§447 — Title 22 Foreign Relations and Intercourse | U.S. Code

Summary

When the President issues a proclamation under section 441(a), people in the United States must not buy, sell, or trade bonds, securities, or other debts issued after that date by any state named in the proclamation, its local governments, or anyone acting for them. They also must not make loans or extend credit to those governments or people, except routine credits tied to telegraph, cable, wireless, or telephone services. The rule also bars selling to buyers in a named state any articles or materials listed in related proclamations under section 452(i). Renewals or adjustments of debt that existed on the proclamation date are allowed. Anyone who knowingly breaks these rules or related regulations can be fined up to $50,000, jailed for up to five years, or both. If a corporation, organization, or association breaks the rules, each officer or director who takes part can face the same penalty. If the President later revokes the proclamation for a state, the restrictions stop for that state, except for offenses that happened before the revocation. These rules do not apply when the United States is at war.

Title 22, §447

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)Whenever the President shall have issued a proclamation under the authority of section 441(a) of this title, it shall thereafter be unlawful for any person within the United States to purchase, sell, or exchange bonds, securities, or other obligations of the government of any state named in such proclamation, or of any political subdivision of any such state, or of any person acting for or on behalf of the government of any such state, or political subdivision thereof, issued after the date of such proclamation, or to make any loan or extend any credit (other than necessary credits accruing in connection with the transmission of telegraph, cable, wireless and telephone services) to any such government, political subdivision, or person. The provisions of this subsection shall also apply to the sale by any person within the United States to any person in a state named in any such proclamation of any articles or materials listed in a proclamation referred to in or issued under the authority of section 452(i) 11 See References in Text note below. of this title.

(b)The provisions of this section shall not apply to a renewal or adjustment of such indebtedness as may exist on the date of such proclamation.

(c)Whoever shall knowingly violate any of the provisions of this section or of any regulations issued thereunder shall, upon conviction thereof, be fined not more than $50,000 or imprisoned for not more than five years, or both. Should the violation be by a corporation, organization, or association, each officer or director thereof participating in the violation shall be liable to the penalty herein prescribed.

(d)Whenever any proclamation issued under the authority of section 441(a) of this title shall have been revoked with respect to any state the provisions of this section shall thereupon cease to apply with respect to such state, except as to offenses committed prior to such revocation.

(e)This section shall not be operative when the United States is at war.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 452(i) of this title, referred to in subsec. (a), was repealed by act Aug. 26, 1954, ch. 937, title V, § 542(a)(12), 68 Stat. 861. See former section 1934(a) and section 2778(a) of this title.

Amendments

1942—Subsec. (e). Joint Res. Feb. 21, 1942, added subsec. (e).

Statutory Notes and Related Subsidiaries

Operation of Section Postponed Until

July 1, 1953Joint Res.

July 3, 1952, ch. 570, § 1(b)(7), 66 Stat. 333, as amended by Joint Res. Mar. 31, 1953, ch. 13, § 1, 67 Stat. 18, provided that this section which is normally operative in time of peace shall not be operative by reason of the termination of a state of war on Apr. 28, 1952, but rather (in addition to being inoperative, in accordance with their terms, in time of war) shall continue to be inoperative until 6 months after the termination of the national emergency proclaimed by the President on Dec. 16, 1950, 1950 Proc. 2914, 15 F.R. 9029, set out as a note preceding section 1 of Title 50, War and National Defense, or until such earlier date or dates as the Congress may provide, but in no event beyond Apr. 1, 1953. Repeal of Prior Acts Continuing Section section 6 of Joint Res.

July 3, 1952, repealed Joint Res. Apr. 14, 1952, ch. 204, 66 Stat. 54 as amended by Joint Res.

May 28, 1952, ch. 339, 66 Stat. 96; Joint Res.

June 14, 1952, ch. 437, 66 Stat. 137; Joint Res.

June 30, 1952, ch. 526, 66 Stat. 296, which continued provisions until

July 3, 1952. This repeal shall take effect as of

June 16, 1952, by section 7 of Joint Res.

July 3, 1952.

§447 Financial Transactions