[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: 31CFR575.203]

[Page 805]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 575--IRAQI SANCTIONS REGULATIONS--Table of Contents
 
                         Subpart B--Prohibitions
 
Sec. 575.203  Holding of certain types of blocked property in interest-bearing accounts.

    (a) Any person, including a U.S. financial institution, currently 
holding property subject to Sec. 575.201 which, as of the effective date 
or the date of receipt if subsequent to the effective date, is not being 
held in an interest-bearing account, or otherwise invested in a manner 
authorized by the Office of Foreign Assets Control, must transfer such 
property to, or hold such property or cause such property to be held in, 
an interest-bearing account or interest-bearing status in a U.S. 
financial institution as of the effective date or the date of receipt if 
subsequent to the effective date of this section, unless otherwise 
authorized or directed by the Office of Foreign Assets Control. This 
requirement shall apply to currency, bank deposits, accounts, and any 
other financial assets, and any proceeds resulting from the sale of 
tangible or intangible property. If interest is credited to an account 
separate from that in which the interest-bearing asset is held, the name 
of the account party on both accounts must be the same and must clearly 
indicate the blocked Government of Iraq entity having an interest in the 
accounts.
    (b) For purposes of this section, the term interest-bearing account 
means a blocked account in a U.S. financial institution earning interest 
at rates that are commercially reasonable for the amount of funds in the 
account. Except as otherwise authorized, the funds may not be invested 
or held in instruments the maturity of which exceeds 90 days.
    (c) This section does not apply to blocked tangible property, such 
as chattels, nor does it create an affirmative obligation on the part of 
the holder of such blocked tangible property to sell or liquidate the 
property and put the proceeds in a blocked account. However, the Office 
of Foreign Assets Control may issue licenses permitting or directing 
sales of tangible property in appropriate cases.