[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR560.413]

[Page 777]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 560--IRANIAN TRANSACTIONS REGULATIONS--Table of Contents
 
                       Subpart D--Interpretations
 
Sec. 560.413  Letter of credit payments by Iranian banks in the United States.

    (a) For purposes of the exemption in Sec. 560.210(e), payment of 
letters of credit and other financing agreements according to their 
terms includes, in the case of payments made by an Iranian bank's branch 
or agency located in the United States, payments that such branch or 
agency is:
    (1) Legally obligated to make pursuant to the terms of letters of 
credit and other financing agreements relating to pre-May 7, 1995 trade 
contracts; or
    (2) Licensed to make by the Office of Foreign Assets Control with 
respect to pre-May 7, 1995 trade contracts.
    (b) Payments that are not binding legal obligations of an Iranian 
bank's branch or agency pursuant to the terms of the letter of credit or 
other financing agreement are not covered by this exemption.