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Federal Register / Vol. 61, No. 124 / Wednesday, June 26, 1996 / Rules and Regulations

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Federal Register / Vol. 61, No. 124 / Wednesday, June 26, 1996 / Rules and Regulations 32936 Federal Register / Vol. 61, No. 124 / Wednesday, June 26, 1996 / Rules and Regulations (iii) The substitution of the new obligor Office of Foreign Assets Control from the Office's Internet Home Page: occurs in a section 381(a) transaction and http://www.ustreas.gov/treasury/ does not result in a change in payment 31 CFR Chapter V services/fac/fac.html, or in fax form expectations. Although the interest rate through the Office's 24±hour fax±on± changed by more than the greater of 25 basis Blocked Persons, Specially Designated demand service: call 202/622±0077 points and 5 percent of the annual yield of Nationals, Specially Designated the unmodified instrument, this alteration using a fax machine, fax modem, or Terrorists, Specially Designated touch tone telephone. did not occur as a result of the transaction Narcotics Traffickers, and Blocked and is not a significant alteration under Vessels Background paragraph (e)(4)(i)(E) of this section. Thus, The Office of Foreign Assets Control the substitution meets the requirements of AGENCY: Office of Foreign Assets (``OFAC'') is creating three new paragraph (e)(4)(i)(B) of this section and is Control, Treasury not a significant modification. appendices (the ``Appendices'') to 31 ACTION: Example 8. Substitution of credit Final rule; amendments. CFR chapter V that contain lists of enhancement contract. (i) Under the terms of SUMMARY: The Office of Foreign Assets individuals and entities that the a recourse debt instrument, the issuer's Control is creating consolidated Director of OFAC has determined to be obligations are secured by a letter of credit appendices that contain lists of all either blocked persons, specially from a specified bank. The debt instrument designated nationals (``SDNs''), does not contain any provision allowing a blocked persons, specially designated nationals, specially designated specially designated terrorists (``SDTs''), substitution of a letter of credit from a or specially designated narcotics different bank. The specified bank, however, terrorists, specially designated narcotics encounters financial difficulty and rating traffickers and blocked vessels under traffickers (``SDNTs''), as well as vessels agencies lower its credit rating. The issuer the various sanctions programs that have been determined to be the and holder agree that the issuer will administered by the Treasury property of a blocked person or SDN substitute a letter of credit from another bank Department's Office of Foreign Assets (``blocked vessels''). This final rule with a higher credit rating. Control as of June 26, 1996 in order to supersedes the comprehensive list (ii) Under paragraph (e)(4)(iv)(A) of this enhance public awareness of these published as a Notice in the Federal section, the substitution of a different credit Register on November 17, 1994, (59 FR enhancement contract is not a significant persons and vessels and to facilitate compliance with the applicable 59460) (as amended in 59 FR 61656, modification of a recourse debt instrument December 1, 1994) and removes unless the substitution results in a change in prohibitions on dealing in property in which these persons have an interest. appendices now contained in the payment expectations. While the substitution Libyan Sanctions Regulations (31 CFR of a new letter of credit by a bank with a EFFECTIVE DATE: June 26, 1996. higher credit rating does not itself result in part 550) and the Iraqi Sanctions FOR FURTHER INFORMATION CONTACT: Regulations (31 CFR part 575) and a change in payment expectations, such a Chief, International Programs, tel.: 202/ substitution may result in a change in consolidates them with additional payment expectations under certain 622±2420, or Chief Counsel, tel.: 202/ information concerning other sanctions circumstances (for example, if the obligor's 622±2410, Office of Foreign Assets programs administered by OFAC in capacity to meet payment obligations is Control, Department of the Treasury, three new Appendices located at the dependent on the letter of credit and the Washington, D.C. 20220. end of 31 CFR chapter V. References to substitution substantially enhances that SUPPLEMENTARY INFORMATION: the Appendices are added to existing capacity from primarily speculative to Electronic and Facsimile Availability regulatory sections in chapter V to adequate). which they apply. Example 9. Improvement to collateral This document is available as an Appendix A to 31 CFR chapter V securing nonrecourse debt. A parcel of land electronic file on The Federal Bulletin contains blocked persons, SDNs, SDTs and its improvements, a shopping center, Board the day of publication in the secure a nonrecourse debt instrument. The and SDNTs, arranged alphabetically. obligor expands the shopping center with the Federal Register. By modem, dial 202/ Appendix B to 31 CFR chapter V construction of an additional building on the 512±1387 and type ``/GO FAC,'' or call contains blocked persons, SDNs, SDTs same parcel of land. After the construction, 202/512±1530 for disk or paper copies. and SDNTs arranged alphabetically by the improvements that secure the This file is available for downloading country of location, where their location nonrecourse debt include the new building. without charge in WordPerfect 5.1, is known, and alphabetically where no The building is an improvement to the ASCII, and Adobe AcrobatTM readable location is known. Appendix C to 31 property securing the nonrecourse debt (*.PDF) formats. For Internet access, the CFR chapter V contains blocked vessels instrument and its inclusion in the collateral address for use with the World Wide arranged alphabetically. securing the debt is not a significant Web (Home Page), Telnet, or FTP Appendices A and B contain the modification under paragraph (e)(4)(iv)(B) of this section. protocol is: fedbbs.access.gpo.gov. The names of blocked persons and SDNs document is also accessible for that the Director of OFAC has (h) Effective date. This section applies downloading in ASCII format without determined, as of June 25, 1996, to be to alterations of the terms of a debt charge from Treasury's Electronic (1) organized or located in a country instrument on or after September 24, Library (``TEL'') in the ``Business, Trade subject to economic sanctions, (2) 1996. Taxpayers, however, may rely on and Labor Mall'' of the FedWorld owned and controlled by entities that this section for alterations of the terms bulletin board. By modem, dial 703/ are organized or located in a country of a debt instrument after December 2, 321±3339, and select the appropriate subject to economic sanctions, or (3) 1992, and before September 24, 1996. self±expanding file in TEL. For Internet owned or controlled by, or acting or Margaret Milner Richardson, access, use one of the following purporting to act directly or indirectly Commissioner of Internal Revenue. protocols: Telnet = fedworld.gov on behalf of, the government or the de (192.239.93.3); World Wide Web (Home facto regime of a country subject to Approved: May 31, 1996. Page) = http://www.fedworld.gov; FTP economic sanctions. The listed specially Leslie Samuels, = ftp.fedworld.gov (192.239.92.205). designated nationals and blocked Assistant Secretary of the Treasury. Additional information concerning the persons relate to sanctions imposed [FR Doc. 96±15830 Filed 6±25±96; 8:45 am] programs of the Office of Foreign Assets against Cuba, the Bosnian Serbs, the BILLING CODE 4830±01±U Control is available for downloading Federal Republic of Yugoslavia (Serbia Federal Register / Vol. 61, No. 124 / Wednesday, June 26, 1996 / Rules and Regulations 32937 and Montenegro) (the ``FRY (S&M)''), Secretary of the Treasury, in located in a country subject to economic Iraq, Libya, North Korea, designated consultation with the Attorney General sanctions, owned or controlled by a Middle East terrorists and designated and the Secretary of State, (a) to play a person organized or located in a country narcotics traffickers centered in significant role in international subject to economic sanctions, or acting Colombia. Appendix C contains the narcotics trafficking centered in for or on behalf of the government or the names of vessels determined to be Colombia, or (b) to materially assist in de facto regime of a country subject to property of blocked persons or SDNs. or provide financial or technological economic sanctions. The Treasury Specially designated nationals and support for, or goods or services in Department regards it as incumbent blocked persons relating to sanctions support of, persons designated in or upon all U.S. persons or persons subject imposed against the Bosnian Serbs and pursuant to the SDNT Order. In to U.S. jurisdiction, depending upon the the FRY (S&M), however, appear in a addition, the SDNT Order blocks all sanctions program, to take reasonable separate alphabetized list at the end of property and interests in property steps to ascertain for themselves Appendix A, since sanctions against the subject to U.S. jurisdiction of persons whether persons with whom they enter FRY (S&M) were suspended on January determined by the Secretary of the into transactions fall into one of these 16, 1996 (61 FR 1282, January 19, 1996), Treasury, in consultation with the categories. and sanctions against the Bosnian Serbs Attorney General and the Secretary of Names of entities, individuals or were suspended on May 10, 1996 (61 FR State, to be owned or controlled by, or vessels previously included on lists 24696, May 16, 1996). Property and to act for or on behalf of, persons issued by OFAC, however, which do not interests in property previously blocked designated in or pursuant to the SDNT appear in the following Appendices, remain blocked until provision is made Order. have been determined to no longer come to address claims or encumbrances with The entities and individuals included within the scope of the relevant respect to such property and interests in in the Appendices with respect to sanctions program.
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