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.

(2) Instructions and forms for filing claims, and for reporting information which the Director, Office of Alien Property, requires. See § 501.80 of this chapter.

(3) Final determinations, opinions, and orders in cases heard or reviewed by the Vested Property Claims Committee, the Hearing Examiners, or the Director, Office of Alien Property.

(4) Notices of public sale, prospectuses, and terms and conditions of sale.

(5) Rules issued by the Office of Alien Property, Custodian and the Office of Alien Property.

(6) Documents which have been published in the FEDERAL REGISTER.

(7) Formal opinions of the General Counsel, Office of Alien Property Custodian, and of the Legal Branch, Office of Alien Property, issued for the guidance of the public.

(b) Records available for inspection. The following documents are available for inspection by persons properly and directly concerned on application to Records Officer, Office of Alien Property, Washington 25, D.C.:

(1) Claims filed with the Office of Alien Property, Custodian or the Office of Alien Property.

(2) Records in cases heard or reviewed by the Vested Property Claims Committee, the Hearing Examiners, or the Director, Office of Alien Property.

(3) Authorizations to offer for sale, records of bids in public sales, orders of sale or rejection, and notifications of acceptance.

(c) Copies of contracts. Copies of contracts in which the Alien Property Custodian or the Attorney General has vested the interest of a foreign national are available for inspection in the United States Patent Office in accordance with the provisions of Executive Order 9424 of February 18, 1944 (3 CFR, 1944 Supp.).

(d) Patent applications. Any person may petition for permission to inspect or copy a vested patent application filed by a national of Germany, Japan, Bulgaria, Hungary or Rumania. Petitions should be submitted to Legal and Legislative Section, Office of Alien Property, Washington 25, D.C., on a form which that Section will provide on request. Petitions will ordinarily be

granted upon a showing of proper interest unless:

(1) A title claim is pending with respect to such patent application, or

(2) The patent application is involved in litigation, or

(3) An American national has filed a patent application which may be in interference with such patent application.

[13 FR 9507, Dec. 31, 1948, as amended at 17 FR 11781, Dec. 30, 1952; 19 FR 1211, Mar. 4, 1954]

§ 503.17 General rule as to non-availability of records of the Office of Alien Property.

All official files, documents, records and information in the Office of Alien Property, or in the custody or control of any officer, employee, agent or delegate of the Office of Alien Property, are to be regarded as confidential. No officer, employee, agent or delegate may permit the disclosure or use of the same for any purpose other than for the performance of his official duties, except in the discretion of the Attorney General, the Deputy Attorney General, the Director, or the Deputy Director, of the Office of Alien Property, and in the case of defense information as defined in Executive Order 10501 of November 5, 1953 (18 FR 7049, 3 CFR, 1953 Supp.), except in accordance with the provisions of said Executive Order and the Department of Justice regulations thereunder: Provided, however, That each section chief and the Intercustodial and Foreign Funds Officer, are generally authorized to make available or disclose such official files, documents, records and information in the Office of Alien Property, other than defense information, in the conduct of affairs of his section or office, unless otherwise instructed by the Director. Whenever a subpoena duces tecum is served to produce any such files, documents, records, or information, the officer, or employee, or agent, or delegate on whom such subpoena is served, unless otherwise expressly directed by the Attorney General, will appear in court to answer thereto and respectfully decline to produce the records specified therein, on the ground that

504.1 Time of effectiveness of vesting orders.

504.2 Orders vesting property or interest located in the Philippines.

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.

SOURCE: 17 FR 1082, Feb. 5, 1952, unless otherwise noted.

§ 504.1 Time of effectiveness of vesting orders.

(a) Any property or interest shall be deemed to have vested at the time of the filing with the Federal Register Division National Archives and Records Service, General Services Administration, Washington, D.C., of an order vesting such property or interest: Provided, That any property or interest, the conveyance, transfer, or assignment of which may be filed, registered or recorded in the United States Patent Office or Copyright Office, shall be deemed to have vested at the time of the filing, registered, or recording in such Office of the order vesting such property or interest, or at the time of the filing of such order with said Federal Register Division, whichever is earlier: Provided further, That, as to subsequent purchasers or lienors without actual notice, an order vesting real property or an interest in such property shall be deemed effective from the time of the recordation of such order in the public office designated by law for the recordation of a conveyance, transfer, or assignment of such property or interest.

(b) Actual notice, by service or otherwise, of the execution of an order vesting any property or interest shall

be deemed (1) notice that the Alien Property Custodian or the Attorney General of the United States has undertaken supervision of such property or interest, and (2) notice of the vesting of such property or interest as of the time specified in paragraph (a) of this section.

(c) This section shall be deemed applicable to all vesting orders heretofore or hereafter executed by or for the Alien Property Custodial or the Attorney General of the United States.

§ 504.2 Orders vesting property or interest located in the Philippines.

Any order vesting property or interest located in the Philippines shall in addition be published in the Official Gazette, Manila, Philippine Islands, promptly after filing as provided in § 504.1(a) and publication in the FEDERAL REGISTER.

PART 505-SPECIFIC PROHIBITIONS

Sec.

505.1 Prohibition of transactions; applicability of regulations and licenses, etc. 505.2 Authorization of certain transactions with respect to coupons appertaining to vested negotiable bearer bonds. 505.50 Prohibition of transactions by personnel of the Office of Alien Property. 505.60 Limitations on representative activities by former employees.

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, 3 CFR, 1955 Supp., unless otherwise noted.

§ 505.1 Prohibition of transactions; applicability of regulations and licenses, etc. (a) The following transactions, transfers, or other dealings are prohibited, except to the extent that they are authorized by paragraph (b) of this section or are or shall be authorized by the Attorney General, or any agency, instrumentality, agent, dele

gate, assistant or other personnel, appointed or designated by him:

(1) Transactions, transfers, or other dealings in or relating to any property or interest that has been vested, or as to which an outstanding supervisory order has been issued, by the Attorney General or the Alien Property Custodian or the Office of Alien Property Custodian;

(2) Transactions, transfers, or other dealings by, or with, or on behalf of, or pursuant to the direction of, or the exercise of any right, powers, or privilege with respect to, any business enterprise regarding which the Attorney General or the Alien Property Custodian or the Office of Alien Property Custodian has issued an outstanding supervisory order, or which has been vested, as assets of or interests in which have been vested, or involving any property in which such business enterprise has any interest, where control of such property or business enterprise was released by the Secretary of the Treasury, subject to the power and authority conferred upon the Attorney General or the Alien Property Custodian or the Office of Alien Property Custodian, on or prior to September 30, 1948, or where jurisdiction over such property or business enterprise has been transferred by Executive Order No. 9989 (3 CFR, 1948 Supp., p. 158);

(3) Transactions, transfers, or other dealings, prohibited on September 30, 1948, under or pursuant to the Trading With the Enemy Act, as amended, or Executive Order No. 8389 (3 CFR 1943 Cum. Supp.), as amended, or Executive Order No. 9095 (3 CFR, 1943 Cum. Supp.), as amended, regarding property, over which jurisdiction has been transferred by Executive Order No. 9989 (3 CFR, 1948 Supp.).

(b) All orders, regulations, rulings, instructions, or licenses of any nature whatsoever, issued by the Secretary of the Treasury under the authority of Executive Order No. 8389, as amended, and Executive Order No. 9095, as amended, concerning property over which jurisdiction has been transferred by Executive Order No. 9989, shall continue in full force and effect in accordance with their terms, subject to the authority of the Attorney Gen

eral, or any agency, instrumentality, agent, delegate, assistant of other personnel, appointed or designated by him, to amend, modify or revoke, in whole or in part, such orders, regulations, rulings, instructions and licenses: Provided, That, wherever in such orders, regulations, rulings, instructions or licenses, or in regulations of the Office of Alien Property, the Treasury Department, Foreign Funds Control, the Secretary of the Treasury or other officers of the Department of the Treasury are referred to, the reference shall be deemed to be made to the Office of Alien Property and the appropriate officers thereof.

(c) Additional prohibitions provided for in Parts 506 and 507 of this chapter, and licenses and other authorizations, issued thereunder, shall remain unaffected by this section.

(d) Powers of attorney given for the purpose of filing claims under the Trading With the Enemy Act, as amended, or under Title II of the International Claims Settlement Act of 1949 and transactions that may be necessary to facilitate the filing and proving of such claims are hereby exempted from the prohibitions of this section: Provided, however, That nothing herein shall affect the prohibitions of R.S. 3477; 31 U.S.C. 203.

(E.O. 9567, June 8, 1945, 10 FR 6917, 3 CFR, 1945 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.)

[13 FR 9508, Dec. 31, 1948, as amended at 21 FR 764, Feb. 3, 1956]

§ 505.2 Authorization of certain transactions with respect to coupons appertaining to vested negotiable bearer bonds.

(a) The following transactions with respect to any vested coupon as defined in paragraph (b) of this section are authorized subject to subparagraph (5) (i) and (ii) of this paragraph if effected within the United States:

(1) Delivery by any person in the United States of any vested coupon for collection to any person who in the ordinary course of his business forwards for payment coupons appertaining to securities;