[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: 31CFR586.505]

[Page 866-867]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 586--FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA & MONTENEGRO) KOSOVO SANCTIONS REGULATIONS--Table of Contents
 
 Subpart E--Licenses, Authorizations, and Statements of Licensing Policy
 
Sec. 586.505  Payment of obligations to U.S. persons authorized.

    (a) The transfer of funds after the effective date by, through, or 
to any U.S. financial institution or other U.S. person not blocked 
pursuant to this chapter solely for the purpose of payment of 
obligations to U.S. persons of persons whose property or interests in 
property are blocked pursuant to Sec. 586.201 is authorized, provided 
that the obligation arose prior to the effective date or is otherwise 
authorized pursuant to statute or the provisions of this part, and the 
payment requires no debit to a blocked account. Property is not blocked 
by virtue of being transferred or received pursuant to this section.
    (b) A person receiving payment under this section may distribute all 
or part of that payment to any person, provided that any such payment to 
a person whose property or interests in property are blocked pursuant to 
Sec. 586.201 must be to a blocked account in a U.S. financial 
institution.


[[Page 867]]


    Note to Sec. 586.505: Please refer to Sec. 501.603 of this chapter 
for mandatory reporting requirements regarding financial transfers. See 
also Sec. 586.203 concerning the obligation to hold blocked funds in 
interest-bearing accounts.