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Federal Reserve Bank
OF DALLAS
ROBERT

D. M C T E E R , J R .

P R E S ID E N T
AND

C H IE F E X E C U T IV E O F F IC E R

May 30 1995

DALLAS, TEXAS
75265-5906

Notice 95-53

TO:

The Chief Executive Officer of each
m em ber bank and foreign agency in
the Eleventh Federal Reserve District

SUBJECT
Office of Foreign Assets Control
DETAILS
The Office of Foreign Assets Control (OFAC) has issued G eneral License
No. 1 clarifying transactions permissible within the 30-day window for completion of preMay 7, 1995, contracts involving Iran. All obligations under pre-existing trade contracts
for the provision of services (including correspondent account services for Iranian banks)
benefitting persons in Iran must be fully completed prior to 12:01 A.M. EDT, June 6,
1995. National banks that do not have access to computer bulletin boards used by
OFAC may obtain details of the G eneral License by dialing the Comptroller of the
Currency’s information line from a Touch-Tone phone.
ATTACHMENT
Attached is a copy of the Office of Foreign Assets C ontrol’s G eneral License
No. 1 concerning Iranian transactions regulations.
MORE INFORMATION
For more information, please contact the Office of Foreign Assets Control at
(202) 622-2490. For additional copies of this Bank’s notice, please contact the Public
Affairs D epartm ent at (214) 922-5254.
Sincerely yours,

For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office (800) 333 -4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012; Houston
Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

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

DEPARTMENT OF THE TREASURY
W A S H I N G T O N . D.C. 2 0 22 0

OFFICE OF FOREIGN ASSETS CONTROL
IRANIAN TRANSACTIONS REGULATIONS
General License No. 1
30-Dav Delayed Effective Date
for Pre-May 7. 1995 Trade Contracts Involving Iran
(a) All transactions necessary to complete performance of a
trade contract entered into prior to May 7, 1995, and involving
Iran (a "pre-existing trade contract"), including the exportation
of goods, services (including financial services), or technology
from the United States that were authorized pursuant to Federal
regulations in force immediately prior to May 7, 1995, or
performance under a contract for transactions in Iranian-origin
or GOI-owned or controlled goods or services not involving
importation into the United States, are authorized without
specific licensing by the Office of Foreign Assets Control
("OFAC") if the conditions in subsection (a)(1) or subsection
(a)(2) are met:
(1) If the pre-existing trade contract is for exportation
of goods or technology from the United States that were
authorized pursuant to Federal regulations in force immediately
prior to May 7, 1995, the goods or technology must be exported
from the United States prior to 12:01 a.m. EDT, June 6, 1995, and
all other activity by U.S. persons that is necessary and
incidental to the performance of the pre-existing trade contract
(other than payment under a financing contract) must be completed
prior to 12:01 a.m. EDT, August 6, 1995; or
(2) If the pre-existing trade contract is for
(i) the provision of services benefitting a person in
Iran, the Government of Iran, or an entity owned or
controlled by the Government of Iran, or
(ii) the reexportation of goods or technology to Iran,
the Government of Iran, or an entity owned or controlled by
the Government of Iran that were authorized pursuant to
Federal regulations in force immediately prior to May 7,
1995, or
(iii) transactions relating to goods or services of
Iranian origin or owned or controlled by the Government of
Iran other than transactions relating to importation into
the United States of such goods or services,
all obligations under the pre-existing trade contract must be
fully completed prior to 12:01 a.m. EDT, June 6, 1995.
(b) In order to complete performance of a pre-existing
trade contract, and consistent with section 8(a) of Executive
Order 12959, the arrangement or renegotiation of contracts for
transactions necessary and incidental to performance of the pre­
existing trade contract is authorized. Such incidental
transactions may include, for example, financing, shipping and
insurance arrangements. Amendments to pre-existing trade
contracts for the purpose of accelerating a previously-specified
delivery schedule under a contract for a fixed quantity or value
of goods, technology or services, or curtailing or cancelling

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required performance, are authorized without specific licensing.
Any other alteration of the trade contract must be specificallylicensed by OFAC.
(c) The existence of a contract will be determined with
reference to the principles contained in Article 2 of the Uniform
Commercial Code.
(d) No U.S. person may change its policies or operating
procedures in order to enable a foreign entity owned or
controlled by U.S. persons to enter into a transaction that could
not be entered into directly by a U.S. person located in the
United States pursuant to Executive Order 12959.

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