[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: 31CFR535.203]



[Page 138-139]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 535_IRANIAN ASSETS CONTROL REGULATIONS--Table of Contents

 

                         Subpart B_Prohibitions

 

Sec. 535.203  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 Iran 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 Iran 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 the 

International Emergency Economic Powers Act 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 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 provision 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 pursuant to this part 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 an interest of Iran.

    (f) For the purpose of this section the term property includes gold, 

silver, bullion, currency, coin, credit, securities



[[Page 139]]



(as that term is defined in section 2(l) 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.



[44 FR 65956, Nov. 15, 1979, as amended at 45 FR 24432, Apr. 9, 1980]