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) Refer to General Note on 'New Investment' Prohibitions in Embargo Programs (System Ed. Note), which addresses the relationship between this provision and the "new investment" prohibition of which the scope of this provision serves to define. This provision is standard (compare 31 CFR § 510.316 - Loans or other extensions of credit; 31 CFR § 542.310 - Loans or other extensions of credit).
2) See § 538.414 Loans or extensions of credit (Sudan, 1998) [Notable Repealed/Superseded Regulatory Provision]. 538.414 interprets a standard IEEPA-based service export ban as not only including exports of financial services, which is common to all services export bans, but i) including the provisions of loans or extensions of credit and ii) including the automatic renewal of credits or loans already in existence. No currently active provision states this explicitly, but there is little reason to believe that OFAC has changed its view on the question.
3) The terms “debt” and “extensions of credit” are not defined in the specific context of “new debt” prohibitions, but all “new investment” prohibitions that have been implemented in the CFR are associated with regulatory definitions of “debt” and “extension of credit” that are, if not controlling, then at least instructive. See 510.316 (NKSR); 542.310 (SySR); 560.412 (ITSR) and 589.324 (Crimea/URSR). 589.324 provides as follows:
“The term loans or other extensions of credit means any transfer or extension of funds or credit on the basis of an obligation to repay, or any assumption or guarantee of the obligation of another to repay an extension of funds or credit, including: overdrafts; currency swaps; purchases of debt securities issued by persons subject to the prohibitions in this part; purchases of a loan made by another person; sales of financial assets subject to an agreement to repurchase; renewals or refinancings whereby funds or credits are transferred to or extended to a prohibited borrower or prohibited recipient; the issuance of standby letters of credit; and drawdowns on existing lines of credit.”
In the Ukraine-/Russia-related Sanctions Regulations (URSR), which implements the Crimea “new investment” prohibition as well as the three “new debt” SSI Directives, there is a regulatory definition of “debt” at 589.307 that says “[t]he term debt as used in [the three SSI Directives] includes bonds, loans, extensions of credit, loan guarantees, letters of credit, drafts, bankers’ acceptances, discount notes or bills, or commercial paper.” Meanwhile, 589.324, which defines “Loans or other extensions of credit,” does not say that the definition is limited to the “new investment” prohibition only. To the extent that there was no mistake when OFAC did this, it means that the definition of “loans or other extensions of credit” as defined in 589.324 informs the scope of the term “debt” as it appears in 589.307. If this is true, it should apply to all "new debt" prohibitions. See generally General Note on the Prohibitions on Dealings in “New Debt” of Certain Sanctions Targets (System Ed. Note)