[Code of Federal Regulations]

[Title 31, Volume 3]

[Revised as of July 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 31CFR515.203]



[Page 88-89]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

 CHAPTER V--OFFICE OF FOREIGN ASSETS CONTROL, DEPARTMENT OF THE TREASURY

 

PART 515_CUBAN ASSETS CONTROL REGULATIONS--Table of Contents

 

                         Subpart B_Prohibitions

 

Sec. 515.203  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 a designated national 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 a designated 

national 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 section 5(b) of 

the Trading With the Enemy Act, as amended, 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



[[Page 89]]



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 available to such person, that such transfer 

required a license or authorization by or pursuant to the provisions 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 by Sec. 515.504 or otherwise 

licensed or authorized pursuant to this chapter 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 the interest of a designated 

foreign country or national thereof.

    (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(1) 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.



[28 FR 6974, July 9, 1963, as amended at 28 FR 7941, Aug. 3, 1963]