[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR550.212]

[Page 759]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY
 
PART 550_LIBYAN SANCTIONS REGULATIONS--Table of Contents
 
                         Subpart B_Prohibitions
 
Sec. 550.212  Holding of certain types of blocked property in 
interest-bearing accounts.

    (a)(1) Any U.S. person, including a banking institution, currently 
holding property subject to Sec. 550.209 which, as of the later of 
September 11, 1992 or the date of receipt, is not being held in an 
interest-bearing account, or otherwise invested in a manner authorized 
by the Office of Foreign Assets Control, shall transfer such property 
to, or hold such property or cause such property to be held in, an 
interest-bearing account or interest-bearing status, as of such date, in 
a banking institution in the United States, or, for property held 
outside the United States, the foreign branch of a U.S. banking 
institution, unless otherwise authorized or directed by the Office of 
Foreign Assets Control.
    (2) The requirement in paragraph (a)(1) of this section shall apply 
to funds, 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 Libya entity having an interest in 
the accounts.
    (b) For purposes of this section, the term interest-bearing account 
means a blocked account in a banking institution earning interest at 
rates that are commercially reasonable. Commercially reasonable means 
the rate currently offered other depositors on deposits of comparable 
size and maturity. 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 or real estate, 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.

[57 FR 41697, Sept. 11, 1992]