§447 Financial transactions

Summary

When the President issues a certain proclamation, people in the United States cannot buy, sell, or trade bonds, securities, or other debts issued after that proclamation by any state named in it, by local governments in that state, or by anyone acting for them. They also cannot make loans or extend credit to those governments or people, except for routine credits needed for telegraph, cable, wireless, and telephone services. The rule also covers selling certain articles or materials to someone in a named state if those items are listed in a related proclamation. Debt that existed on the day of the proclamation can be renewed or adjusted. Anyone who knowingly breaks these rules can be fined up to $50,000, jailed for up to five years, or both. If a corporation breaks the rule, each officer or director who takes part can be punished the same way. If the proclamation is revoked for a state, the restrictions stop for that state, but people can still be punished for past violations. The rule does not apply when the United States is at war.