[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: 31CFR586.505]



[Page 385]

 

                  TITLE 31--MONEY AND FINANCE: TREASURY

 

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

 

PART 586_FEDERAL REPUBLIC OF YUGOSLAVIA (SERBIA & MONTENEGRO) KOSOVO 

SANCTIONS REGULATIONS--Table of Contents

 

 Subpart E_Licenses, Authorizations, and Statements of Licensing Policy

 

Sec. 586.505  Payment of obligations to U.S. persons authorized.



    (a) The transfer of funds after the effective date by, through, or 

to any U.S. financial institution or other U.S. person not blocked 

pursuant to this chapter solely for the purpose of payment of 

obligations to U.S. persons of persons whose property or interests in 

property are blocked pursuant to Sec. 586.201 is authorized, provided 

that the obligation arose prior to the effective date or is otherwise 

authorized pursuant to statute or the provisions of this part, and the 

payment requires no debit to a blocked account. Property is not blocked 

by virtue of being transferred or received pursuant to this section.

    (b) A person receiving payment under this section may distribute all 

or part of that payment to any person, provided that any such payment to 

a person whose property or interests in property are blocked pursuant to 

Sec. 586.201 must be to a blocked account in a U.S. financial 

institution.



    Note to Sec. 586.505: Please refer to Sec. 501.603 of this chapter 

for mandatory reporting requirements regarding financial transfers. See 

also Sec. 586.203 concerning the obligation to hold blocked funds in 

interest-bearing accounts.