Word: deposit
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...when the Iranian funds were unfrozen, it would repay with interest outstanding loans that had been negotiated with about 100 international banks during the Shah's regime. In addition, Iran agreed to set up an escrow account to pay off other loans. An escrow account is a bank deposit that is controlled by a third party until certain terms are fulfilled. For example, banks often establish escrow accounts into which homeowners with mortgages deposit money that is used to pay property taxes. As Citicorp Chairman Walter Wriston told TIME Correspondent Frederick Ungeheuer afterward, "The principle of the deal...
...billion in Iranian funds that American banks hold in their branches in Europe. When these funds were frozen, the U.S. banks seized about $1.8 billion worth of "setoffs" against past Iranian loans-an action that was technically illegal under international currency laws. The Iranians agreed to leave enough on deposit in foreign branches of U.S. banks to cover the loans, deferring a final settlement until the hostages are home. Iran also agreed that about 300 private claims by U.S. corporations against some $2.2 billion of its assets held in a variety of U.S. banks can be reviewed and settled...
...mainly by telephone once each bank determined the precise amounts to be credited to Iran. Said a banker in Frankfurt: "All I need is a phone and a key to get in the front door. It's not a complicated thing." Most of the branches keep funds on deposit at their home offices in the U.S., and each bank's top officials apparently could order them transferred to the Federal Reserve System. The Fed, in turn, could order the funds held in escrow by the Bank of England. Iran seemed likely to trust the English bank, which...
...main innovation contained in last week's proposal, explained a U.S. negotiator, was to set up "a simple device to deal with the Iranian suspicions that we will not do what we say we will do." The suggestion: an Algerian escrow account, into which the U.S. would deposit $2.5 billion of the Iranian assets now held by the Federal Reserve, along with approximately $4 billion held by U.S. banks abroad. This fund would comprise that portion of U.S.-controlled Iranian assets which are free of all claims and attachments. The Iranians would be able to draw on the account...
...President is embittered anew over Iran's demand that the U.S. deposit $24 billion* into an Algerian bank account, pending the unfreezing of Iranian funds in U.S. banks, and the location and return of the late Shah's assets. "We will not pay any ransom," snapped an angry Carter. "We have never been willing to even consider that...