View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERA L RESERVE BANK OF DALLAS
DALLAS, TEXAS

75222
Circular No. 81-235
December 15, 1981

IRANIAN ASSETS CONTROL REGULATIONS
Amendment

TO ALL MEMBER BANKS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The office of Foreign Assets Control is amending the Iranian
Assets Control Regulations. The purpose of the amendment is outlined on the
following pages in the m aterial submitted for publication in the Federal
R egister. The effectiv e date of this amendment was December 4, 1981.
Questions regarding the amendment should be directed to Loren
Dohm, Chief, Census Unit, Office of Foreign Assets Control, D epartm ent of
the Treasury, Washington, D.C. 20220, Telephone (202) 376-0236.
Additional copies of this circular will be furnished upon request to
the D epartm ent of Communications, Financial and Community Affairs, Ext.
6289.
Sincerely yours,

William H. Wallace
First Vice President

Banks and others are encouraged to use the following incoming W A T S numbers in contacting this Bank:
1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the
extension referred to above.

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

DEPARTMENT OF THE TREASURY
Office of Foreign Assets Control
31 CFR Part 535

Iranian Assets Control Regulations:
Registration of Bank Claims Against the
Escrow Account at the Bank of England;
Preclusion of Unregistered Claims

AGENCY:
Office of Foreign Assets Control
ACTION:
Final Rule
SUMMARY:
The Office of Foreign Assets Control is amending the
Iranian Assets Control Regulations. The purpose of this amend­
ment is
to require U.S. banking institutions to register
in
writing
with the Office of Foreign Assets Control, on or
before December 16, 1981, if they have, and intend to assert,
claims against the account established by the deposit of
$1,418 billion in escrow at the Bank of England pursuant to
Paragraph 2(B) of the January 19, 1981, Undertakings of the
Government of the United States of America and the Government
of the Islamic Republic of Iran with Respect to the Declara­
tion of the Government of the Democratic and Popular Republic
of Algeria ("the Undertakings"). Banking institutions which
do not register pursuant to this section are precluded from
asserting any claim against the Escrow Account described
above.
EFFECTIVE DATE:
December 4, 1981
FOR FURTHER INFORMATION CONTACT:
Loren Dohm, Chief, Census
Unit, Office of Foreign Assets Control, Department of the
Treasury, Washington, D.C.
20220, Tel. (202) 376-0968.
SUPPLEMENTARY INFORMATION:
The Government of the Islamic
Republic of Iran has requested that the Government of the
United States provide it with the names of U.S. banking
institutions that intend to assert claims against the account
established by the deposit of $1,418 billion in escrow ("the
Escrow Account,” also known as "Dollar Account No. 2") at the
Bank of England pursuant to Paragraph 2(B) of the
Undertakings.
The United States has agreed to this request.
Paragraph 2(B) of the Undertakings provides that funds
retained in the Escrow Account will be used "for the purpose
of paying the unpaid principal or the interest owing, if any,
on the loans and credits referred to in Paragraph (A)
[syndicated loans] after application of the $3,667 billion and
on all other indebtedness held by United States banking
institutions of, or guaranteed by, the Government of Iran, it.s
agencies, instrumentalities or controlled entities not
previously paid and for the purpose of paying disputed amounts
of deposits, assets, and interests, if any, owing on Iranian

-2-

deposits in U.S. banking institutions."
In complying with this registration requirement, a
banking institution is asked to submit only the name of the
institution, its address, and the name, title, and telephone
number of an appropriate contact person.
There is no
requirement that additional details as to the amount or basis
of the claim be provided.
Since the Regulations involve a foreign affairs function,
the provisions of the Administrative Procedure Act, 5 U.S.C.
Section 553, requiring notice of proposed rulemaking,
opportunity for public participation and delay in effective
date, are inapplicable.
Similarly, because the Regulations are issued with
respect to a foreign affairs function of the United States,
they are not subject to Executive Order 12291 of February 17,
1981, dealing with federal regulations.
This registration requirement is not subject to the
Paperwork Reduction Act of 1980, 44 U.S.C. section 3501 et
seq.
31 CFR Part 535 is amended as follows:
Section 535.621 is added as follows:
Section 535.621 Registration of Bank Claims
against the
Escrow Account at the Bank of England
(a)
Registration requirement. Any U.S. banking
institution that has, and intends to assert, a claim against
the account established by the deposit of $1,418 billion in
escrow ("the Escrow Account," also known as "Dollar Account
No. 2") at the Bank of England pursuant to Paragraph 2(B) of
the Undertakings of the Government of the United States of
America and the Government of the Islamic Republic of Iran
with Respect to the Declaration of the Government of the
Democratic and Popular Republic of Algeria, is required to
register with the Office of Foreign Assets Control, in
writing, on or before December 16, 1981.
(b)
Contents of Registration N o t ic e . The required
registration shall refer to this section of the Regulations
and contain the following:
(1) Name and address of the banking institution;
and
(2)
Name, title, and telephone number of person
who may be contacted about this registration.
(c)
Filing. One copy of this registration notice,
which shall be in the form of a letter or a telex (Telex No.
710-822-9201), should be sent to Unit 621, Office of Foreign
Assets Control, Department of the Treasury, Washington, D.C.
20220.
Telexed notices should also include the telephone
number (376-0968) of the Census Unit.
A copy of the notice
should be retained for the submitter's records.
(d)
Failure to Register. Any banking institution which
does not submit a registration notice pursuant to this
section shall be precluded from asserting any claim against
the Escrow Account.
*

*

*

*

-3-

[Sec. 201-207, 91 Stat. 1626, 50 U.S.C. 1701-1706;
12170, 44 FR 65729; E.O. No. 12205, 45 FR 24099; E.i
12211, 45 FR 26605; E.O. No. 12276, 46 FR 7913; E.O
12279, 46 FR 7919; E.O. No. 12280, 46 FR 7921; E.O.
12281, 46 FR 7923; E.O. No. 12282, 46 FR 7925; and
12294, 46 FR 14111.]
Dated:

December 4, 1981
Dennis M. O'Connell
Director

Approved:

__________________
John M. Walker, Jr.
Assistant Secretary

!.O . NO.
I NO.
.
NO.
NO.
:.o. No.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102