Ed. Note: if you’re new to TURBOFAC, please take note that the text string filtration function generally shouldn’t be used for terms such as “ordinarily resident,” “causing” or “new debt”. For research on the meaning of words and phrases such as those, i.e. terms central to the key legal issues in sanctions law that appear on a cross-programmatic basis, you’re typically better off locating and checking the appropriate box in the “Key Legal Issues” search category, which will limit the results to those that have been manually assessed as being relevant for the interpretation of the terms at issue.
Try typing your search term (“ordinarily resident,” “new debt,” or something else) in the “Find a Search Filter” box at the top of the page, and the corresponding “Key Legal Issues” check box will pop up instantly, if one exists. Once you check the box (e.g. “new debt,” with ~55 results), you can always use the text string filtration function to further refine your search (e.g. by typing “invoice” and narrowing the ~55 results to ~10).
Note in addition that the same applies to text string searches such as “14071” (if you’re looking for items related to EO 14071). By typing “14071” in the “Find a Search Filter” field up top, you will be able to instantly narrow the results down to items manually assessed as relating to EO 14071. Ditto terms such as “515.204” or “Iran General License G” (try the “Discrete Legal Provision” search category).
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Please click "Apply Text String Filters" again after clicking the "Close" button immediately below.
1) OFAC appears to refer to derivatives contracts with SSI entities being the counterparties to the contracts themselves, e.g. SSI banks, rather than transactions particularly likely to involve a prohibited underlying asset falling within the scope of one of the directives.
2) The logic here may be that, while a holder of a derivatives contract has a form of credit exposure to the counterparty of the contract much in the way that a holder of debt has credit exposure to the debtor, that credit exposure is not itself a discrete asset on the debtholders' books. Compare accounts receivable, which are considered "new debt" if they are outstanding 60 days past their initial creation and their creation comes after the owing party is designated pursuant to the relevant directive.
One can quantify and hedge counterparty risk of the sort described here, but not sell it or otherwise assign a value to it.
* See generally General Note on the Prohibitions on Dealings in “New Debt” of Certain Sanctions Targets (System Ed. Note)