(2) Receipt from any person in the United States for collection and forwarding for collection of any vested coupon by any person who in the ordinary course of his business forwards for payment coupons appertaining to securities;

(3) Presentation of any vested coupon to the issuer or its paying agent for payment thereof;

(4) Payment of any vested coupon by the issuer or its paying agent upon condition that within 30 days after presentation for payment, the issuer or its paying agent shall cancel the coupon and give written notice to the person who presented the coupon for payment advising him that the coupon is a vested coupon, specifying the number of the vesting order by which said coupon (or the negotiable bearer bond to which it appertains) was vested pursuant to the Trading With the Enemy Act, as amended (50 U.S.C. app. 1-40), and shall forward a copy of the aforesaid notice to the Office of Alien Property, Washington, D.C., 20530; and

(5) Transfer of cash or credit for a vested coupon to any party to any transaction authorized by this section; Provided, That:

(i) No transaction referred to in paragraph (a) (1), (2), (3), or (4) of this section is authorized except upon the condition that the party delivering, forwarding, or presenting any such vested coupon, upon receipt of the notice specified in paragraph (a)(4) of this paragraph, reimburse the person giving such notice in the amount paid or credited to him by that person.

(ii) No transaction authorized by this section shall operate to transfer title to or to discharge the obligation evidenced by any vested coupon.

(b) Definition. As used in this section, the term "vested coupon" means any negotiable coupon evidencing a debt or other obligation vested in or transferred to the Attorney General or appertaining to a negotiable bearer bond evidencing a debt or other obligation vested in or transferred to the Attorney General pursuant to the Trading With the Enemy Act, as amended.

(E.O. 9788, 11 FR 11981; 3 CFR, 1946 Supp.) [20 FR 4395, June 23, 1955]

§ 505.50 Prohibition of transactions by personnel of the Office of Alien Property.

(a) No person connected directly or indirectly with the Office of Alien Property shall effect or cause to be effected for personal benefit or profit any sale or purchase of, or other transaction in, or otherwise deal or participate in any property or interest therein concerning which the Alien Property Custodian, the Philippine Alien Property Administrator, or the Attorney General has acted, or may hereafter act under the provisions of the Trading With the Enemy Act of October 6, 1917, as amended, or Title II of the International Claims Settlement Act of 1949 or pursuant to the powers delegated to the Attorney General by the President under Executive Order 9788 of October 14, 1946 (3 CFR, 1946 Supp.), Executive Order 9989 of August 20, 1948 (3 CFR, 1948 Supp.), Executive Order 10254 of June 15, 1951 (3 CFR, 1951 Supp.) and Executive Order 10644 of November 7, 1955 (3 CFR, 1955 Supp.).

(b) This section shall apply to all transactions of the kind described in paragraph (a) of this section whether made directly by, for or on account or behalf of any person connected directly or indirectly with the Office of Alien Froperty, or in which such person has any beneficial interest. Employees are considered to have a beneficial interest in transactions of their husbands or wives, and therefore such transactions shall be deemed to come within the provisions of this section.

(c) Any person connected directly or indirectly with the Office of Alien Property who owns or has any interest in any property or interest therein concerning which the Alien Property Custodian or the Attorney General has acted or may hereafter act shall notify the Director, Office of Alien Property, of such ownership or interest immediately upon the execution of this section or the taking of such action by the Alien Property Custodian or the Attorney General, as the case may be.

As used in § § 502.100 to 502.110, applicable solely to title claims, unless the context otherwise requires:

(a) The term "taxes" refers to taxes as defined under section 36(d) of the Trading With the Enemy Act, as amended, or section 212(d) of the International Claims Settlement Act of 1949, as amended.

(b) The term "national interest" means the interest of the United States under section 32(a)(5) of the Trading With the Enemy Act, as amended.

(c) The term "conservatory expenses" means expenses expended or incurred in the conservation, preservation or maintenance of vested property.

(b) The record in a claim proceeding under this procedure shall include the Notice of Claim, the evidence with respect thereto, and the recommendation for allowance.

(c) In the case of non-excepted claims the Director shall consider the record and may allow the claim. In the case of excepted claims the Director shall transmit the record with his recommendation for allowance to the Attorney General who may approve the recommendation. In such cases the claim shall be returned to the Director for further proceedings in accordance with the rules in this part.

(d) If the Attorney General or the Director shall disagree with a recommendation for allowance, the claim

shall be remanded to the Chief of the Claims Section for such action as may be appropriate.

(e) A claim under this procedure may be allowed notwithstanding the fact that the Chief of the Claims Section makes no recommendation with respect to taxes or conservatory expenses. However, no return will be made prior to a determination of such matters and adequate provision made therefor.

§ 502.103 Requirement for hearing.

No claim shall be allowed or disallowed except after hearing, unless the claim has been determined pursuant to § 502.25(i), § 502.102 or § 502.105.

§ 502.104 Hearing calendar.

The Chief Hearing Examiner shall maintain a hearing calendar and docket of all docketed claim proceedings.

§ 502.105 National interest under the Trading With the Enemy Act, as amended.

(a) In the case of non-excepted claims where it appears to the satisfaction of the Director that a return of vested property is not in the national interest pursuant to section 32(a)(5) of the Trading With the Enemy Act, as amended, he may (1) by order disallow the claim by citation of this section, or (2) by order suspend, for a fixed or indefinite time, further action by the Office in the claim proceeding by citation of this section. In the case of excepted claims where it appears to the satisfaction of the Director that a return of vested property is not in the national interest as aforesaid he shall transmit the record to the Attorney General for his consideration and the Attorney General may (i) by order disallow the claim by citation of this section, (ii) by order suspend for a fixed or indefinite time further action by the Office of Alien Property in the claim proceeding by citation of this section, or (iii) return the claim to the Director for such action as the Attorney General deems appropriate.

(b) The Director may direct with respect to any question of fact relating to national interest, that a hearing be held before himself, a Hearing Exam

iner or such other person or persons as he may designate. In such a hearing the officer or officers shall prepare recommended findings of fact only which shall be submitted to the Director with a transcript of the hearing.

§ 502.106 Publication of notice of intention to return vested property under the Trading With the Enemy Act, as amended.

In compliance with section 32(f) of the Trading With the Enemy Act, as amended, prior to the return of vested property the Director will issue and file for publication with the FEDERAL REGISTER a notice of intention to return vested property, except that no such notice need be published where the return is to be made to a resident of the United States or a corporation organized under the laws of the United States, or any State, Territory, or possession thereof, or the District of Columbia.

§ 502.107 Revocation of notice of intention to return vested property under the Trading With the Enemy Act, as amended.

(a) The notice of intention to return vested property may be revoked by the Director at any time prior to return.

(b) Notice of such revocation shall be served on the parties and filed for publication with the FEDERAL REGIS

TER.

§ 502.108 Return order.

Where no notice of intention to return vested property has been issued, an order directing return will issue at the time the claim is allowed or as soon thereafter as practicable. Where notice of intention to return vested property has been issued under the Trading With the Enemy Act, as amended, an order directing return will issue as soon as practicable after the expiration of thirty (30) days following the publication of the notice, except where the notice has been revoked in accordance with § 502.107.

8502.109 Final audit.

Prior to making full and final return of property pursuant to return order, a final audit with respect to the property involved will be made. Any trans

action occurring in the administration of such property shall be given effect in determining the actual amount of cash and other property to be returned pursuant to the return order.

§ 502.110 Return of vested property.

After issuance of the return order, completion of the final audit and final administrative determination with respect to taxes, fees and conservatory expenses, appropriate instruments and papers will issue returning the property claimed. The claimant receiving such property shall execute papers in such form as the Director shall determine acknowledging receipt of the property returned.

Subpart C-Debt Claims

§ 502.200 Definitions.

As used in §§ 502.200 to 502.205 applicable solely to debt claims, unless the context otherwise requires:

(a) The term "vested property of a debtor" means property of a debtor which he owned immediately prior to its becoming vested property.

(b) The term "money available for payment of claims" means such money included in, or received as net proceeds from the sale, use, or other disposition of vested property of a debtor as shall remain after deduction of expenses and taxes.

(c) The term "expenses" means the amount of the expenses of the Office of Alien Property, the former Office of Alien Property Custodian, and the former Philippine Alien Property Administration, including both expenses in connection with vested property of the debtor involved and such portion as the Director shall fix of the other expenses of these agencies, and such amount, if any, as the Director may establish as a cash reserve for the future payment of such expenses.

(d) The term "taxes" means taxes as defined in section 36(d) of the Trading With the Enemy Act, as amended, or section 212(d) of the International Claims Settlement Act of 1949, as amended, and includes taxes paid by the Director in respect of vested property of the debtor involved and such amount, if any, as the Director may

establish as a cash reserve for the future payment of such taxes.

(e) The term "debtor's solvent estate" means money available for payment of claims which money at the time of computation exceeds the aggregate of claims filed against a particular debtor.

(f) The term "debtor's insolvent estate" means money available for payment of claims which money at the time of computation is less than the aggregate of claims filed against a particular debtor.

(g) The term "proposed payment" refers to payment proposed to be made to claimants whose claims against a debtor's insolvent estate have been allowed in whole or in part.

§ 502.201 Procedure for allowance and payment without hearing of claims against debtors' solvent estates.

(a) With respect to claims against debtors' solvent estates, the Chief of the Claims Section may initiate a proceeding for allowance of a claim, or a separable part thereof which he deems entitled to allowance, without the necessity of a hearing thereon by submitting to the Director a recommendation for allowance.

(b) The record in a claim proceeding under this procedure shall include the Notice of Claim, the evidence with respect thereto and the recommendation for allowance.

(c) In the case of non-excepted claims the Director shall consider the record and may allow the claim. In the case of excepted claims, the Director shall transmit the record with his recommendation for allowance to the Attorney General who may approve the recommendation. In such cases the Attorney General shall return the claim to the Director for further proceeding in accordance with the rules in this part.

(d) If the Attorney General or the Director shall disagree with a recommendation for allowance the claim shall be remanded to the Chief of the Claims Section for such action as may be appropriate.

§ 502.202 Claims against debtors insolvent estates.

(a) Notices of claims filed with this Office against a particular debtor's insolvent estate shall be available for inspection by all claimants in respect of such estate in accordance with the provisions of § 503.1(b) of this chapter.

(b) With respect to claims against a particular debtor's insolvent estate the Chief of the Claims Section may submit to the Director a recommendation for allowance of any claim or a separable part thereof which he deems entitled to allowance. The record shall include the Notice of Claim, the evidence with respect thereto and the recommendation for allowance. All such claims submitted to the Director shall be dealt with by him or the Attorney General in accordance with the procedures set forth in § 502.201 (c) and (d).

(c) Where the Chief of the Claims Section concludes for any reason that he cannot recommend allowance of a claim against a particular debtor's insolvent estate, the claim may be docketed for hearing. At such hearing any other claimant against the particular debtor's insolvent estate may file an application to be heard in accordance with the provisions of § 502.5. The recommended decision of a Hearing Examiner with respect to the claim is subject to review in accordance with the provisions of § 502.23.

(d) The Director may issue a tentative schedule showing all debt claims proposed to be allowed by him with the priorities assigned thereto and the payment to be made to each claimant. Notice of the issuance of the tentative schedule shall in the manner provided by $502.26 be served on all claimants in respect of the particular debtor's estate, whose claims are then pending, together with notice that objections to such tentative schedule may be filed within the period prescribed in the notice, which period shall not be less than thirty (30) days. The tentative schedule shall be made available for inspection at the Office of Alien Property, Washington, D.C. With the consent of all claimants, the tentative schedule may be omitted.

(e) The Director shall consider any objections to the tentative schedule

that may have been timely filed, and shall take such action as may be appropriate. As soon thereafter as appropriate, the Director shall as required by section 34(f) of the Trading With the Enemy Act, as amended, or section 208(f) of the International Claims Settlement Act of 1949, as amended, prepare and serve by registered mail on all claimants in respect of a particular debtor's insolvent estate, a final schedule of the debt claims allowed, with priorities assigned thereto, and the proposed payment to each claimant.

(f) The Director may issue a tentative schedule and a final schedule limited to claims, payment of which in accordance with the priorities assigned thereto by the Director pursuant to the provisions of section 34(g) of the Trading With the Enemy Act, as amended, or section 208(g) of the International Claims Settlement Act of 1949, as amended, would not adversely affect the payment of any other claim in respect of the particular debtor's insolvent estate.

§ 502.203 Requirement for hearing.

No claim shall be allowed or disallowed except after hearing, unless the claim has been determined pursuant to § 502.25(i), § 502.201 or § 502.202.

§ 502.204 Payment of allowed claims.

As soon as practicable after the allowance of a claim, in whole or in part, the claim will be paid to the extent allowed: Provided, however, That with respect to claims against a debtor's insolvent estate, pending determination of any complaint for review filed under section 34(f) of the Trading With the Enemy Act, as amended, or section 208(f) of the International Claims Settlement Act of 1949, as amended, payment may be made only to an extent, if any, consistent with the contentions of all claimants for review.

§ 502.205 Future payments.

If additional moneys become available for the payment of claims after the first payment on allowed claims in respect of a debtor's insolvent estate, the Director shall order further payments in accordance with the final schedule theretofore issued by him, or

as modified on review under section 34(f) of the Trading With the Enemy Act, as amended, or section 208(f) of the International Claims Settlement Act of 1949, as amended.

Subpart D-General Claims

§ 502.300 General claims.

All claims against the Attorney General of the United States relating to the office of Alien Property or against his predecessors, the Alien Property Custodian and the Philippine Alien Property Administrator, other than title and debt claims as defined in § 502.2 (e) and (f) shall be known as "general claims" under this part. Unless forms have been prescribed or authorized for the filing or assertion thereof, general claims may be filed or asserted by letter addressed to the Director of the Office of Alien Property containing a statement of the details of the claim.

Sec.

PART 503-AVAILABILITY OF RECORDS

503.1 Official records available to public. 503.17 General rule as to non-availability of records of the Office of Alien Property.

AUTHORITY: Sec. 301, 55 Stat. 839, sec. 3, 60 Stat. 418, as amended, secs. 201-318, 69 Stat. 562-575; 50 U.S.C. App. 5, 22 U.S.C. 1382, 1631-1641q. E.O. 9193, July 6, 1942, 7 FR 5205, 3 CFR 1943 Cum. Supp.; E.O. 9725, May 16, 1946, 11 FR 5381, 3 CFR, 1946 Supp.; E.O. 9788, Oct. 14, 1946, 11 FR 11981, 12123, 3 CFR, 1946 Supp: E.O. 9989, Aug. 20, 1948, 13 FR 4891, 3 CFR, 1948 Supp.; E.O. 10254, June 15, 1951, 16 FR 5829, 3 CFR, 1951 Supp.; E.O. 10644, Nov. 7, 1955, 20 FR 8363.

§ 503.1 Official records available to public.

(a) Records available for inspection and distribution. The following documents are available for inspection and, insofar as supply permits, for distribution on application to Records Officer, Office of Alien Property, Washington 25, D.C.:

(1) Annual reports of the Office of Alien Property Custodian and the Office of Alien Property.