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FEDERAL RESERVE BANK
OF MEW YORBC
[
Circular No. 10230 ~|
March 4, 1988
AUTHORITY TO RECEIVE AND TRANSFER PROPERTY
OF THE REPUBLIC OF PANAMA
To All Insured Banks in the Second Federal Reserve District:
Printed on the following pages is a statement of the Board of Governors of the Federal Reserve
System that the United States Department of State has issued a Certification with respect to the
authority to receive, control, or dispose of property held in any Federal Reserve Bank or insured
bank from or for the account of the Republic of Panama or any central bank thereof, including Banco
Nacional de Panama and Caja de Ahorros, and noting that a disposition of such property in accord
ance with the Certification is conclusively presumed to be lawful.
Also printed on the following pages is the text of that Certification, a copy of a letter dated
March 2, 1988, from the Ambassador of the Republic of Panama to the State Department, and a
copy of the pertinent portion of Section 25(b) of the Federal Reserve Act that is referred to in the
Board’s statement. We direct your attention to the limitations of Ambassador Sosa’s authority.
Inquiries regarding this matter may be directed to the Department of State, to the Legal Divi
sion of the Board of Governors, as specified in the Board’s statement, or to our Legal Department
(Tel. No. 212-720-5026).
E. G erald C orrigan ,
P resid en t.
Acting in accordance with section 55(b) of the Federal
Reserve Act,
Acting Secretary of State John C. Hhitehead has
accepted and recognised Ambassador Juan B « Sosa, the accredited
representative of the Republic of Panama to the united States,
as having the sole authority to receive and transfer property
of the Republic of Panama and certain related entities held at
any Federal Reserve bank or insured barsk0
of a certification
Attached is a copy
issued by the Acting Secretary of State
pursuant to section 25(b) of the Federal Reserve Act*
case,
In this
Ambassador Sosa has recognised that his authority does
not extend to withdrawals or transfers from accounts of the
Republic of Panama, except for transfers to other accounts of
the Republic of Panama in the United States0
The
applicable
certification
to any Federal
Section 25(b)
of
issued
under
Reserve
bank
ths Federal
Reserve
section
or
Act
25(b)
insured
is
bank.
(12 U aS 0C 0 632)
provides that any transfer or other disposition by a Federal
Reserve bank or insured bank of property held in accounts of a
foreign government
to or
upon
the
order
of
the
person
recognised by a State Department certification issued pursuant
to
section!
25(b),
£i
conclusively
presumed
lawful
and
constitutes a discharge and release of any liability o£ the
Federal
Reserve bank or
property,,
insured bank with
rospoct
to eueh
The pertinent portion of section 25(b) is attached.
=2
For further
information,
Kozak/ Deputy Legal Adviser
Assistant Legal Adviser
{202/^47 =5242),
Department of Sfe©e<8?
(202/452=3706), or Feter E 0
( 2 0 2 / 4 5 2 - 3 7 7 9 ) , L^gal Division,
of Governors of the Federal Reserve System.
Attachment
k
Michael G .
(202/647-503©) f or Ted A° Borek,
Kathleen M. O ’Dayf
f senior Counsel
Heyward, Senior Attorney
please contact
i
Board
DEPARTMENT OF STATE
WAilH!8Ki©T®W
CERTIFICATION
T h e r e b y c e r t i f y , i n a c c o r d a n c e w i t h 12 IJ * S , C'« ' 5632^ t o
any F e d e r a l Reserves bank or any i n s u r e d bank t h a t Hig
E x c e l l e n c y Juan Bo i o § @ , Ambas s ador o f t h e R e p u b l i c o f Panama
t o t h e U n i t e d S t a t e s o f A m e r i c a , i s r e c o g n i s e d by me a s b e i n g
t h e a c c r e d i t e d r e p r e s e n t a t i v e o f t h e R e p u b l i c o f Panama t©
t h e Go v e r n me nt o f t h e U n i t e d S t a t e s , t h a t he h a s d u l y
c e r t i f i e d t o me by n o t e d a t e d March 2, 1 9 8 8 , a c o p y o f w h i c h
i s a t t a c h e d , t h a t he i s t h e s o l e p e r s o n h a v i n g a u t h o r i t y feo
r e c e i v e , c o n t r o l , or d i s p o s e o f any p r o p e r t y h e l d i n any ©uch
F e d e r a l R e s e r v e bank or i n s u r e d bank f rom o r f o r t h e a c c o u n t
o f t h e R e p u b l i c o f Panama or any c e n t r a l bank t h e r e o f ,
i n c l u d i n g Ba nc o N a c i o n a l de Panama and Caj a de A h o r r o s , and
t h a t h i s a u t h o r i t y with r e s p e c t to such pr o pe r ty i s a c c e p t e d
and r e c o g n i s e d by me.
T h i s c e r t i f i c a t i o n s h a l l be n o t i f i e d t o t h e Board o f
G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s t e m , and s h a l l be g i v e n
such o t h e r di s s e m i n a t i o n as i s a p p r o p r i a t e t o i t s p u r p o s e .
Acting S e c re ta r y of
l i a r c h 2,
i
1988
k
State
em bajada
OE f a n a m a
WASHINGTON. D. C, tOOO©
The Embassy of the Republic of Panama present®
its compliments to the United States Department of State
and h©reby eeriifie© t© the Department of State that,
pursuant to 12 U,s,c„ § €32, the Republic has designated
Hie iKaellency Juan ®„ S©eaff the Ambassador of the
Republic of Panama to the United States of Aa©rie& and
th® Legal Representative in the United State© of Aa®riea
of th# Republic of Panama, as the person with the
requisite authority to receive, control, dispose of or
otherwise act with respect to any property received by
any Federal Reserve hank from or for the account of tft®
Republic ©f Panama ©r any central bank thereof,
including, hut not limited to, the Banco Macional d®
Panama and Caja de Ahorres, and any property received by
any insured bank from or for the account of the Republic
of Panama or any central bank thereof, including, but
not limited to, the Banco Naeion&l de Panama and Caja dm
Ahorros*
The authority of His Excellency Juan 1, Sosa
dee© not extend to withdrawals or transfers from such
account®, except for transfers to other accounts ©f the
Republic of Panama in the United States,
{
Acoordingly? in aeeordane© with 12 U.SoC. § €3af
f
the Embassy
hep®]?
and
of
of
the E^publie
of
Panama
h©rafey ha© the
r e q u i t i n g that the S<®er@tary of State aeeapt
r@e©fraise
the authority
of His SMe©ll®ncy
!«
Juan
So©a to receive, control * dispo^i© of or othsz^is© act
with r@©p<set to any such property received by any
F@d@ral Reserve bank fro® or for the account of the
Republic of Panama or any central bank thereof,
including, but not l tilted t©, the Banco Nacional d@
Panama and Caja dm Ahorro®, and any such property
r@e@i¥®d by any insured Isank froi or for th<s aea&unt ©f
th e
lepufelle ©£ Panama or any central bank thereof
r
ineluding, but not limited to, the lane© Maeionai d©
Panama and Caja dm Ahorros, and that the Soeratary of
State
certify
and ©11
the foregoing
In s u re d
to all Federal Reserve bank®
Thereupon, any paymentf
b a n k s,
transfer, delivery or other disposal of
receives] by any Federal
R e se rv e
such
property
bank or any injured bank
to or upon the order of His l^eelianoy Juan ©0 ie®a
shall be
©onclusively
presumed to b€ lawful and shall
eanstit^t© a complete discharges of
Federal Reserve
any liability of any
fe&nk or any insured bank, for or with
r@©p@et t© such property,
th e
its e lf
E m b a s s y ©£ t h e
@£ t h i s
e p p o r tu n ity
R e p u b lic
t@
of
Panam a
© v a ils
to t h e U n i t e d
i
S ta te s
D©partmaRt of stat® th<& assurances of its highest
consideration*
U /l» |
H-
S *r= 3^
Mis Eft©©!leaner Juan i. Son®
L®gai Representative in th@
United State© of tesriea
©f
th e
R e p u b lic
o f
P an aaa
Ambassador ©f the Republic
©f Panama t© the Onit@$
States of lyi@2?ie©
Wash!ngtoru
Do
c*
March 2 , 19i8
Section
25(b) of the Fed©r&l Reserve Act (12 U 0S 0e 0
| €32) provide© in pertinent part $8 follows?
Whenever (1) any Federal Reserve bank has
received any property from or for the account of
a foreign state which is recognised by the
Government of the United States,, or from or for
the account of a central bank ©£ any such foreign
state, <&nd holds? such property in the# name of
such foreign state or such central bank? (2) a
representative of such foreign state who is
recognised by the Secretary of State as being the
accredited representative of such foreign state
to the Government of the United States has
certified ho the Secretary of State the name of a
person as having authority to receive* control,
or dispose of such property? and (35 the
authority of such person to act with respect to
such property is accepted and recognised by th@
Secretary of State# and so certified by the
Secretary of State to the Federal Reserve bank*
the payment#
transfer# delivery# or other
disposal of such property by such Federal Reserve
bank to or upon the order of such person shall be
conclusively presumed to be lawful and shall
constitute a complete discharge and release of
any liability of the Federal Reserve bank for or
with respect to such property,,
Whenever (1) any insured bank has received
any property from or for the account of a foreign
state which is recognised by the Government of
the United states# or from or for the account of
a central bank of any such foreign state, and
holds such property in the name of such foreign
stats or such central bank? (2) a representative
of such foreign state who is recognised by the
Secretary of state as being the accredited
representative of such foreign state to the
Government of the United States has certified to
the Secretary of State the name of a person a©
having authority to receive, control# or dispose
of such property? and (3) the authority of auch
parsers to act with respect to such property is
accepted and recognised by the secretary of
State# and so certified by the Secretary o£ State
to ®ueh insured bank# the payment# transfer#
delivery# or other disposal of iuch property by
such bank to or upon the order of such person
©hall be conclusively presumed to be lawful and
shall constitute a complete discharge and release
of any liability of such bank for or with respect
to such property.
@FedFRASER