[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: 31CFR560.413]



[Page 305]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 560_IRANIAN TRANSACTIONS REGULATIONS--Table of Contents

 

                        Subpart D_Interpretations

 

Sec. 560.413  Letter of credit payments by Iranian banks in the United 

States.



    (a) For purposes of the exemption in Sec. 560.210(e), payment of 

letters of credit and other financing agreements according to their 

terms includes, in the case of payments made by an Iranian bank's branch 

or agency located in the United States, payments that such branch or 

agency is:

    (1) Legally obligated to make pursuant to the terms of letters of 

credit and other financing agreements relating to pre-May 7, 1995 trade 

contracts; or

    (2) Licensed to make by the Office of Foreign Assets Control with 

respect to pre-May 7, 1995 trade contracts.

    (b) Payments that are not binding legal obligations of an Iranian 

bank's branch or agency pursuant to the terms of the letter of credit or 

other financing agreement are not covered by this exemption.