[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: 31CFR550.212]



[Page 276-277]

 

                  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



[[Page 277]]



Foreign Assets Control may issue licenses permitting or directing sales 

of tangible property in appropriate cases.



[57 FR 41697, Sept. 11, 1992]