General Note on the Prohibitions on Dealings in “New Debt” of Certain Sanctions Targets (System Ed. Note)

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TURBOFAC Commentary (5567 words)

General Note on the Prohibitions on Dealings in “New Debt” of Certain Sanctions Targets (System Ed. Note)

 

I. BACKGROUND

 

II. 50% RULE

 

III. WHAT IS “DEBT”?

            a. “Loans” and “Extensions of Credit”

            b. Other Examples of “Debt”

            c. Examples of what OFAC Regards as Not Being “Debt”

 

IV. WHAT IS DEBT “OF” A SANCTIONS TARGET?

 

V. WHAT IS “NEW” DEBT

            a. The Initial Date of “Issuance” of Debt, Common Situations

            b. The Initial Date of “Issuance” of Debt, Situations Where Debt is Issued After the Sanctions Effective Date Pursuant to a Qualifying Pre-Sanctions Agreement

 

VI. THE CONVERSION OF PRE-SANCTIONS OR OTHERWISE NON-PROHIBITED DEBT INTO PROHIBITED “NEW DEBT”

 

VII. WHAT IS A “DEALING” IN “NEW DEBT” OR “FACILITATION” THEREOF

 

VIII. CERTAIN OPEN INTERPRETIVE QUESTIONS

 

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General Note on the Prohibitions on Dealings in “New Debt” of Certain Sanctions Targets (System Ed. Note)

 

I. BACKGROUND

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