions involving property in which Iran or Iranian entities have an interest. No property subject to the jurisdiction of the United States or which is in the possession of or control of persons subject to the jurisdiction of the United States in which on or after the effective date Iran has any interest of any nature whatsoever may be transferred, paid, exported, withdrawn or otherwise dealt in except as authorized. [45 FR 24432, Apr. 9, 1980] 535.202 Transactions with respect to securities registered or inscribed in the name of Iran. Unless authorized by a license expressly referring to this section, the acquisition, transfer (including the transfer on the books of any issuer or agent thereof), disposition, transportation, importation, exportation, or withdrawal of, or the endorsement or guaranty of signatures on or otherwise dealing in any security (or evidence thereof) registered or inscribed in the name of any Iranian entity is prohibited irrespective of the fact that at any time (either prior to, on, or subsequent to the effective date) the registered or inscribed owner thereof may have, or appears to have, assigned, transferred or otherwise disposed of any such security. 535.203 Effect of transfers violating the provisions of this part. (a) Any transfer after the effective date which is in violation of any provision of this part or of any regulation, ruling, instruction, license, or other direction or authorization thereunder and involves any property in which Iran has or has had an interest since such effective date is null and void and shall not be the basis for the assertion or recognition of any interest in or right, remedy, power or privilege with respect to such property. (b) No transfer before the effective date shall be the basis for the assertion or recognition of any right, remedy, power, or privilege with respect to, or interest in, any property in which Iran has or has had an interest since the effective date unless the person with whom such property is held or maintained had written notice of the transfer or by any written evidence had recognized such transfer prior to such effective date. (c) Unless otherwise provided, an appropriate license or other authorization issued by or pursuant to the direction or authorization of the Secretary of the Treasury before, during or after a transfer shall validate such transfer or render it enforceable to the same extent as it would be valid or enforceable but for the provisions of the International Emergency Economic Powers Act and this part and any ruling, order, regulation, direction or instruction issued hereunder. (d) Transfers of property which otherwise would be null and void, or unenforceable by virtue of the provisions of this section shall not be deemed to be null and void, or unenforceable pursuant to such provisions, as to any person with whom such property was held or maintained (and as to such person only) in cases in which such person is able to establish each of the following: (1) Such transfer did not represent a willful violation of the provisions of this part by the person with whom such property was held or maintained; (2) The person with whom such property was held or maintained did not have reasonable cause to know or suspect, in view of all the facts and circumstances known or availabe to such person, that such transfer required a license or authorization by or pursuant to the provision of this part and was not so licensed or authorized or if a license or authorization did purport to cover the transfer, that such license or authorization had been obtained by misrepresentation or the withholding of material facts or was otherwise fraudulently obtained; and (3) Promptly upon discovery that: (i) Such transfer was in violation of the provisions of this part or any regulation, ruling, instruction, license or other direction or authorization thereunder, or (ii) Such transfer was not licensed or authorized by the Secretary of the Treasury, or (iii) If a license did purport to cover the transfer, such license had been obtained by misrepresentation or the withholding of material facts or was otherwise fraudulently obtained; the person with whom such property was held or maintained filed with the Treasury Department, Washington, D.C., a report in triplicate setting forth in full the circumstances relating to such transfer. The filing of a report in accordance with the provisions of this paragraph shall not be deemed to be compliance or evidence of compliance with paragraphs (d) (1) and (2) of this section. (e) Unless licensed or authorized pursuant to this part any attachment, judgment, decree, lien, execution, garnishment, or other judicial process is null and void with respect to any property in which on or since the effective date there existed an interest of Iran. (f) For the purpose of this section the term ``property'' includes gold, silver, bullion, currency, coin, credit, securities (as that term is defined in section 2(l) of the Securities Act of 1933, as amended), bills of exchange, notes, drafts, acceptances, checks, letters of credit, book credits, debts, claims, contracts, negotiable documents of title, mortgages, liens, annuities, insurance policies, options and futures in commodities, and evidences of any of the foregoing. The term ``property'' shall not, except to the extent indicated, be deemed to include chattels or real property. [44 FR 65956, Nov. 15, 1979, as amended at 45 FR 24432, Apr. 9, 1980] 535.208 Evasions; effective date. (a) Any transaction for the purpose of, or which has the effect of, evading or avoiding any of the prohibitions set forth in this subpart is hereby prohibited. (b) The term ``effective date'' means, with respect to transactions prohibited in 535.201, 8:10 a.m. eastern standard time, November 14, 1979, and with respect to the transactions prohibited in 535.206 and 535.207, 4:19 p.m. eastern standard time, April 7, 1980. (c) With respect to any amendments of the foregoing sections or any other amendments to this part the term ``effective date'' shall mean the date of filing with the Federal Register. [45 FR 24433, Apr. 9, 1980, as amended at 45 FR 26940, Apr. 21, 1980] 535.210 Direction for establishing an escrow agreement. (a) The Federal Reserve Bank of New York, as fiscal agent of the United States, is licensed, authorized, directed and compelled to enter into escrow and related agreements under which certain money and other assets shall be credited to escrow accounts by the Bank of England or the N.V. Settlement Bank of the Netherlands. (b) The Federal Reserve Bank of New York is licensed, authorized, directed and compelled, as fiscal agent of the United States, to receive certain money and other assets in which Iran or its agencies, instrumentalities or controlled entities have an interest and to hold or transfer such money and other assets, and any earnings or interest payable thereon, in such manner and at such times as the Secretary of the Treasury deems necessary to fulfill the rights and obligations of the United States under the Declaration of the government of the Democratic and Popular Republic of Algeria dated January 19, 1981, and the Undertakings of the Government of the United States of America and the Government of Islamic Republic of Iran with respect to the Declaration of the Government of the Democratic and Popular Republic of Algeria, and the escrow and related agreements described in paragraph (a) of this section. Such money and other assets may be invested, or not, at the discretion of the Federal Reserve Bank of New York, as fiscal agent of the United States. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14333, Feb. 26, 1981, as amended at 46 FR 42063, Aug. 19, 1981] 535.211 Direction involving transfers by the Federal Reserve Bank concerning certain Iranian property. The Federal Reserve Bank of New York is licensed, authorized, directed and compelled to transfer to its account at the Bank of England, and subsequently to transfer to accounts in the name of the Central Bank of Algeria as Escrow Agent at the Bank of England that are established pursuant to an escrow and related agreements approved by the Secretary of the Treasury, all gold bullion, together with all other assets in its custody (or the cash equivalent thereof), of Iran or its agencies, instrumentalities or controlled entities. Such transfers, and whatever further related transactions are deemed appropriate by the Secretary of the Treasury, shall be executed when and in the manner directed by the Secretary of the Treasury. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14333, Feb. 26, 1981] 535.212 Direction to transfer property in which Iran or an Iranian entity has an interest by branches and offices of United States banks located outside the United States. (a) Any branch or office of a United States bank or subsidiary thereof, which branch, office or subsidiary is located outside the territory of the United States, and which, on or after 8:10 a.m., e.s.t., on November 14, 1979: (1) Has been or is in possession of funds or securities legally or beneficially owned by the Government of Iran or its agencies, instrumentalities, or controlled entities, or (2) has carried or is carrying on its books deposits standing to the credit of or beneficially owned by such government, its agencies, instrumentalities or controlled entities, is licensed, authorized, directed and compelled to transfer such funds, securities and deposits, held on January 19, 1981, including interest from November 14, 1979, at commercially reasonable rates, to the account of the Federal Reserve Bank of New York, as fiscal agent of the U.S., at the Bank of England, to be held or transferred as directed by the Secretary of the Treasury. The funds, securities and deposits described in this section shall be further transferred as provided for in the Declarations of the Government of the Democratic and Popular Republic of Algeria and the Undertakings of the Government of the United States of America and the Government of the Islamic Republic of Iran with respect to the Declaration. (b) Any banking institution subject to the jurisdiction of the United States that has executed a set-off on or after 8:10 a.m., e.s.t., November 14, 1979, against Iranian funds, securities or deposits referred to in paragraph (a) of this section is hereby licensed, authorized, directed and compelled to cancel such set-off and to transfer all funds, securities and deposits which have been subject to such set-off, including interest from November 14, 1979, at commercially reasonable rates, pursuant to the provisions of paragraph (a) of this section. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14333, Feb. 26, 1981] 535.213 Direction involving property held by offices of banks in the United States in which Iran or an Iranian entity has an interest. (a) Any branch or office of a bank, which branch or office is located within the United States and is, on the effective date of this section, either: (1) In possession of funds or securities legally or beneficially owned by the Government of Iran or its agencies, instrumentalities or controlled entities, or (2) carrying on its books deposits standing to the credit of or beneficially owned by such government or its agencies, instrumentalities or controlled entities, is licensed, authorized, directed and compelled to transfer such funds, securities and deposits, held on January 19, 1981, including interest from November 14, 1979, at commercially reasonable rates, to the Federal Reserve Bank of New York, as fiscal agent of the U.S., to be held or transferred as directed by the Secretary of the Treasury. (b) Transfer of funds, securities or deposits under paragraph (a) of this section shall be in accordance with the provisions of 535.221 of this part, and such funds, securities or deposits, plus interest at commercially reasonable rates from November 14, 1979, to the transfer date, shall be received by the Federal Reserve Bank of New York by 11 a.m., E.D.T., July 10, 1981. For periods for which rates are to be determined in the future, whether by agreement between Iran and the bank or otherwise (see 535.440), interest for such periods shall be transferred to the Federal Reserve Bank of New York promptly upon such determination. Such interest shall include interest at commercially reasonable rates from July 19, 1981, on the interest which would have accrued by July 19, 1981. (c) Any funds, securities or deposits subject to a valid attachment, injunction or other like proceeding or process not affected by 535.218 need not be transferred as otherwise required by this section. (d) The transfers of securities required by this section shall be made notwithstanding 535.202. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 26477, May 13, 1981, as amended at 46 FR 30341, June 8, 1981; 46 FR 35106, July 7, 1981; 48 FR 253, Jan. 4, 1983] 535.214 Direction involving other financial assets in which Iran or an Iranian entity has an interest held by any person subject to the jurisdiction of the United States. (a) Any person subject to the jurisdiction of the United States which is not a banking institution and is on January 19, 1981, in possession or control of funds or securities of Iran or its agencies, instrumentalities or controlled entities is licensed, authorized, directed and compelled to transfer such funds or securities to the Federal Reserve Bank of New York, as fiscal agent of the U.S. to be held or transferred as directed by the Secretary of the Treasury. However, such funds and securities need not be transferred until any disputes (not relating to any attachment, injunction or similar order) as to the entitlement of Iran and its entities to them are resolved. (b) Transfers of funds and securities under paragraph (a) of this section shall be in accordance with the provisions of 535.221 of this part, and such funds and securities shall be received by the Federal Reserve Bank of New York by 11 a.m., E.D.T., July 10, 1981. (c) Any funds, securities or deposits subject to a valid attachment, injunction or other like proceeding or process not affected by 535.218 need not be transferred as otherwise required by this section. (d) The transfers of securities required by this section shall be made notwithstanding 535.202. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 26447, May 13, 1981, as amended at 46 FR 30341, June 8, 1981; 46 FR 35107, July 7, 1981] 535.215 Direction involving other properties in which Iran or an Iranian entity has an interest held by any person subject to the jurisdiction of the United States. (a) Except as provided in paragraphs (b) and (c) of this section, all persons subject to the jurisdiction of the United States in possession or control of properties, as defined in 535.333 of this part, not including funds and securities owned by Iran or its agencies, instrumentalities or controlled entities are licensed, authorized, directed and compelled to transfer such properties held on January 19, 1981 as directed after that date by the Government of Iran, acting through its authorized agent. Except where specifically stated, this license, authorization and direction does not relieve persons subject to the jurisdiction of the United States from existing legal requirements other than those based upon the International Emergency Economic Powers Act. (b) Any properties subject to a valid attachment, injunction or other like proceeding or process not affected by 535.218 need not be transferred as otherwise required by this section. (c) Notwithstanding paragraph (a) of this section, persons subject to the jurisdiction of the United States, including agencies, instrumentalities and entities controlled by the Government of Iran, who have possession, custody or control of blocked tangible property covered by 535.201, shall not transfer such property without a specific Treasury license, if the export of such property requires a specific license or authorization pursuant to the provisions of any of the following acts, as amended, or regulations in force with respect to them: the Export Administration Act, 50 U.S.C. App. 2403, et seq., the Aims Export Control Act, 22 U.S.C. 2751, et seq., the Atomic Energy Act, 42 U.S.C. 2011, et seq., or any other act prohibiting the export of such property, except as licensed. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14334, Feb. 26, 1981, as amended at 46 FR 26477, May 13, 1981; 49 FR 21322, May 21, 1984] 535.216 Prohibition against prosecution of certain claims. (a) Persons subject to the jurisdiction of the United States are prohibited from prosecuting in any court within the United States or elsewhere, whether or not litigation was commenced before or after January 19, 1981, any claim against the Government of Iran arising out of events occurring before January 19, 1981 relating to: (1) The seizure of the hostages on November 4, 1979; (2) The subsequent detention of such hostages; (3) Injury to United States property or property of United States nationals within the United States Embassy compound in Tehran after November 3, 1979; or (4) Injury to United States nationals or their property as a result of popular movements in the course of the Islamic Revolution in Iran which were not an act of the Government of Iran. (b) Any persons who are not United States nationals are prohibited from prosecuting any claim described in paragraph (a) of this section in any court within the United States. (c) No further action, measure or process shall be taken after the effective date of this section in any judicial proceeding instituted before the effective date of this section which is based upon any claim described in paragraph (a) of this section, and all such proceedings shall be terminated. (d) No judicial order issued in the course of the proceedings described in paragraph (c) of this section shall be enforced in any way. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14334, Feb. 26, 1981] 535.217 Blocking of property of the former Shah of Iran and of certain other Iranian nationals. (a) For the purpose of protecting the rights of litigants in courts within the United States, all property and assets located in the United States in the control of the estate of Mohammad Reza Pahlavi, the former Shah of Iran, or any close relative of the former Shah served as a defendant in litigation in such courts brought by Iran seeking the return of property alleged to belong to Iran, is blocked as to each such estate or person, until all such litigation against such estate or person is finally terminated. This provision shall apply only to such estate or persons as to which Iran has furnished proof of service to the Office of Foreign Assets Control and which the Office has identified in paragraph (b) of this section. (b) [No persons presently listed]. (c) The effective date of this section is January 19, 1981, except as otherwise specified after the name of a person identified in paragraph (b) of this section. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 26478, May 13, 1981, as amended at 61 FR 8216, Mar. 4, 1996; 61 FR 15382, Apr. 8, 1996] 535.218 Prohibitions and nullifications with respect to property described in 535.211, 535.212, 535.213, 535.214 and 535.215 and standby letters of credit. (a) All licenses and authorizations for acquiring or exercising any right, power or privilege, by court order, attachment, or otherwise, including the license contained in 535.504, with respect to the property described in 535.211, 535.212, 535.213, 535.214 and 535.215 are revoked and withdrawn. (b) All rights, powers and privileges relating to the property described in 535.211, 535.212, 535.213, 535.214 and 535.215 and which derive from any attachment, injunction, other like proceedings or process, or other action in any litigation after November 14, 1979, at 8:10 a.m., e.s.t., including those derived from 535.504, other than rights, powers and privileges of the Government of Iran and its agencies, instrumentalities and controlled entities, whether acquired by court order or otherwise, are nullified, and all persons claiming any such right, power or privilege are hereafter barred from exercising the same. (c) All persons subject to the jurisdiction of the United States are prohibited from acquiring or exercising any right, power or privilege, whether by court order or otherwise, with respect to property (and any income earned thereon) referred to in 535.211, 535.212, 535.213, 535.214 and 535.215. (d) The prohibitions contained in paragraph (c) of this section shall not apply to Iran, its agencies, instrumentalities or controlled entities. (e) Paragraph (a) of this section does not revoke or withdraw specific licenses authorizing the operation of blocked accounts which were issued prior to January 19, 1981, and which do not relate to litigation. Such licenses shall be deemed to be revoked as of May 31, 1981, unless extended by general or specific license issued subsequent to February 26, 1981. (f) The provisions of paragraphs (a), (b) and (c) of this section shall apply to contested and contingent liabilities and property interests of the Government of Iran, its agencies, instrumentalities or controlled entities, including debts. (g) All existing attachments on standby letters of credit, performance bonds and similar obligations and on substitute blocked accounts established under 535.568 relating to standby letters of credit, performance bonds and similar obligations are nullified and all future attachments on them are hereafter prohibited. All rights, powers and privileges relating to such attachments are nullified and all persons hereafter are barred from asserting or exercising any rights, powers or privileges derived therefrom. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14334, Feb. 26, 1981, as amended at 46 FR 26477, May 13, 1981] 535.219 Discharge of obligation by compliance with this part. Compliance with 535.210, 535.211, 535.212, 535.213, 535.214 and 535.215, or any other orders, regulations, instructions or directions issued pursuant to this part licensing, authorizing, directing or compelling the transfer of the assets described in those sections, shall, to the extent thereof, be a full acquittance and discharge for all purposes of the obligation of the person making the same. No person shall be held liable in any court for or with respect to anything done or omitted in good faith in connection with the administration of, or pursuant to and in reliance on, such orders, regulations, instructions or directions. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14334, Feb. 26, 1981] 535.220 Timing of transfers required by 535.212. Transfers required by 535.212 to the account of the Federal Reserve Bank of New York, as fiscal agent of the U.S., at the Bank of England shall be executed no later than 6 a.m., e.s.t., January 20, 1981, when the banking institution had knowledge of the terms of Executive Order 12278 of January 19, 1981. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14335, Feb. 26, 1981] 535.221 Compliance with directive provisions. (a) Transfers of deposits or funds required by 535.213 and 535.214 of this part shall be effected by means of wire transfer to the Federal Reserve Bank of New York for credit to the following accounts: with respect to transfers required by 535.213, to the Federal Reserve Bank of New York, as fiscal agent of the United States, Special Deposit Account A, and with respect to transfers required by 535.214, to the Federal Reserve Bank of New York, as fiscal agent of the United States, Special Deposit Account B. (b) Securities to be transferred as required by 535.213 and 535.214 of this part that are not presently registered in the name of Iran or an Iranian entity shall be delivered to the Federal Reserve Bank of New York in fully transferable form (bearer or endorsed in blank), accompanied by all necessary transfer documentation, e.g., stock or bond powers or powers of attorney. All securities transferred, including those presently registered in the name of Iran or an Iranian entity, shall be accompanied by instructions to deposit such securities to the following accounts: with respect to transfers required by 535.213, to the Federal Reserve Bank of New York, as fiscal agent of the United States, Special Custody Account A, and with respect to transfers required by 535.214, to the Federal Reserve Bank of New York, as fiscal agent of the United States, Special Custody Account B. (1) Securities which are in book-entry form shall be transferred by wire transfer to the Federal Reserve Bank of New York to the appropriate account named in this paragraph. (2) Definitive securities which are in bearer or registered form shall be hand delivered or forwarded by registered mail, insured, to the Federal Reserve Bank of New York, Safekeeping Department, to the appropriate account named in this paragraph. (c) If a security in which Iran or an Iranian entity has an interest is evidenced by a depositary receipt or other evidence of a security, the legal owner of such security shall arrange to have the security placed in fully transferable form (bearer or endorsed in blank) as provided in paragraph (b) of this section, and transferred pursuant to paragraph (b)(2) of this section. (d) Any person delivering a security or securities to the Federal Reserve Bank of New York under paragraph (b) of this section, shall provide the Bank at least 2 business days prior written notice of such delivery, specifically identifying the sending person, the face or par amount and type of security, and whether the security is in bearer, registered or book-entry form. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 30341, June 8, 1981] 535.222 Suspension of claims eligible for Claims Tribunal. (a) All claims which may be presented to the Iran-United States Claims Tribunal under the terms of Article II of the Declaration of the Government of the Democratic and Popular Republic of Algeria Concerning the Settlement of Claims by the Government of the United States of America and the Government of the Islamic Republic of Iran, dated January 19, 1981, and all claims for equitable or other judicial relief in connection with such claims, are hereby suspended, except as they may be presented to the Tribunal. During the period of this suspension, all such claims shall have no legal effect in any action now pending in any court in the United States, including the courts of any state and any locality thereof, the District of Columbia and Puerto Rico, or in any action commenced in any such court after the effective date of this section. (b) Nothing in paragraph (a) of this section shall prohibit the assertion of a defense, set-off or counterclaim in any pending or subsequent judicial proceeding commenced by the Government of Iran, any political subdivision of Iran, or any agency, instrumentality or entity controlled by the Government of Iran or any political subdivision thereof. (c) Nothing in this section precludes the commencement of an action after the effective date of this section for the purpose of tolling the period of limitations for commencement of such action. (d) Nothing in this section shall require dismissal of any action for want of prosecution. (e) Suspension under this section of a claim or a portion thereof submitted to the Iran-United States Claims Tribunal for adjudication shall terminate upon a determination by the Tribunal that it does not have jurisdiction over such claim or portion thereof. (f) A determination by the Iran-United States Claims Tribunal on the merits that a claimant is not entitled to recover on a claim or part thereof shall operate as a final resolution and discharge of such claim or part thereof for all purposes. A determination by the Tribunal that a claimant shall have recovery on a claim or part thereof in a specified amount shall operate as a final resolution and discharge of such claim or part thereof for all purposes upon payment to the claimant of the full amount of the award including any interest awarded by the Tribunal. (g) Nothing in this section shall apply to any claim concerning the validity or payment of a standby letter of credit, performance or payment bond, or other similar instrument that is not the subject of a determination by the Iran-United States Claims Tribunal on the merits thereof. However, assertion of such a claim through judicial proceedings is governed by the general license in 535.504. A determination by the Iran-United States Claims Tribunal on the merits that a standby letter of credit, performance bond or similar obligation is invalid, has been paid or otherwise discharged, or has no further purpose, or any similar determination shall operate as a final resolution and discharge or Iran's interest therein and, notwithstanding the provisions of 535.504, may be enforced by a judicial proceeding to obtain a final judicial judgment or order permanently disposing of that interest. (h) The effective date of this section is February 24, 1981. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14335, Feb. 26, 1981, as amended at 47 FR 29529, July 7, 1982; 56 FR 6546, Feb. 15, 1991] Subpart C -- General Definitions 535.301 Iran; Iranian Entity. (a) The term Iran and Iranian Entity includes: (1) The state and the Government of Iran as well as any political subdivision, agency, or instrumentality thereof or any territory, dependency, colony, protectorate, mandate, dominion, possession or place subject to the jurisdiction thereof; (2) Any partnership, association, corporation, or other organization substantially owned or controlled by any of the foregoing; (3) Any person to the extent that such person is, or has been, or to the extent that there is reasonable cause to believe that such person is, or has been, since the effective date acting or purporting to act directly or indirectly on behalf of any of the foregoing; (4) Any territory which on or since the effective date is controlled or occupied by the military, naval or police forces or other authority of Iran; and (5) Any other person or organization determined by the Secretary of the Treasury to be included within paragraph (a) of this section. (b) A person specified in paragraph (a)(2) of this section shall not be deemed to fall within the definition of Iran solely by reason of being located in, organized under the laws of, or having its principal place of business in, Iran. 535.308 Person. The term person means an individual, partnership, association, corporation or other organization. [45 FR 24433, Apr. 9, 1980] 535.310 Transfer. The term transfer shall mean any actual or purported act or transaction, whether or not evidenced by writing, and whether or not done or performed within the United States, the purpose, intent or effect of which is to create, surrender, release, transfer, or alter, directly or indirectly, any right, remedy, power, privilege, or interest with respect to any property and, without limitation upon the foregoing, shall include the making, execution, or delivery of any assignment, power, conveyance, check, declaration, deed, deed of trust, power of attorney, power of appointment, bill of sale, mortgage, receipt, agreement, contract, certificate, gift, sale, affidavit, or statement; the appointment of any agent, trustee, or fiduciary; the creation or transfer of any lien; the issuance, docketing, filing, or the levy of or under any judgement, decree, attachment, execution, or other judicial or administrative process or order, or the service of any garnishment; the acquisition of any interest of any nature whatsoever by reason of a judgment or decree of any foreign country; the fulfillment of any condition, or the exercise of any power of appointment, power of attorney, or other power. [44 FR 75352, Dec. 19, 1979] 535.311 Property; property interests. Except as defined in 535.203(f) for the purposes of that section, the terms property and property interest or property interests shall include, but not by way of limitation, money, checks, drafts, bullion, bank deposits, savings accounts, debts, indebtedness, obligations, notes, debentures, stocks, bonds, coupons, any other financial securities, bankers' acceptances, mortgages, pledges, liens or other rights in the nature of security, warehouse receipts, bills of lading, trust receipts, bills of sale, any other evidences of title, ownership or indebtedness, powers of attorney, goods, wares, merchandise, chattels, stocks on hand, ships, goods on ships, real estate mortgages, deeds of trust, vendors' sales agreements, land contracts, real estate and any interest therein, leaseholds, grounds rents, options, negotiable instruments, trade acceptances, royalties, book accounts, accounts payable, judgments, patents, trademarks or copyrights, insurance policies, safe deposit boxes and their contents, annuities, pooling agreements, contracts of any nature whatsoever, and any other property, real, personal, or mixed, tangible or intangible, or interest or interests therein, present, future or contingent. 535.312 Interest. Except as otherwise provided in this part, the term interest when used with respect to property shall mean an interest of any nature whatsoever, direct or indirect. [44 FR 75352, Dec. 19, 1979] 535.316 License. Except as otherwise specified, the term license shall mean any license or authorization contained in or issued pursuant to this part. [44 FR 66832, Nov. 21, 1979] 535.317 General license. A general license is any license or authorization the terms of which are set forth in this part. [44 FR 66832, Nov. 21, 1979] 535.318 Specific license. A specific license is any license or authorization issued pursuant to this part but not set forth in this part. [44 FR 66832, Nov. 21, 1979] 535.320 Domestic bank. (a) The term domestic bank shall mean any branch or office within the United States of any of the following which is not Iran or an Iranian entity: any bank or trust company incorporated under the banking laws of the United States or of any state, territory, or district of the United States, or any private bank or banker subject to supervision and examination under the banking laws of the United States or of any state, territory or district of the United States. The Secretary of the Treasury may also authorize any other banking institution to be treated as a ``domestic bank'' for the purpose of this definition or for the purpose of any or all sections of this part. (b) For purposes of 535.413, 535.508, 535.531 and 535.901, the term domestic bank includes any branch or office within the United States of a non-Iranian foreign bank. [44 FR 66832, Nov. 21, 1979] 535.321 United States; continental United States. The term United States means the United States and all areas under the jurisdiction or authority thereof including the Trust Territory of the Pacific Islands. The term continental United States means the states of the United States and the District of Columbia. [44 FR 66833, Nov. 21, 1979] 535.329 Person subject to the jurisdiction of the United States. The term person subject to the jurisdiction of the United States includes: (a) Any person wheresoever located who is a citizen or resident of the United States; (b) Any person actually within the United States; (c) Any corporation organized under the laws of the United States or of any state, territory, possession, or district of the United States; and (d) Any partnership, association, corporation, or other organization wheresoever organized or doing business which is owned or controlled by persons specified in paragraph (a), (b), or (c) of this section. 535.333 Properties. (a) The term properties as used in 535.215 includes all uncontested and non-contingent liabilities and property interests of the Government of Iran, its agencies, instrumentalities or controlled entities, including debts. It does not include bank deposits or funds and securities. It also does not include obligations under standby letters of credit or similar instruments in the nature of performance bonds, including accounts established pursuant to 535.568. (b) Properties are not Iranian properties or owned by Iran unless all necessary obligations, charges and fees relating to such properties are paid and liens against such properties (not including attachments, injunctions and similar orders) are discharged. (c) Liabilities and property interests may be considered contested if the holder thereof reasonably believes that a court would not require the holder, under applicable law to transfer the asset by virtue of the existence of a defense, counterclaim, set-off or similar reason. For purposes of this paragraph, the term ``holder'' shall include any person who possesses the property, or who, although not in physical possession of the property, has, by contract or otherwise, control over a third party who does in fact have physical possession of the property. A person is not a ``holder'' by virtue of being the beneficiary of an attachment, injunction or similar order. (d) Liabilities and property interests shall not be deemed to be contested solely because they are subject to an attachment, injunction or other similar order. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14335, Feb. 26, 1981] 535.334 Act of the Government of Iran. For purposes of 535.216, an act of the Government of Iran, includes any acts ordered, authorized, allowed, approved, or ratified by the Government of Iran, its agencies, instrumentalities or controlled entities. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14336, Feb. 26, 1981] 535.335 Claim arising out of events in Iran. For purposes of 535.216, a claim is one ``arising out of events'' of the type specified only if such event is the specific act that is the basis of the claim. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14336, Feb. 26, 1981] 535.337 Funds. For purposes of this part, the term funds shall mean monies in trust, escrow and similar special funds held by non-banking institutions, currency and coins. It does not include accounts created under 535.568. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 30341, June 8, 1981] Subpart D -- Interpretations 535.401 Reference to amended sections. Reference to any section of this part or to any regulation, ruling, order, instruction, direction or license issued pursuant to this part shall be deemed to refer to the same as currently amended unless otherwise so specified. [45 FR 24433, Apr. 9, 1980] 535.402 Effect of amendment of sections of this part or of other orders, etc. Any amendment, modification, or revocation of any section of this part or of any order, regulation, ruling, instruction, or license issued by or under the direction of the Secretary of the Treasury pursuant to section 203 of the International Emergency Economic Powers Act shall not, unless otherwise specifically provided, be deemed to affect any act done or omitted to be done, or any suit or proceeding had or commenced in any civil or criminal case, prior to such amendment, modification, or revocation and all penalties, forfeitures, and liabilities under any such order, regulation, ruling, instruction or license shall continue and may be enforced as if such amendment, modification, or revocation had not been made. [45 FR 24433, Apr. 9, 1980] 535.403 Termination and acquisition of an interest of Iran or an Iranian entity. (a) Whenever a transaction licensed or authorized by or pursuant to this part results in the transfer of property (including any property interest) away from Iran or an Iranian entity, such property shall no longer be deemed to be property in which Iran or an Iranian entity has or has had an interest, unless there exists in the property another such interest the transfer of which has not been effected pursuant to license or other authorization. (b) Unless otherwise specifically provided in a license or authorization contained in or issued pursuant to this part, if property (including any property interest) is transferred to Iran or an Iranian interest, such property shall be deemed to be property in which there exists an interest of Iran or an Iranian entity. [45 FR 24433, Apr. 9, 1980] 535.413 Transfers between dollar accounts held for foreign banks. Transfers authorized by 535.901 include transfers by order of a non-Iranian foreign bank from its account in a domestic bank (directly or through a foreign branch or subsidiary of a domestic bank) to an account held by a domestic bank (directly or through a foreign branch or subsidiary) for a second non-Iranian foreign bank which in turn credits an account held by it abroad for Iran. For the purposes of this section, a non-Iranian foreign bank means a bank which is not a person subject to the jurisdiction of the United States. [44 FR 66833, Nov. 21, 1979] 535.414 Payments to blocked accounts under 535.508. (a) Section 535.508 does not authorize any transfer from a blocked account within the United States to an account held by any bank outside the United States or any other payment into a blocked account outside the United States. (b) Section 535.508 only authorizes payment into a blocked account held by a domestic bank as defined by 535.320. [44 FR 67617, Nov. 26, 1979] 535.415 Payment by Iranian entities of obligations to persons within the United States. A person receiving payment under 535.904 may distribute all or part of that payment to anyone: Provided, That any such payment to Iran or an Iranian entity must be to a blocked account in a domestic bank. [44 FR 67617, Nov. 26, 1979] 535.416 Letters of credit. (a) Question. Prior to the effective date, a bank subject to the jurisdiction of the United States has issued or confirmed a documentary letter of credit for a non-Iranian account party in favor of an Iranian entity. Can payment be made upon presentation of documentary drafts? Answer. Yes, provided payment is made into a blocked account in a domestic bank. (b) Question. Prior to the effective date, a domestic branch of a bank organized or incorporated under the laws of the United States has issued or confirmed a documentary letter of credit for a non-Iranian account party in favor of an Iranian entity. Payment is to be made through a foreign branch of the bank. Can payment be made upon presentation of documentary drafts? Answer. Yes, provided payment is made into a blocked account in a domestic bank. (c) Question. Prior to the effective date, a foreign bank confirms a documentary letter of credit issued by its U.S. agency or branch for a non-Iranian account party in favor of an Iranian entity. Can the U.S. agency or branch of the foreign bank transfer funds to the foreign bank in connection with that foreign bank's payment under the letter of credit? Answer. No, the U.S. agency's payment is blocked, unless the foreign bank made payment to the Iranian entity prior to the effective date. (d) Question. Prior to the effective date, a bank subject to the jurisdiction of the United States has issued or confirmed a documentary letter of credit for a non - Iranian account party in favor of an Iranian entity. The Iranian entity presents documentry drafts which are deficient in some detail. May the non - Iranian account party waive the documentary deficiency and authorize the bank to make payment? Answer. Yes, provided payment is made into a blocked account in a domestic bank. However, the non - Iranian account party is not obligated by these Regulations to exercise a waiver of documentary deficiencies. In cases where such a waiver is not exercised, the bank's payment obligation, if any, under the letter of credit remains blocked, as does any obligation, contingent or otherwise, of the account party. The documents are also blocked. (e) Question. Prior to the effective date, a bank subject to the jurisdiction of the United States has issued or confirmed a documentary letter of credit for a non - Iranian account party in favor of an Iranian entity. The Iranian entity does not make timely, complete, or proper presentation of documents, and the letter of credit expires. Does there remain a blocked payment obligation held by the bank? Answer. No, but any documents held by the bank continue to be blocked. It is also possible that the account party still has a related obligation to the Iranian entity and any such obligation would be blocked. (f) Question. A bank subject to the jurisdiction of the United States has issued a letter of credit for a U.S. account party in favor of an Iranian entity. The letter of credit is confirmed by a foreign bank. Prior to or after the effective date, the Iranian entity presents documents to the U.S. issuing bank. Payment is deferred. After the effective date, the Iranian entity requests that the issuing bank either return the documents to the Iranian entity or transfer them to the confirming bank. Can the issuing bank do so? Answer. No. The U.S. issuing bank can neither return nor transfer the documents without a license. The documents constitute blocked property under the Regulations. (g) Question. Prior to the effective date, a bank subject to the jurisdiction of the United States has issued or confirmed a documentary letter of credit for a non-Iranian account party in favor of an Iranian entity. The Iranian entity presents documentary drafts which are deficient in some detail. May the non-Iranian account party waive the documentary deficiency and make payment? Answer. Yes, provided payment is made into a blocked account in a domestic bank. However, the non-Iranian account party is not obligated by these Regulations to exercise a waiver of documentary deficiencies. In cases where such a waiver is not exercised, the amount of the payment held by the account party is blocked. [44 FR 69287, Dec. 3, 1979, as amended at 44 FR 75353, Dec. 19, 1979] 535.420 Transfers of accounts under 535.508 from demand to interest-bearing status. Section 535.508 authorizes transfer of a blocked demand deposit account to interest-bearing status at the instruction of the Iranian depositor at any time. [44 FR 76784, Dec. 28, 1979] 535.421 Prior contractual commitments not a basis for licensing. Specific licenses are not issued on the basis that an unlicensed firm commitment or payment has been made in connection with a transaction prohibited by this part. Contractual commitments to engage in transactions subject to the prohibitions of this part should not be made, unless the contract specifically states that the transaction is authorized by general license or that it is subject to the issuance of a specific license. [45 FR 24433, Apr. 9, 1980] 535.433 Central Bank of Iran. The Central Bank of Iran (Bank Markazi Iran) is an agency, instrumentality and controlled entity of the Government of Iran for all purposes under this part. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14336, Feb. 26, 1981] 535.437 Effect on other authorities. Nothing in this part in any way relieves any persons subject to the jurisdiction of the United States from securing licenses or other authorizations as required from the Secretary of State, the Secretary of Commerce or other relevant agency prior to executing the transactions authorized or directed by this part. This includes licenses for transactions involving military equipment. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14336, Feb. 26, 1981] 535.438 Standby letters of credit, performance or payment bonds and similar obligations. (a) Nothing contained in 535.212, 535.213 and 535.214 or in any other provision or revocation or amendment of any provision in this part affects the prohibition in 535.201 and the licensing procedure in 535.568 relating to certain standby letters of credit, performance bonds and similar obligations. The term ``funds and securities'' as used in this part does not include substitute blocked accounts established under section 535.568 relating to standby letters of credit, performance or payment bonds and similar obligations. (b) No transfer requirement under 535.213 or 535.214 shall be deemed to authorize or compel any payment or transfer of any obligation under a standby letter of credit, performance bond or similar obligation as to which a blocked account has been established pursuant to 535.568 or as to which payment is prohibited under an injunction obtained by the account party. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14336, Feb. 26, 1981, as amended at 46 FR 30341, June 8, 1981] 535.440 Commercially reasonable interest rates. (a) For purposes of 535.212 and 535.213, what is meant by ``commercially reasonable rates'' depends on the particular circumstances. In the case of time or savings deposits, the ``commercially reasonable rate'' is that rate provided for by the deposit agreement or applicable law. With respect to other obligations where the rate remains to be determined, it is presently expected that the ``commercially reasonable rate'' will be the rate agreed upon by the bank and Iran. However, where a deposit has in fact operated as a demand account under Treasury license, it would be appropriate to treat the deposit for purposes of 535.212 and 535.213 as a non-interest bearing account. Furthermore, in the event that the Iran-U.S Claims Tribunal (the ``Tribunal'') determines that interest additional to that agreed upon between the bank and Iran, or compensation or damages in lieu of interest, is due Iran, then that amount determined by the Tribunal to be owing to Iran shall be transferred as, or as part of, the interest at ``commercially reasonable rates'' required to be transferred pursuant to 535.212 and 535.213, regardless of any settlement between the bank and Iran or any release or discharge that Iran may have given the bank. (b) The contingent interest of Iran in any liability for further or additional interest, or compensation or damages in lieu of interest, that may be claimed in, and determined by the Tribunal, constitutes an interest of Iran in property for purposes of this part, and no agreement between Iran and any person subject to the jurisdiction of the United States is effective to extinguish such Iranian interest in property unless so specifically licensed by the Treasury Department. (c) For deposits held as time deposits, no penalty shall be imposed for early withdrawal. (In this connection, the Board of Governors of the Federal Reserve System has determined that application of the penalty for early withdrawal of time deposits transferred before maturity, pursuant to 535.213 is not required.) (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205; 45 FR 24099; E.O. 12211, 45 FR 26605; E.O. 12276, 46 FR 7913; E.O. 12277, 46 FR 7915; E.O. 12278, 46 FR 7917; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; and E.O. 12294, 46 FR 14111) [48 FR 253, Jan. 4, 1983] 535.441 Settlement Agreement regarding small claims. (a) Award No. 483 of June 22, 1990 of the Iran-United States Claims Tribunal, approving and giving effect to the Settlement Agreement in Claims of Less Than $250,000, Case No. 86 and Case No. B38, dated May 13, 1990 (the ``Settlement Agreement''), constitutes a determination by the Iran-United States Claims Tribunal of all claims encompassed therein within the meaning of 535.222(f) of this part. In accordance with 535.222(f), upon payment from the Security Account to the United States, the Settlement Agreement shall operate as a final resolution and discharge of all claims encompassed by the Settlement Agreement for all purposes. All such claims shall be subject to the exclusive jurisdiction of the Foreign Claims Settlement Commission on the terms established in the Settlement Agreement and by the provisions of Public Law 99 - 93, Title V, Aug. 16, 1985, 99 Stat. 437, applicable to en bloc settlements of claims of U.S. nationals against Iran. (b) Pursuant to the Settlement Agreement, the private claims subject to that agreement and this part are ``* * * claims of less than $250,000 each, which have been filed with the Tribunal by the United States on behalf of U.S. nationals, which claims are included in Cases Nos. 10001 through 12785, and which are still pending, * * * ,'' and ``* * * claims of U.S. nationals for less than $250,000 which have been submitted to the United States Department of State but were not timely filed with the Tribunal, as well as claims of U.S. nationals for less than $250,000 which have been either withdrawn by the Claimants or dismissed by the Tribunal for lack of jurisdiction, * * * .'' Settlement Agreement, Art. I(A). [55 FR 40831, Oct. 5, 1990] Subpart E -- Licenses, Authorizations and Statements of Licensing Policy 535.502 Effect of license or authorization. (a) No license or other authorization contained in this part or otherwise issued by or under the direction of the Secretary of the Treasury pursuant to section 203 of the International Emergency Economic Powers Act, shall be deemed to authorize or validate any transaction effected prior to the issuance thereof, unless such license or other authorization specifically so provides. (b) No regulation, ruling, instruction, or license authorizes a transaction prohibited under this part unless the regulation, ruling, instruction, or license is issued by the Treasury Department and specifically refers to this part. No regulation, ruling, instruction or license referring to this part shall be deemed to authorize any transaction prohibited by any provision of parts 500, 505, 515, 520 or 530 of this chapter unless the regulation, ruling, instruction or license specifically refers to such provision. (c) Any regulation, ruling, instruction or license authorizing a transaction otherwise prohibited under this part has the effect of removing a prohibition or prohibitions in subpart B from the transaction, but only to the extent specifically stated by its terms. Unless the regulation, ruling, instruction or license otherwise specifies, such an authorization does not create any right, duty, obligation, claim, or interest in, or with respect to, any property which would not otherwise exist under ordinary principles of law. [44 FR 66833, Nov. 21, 1979, as amended at 44 FR 75353, Dec. 19, 1979] 535.503 Exclusion from licenses and authorizations. The Secretary of the Treasury reserves the right to exclude any person from the operation of any license or from the privileges therein conferred or to restrict the applicability thereof with respect to particular persons, transactions or property or classes thereof. Such action shall be binding upon all persons receiving actual notice or constructive notice thereof. [44 FR 66833, Nov. 21, 1979] 535.504 Certain judicial proceedings with respect to property of Iran or Iranian entities. (a) Subject to the limitations of paragraphs (b) and (c) of this section and 535.222, judicial proceedings are authorized with respect to property in which on or after 8:10 a.m., e.s.t., November 14, 1979, there has existed an interest of Iran or an Iranian entity. (b) This section does not authorize: (1) Any pre-judgment attachment or any other proceeding of similar or analogous effect pertaining to any property (and any income earned thereon) subject to the provisions of 535.211, 535.212, 535.213, 535.214 or 535.215 on January 19, 1981, including, but not limited to, a temporary restraining order or preliminary injunction, which operates as a restraint on property, for purposes of holding it within the jurisdiction of a court, or otherwise; (2) Any payment or delivery out of a blocked account based upon a judicial proceeding, pertaining to any property subject to the provisions of 535.211, 535.212, 535.213, 535.214 or 535.215 on January 19, 1981; (3)(i) Any final judicial judgment or order (A) permanently enjoining, (B) terminating or nullifying, or (C) otherwise permanently disposing of any interest of Iran in any standby letter of credit, performance bond or similar obligation. Any license authorizing such action is hereby revoked and withdrawn. This revocation and withdrawal of prior licenses prohibits judgments or orders that are within the terms of this paragraph (b)(3)(i), including any such judgments or orders which may have been previously entered but which had not become final by July 2, 1982, through the conclusion of appellate proceedings or the expiration of the time for appeal. (ii) Nothing in this paragraph (b)(3) shall prohibit the assertion of any defense, set-off or counterclaim in any pending or subsequent judicial proceeding commenced by the Government of Iran, any political subdivision of Iran, or any agency, instrumentality or entity owned or controlled by the Government of Iran or any political subdivision thereof. (iii) Nothing in this paragraph (b)(3) shall preclude the commencement of an action for the purpose of tolling the period of limitations for commencement of such action. (iv) Nothing in this paragraph (b)(3) shall require dismissal of any action for want of prosecution. (c) For purposes of this section, contested and contingent liabilities and property interests of the Government of Iran, its agencies, instrumentalities, or controlled entities, including debts, shall be deemed to be subject to 535.215. (d) A judicial proceeding is not authorized by this section if it is based on transactions which violated the prohibitions of this part. (e) Judicial proceedings to obtain attachments on standby letters of credit, performance bonds or similar obligations and on substitute blocked accounts established under 535.568 relating to standby letters of credit, performance bonds and similar obligations are not authorized or licensed. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14336, Feb. 26, 1981, as amended at 46 FR 26477, May 13, 1981; 47 FR 29529, July 7, 1982; 47 FR 55482, Dec. 10, 1982; 48 FR 57129, Dec. 28, 1983] 535.508 Payments to blocked accounts in domestic banks. (a) Any payment or transfer of credit, including any payment or transfer by any U.S.-owned or controlled foreign firm or branch to a blocked account in a domestic bank in the name of Iran or any Iranian entity is hereby authorized: Provided, Such payment or transfer shall not be made from any blocked account if such payment or transfer represents, directly or indirectly, a transfer of the interest of Iran or an Iranian entity to any other country or person. (b) This section does not authorize: (1) Any payment or transfer to any blocked account held in a name other than that of Iran or the Iranian entity who is the ultimate beneficiary of such payment or transfer; or (2) Any foreign exchange transaction including, but not by way of limitation, any transfer of credit, or payment of an obligation, expressed in terms of the currency of any foreign country. (c) This section does not authorize any payment or transfer of credit comprising an integral part of a transaction which cannot be effected without the subsequent issuance of a further license. (d) This section does not authorize the crediting of the proceeds of the sale of securities held in a blocked account or a sub-account thereof, or the income derived from such securities to a blocked account or sub-account under any name or designation which differs from the name or designation of the specific blocked account or sub-account in which such securities were held. (e) This section does not authorize any payment or transfer from a blocked account in a domestic bank to a blocked account held under any name or designation which differs from the name or designation of the specified blocked account or sub-account from which the payment or transfer is made. (f) The authorization in paragraph (a) of this section is subject to the condition that a notification from the domestic bank receiving an authorized payment or transfer is furnished by the transferor to the Office of Foreign Assets Control confirming that the payment or transfer has been deposited in a blocked account under the regulations in this part and providing the name and address of Iran or the Iranian entity in whose name the account is held. [44 FR 66590, Nov. 20, 1979] 535.528 Certain transactions with respect to Iranian patents, trademarks and copyrights authorized. (a) The following transactions by any person subject to the jurisdiction of the United States are authorized: (1) The filing and prosecution of any application for an Iranian patent, trademark or copyright, or for the renewal thereof; (2) The receipt of any Iranian patent, trademark or copyright; (3) The filing and prosecution of opposition or infringement proceedings with respect to any Iranian patent, trademark, or copyright, and the prosecution of a defense to any such proceedings; (4) The payment of fees currently due to the government of Iran, either directly or through an attorney or representative, in connection with any of the transactions authorized by paragraphs (a)(1), (2), and (3) of this section or for the maintenance of any Iranian patent, trademark or copyright; and (5) The payment of reasonable and customary fees currently due to attorneys or representatives in Iran incurred in connection with any of the transactions authorized by paragraphs (a)(1), (2), (3) or (4) of this section. (b) Payments effected pursuant to the terms of paragraphs (a)(4) and (5) of this section may not be made from any blocked account. (c) As used in this section the term ``Iranian patent, trademark, or copyright'' shall mean any patent, petty patent, design patent, trademark or copyright issued by Iran. [45 FR 29288, May 2, 1980] 535.531 Payment of certain checks and drafts. (a) A bank subject to the jurisdiction of the United States is hereby authorized to make payments from blocked accounts with such banking institution of checks and drafts drawn or issued prior to the effective date, Provided, That: (1) The amount involved in any one payment, acceptance, or debit does not exceed $3000; or (2) The check or draft was within the United States in process of collection by a domestic bank on or prior to the effective date and does not exceed $50,000. (3) The authorization contained in this paragraph shall expire at the close of business on January 14, 1980. (b) A bank subject to the jurisdiction of the United States as its own obligation may make payment to a person subject to the jurisdiction of the United States who is the beneficiary of any letter of credit issued or confirmed by it, or on a draft accepted by it, prior to the effective date, where the letter of credit was issued or confirmed on behalf of Iran or an Iranian entity, Provided, That: (1) Notwithstanding the provisions of 535.902, no blocked account may at any time be debited in connection with such a payment. (2) Such a payment shall give the bank making payment no special priority or other right to blocked accounts it holds in the event that such blocked accounts are vested or otherwise lawfully used in connection with a settlement of claims. (3) Nothing in this paragraph prevents payment being made to the beneficiary of any draft or letter of credit or to any banking institution pursuant to 535.904. (c) The office will consider on a case-by-case basis, without any commitment on its part to authorize any transaction or class of transactions, applications for specific licenses to make payments from blocked accounts of documentary drafts drawn under irrevocable letters of credit issued or confirmed by a domestic bank prior to the effective date, in favor of any person subject to the jurisdiction of the United States. Any bank or payee submitting such an application should include data on all such letters of credit in which it is involved. Applications should be submitted not later than January 10, 1980. (d) Paragraphs (a) and (b) of this section do not authorize any payment to Iran or an Iranian entity except payments into a blocked account in a domestic bank unless Iran or the Iranian entity is otherwise licensed to receive such payment. [44 FR 75352, Dec. 19, 1979] 535.532 Completion of certain securities transactions. (a) Banking institutions within the United States are hereby authorized to complete, on or before November 21, 1979, purchases and sales made prior to the effective date of securities purchased or sold for the account of Iran or an Iranian entity provided the following terms and conditions are complied with, respectively. (1) The proceeds of such sale are credited to a blocked account in a banking institution in the name of the person for whose account the sale was made; and (2) The securities so purchased are held in a blocked account in a banking institution in the name of the person for whose account the purchase was made. (b) This section does not authorize the crediting of the proceeds of the sale of securities held in a blocked account or a sub-account thereof, to a blocked account or sub-account under any name or designation which differs from the name or designation of the specific blocked account or sub-account in which such securities were held. 535.540 Disposition of certain tangible property. (a) Specific licenses may be issued in appropriate cases at the discretion of the Secretary of the Treasury for the public sale and transfer of certain tangible property that is encumbered or contested within the meaning of 535.333 (b) and (c) and that, because it is blocked by 535.201, may not be sold or transferred without a specific license, provided that each of the following conditions is met: (1) The holder or supplier of the property has made a good faith effort over a reasonable period of time to obtain payment of any amounts owed by Iran or the Iranian entity, or adequate assurance of such payment; (2) Neither payment nor adequate assurance of payment has been received; (3) The license applicant has, under provisions of law applicable prior to November 14, 1979, a right to sell, or reclaim and sell, such property by methods not requiring judicial proceedings, and would be able to exercise such right under applicable law, but for the prohibitions in this part, and (4) The license applicant shall enter into an indemnification agreement acceptable to the United States providing for the applicant to indemnify the United States, in an amount up to 150 percent of the proceeds of sale, for any monetary loss which may accrue to the United States from a decision by the Iran-U.S. Claims Tribunal that the United States is liable to Iran for damages that are in any way attributable to the issuance of such license. In the event the applicant and those acting for or on its behalf are the only bidders on the property, the United States shall have the right to establish a reasonable indemnification amount. (b) An applicant for a license under this section shall provide the Office of Foreign Assets Control with documentation on the points enumerated in paragraph (a) of this section. The applicant normally will be required to submit an opinion of legal counsel regarding the legal right claimed under paragraph (a)(3) of this section. (c) Any sale of property licensed under this section shall be at public auction and shall be made in good faith in a commercially reasonable manner. Notwithstanding any provision of State law, the license applicant shall give detailed notice to the appropriate Iranian entity of the proposed sale or transfer at least 30 days prior to the sale or other transfer. In addition, if the license applicant has filed a claim with the Iran-U.S. Claims Tribunal, the license applicant shall give at least 30 days' advance notice of the sale to the Tribunal. (d) The disposition of the proceeds of any sale licensed under this section, minus such reasonable costs of sale as are authorized by applicable law (which will be licensed to be deducted), shall be in accordance with either of the following methods: (1) Deposit into a separate blocked, interest-bearing account at a domestic bank in the name of the licensed applicant; or (2) Any reasonable disposition in accordance with provisions of law applicable prior to November 14, 1979, which may include unrestricted use of all or a portion of the proceeds, provided that the applicant shall post a bond or establish a standby letter of credit, subject to the prior approval of the Secretary of the Treasury, in favor of the United States in the amount of the proceeds of sale, prior to any such disposition. (e) For purposes of this section, the term ``proceeds'' means any gross amount of money or other value realized from the sale. The proceeds shall include any amount equal to any debt owed by Iran which may have constituted all or part of a successful bid at the licensed sale. (f) The proceeds of any such sale shall be deemed to be property governed by 535.215 of this part. Any part of the proceeds that constitutes Iranian property which under 535.215 is to be transferred to Iran shall be so transferred in accordance with that section. (g) Any license pursuant to this section may be granted subject to conditions deemed appropriate by the Secretary of the Treasury. (h) Any person licensed pursuant to this section is required to submit a report to the Chief of Licensing, Office of Foreign Assets Control, within ten business days of the licensed sale or other transfer, providing a full accounting of the transaction, including the costs, any payment to lienholders or others, including payments to Iran or Iranian entities, and documentation concerning any blocked account established or payments made. (Sec. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26605; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; and E.O. 12294, 46 FR 14111) [47 FR 31683, July 22, 1982] 535.566 Unblocking of foreign currency deposits held by U.S.-owned or controlled foreign firms. Deposits held abroad in currencies other than U.S. dollars by branches and subsidiaries of persons subject to the jurisdiction of the United States are unblocked, provided however that conversions of blocked dollar deposits into foreign currencies are not authorized. [44 FR 66833, Nov. 21, 1979] 535.567 Payment under advised letters of credit. (a) Specific licenses may be issued for presentation, acceptance, or payment of documentary drafts under a letter of credit opened by an Iranian entity and advised by a domestic bank or an Iranian bank subject to the jurisdiction of the United States, provided, That: (1) The letter of credit was advised prior to the effective date; (2) The property which is the subject of the payment under the letter of credit was not in the possession or control of the exporter on or after the effective date; (3) The Beneficiary is a person subject to the jurisdiction of the United States. (b) As a general matter, licenses will not be issued if the amount to be paid to a single payee exceeds $500,000, or if hardship cannot be shown. [44 FR 75354, Dec. 19, 1979] 535.568 Certain standby letters of credit and performance bonds. (a) Notwithstanding any other provision of law, payment into a blocked account in a domestic bank by an issuing or confirming bank under a standby letter of credit in favor of an Iranian entity is prohibited by 535.201 and not authorized, notwithstanding the provisions of 535.508, if either: (1) A specific license has been issued pursuant to the provisions of paragraph (b) of this section, or (2) Eight business days have not expired after notice to the account party pursuant to paragraph (b) of this section. (b) Whenever an issuing or confirming bank shall receive such demand for payment under a standby letter of credit, it shall promptly notify the person for whose account the credit was opened. Such person may then apply within five business days for a specific license authorizing the account party to establish a blocked account on its books in the name of the Iranian entity in the amount payable under the credit, in lieu of payment by the issuing or confirming bank into a blocked account and reimbursement therefor by the account party. (c) Where there is outstanding a demand for payment under a standby letter of credit, and the issuing or confirming bank has been enjoined from making payment, upon removal of the injunction, the person for whose account the credit was opened may apply for a specific license for the same purpose and in the same manner as that set forth in paragraph (b) of this section. The issuing or confirming bank shall not make payment under the standby letter of credit unless: (1) Eight business days have expired since the bank has received notice of the removal of the injunction and; (2) A specific license issued to the account party pursuant to the provisions of this paragraph has not been presented to the bank. (d) If necessary to assure the availability of the funds blocked, the Secretary may at any time require the payment of the amounts due under any letter of credit described in paragraph (a) of this section into a blocked account in a domestic bank or the supplying of any form of security deemed necessary. (e) Nothing in this section precludes any person for whose account a standby letter of credit was opened or any other person from at any time contesting the legality of the demand from the Iranian entity or from raising any other legal defense to payment under the standby letter of credit. (f) This section does not affect the obligation of the various parties of the instruments covered by this section if the instruments and payment thereunder are subsequently unblocked. (g) For the purposes of this section, the term ``standby letter of credit'' shall mean a letter of credit securing performance of, or repayment of, any advance payments of deposits, under a contract with Iran or an Iranian entity, or any similar obligation in the nature of a performance bond. (h) The regulations do not authorize any person subject to the jurisdiction of the United States to reimburse a non-U.S. bank for payment to Iran or an Iranian entity under a standby letter of credit, except by payment into a blocked account in accordance with 535.508 or paragraph (b) or (c) of this section. (i) A person receiving a specific license under paragraph (b) or (c) of this section shall certify to the Office of Foreign Assets Control within five business days after receipt of that license that it has established the blocked account on its books as provided for in those paragraphs. However, in appropriate cases, this time may be extended upon application to the Office of Foreign Assets Control when the account party has filed a petition with an appropriate court seeking a judicial order barring payment by the issuing or confirming bank. (j) The extension or renewal of a standby letter of credit is authorized. (k) All specific licenses previously issued under this section to account parties to standby letters of credit are revoked, effective February 28, 1991, unless the license holder submits documentation to the Office of Foreign Assets Control establishing that the specific license pertains to a standby letter of credit obligation that (1) is at issue in any claim brought before the Iran-United States Claims Tribunal (``Tribunal''), (2) is or was at issue in any claim that the Tribunal resolves, or has resolved, on the merits in favor of the account party, or (3) was at issue in a matter that was settled by the parties. The documentation required for such a showing may include such items as a copy of a Tribunal Award, a copy of a signed settlement agreement, or copies of cover pages of recent filings in pending Tribunal cases. [47 FR 12339, Mar. 23, 1982, as amended at 56 FR 6546, Feb. 15, 1991] 535.569 Licensed letter of credit transactions; forwarding of documents. When payment of a letter of credit issued, advised, or confirmed by a bank subject to the jurisdiction of the United States is authorized by either general or specific license, the forwarding of the letter of credit documents to the account party is authorized. [45 FR 1877, Jan. 9, 1980] 535.576 Payment of non-dollar letters of credit to Iran. Notwithstanding the prohibitions of 535.201 and 535.206(a)(4), payment of existing non-dollar letters of credit in favor of Iranian entities or any person in Iran by any foreign branch or subsidiary of a U.S. firm is authorized, provided that the credit was opened prior to the respective effective date. [45 FR 29288, May 2, 1980] 535.579 Authorization of new transactions concerning certain Iranian property. (a) Transactions involving property in which Iran or an Iranian entity has an interest are authorized where: (1) The property comes within the jurisdiction of the United States or into the control or possession of any person subject to the jurisdiction of the United States after January 19, 1981, or (2) The interest in the property of Iran or an Iranian entity (e.g. exports consigned to Iran or an Iranian entity) arises after January 19, 1981. (b) Transactions involving standby letters of credit, performance or payment bonds and similar obligations, entered into prior to January 20, 1981, described in 535.568 remain subject to the prohibitions and procedures contained in 535.201 and 535.568. (c) Property not blocked under 535.201 as of January 19, 1981, in which the Government of Iran or an Iranian entity has an interest, which after that date is or becomes subject to the jurisdiction of the United States or comes within the control or possession of a person subject to the jurisdiction of the United States for the express purpose of settling claims against Iran or Iranian entities, is excluded from any authorization in this part for any attachment, injunction or other order of similar or analogous effect and any such attachment, injunction or order is prohibited by 535.201 and 535.203. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14336, Feb. 26, 1981] 535.580 Necessary living expenses of relatives of the former Shah of Iran. The transfer, payment or withdrawal of property described in 535.217 is authorized to the extent necessary to pay living expenses of any individual listed in that section. Living expenses for this purpose shall include food, housing, transportation, security and other personal expenses. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12211, 45 FR 26685; E.O. 12284, 46 FR 7929) [46 FR 14330, Feb. 26, 1981] Subpart F -- Reports 535.601 Records. Every person engaging in any transaction subject to the provisions of this part shall keep a full and accurate record of each such transaction engaged in by him, regardless of whether such transaction is effected pursuant to license or otherwise, and such record shall be available for examination for at least two years after the date of such transaction. [44 FR 75354, Dec. 19, 1979] 535.602 Reports to be furnished on demand. Every person is required to furnish under oath, in the form of reports or otherwise, from time to time and at any time as may be required by the Secretary of the Treasury or any person acting under his direction or authorization complete information relative to any transaction subject to the provisions of this part or relative to any property in which any foreign country or any national thereof has any interest of any nature whatsoever, direct or indirect. The Secretary of the Treasury or any person acting under his direction may require that such reports include the production of any books of account, contracts, letters or other papers, connected with any such transaction or property, in the custody or control of the persons required to make such reports. Reports with respect to transactions may be required either before or after such transactions are completed. The Secretary of the Treasury may, through any person or agency, investigate any such transaction or property or any violation of the provisions of this part regardless of whether any report has been required or filed in connection therewith. [44 FR 75354, Dec. 19, 1979] 535.615 Reports on Form TFR - 615. (a) Requirement for report. Reports on Form TFR - 615 are hereby required to be filed on or before May 15, 1980, in the manner prescribed herein, with respect to all property subject to the jurisdiction of the United States or in the possession or control of any person subject to the jurisdiction of the United States at any time between the effective date and March 31, 1980, in which Iran or an Iranian entity has or has had any interest. (1) Who must report. Reports on Form TFR - 615 must be filed by each of the following: (i) Any person subject to the jurisdiction of the United States or his successor, who on the effective date or any subsequent date up to and including March 31, 1980, had in his custody, possession or control, directly or indirectly, in trust or otherwise, property in which there was any direct or indirect interest of Iran or any Iranian entity, whether or not the property continued to be held by that person on March 31, 1980; and (ii) Any business or non-business entity in the United States in which Iran or an Iranian entity held any financial interest on the effective date or on any subsequent date. (2) Property not required to be reported. A report on Form TFR - 615 is not required with respect to: (i) Property of a private Iranian national; and (ii) Patents, copyrights, trademarks and inventions; Provided, however, That a report is required with respect to any royalties due and unpaid in connection with such property. (b) Filing Form TFR - 615. Reports on Form TFR - 615 shall be prepared in triplicate. On or before May 15, 1980, two copies shall be sent in a set to Unit 615, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. The third copy must be retained with the reporter's records. (c) Certification. Every report on Form TFR - 615 shall contain the certification required in part F of the Form. Failure to complete the certification shall render the report ineffective, and the submission of such a report shall not constitute compliance with this section. (d) Confidentiality of reports. Reports on Form TFR - 615 are regarded as privileged and confidential. [45 FR 24408, Apr. 9, 1980] 535.616 Reports on Form TFR - 616. (a) Requirement for reports. Reports on Form TFR - 616 are hereby required to be filed on or before May 15, 1980, in the manner prescribed herein, with respect to claims for losses due to expropriation, nationalization, or other taking of property or businesses in Iran, including any special measures such as Iranian exchange controls directed against such property or businesses; claims for debt defaults, for damages for breach of contract or similar damages; and personal claims for salaries or for injury to person or property. (b) Who must report. Reports on Form TFR - 616 must be filed by every person subject to the jurisdiction of the United States which had a claim against Iran or an Iranian entity which arose before April 15, 1980. No report is to be submitted by a U.S. branch of a foreign firm not owned or controlled by a person subject to the jurisdiction of the United States or by a nonresident alien. (c) Filing Form TFR - 616. Reports on Form TFR - 616 shall be prepared in triplicate. On or before May 15, 1980, two copies shall be sent in a set to Unit 616, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. The third copy must be retained with the reporter's record. (d) Certification. Every report on Form TFR - 616 shall contain the certification required on part E of the Form. Failure to complete the certification shall render the report ineffective, and the submission of such a report shall not constitute compliance with this section. (e) Confidentiality of reports. Reports on Form TFR - 616 are regarded as privileged and confidential. [45 FR 24408, Apr. 9, 1980] 535.618 Report of contested property. (a) Requirement for reports. Reports are required to be filed within 15 days of receipt of a direction from Iran to transfer any interests in property claimed or believed to be an interest of Iran which was blocked by the Iranian Assets Control Regulations if the party receiving the direction to transfer has not transferred such claimed interest in property. (b) Who must report. Reports must be filed by every person subject to the jurisdiction of the United States who does not transfer any interest or claimed interest in property described in paragraph (a) of this section within 15 days of a direction from Iran to transfer it. (c) Contents of report. Each report shall contain the following information. (1) Name and address of entity making the report. (2) Name of person and entity directing the transfer. (3) Date of the direction and date of its receipt. (4) Description of the interest or claimed interest in property directed to be transferred. (5) Statement or estimate of value of the interest or claimed interest in property. (6) Explanation why property was not transferred as directed. (7) Statement of any planned actions with respect to the interest or claimed interest in the property described. (d) Filing. Reports shall be prepared in triplicate. Two copies shall be sent in a set to Unit 617, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. The third copy must be retained with the reporter's records. (e) Confidentiality of reports. Reports under this section are regarded as privileged and confidential. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14337, Feb. 26, 1981] 535.619 Reports on Form TFR - 619. (a) Reporting requirements. Within 30 days after publication in the Federal Register of the name of any person or estate in 535.217(b), the following persons who are subject to the jurisdiction of the United States shall file reports on Form TFR - 619 with respect to their knowledge of the property of such person or estate at any time between November 3, 1979 and the date designated after the name of any person in 535.217(b): (1) Any person whose name is published for inclusion in 535.217(b); (2) Any person who has or had, from November 3, 1979 to the date of designation of the relevant person in 535.217(b), actual or constructive possession or control, directly or indirectly, in trust or otherwise, of property in which there was any direct or indirect interest of any person listed in 535.217(b) of the Regulations; (3) Any business or non-business entity in the United States in which any person listed in 535.217(b) of the Regulations held any financial interest at any time between November 3, 1979 and the date of designation of the relevant person in 535.217(b); (4) Any person having knowledge of property or assets of a person listed in 535.217(b) of the Regulations, by reason of a business relationship with such property; (5) Any person having actual knowledge of property of a person named in 535.217(b) because of a personal relationship with the named person; and (6) Any agency of the United States Government which has in any of its official financial books and records any information which serves to identify any property or assets of a person listed in 535.217(b) of the Regulations. (b) What must be reported. Form TFR - 619 reports shall include the information specified in the form with respect to any interest of any nature whatsoever that a person named in 535.217(b) had in any property subject to the jurisdiction of the United States between November 3, 1979, and the date of any designation of the relevant person in 535.217(b). The term ``property'' is defined in 535.311 of this part. (c) Filing Form TFR - 619. Reports on Forms TFR - 619 shall be prepared in triplicate, two copies of which shall be sent in a set to Unit 619, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. The third copy is to be retained for the reporter's records. (d) Certification. Every reporter is required to complete the certification portion of Form TFR - 619. Failure to complete the certification shall render the report ineffective and the submission shall not constitute compliance with this section. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12211, 45 FR 26685; E.O. 12284, 46 FR 7929) [46 FR 26478, May 13, 1981] 535.620 Report on transfer of domestic bank assets and financial assets held by nonbanking institutions. (a) Requirement for reports. A report shall be filed by June 26, 1981 on Form TFR - 620 by any bank or nonbanking institution regarding any transfer to the Federal Reserve Bank of New York that is required by 535.213 or 535.214. Any reporter that transfers property to the Federal Reserve Bank of New York by June 19, pursuant to 535.213 or 535.214, shall describe the property so transferred. Property (including interest through July 8, 1981, not transferred but required by 535.213 or 535.214 to be transferred shall be separately described. (b) Contents of report. Each report shall contain the following information: (1) Name and address of the transferor (indicate whether bank or nonbanking institution). (2) Name and telephone number of person to be contacted about the transfer. (3) Description of the property transferred or required to be transferred with a list of accounts, including branch, account party, account number, and account amount, with breakdown between principal and interest (as of date transferred or as of July 8 if not yet transferred). (4) Total value (market value in the case of securities) of each transfer. (5) Date and time of transfer (if applicable). (6) A statement as to how interest was calculated, including rate(s) of interst and period(s) for which the rate(s) was applied. (c) Filing. Reports shall be prepared in triplicate. Two copies shall be sent in a set to Unit 620, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. The third copy shall be retained for the reporter's records. (d) Confidentiality of reports. Reports under this section are regarded as privileged and confidential but may be disclosed to Iran. (e) Updating of reports. The Form TFR - 620 report shall be updated within five business days of the transfer date to be determined by the Treasury Department by any reporter that does not transfer to the Federal Reserve Bank of New York, on or before that date, the property described in the reporter's TFR - 620 report. The required updating shall include a full explanation as to why the property actually transferred was not the same as the property described in the reporter's TFR - 620 report. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 31630, June 16, 1981] 535.621 Registration of bank claims against the escrow account at the Bank of England. (a) Registration requirements. Any U.S. banking institution that has, and intends to assert, a claim against the account established by the deposit of $1.418 billion in escrow (``the Escrow Account,'' also known as ``Dollar Account No. 2'') at the Bank of England pursuant to paragraph 2(B) of the Undertakings of the Government of the United States of America and the Government of the Islamic Republic of Iran with Respect to the Declaration of the Government of the Democratic and Popular Republic of Algeria, is required to register with the Office of Foreign Assets Control, in writing, on or before December 16, 1981. (b) Contents of registration notice. The required registration shall refer to this section of the Regulations and contain the following: (1) Name and address of the banking institution; and (2) Name, title, and telephone number of person who may be contacted about this registration. (c) Filing. One copy of this registration notice, which shall be in the form of a letter or a telex (Telex No. 710 - 822 - 9201), should be sent to Unit 621, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. Telexed notices should also include the telephone number (376 - 0968) of the Census Unit. A copy of the notice should be retained for the submitter's records. (d) Failure to register. Any banking institution which does not submit a registration notice pursuant to this section shall be precluded from asserting any claim against the Escrow Account. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; and E.O. 12294, 46 FR 14111) [46 FR 59939, Dec. 7, 1981] 535.622 Registration of bank claims against the No. 1 Account, and the escrow account at the Bank of England (Dollar Account No. 2); registration of January Interest claims. (a) Bank claims against the No. 1 Account -- (1) Registration requirements. Any U.S. banking institution that is a member of a syndicate of banking institutions and has, or any member of the syndicate has, and intends to assert, a claim against the balance remaining (the ``No. 1 Account'') of the $3.667 billion transferred to the Federal Reserve Bank of New York (the ``Fed'') pursuant to paragraph 2(A) of the January 19, 1981 Undertakings of the Government of the United States of America and the Government of the Islamic Republic of Iran With Respect to the Declaration of the Government of the Democratic and Popular Republic of Algeria (the ``Undertakings'') is required to register with the Office of Foreign Assets Control, in writing, on or before November 17, 1986, unless at least one other U.S. banking institution that is a member of the syndicate has properly filed a registration pursuant to this subsection relating to such claim. Each registration shall relate only to one syndicate. (2) Contents of registration. The required registration shall refer to this subsection and contain the following: (i) Name and address of the registrant banking institution; (ii) Name, title, and telephone number of person who may be contacted about the registration; (iii) Identification of the syndicate; (iv) The basis for each kind of claim together with the name of each syndicate member (including the registrant, if applicable) on whose behalf the registrant is asserting that kind of claim and the dollar amount of that kind of claim for each such syndicate member; (v) If there is more than one kind of claim, for each kind of claim the total dollar amount claimed for all syndicate members (including the registrant if applicable) on whose behalf the registrant is asserting that kind of claim; (vi) The aggregate total dollar amount claimed for all syndicate members (including the registrant, if applicable) on whose behalf the registrant is asserting claims; and (vii) The interest rate(s) at which interest would accrue after September 30, 1986, and, if different rates apply to different portions of the aggregate total dollar amount claimed, the dollar amount to which each rate applies. All dollar amounts are to be stated as of September 30, 1986. Dollar amounts and other information relating to a claim for interest (including interest thereon) related to the period after December 31, 1980, on the syndicated loans and credits referred to in paragraph 2(A) of the Undertakings (``January Interest'') shall not be included in registrations pursuant to this subsection. If the interest rate(s) referred to in clause (a)(2)(vii) may only be stated with reference to an index, that index and the applicable margin shall be provided. For all interest rates referred to in clause (a)(2)(vii), the calculation period (e.g., semiannual), the starting date of the first interest calculation period beginning after September 30, 1986, and the calculation basis (e.g., 365/365, 365/360) shall be provided. (3) Filing. One copy of the registration, which shall be in the form of a letter or a telex (Telex No. 710 - 822 - 9201), shall be sent to Unit 622(a), Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. Telexed registrations should also include the telephone number of the Census Unit (376 - 0968). A copy of the registration should be retained for the registrant banking institution's records. (4) Failure to register. All members of a syndicate are precluded from asserting any claim against the No. 1 Account arising out of the syndicate, or participation in the syndicate, unless at least one U.S. banking institution that is a member of the syndicate has registered a claim against the No. 1 Account pursuant to this subsection and the claim asserted is consistent with information provided in such registration and with the purpose of Paragraph 2(A) of the Undertakings. (b) Bank claims against the escrow account (Dollar Account No. 2) at the Bank of England -- (1) Registration requirements. Any U.S. banking institution that has, and intends to assert, any remaining claim against the account established by the deposit of $1.418 billion in escrow (the ``Escrow Account,'' also known as Dollar Account No. 2'') at the Bank of England pursuant to paragraph 2(B) of the Undertakings is required to register with the Office of Foreign Assets Control, in writing, on or before November 17, 1986. (2) Contents of registration. The required registration shall refer to this subsection and contain the following: (i) Name and address of the registrant banking institution; (ii) Name, title, and telephone number of person who may be contacted about the registration; (iii) The basis for each kind of claim together with the dollar amount of that kind of claim; (iv) The total dollar amount claimed; and (v) The interest rate(s) at which interest would accrue after September 30, 1986, and, if different rates apply to different portions of the total dollar amount claimed, the dollar amount to which each rate applies. All dollar amounts are to be stated as of September 30, 1986. Dollar amounts and other information relating to a January Interest claim shall not be included in registrations pursuant to this subsection. If the interest rate(s) referred to in clause (b)(2)(v) may only be stated with reference to an index, that index and the applicable margin shall be provided. For all interest rates referred to in clause (b)(2)(v), the calculation period (e.g., semiannual), the starting date of the first interest calculation period beginning after September 30, 1986, and the calculation basis (e.g., 365/365, 365/360) shall be provided. (3) Filing. One copy of the registration, which shall be in the form of a letter or a telex (Telex No. 710 - 822 - 9201), shall be sent to Unit 622(b), Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. Telexed registrations should also include the telephone number (376 - 0968) of the Census Unit. A copy of the registration should be retained for the registrant banking institution's records. (4) Failure to register. Except for a January Interest claim, U.S. banking institutions are precluded from asserting any claim against the Escrow Account unless the U.S. banking institution has registered a claim against the Escrow Account pursuant to this subsection and has previously registered pursuant to 535.621 and the claim asserted is consistent with information provided in the registration pursuant to this subsection and with the purpose of Paragraph 2(A) of the Undertakings. (c) January Interest registration -- (1) Registration requirements. Any U.S. banking institution that is a member of a syndicate of banking institutions and has, or any member of the syndicate has, and intends to assert, a claim for January Interest against the Escrow Account is required to register with the Office of Foreign Assets Control, in writing, on or before November 17, 1986, unless at least one other U.S. banking institution that is a member of the syndicate has properly filed a registration pursuant to this subsection relating to such claim. (2) Contents of registration. The required registration shall refer to this subsection and contain the following: (i) Name and address of the registrant banking institution; (ii) Name, title, and telephone number of person who may be contacted about the registration; (iii) Identification of syndicate(s); (iv) For each syndicate the name of each syndicate member (including the registrant, if applicable) on whose behalf the registrant is asserting a claim and the dollar amount of the claim for such syndicate member; (v) If there is more than one syndicate, for each syndicate the total dollar amount claimed for all syndicate members (including the registrant if applicable) on whose behalf the registrant is asserting a claim; (vi) The aggregate total dollar amount claimed for all syndicate members (including the registrant, if applicable) on whose behalf the registrant is asserting claims; and (vii) The interest rate(s) at which interest would accrue after September 30, 1986, and, if different rates apply to different portions of the aggregate total dollar amount claimed, the dollar amount to which each rate applies. All dollar amounts are to be stated as of September 30, 1986. If the interest rate(s) referred to in clause (c)(2)(vii) may only be stated with reference to an index, that index and the applicable margin shall be provided. For all interest rates referred to in clause (c)(2)(vii), the calculation period (e.g., semiannual), the starting date of the first interest calculation period beginning after September 30, 1986, and the calculation basis (e.g., 365/365, 365/360) shall be provided. (3) Filing. One copy of the registration, which shall be in the form of a letter or a telex (Telex No. 710 - 822 - 9201), shall be sent to Unit 622(c), Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. Telexed registrations should also include the telephone number of the Census Unit (376 - 0968). A copy of the registration should be retained for the registrant banking institution's records. (4) Failure to register. All members of a syndicate are precluded from asserting any January Interest claim against the Escrow Account arising out of the syndicate, or participation in the syndicate, unless at least one U.S. banking institution that is a member of the syndicate has registered a claim against the Escrow Account pursuant to this subsection and the claim asserted is consistent with information provided in such registration and with the purpose of Paragraph 2(B) of the Undertakings. [51 FR 37569, Oct. 23, 1986] 535.625 Reports on Form TFR - 625. (a) Requirement for report. Reports on Form TFR - 625 are hereby required to be filed on or before July 1, 1982, in the manner prescribed herein, with respect to all tangible property subject to the jurisdiction of the United States or in the possession or control of any person subject to the jurisdiction of the United States at any time between November 14, 1979, and January 19, 1981, in which Iran or an Iranian entity has or has had any interest or asserted interest. (b) Who must report. Reports on Form TFR - 625 must be filed by any person, or the successor to such person, subject to the jurisdiction of the United States who has an interest in, or who, between November 14, 1979, and January 19, 1981, had in his custody, control, or possession, directly or indirectly, in trust or otherwise, tangible property in which there was or is any direct or indirect interest or an asserted interest of Iran or an Iranian entity. This includes, but is not limited to, all persons who reported holding tangible property as of March 31, 1980 on Treasury Department Form TFR - 615, ``Census of Blocked Iranian Assets.'' (c) Filing Form TFR - 625. Reports on Form TFR - 625 shall be prepared in triplicate. On or before July 1, 1982, two copies shall be sent in a set to Unit 625, Office of Foreign Assets Control, Department of the Treasury, Washington, DC 20220. The third copy must be retained with the reporter's records. (d) Certification. Every report on Form TFR - 625 shall contain the certification required in part D of the Form. Failure to complete the certification shall render the report ineffective, and the submission of such a report shall not constitute compliance with this section. (e) Confidentiality of reports. Reports on Form TFR - 625 are regarded as privileged and confidential. (Approved by the Office of Management and Budget under control number 1505 - 0056) (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; and E.O. 12294, 46 FR 14111) [47 FR 22361, May 24, 1982] Editorial Note: For a notice document affecting 535.625 Form TFR - 625, see 47 FR 25003, June 9, 1982. Subpart G -- Penalties 535.701 Penalties. (a) Attention is directed to section 206 of the International Emergency Economic Powers Act which provides in part: (a) A civil penalty of not to exceed $10,000 may be imposed on any person who violates any license, order, or regulation issued under this title. (b) Whoever willfully violates any license, order, or regulation issued under this title shall, upon conviction be fined not more than $50,000, or, if a natural person, may be imprisoned for not more than ten years, or both; and any officer, director, or agent of any corporation who knowingly participates in such violation may be punished by a like fine, imprisonment or both. This section of the International Emergency Economic Powers Act is applicable to violations of any provision of this part and to violations of the provisions of any license, ruling, regulation, order, direction or instruction issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to this part or otherwise under the International Emergency Economic Powers Act. (b) Attention is also directed to 18 U.S.C. 1001 which provides: Whoever, in any matter within the jurisdiction of any department or agency of the United States knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material fact, or makes any false, fictitious or fraudulent statements or representation or makes or uses any false writing or document knowing the same to contain any false, fictitious or fraudulent statement or entry, shall be fined not more than $10,000 or imprisoned not more than five years, or both. 535.702 Prepenalty notice. (a) When required. If the Director of the Office of Foreign Assets Control (hereinafter ``Director'') has reasonable cause to believe that there has occurred a violation of any provision of this part or a violation of the provisions of any license, ruling, regulation, order, direction or instruction issued by or pursuant to the direction or authorization of the Secretary of the Treasury pursuant to this part or otherwise under the International Emergency Economic Powers Act, and the Director determines that further proceedings are warranted, he shall issue to the person concerned a notice of his intent to impose a monetary penalty. The prepenalty notice shall be issued whether or not another agency has taken any action with respect to this matter. (b) Contents -- (1) Facts of violation. The prepenalty notice shall: (i) Describe the violation. (ii) Specify the laws and regulations allegedly violated. (iii) State the amount of the proposed monetary penalty. (2) Right to make presentations. The prepenalty notice also shall inform the person of his right to make a written presentation within thirty (30) days of mailing of the notice as to why a monetary penalty should not be imposed, or, if imposed, why it should be in a lesser amount than proposed. [53 FR 7356, Mar. 8, 1988] 535.703 Presentation responding to prepenalty notice. (a) Time within which to respond. The named person shall have 30 days from the date of mailing of the prepenalty notice to make a written presentation to the Director. (b) Form and contents of written presentation. The written presentation need not be in any particular form, but shall contain information sufficient to indicate that it is in response to the prepenalty notice. It should contain responses to the allegations in the prepenalty notice and set forth the reasons why the person believes the penalty should not be imposed or, if imposed, why it should be in a lesser amount than proposed. [53 FR 7356, Mar. 8, 1988] 535.704 Penalty notice. (a) No violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was no violation by the person named in the prepenalty notice, he promptly shall notify the person in writing of that determination and that no monetary penalty will be imposed. (b) Violation. If, after considering any presentations made in response to the prepenalty notice, the Director determines that there was a violation by the person named in the prepenalty notice, he promptly shall issue a written notice of the imposition of the monetary penalty to that person. [53 FR 7356, Mar. 8, 1988] 535.705 Referral to United States Department of Justice. In the event that the person named does not pay the penalty imposed pursuant to this subpart or make payment arrangements acceptable to the Director within thirty days of the mailing of the written notice of the imposition of the penalty, the matter shall be referred to the United States Department of Justice for appropriate action to recover the penalty in a civil suit in a Federal district court. [53 FR 7356, Mar. 8, 1988] Subpart H -- Procedures Source: 44 FR 66833, Nov. 21, 1979, unless otherwise noted. 535.801 Licensing. (a) General licenses. General licenses have been issued authorizing under appropriate terms and conditions many types of transactions which are subject to the prohibitions contained in subpart B of this part. All such licenses are set forth in subpart E of this part. It is the policy of the Office of Foreign Assets Control not to grant applications for specific licenses authorizing transactions to which the provisions of an outstanding general license are applicable. Persons availing themselves of certain general licenses are required to file reports and statements in accordance with the instructions specified in the licenses. (b) Specific licenses -- (1) General course of procedure. Transactions subject to the prohibitions contained in subpart B of this part which are not authorized by general license may be effected only under specific license. When an unusual problem is presented, the proposed action is cleared with the Director of the Office of Foreign Assets Control or such person as he may designate. (2) Applications for specific licenses. Applications for specific licenses to engage in any transactions prohibited by or pursuant to this part may be filed by letter with the Office of Foreign Assets Control. Any person having an interest in a transaction or proposed transaction may file an application for a license authorizing such transaction, but the applicant for a specific license is required to make full disclosure of all parties in interest to the transaction so that a decision on the application may be made with full knowledge of all relevant facts and so that the identity and location of the persons who know about the transaction may be easily ascertained in the event of inquiry. (3) Information to be supplied. The applicant must supply all information specified by relevant instructions, and must fully disclose the names of all the parties who are concerned with or interested in the proposed transaction. If the application is filed by an agent, the agent must disclose the name of his principal(s). Such documents as may be relevant shall be attached to each application as a part of such application except that documents previously filed with the Office of Foreign Assets Control may, where appropriate, be incorporated by reference. Applicants may be required to furnish such further information as is deemed necessary to a proper determination by the Office of Foreign Assets Control. Any applicant or other party in interest desiring to present additional information concerning the application may do so at any time. Arrangements for oral presentation may be made with the Office of Foreign Assets Control. (4) Effect of denial. The denial of a license does not preclude the reopening of an application or the filing of a further application. The applicant or any other party in interest may at any time request explanation of the reasons for a denial by correspondence or personal interview. (5) Reports under specific licenses. As a condition upon the issuance of any license, the licensee may be required to file reports with respect to the transaction covered by the license, in such form and at such times and places as may be prescribed in the license or otherwise. (6) Issuance of license. Licenses will be issued by the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury, acting in accordance with such regulations, rulings and instructions as the Secretary of the Treasury or the Office of Foreign Assets Control may from time to time prescribe, in such cases or classes of cases as the Secretary of the Treasury or the Office of Foreign Assets Control may determine, or licenses may be issued by the Secretary of the Treasury acting directly or through any person, agency, or instrumentality designated by him. (c) Address. License applications, reports, and inquiries should be addressed to the appropriate section or individual within the Office of Foreign Assets Control, or to its Director, at the following address: Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. [44 FR 65956, Nov. 15, 1979, as amended at 57 FR 1389, Jan. 14, 1992] 535.802 Unblocking. Any interested person desiring the unblocking of accounts or other property on the ground that neither Iran nor any Iranian entity has an interest in the property may file such an application. Such application shall be filed in the manner provided in 535.801(b) and shall contain full information in support of the administrative action requested. The applicant is entitled to be heard on the application. If the applicant desires a hearing, arrangements should be made with the Office of Foreign Assets Control. 535.803 Decision. The Office of Foreign Assets Control will advise each applicant of the decision respecting applications filed by him. The decision of the Office of Foreign Assets Control acting on behalf of the Secretary of the Treasury with respect to an application shall constitute final agency action. [44 FR 65956, Nov. 15, 1979, as amended at 57 FR 1389, Jan. 14, 1992] 535.804 Records and reporting. Records are required to be kept by every person engaging in any transaction subject to the provisions of this part. Reports may be required from any person with respect to any transaction subject to the provisions of this chapter or relative to any property in which any foreign country or any national thereof has any interest. 535.805 Amendment, modification, or revocation. The provisions of this part and any rulings, licenses, authorizations, instructions, orders, or forms issued thereunder may be amended, modified, or revoked at any time. 535.806 Rule making. (a) In general, rule making by the Office of Foreign Assets Control involves foreign affairs functions of the United States to which the provisions of the Administrative Procedure Act, 5 U.S.C. 553, requiring notice of proposed rule making, the opportunity for public participation and a delay in effective date are inapplicable. However, the Office of Foreign Assets Control may consult with interested groups or persons in connection with the issuance of rules or the establishment of licensing policies. (b) Any interested person may recommend in writing to the Director of the Office of Foreign Assets Control the issuance, amendment or the repeal of any rule. [44 FR 75353, Dec. 19, 1979] 535.807 Rules governing availability of information. (a) The records of the Office of Foreign Assets Control required by the Freedom of Information Act (5 U.S.C. 552) to be made available to the public shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on the Disclosure of Records of the Departmental Offices and of other bureaus and offices of the Department of the Treasury issued under 5 U.S.C. 552 and published in part 1 of this title. (b) The records of the Office of Foreign Assets Control required by the Privacy Act (5 U.S.C. 552a) to be made available to an individual shall be made available in accordance with the definitions, procedures, requirements for payment of fees, and other provisions of the Regulations on Disclosure of Records of the Departmental Offices and of other bureaus and offices of the Department of the Treasury issued under 5 U.S.C. 552a and published in part 1 of this title. (c) Any form used in connection with the Iranian Assets Control Regulations may be obtained in person from or by writing to the Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. [57 FR 1389, Jan. 14, 1992] Subpart I -- Miscellaneous Provisions 535.901 Dollar accounts at banks abroad. Any domestic bank is hereby authorized to effect withdrawals or other transfers from any account held in the name of a non-Iranian bank located in a foreign country, provided such non-Iranian foreign bank is not a person subject to the jurisdiction of the United States. 535.902 Set-offs by U.S. owned or controlled firms abroad. (a) Branches and subsidiaries in foreign countries of persons subject to the jurisdiction of the United States are licensed to set-off their claims against Iran or Iranian entities by debit to blocked accounts held by them for Iran or Iranian entities. (b) The general license in paragraph (a) of this section is revoked as of January 19, 1981. (c) For purposes of this section, set-offs include combinations of accounts and any similar actions. (Secs. 201 - 207, 91 Stat. 1626, 50 U.S.C. 1701 - 1706; E.O. 12170, 44 FR 65729; E.O. 12205, 45 FR 24099; E.O. 12211, 45 FR 26685; E.O. 12276, 46 FR 7913; E.O. 12279, 46 FR 7919; E.O. 12280, 46 FR 7921; E.O. 12281, 46 FR 7923; E.O. 12282, 46 FR 7925; E.O. 12283, 46 FR 7927, and E.O. 12294, 46 FR 14111) [46 FR 14337, Feb. 26, 1981] 535.904 Payment by Iranian entities of obligations to persons within the United States. The transfer of funds after the effective date by, through or to any U.S. banking institution or other person within the United States solely for purposes of payment of obligations by Iranian entities owed to persons within the United States is authorized: Provided, That there is no debit to a blocked account. Property is not blocked by virtue of being transferred or received pursuant to this section. [44 FR 66591, Nov. 20, 1979] 535.905 Paperwork Reduction Act notice. The information collection requirements in 535.568 and 535.801 have been approved by the Office of Management and Budget and assigned control number 1505 - 0096. [50 FR 27438, July 3, 1985, as amended at 57 FR 6297, Feb. 24, 1992]