Iran and Libya Sanctions Act of 1996
PL 104-172 (H.R.3107), enacted 08/05/1996

PUBLIC LAW 104-172—AUG. 5, 1996 
110 STAT. 1541 
Public Law 104-172 
104th Congress 
An Act 
To impose sanctions on persons making certain investments directly and significantly 
contributing to the enhancement of the ability of Iran or Libya to develop its 
. 
_ ^QQ_ 
petroleum resources, and on persons exporting certain items that enhance Libya's 
^^—'• 
weapons or aviation capabilities or enhance Libya's ability to develop its petroleum 
[H.R. 3107] 
resources, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
Iran and Libya 
Sanctions Act of 
SECTION 1. SHORT TITLE. 
1996. 
This Act may be cited as the "Iran and Libya Sanctions Act note 
of 1996". 
SEC. 2. FINDINGS. 
50 USC 1701 
The Congress makes the following findings: 
(1) The efforts of the Government of Iran to acquire weap-
ons of mass destruction and the means to deliver them and 
its support of acts of international terrorism endanger the 
national security and foreign policy interests of the United 
States and those countries with which the United States shares 
common strategic and foreign policy objectives. 
(2) The objective of preventing the proliferation of weapons 
of mass destruction and acts of international terrorism through 
existing multilateral and bilateral initiatives requires addi-
tional efforts to deny Iran the financial means to sustain its 
nuclear, chemical, biological, and missile weapons programs. 
(3) The Grovemment of Iran uses its diplomatic facilities 
and quasi-governmental institutions outside of Iran to promote 
acts of international terrorism and assist its nuclear, chemical, 
biological, and missile weapons programs. 
(4) The failure of the Government of Libya to comply with 
Resolutions 731, 748, and 883 of the Security Council of the 
United Nations, its support of international terrorism, and 
its efforts to acquire weapons of mass destruction constitute 
a threat to international peace and security that endangers 
the national security and foreign policy interests of the United 
States and those countries with which it shares common strate-
gic and foreign policy objectives. 
SEC. 3. DECLARATION OF POLICY. 
50 USC 1701 
(a) POLICY WITH RESPECT TO IRAN.—The Congress declares 
that it is the policy of the United States to deny Iran the ability 
to support acts of international terrorism and to fund the develop-
ment and acquisition of weapons of mass destruction and the means 
to deliver them by limiting the development of Iran's ability to 
110 STAT. 1542 
PUBLIC LAW 104-172—AUG. 5, 1996 
President. 
50 u s e 1701 
note. 
Notification. 
explore for, extract, refine, or transport by pipeline petroleum 
resources of Iran. 
(b) POLICY WITH RESPECT TO LIBYA.—The Congress further 
declares that it is the policy of the United States to seek full 
compliance by Libya with its obligations under Resolutions 731, 
748, and 883 of the Security Council of the United Nations, includ-
ing ending all support for acts of international terrorism and efforts 
to develop or acquire weapons of mass destruction. 
SEC. 4. MULTILATERAL REGIME. 
(a) MULTILATERAL NEGOTIATIONS.—In order to further the 
objectives of section 3, the Congress urges the President to com-
mence immediately diplomatic efforts, both in appropriate inter-
national fora such as the United Nations, and bilaterally with 
allies of the United States, to establish a multilateral sanctions 
regime against Iran, including provisions limiting the development 
of petroleum resources, that will inhibit Iran's efforts to carry 
out activities described in section 2. 
(b) REPORTS TO CONGRESS.—^The President shall report to the 
appropriate congressional committees, not later than 1 year after 
the date of the enactment of this Act, and periodically thereafter, 
on the extent that diplomatic efforts described in subsection (a) 
have been successful. Each report shall include— 
(1) the countries that have agreed to undertake measures 
to further the objectives of section 3 with respect to Iran, 
and a description of those measures; and 
(2) the countries that have not agreed to measures 
described in paragraph (1), and, with respect to those countries, 
other measures (in addition to that provided in subsection 
(d)) the President recommends that the United States take 
to further the objectives of section 3 with respect to Iran. 
(c) WAIVER.—The President may waive the application of sec-
tion 5(a) with respect to nationals of a country if— 
(1) that country has agreed to undertake substantial meas-
ures, including economic sanctions, that will inhibit Iran's 
efforts to carry out activities described in section 2 and informa-
tion required by subsection (b)(1) has been included in a report 
submitted under subsection (b); and 
(2) the President, at least 30 days before the waiver takes 
effect, notifies the appropriate congressional committees of his 
intention to exercise the waiver. 
(d) ENHANCED SANCTION.— 
(1) SANCTION.—With respect to nationals of countries 
except those with respect to which the President has exercised 
the waiver authority of subsection (c), at any time after the 
first report is required to be submitted under subsection (b), 
section 5(a) shall be applied by substituting "$20,000,000" for 
"$40,000,000" each place it appears, and by substituting 
"$5,000,000" for "$10,000,000". 
(2) REPORT TO CONGRESS.—^The President shall report to 
the appropriate congressional committees any country with 
respect to which paragraph (1) applies. 
(e) INTERIM REPORT ON MULTILATERAL SANCTIONS; MONITOR-
ING.—^The President, not later than 90 days after the date of the 
enactment of this Act, shall report to the appropriate congressional 
committees on— 
PUBLIC LAW 104-172—AUG. 5, 1996 
110 STAT. 1543 
(1) whether the member states of the European Union, 
the RepubUc of Korea, Australia, Israel, or Japan have legisla-
tive or administrative standards providing for the imposition 
of trade sanctions on persons or their affiliates doing business 
or having investments in Iran or Libya; 
(2) the extent and duration of each instance of the applica-
tion of such sanctions; and 
(3) the disposition of any decision with respect to such 
sanctions by the World Trade Organization or its predecessor 
organization. 
SEC. 5. IMPOSITION OF SANCTIONS. 
President. 
(a) SANCTIONS WITH RESPECT TO IRAN.—Except as provided note, 
in subsection (f), the President shall impose 2 or more of the 
sanctions described in paragraphs (1) through (6) of section 6 if 
the President determines that a person has, with actual knowledge, 
on or after the date of the enactment of this Act, made an invest-
ment of $40,000,000 or more (or any combination of investments 
of at least $10,000,000 each, which in the aggregate equals or 
exceeds $40,000,000 in any 12-month period), that directly and 
significantly contributed to the enhancement of Iran's ability to 
develop petroleum resources of Iran. 
(b) MANDATORY SANCTIONS WITH RESPECT TO LIBYA.— 
(1) VIOLATIONS OF PROHIBITED TRANSACTIONS.—Except as 
provided in subsection (f), the President shall impose 2 or 
more of the sanctions described in paragraphs (1) through 
(6) of section 6 if the President determines that a person 
has, with actual knowledge, on or after the date of the enact-
ment of this Act, exported, transferred, or otherwise provided 
to Libya any goods, services, technology, or other items the 
provision of which is prohibited under paragraph 4(b) or 5 
of Resolution 748 of the Security Council of the United Nations, 
adopted March 31, 1992, or under paragraph 5 or 6 of Resolu-
tion 883 of the Security Council of the United Nations, adopted 
November 11, 1993, if the provision of such items significantly 
and materially— 
(A) contributed to Libya's ability to acquire chemical, 
biological, or nuclear weapons or destabilizing numbers 
and types of advanced conventional weapons or enhanced 
Libya's military or paramilitary capabilities; 
(B) contributed to Libya's ability to develop its petro-
leum resources; or 
(C) contributed to Libya's ability to maintain its avia-
tion capabilities. 
(2) INVESTMENTS THAT CONTRIBUTE TO THE DEVELOPMENT 
OF PETROLEUM RESOURCES.—Except as provided in subsection 
(f), the President shall impose 2 or more of the sanctions 
described in paragraphs (1) through (6) of section 6 if the 
President determines that a person has, with actual knowledge, 
on or after the date of the enactment of this Act, made an 
investment of $40,000,000 or more (or any combination of 
investments of at least $10,000,000 each, which in the aggre-
gate equals or exceeds $40,000,000 in any 12-month period), 
that directly and significantly contributed to the enhancement 
of Libya's ability to develop its petroleum resources. 
110 STAT. 1544 
PUBLIC LAW 104-172—AUG. 5, 1996 
(c) 
PERSONS AGAINST WHICH THE SANCTIONS ARE TO BE 
IMPOSED.—The sanctions described in subsections (a) and (b) shall 
be imposed on— 
(1) any person the President determines has carried out 
the activities described in subsection (a) or (b); and 
(2) any person the President determines— 
(A) is a successor entity to the person referred to 
in paragraph (1); 
(B) is a parent or subsidiary of the person referred 
to in paragraph (1) if that parent or subsidiary, with actual 
knowledge, engaged in the activities referred to in para-
graph (1); or 
(C) is an affiliate of the person referred to in paragraph 
(1) if that affiliate, with actual knowledge, engaged in 
the activities referred to in paragraph (1) and if that affili-
ate is controlled in fact by the person referred to in para-
graph (1). 
For purposes of this Act, any person or entity described in this 
subsection shall be referred to as a "sanctioned person". 
(d) PUBLICATION IN FEDERAL REGISTER.—The President shall 
cause to be published in the Federal Register a current list of 
persons and entities on whom sanctions have been imposed under 
this Act. The removal of persons or entities from, and the addition 
of persons and entities to, the list, shall also be so published. 
(e) PUBLICATION OF PROJECTS.—The President shall cause to 
be published in the Federal Register a list of all significant projects 
which have been publicly tendered in the oil and gas sector in 
Iran. 
(f) EXCEPTIONS.—^The President shall not be required to apply 
or maintain the sanctions under subsection (a) or (b)— 
(1) in the case of procurement of defense articles or defense 
services— 
(A) under existing contracts or subcontracts, including 
the exercise of options for production quantities to satisfy 
requirements essential to the national security of the 
United States; 
(B) if the President determines in writing that the 
person to which the sanctions would otherwise be applied 
is a sole source supplier of the defense articles or services, 
that the defense articles or services are essential, and 
that alternative sources are not readily or reasonably avail-
able; or 
(C) if the President determines in writing that such 
articles or services are essential to the national security 
under defense coproduction agreements; 
(2) in the case of procurement, to eligible products, as 
defined in section 308(4) of the Trade Agreements Act of 1979 
(19 U.S.C. 2518(4)), of any foreign country or instrumentality 
designated under section 301(b)(1) of that Act (19 U.S.C. 
2511(b)(1)); 
(3) to products, technology, or services provided under con-
tracts entered into before the date on which the President 
publishes in the Federal Register the name of the person on 
whom the sanctions are to be imposed; 
(4)to— 
(A) spare parts which are essential to United States 
products or production; 
PUBLIC LAW 104-172—AUG. 5, 1996 
110 STAT. 1545 
(B) component parts, but not finished products, essen-
tial to United States products or production; or 
(C) routine servicing and maintenance of products, to 
the extent that alternative sources are not readily or 
reasonably available; 
(6) to information and technology essential to United States 
products or production; or 
(7) to medicines, medical supplies, or other humanitarian 
items. 
SEC. 6. DESCRIPTION OF SANCTIONS. 
50 USC 1701 
The sanctions to be imposed on a sanctioned person under 
section 5 are as follows: 
(1) EXPORT-IMPORT BANK ASSISTANCE FOR EXPORTS TO SANC-
TIONED PERSONS.—The President may direct the Export-Import 
Bank of the United States not to give approval to the issuance 
of any guarantee, insurance, extension of credit, or participation 
in the extension of credit in connection with the export of 
any goods or services to any sanctioned person. 
(2) EXPORT SANCTION.—The President may order the 
United States Grovemment not to issue any specific license 
and not to grant any other specific permission or authority 
to export any goods or technology to a sanctioned person 
under— 
(i) the Export Administration Act of 1979; 
(ii) the Arms Export Control Act; 
(iii) the Atomic Energy Act of 1954; or 
(iv) any other statute that requires the prior review 
and approval of the United States Government as a condi-
tion for the export or reexport of goods or services. 
(3) LOANS FROM UNITED STATES FINANCIAL INSTITUTIONS.— 
The United States Government may prohibit any United States 
financial institution from making loans or providing credits 
to any sanctioned person totaling more than $10,000,000 in 
any 12-month period unless such person is engaged in activities 
to relieve human suffering and the loans or credits are provided 
for such activities. 
(4) PROHIBITIONS ON FINANCIAL INSTITUTIONS.—^The follow-
ing prohibitions may be imposed against a sanctioned person 
that is a financial institution: 
(A) 
PROHIBITION 
ON 
DESIGNATION 
AS 
PRIMARY 
DEALER.—^Neither the Board of Governors of the Federal 
Reserve System nor the Federal Reserve Bank of New 
York may designate, or permit the continuation of any 
prior designation of, such financial institution as a primary 
dealer in United States Grovemment debt instruments. 
(B) 
PROHIBITION ON SERVICE AS A REPOSITORY OF 
GOVERNMENT FUNDS.—Such financial institution may not 
serve as agent of the United States Government or serve 
as repository for United States Government funds. 
The imposition of either sanction under subparagraph (A) or 
(B) shall be treated as 1 sanction for purposes of section 5, 
and the imposition of both such sanctions shall be treated 
as 2 sanctions for purposes of section 5. 
(5) PROCUREMENT SANCTION.—The United States Govern-
ment may not procure, or enter into any contract for the 
procurement of, any goods or services from a sanctioned person. 
110 STAT. 1546 
PUBLIC LAW 104-172—AUG. 5, 1996 
(6) ADDITIONAL SANCTIONS.—^The President may impose 
sanctions, as appropriate, to restrict imports with respect to 
a sanctioned person, in accordance with the International Emer-
gency Economic Powers Act (50 U.S.C. 1701 and following). 
50 use 1701 
SEC. 7. ADVISORY OPINIONS. 
The Secretary of State may, upon the request of any person, 
issue an advisory opinion to that person as to whether a proposed 
activity by that person would subject that person to sanctions 
under this Act. Any person who relies in good faith on such an 
advisory opinion which states that the proposed activity would 
not subject a person to such sanctions, and any person who there-
after engages in such activity, will not be made subject to such 
sanctions on account of such activity. 
50 use 1701 
SEC. 8. TERMINATION OF SANCTIONS. 
(a) IRAN.—^The requirement under section 5(a) to impose sanc-
tions shall no longer have force or effect with respect to Iran 
if the President determines and certifies to the appropriate congres-
sional committees that Iran— 
(1) has ceased its efforts to design, develop, manufacture, 
or acquire— 
(A) a nuclear explosive device or related materials 
and technology; 
(B) chemical and biological weapons; and 
(C) ballistic missiles and ballistic missile launch tech-
nology; and 
(2) has been removed from the list of countries the govern-
ments of which have been determined, for purposes of section 
6(j) of the Export Administration Act of 1979, to have repeatedly 
provided support for acts of international terrorism. 
(b) LIBYA.—^The requirement under section 5(b) to impose sanc-
tions shall no longer have force or effect with respect to Libya 
if the President determines and certifies to the appropriate congres-
sional committees that Libya has fulfilled the requirements of 
United Nations Security Council Resolution 731, adopted January 
21, 1992, United Nations Security Council Resolution 748, adopted 
March 31, 1992, and United Nations Security Council Resolution 
883, adopted November 11, 1993. 
50 use 1701 
SEC. 9. DURATION OF SANCTIONS; PRESIDENTIAL WAIVER. 
"° ^' 
(a) DELAY OF SANCTIONS.— 
(1) CONSULTATIONS.—If the President makes a determina-
tion described in section 5(a) or 5(b) with respect to a foreign 
person, the Congress urges the President to initiate consulta-
tions immediately with the government with primary jurisdic-
tion over that foreign person with respect to the imposition 
of sanctions under this Act. 
(2) ACTIONS BY GOVERNMENT OF JURISDICTION.—In order 
to pursue consultations under paragraph (1) with the govern-
ment concerned, the President may delay imposition of sanc-
tions under this Act for up to 90 days. Following such consulta-
tions, the President shall immediately impose sanctions unless 
the President determines and certifies to the Congress that 
the government has taken specific and effective actions, includ-
ing, as appropriate, the imposition of appropriate penalties, 
to terminate the involvement of the foreign person in the activi-
PUBLIC LAW 104-172—AUG. 5, 1996 
110 STAT. 1547 
ties that resulted in the determination by the President under 
section 5(a) or 5(b) concerning such person. 
(3) ADDITIONAL DELAY IN IMPOSITION OF SANCTIONS.—The 
President may delay the imposition of sanctions for up to an 
additional 90 days if the President determines and certifies 
to the Congress that the government with primary jurisdiction 
over the person concerned is in the process of taking the actions 
described in paragraph (2). 
(4) REPORT TO CONGRESS.—Not later than 90 days after 
making a determination under section 5(a) or 5(b), the Presi-
dent shall submit to the appropriate congressional committees 
a report on the status of consultations with the appropriate 
foreign government under this subsection, and the basis for 
any determination under paragraph (3). 
(b) DURATION OF SANCTIONS.—^A sanction imposed under section 
5 shall remain in effect— 
(1) for a period of not less than 2 years from the date 
on which it is imposed; or 
(2) until such time as the President determines and certifies 
to the Congress that the person whose activities were the 
basis for imposing the sanction is no longer engaging in such 
activities and that the President has received reliable assur-
ances that such person will not knowingly engage in such 
activities in the future, except that such sanction shall remain 
in effect for a period of at least 1 year. 
(c) PRESIDENTIAL WAIVER.— 
(1) AUTHORITY.—^The President may waive the requirement Reports, 
in section 5 to impose a sanction or sanctions on a person 
described in section 5(c), and may waive the continued imposi-
tion of a sanction or sanctions under subsection (b) of this 
section, 30 days or more after the President determines and 
so reports to the appropriate congressional committees that 
it is important to the national interest of the United States 
to exercise such waiver authority. 
(2) CONTENTS OF REPORT.—^Any report under paragraph 
(1) shall provide a specific and detailed rationale for the deter-
mination under paragraph (1), including— 
(A) a description of the conduct that resulted in the 
determination under section 5(a) or (b), as the case may 
be; 
(B) in the case of a foreign person, an explanation 
of the efforts to secure the cooperation of the government 
with primary jurisdiction over the sanctioned person to 
terminate or, as appropriate, penalize the activities that 
resulted in the determination under section 5(a) or (b), 
as the case may be; 
(C) an estimate as to the significance— 
(i) of the provision of the items described in section 
5(a) to Iran's ability to develop its petroleum resources, 
or 
(ii) of the provision of the items described in section 
5(b)(1) to the abilities of Libya described in subpara-
graph (A), (B), or (C) of section 5(b)(1), or of the invest-
ment described in section 5(b)(2) on Libya's ability 
to develop its petroleum resources, 
as the case may be; and 
110 STAT. 1548 
PUBLIC LAW 104-172—AUG. 5, 1996 
(D) a statement as to the response of the United States 
in the event that the person concerned engages in other 
activities that would be subject to section 5(a) or (b). 
(3) EFFECT OF REPORT ON WAIVER.—If the President makes 
a report under paragraph (1) with respect to a waiver of sanc-
tions on a person described in section 5(c), sanctions need 
not be imposed under section 5(a) or (b) on that person during 
the 30-day period referred to in paragraph (1). 
President. 
SEC. 10. REPORTS REQUIRED. 
note. 
(a) REPORT ON CERTAIN INTERNATIONAL INITIATIVES.—^Not later 
than 6 months after the date of the enactment of this Act, and 
every 6 months thereafter, the President shall transmit a report 
to the appropriate congressional committees describing— 
(1) the efforts of the President to mount a multilateral 
campaign to persuade all countries to pressure Iran to cease 
its nuclear, chemical, biological, and missile weapons programs 
and its support of acts of international terrorism; 
(2) the efforts of the President to persuade other govern-
ments to ask Iran to reduce the presence of Iranian diplomats 
and representatives of other government and military or quasi-
governmental institutions of Iran and to withdraw any such 
diplomats or representatives who participated in the tsJieover 
of the United States embassy in Tehran on November 4, 1979, 
or the subsequent holding of United States hostages for 444 
days; 
(3) the extent to which the International Atomic Energy 
Agency has established regular inspections of all nuclear facili-
ties in Iran, including those presently under construction; and 
(4) Iran's use of Iranian diplomats and representatives 
of other government and military or 
quasi-governmental 
institutions of Iran to promote acts of international terrorism 
or to develop or sustain Iran's nuclear, chemical, biological, 
and missile weapons programs. 
(b) OTHER REPORTS.—^The President shall ensure the continued 
transmittal to the Congress of reports describing— 
(1) the nuclear and other military capabilities of Iran, 
as required by section 601(a) of the Nuclear Non-Proliferation 
Act of 1978 and section 1607 of the NationgJ Defense Authoriza-
tion Act for Fiscal Year 1993; and 
(2) the support provided by Iran for acts of international 
terrorism, as part of the Department of State's annual report 
on international terrorism. 
50 use 1701 
SEC. 11. DETERMINATIONS NOT REVIEWABLE. 
A determination to impose sanctions under this Act shall not 
be reviewable in any court. 
50 use 1701 
SEC. 12. EXCLUSION OF CERTAIN ACTIVITIES. 
Nothing in this Act shall apply to any activities subject to 
the reporting requirements of title V of the National Security Act 
of 1947. 
50 use 1701 
SEC. 13. EFFECTIVE DATE; SUNSET. 
™*^' 
(a) EFFECTIVE DATE.—This Act shall take effect on the date 
of the enactment of this Act. 
(b) SUNSET.—^This Act shall cease to be effective on the date 
that is 5 years after the date of the enactment of this Act. 
PUBLIC LAW 104-172—AUG. 5, 1996 
110 STAT. 1549 
SEC. 14. DEFmrriONS. 
50 use 1701 
As used in this Act: 
(1) ACT OF INTERNATIONAL TERRORISM.—The term "act of 
international terrorism" means an act— 
(A) which is violent or dangerous to human life and 
that is a violation of the criminal laws of the United States 
or of any State or that would be a criminal violation if 
committed within the jurisdiction of the United States or 
any State; and 
(B) which appears to be intended— 
(i) to intimidate or coerce a civilian population; 
(ii) to influence the policy of a government by 
intimidation or coercion; or 
(iii) to affect the conduct of a government by assas-
sination or kidnapping. 
(2) APPROPRIATE CONGRESSIONAL COMMITTEES.—^The term 
"appropriate congressional committees" means the Committee 
on Finance, the Committee on Banking, Housing, and Urban 
Affairs, and the Committee on Foreign Relations of the Senate 
and the Committee on Ways and Means, the Committee on 
Banking and Financial Services, and the Committee on Inter-
national Relations of the House of Representatives. 
(3) COMPONENT Pi\RT.—The term "component part" has the 
meaning given that term in section llA(e)(l) of the Export 
Administration Act of 1979 (50 U.S.C. App. 2410a(e)(l)). 
(4) DEVELOP AND DEVELOPMENT.—To "develop", or the 
"development" of, petroleum resources means the exploration 
for, or the extraction, refining, or transportation by pipeline 
of, petroleum resources. 
(5) FINANCIAL INSTITUTION.—^The term "financial institu-
tion" includes— 
(A) a depository institution (as defined in section 3(c)(1) 
of the Federal Deposit Insurance Act), including a branch 
or agency of a foreign bank (as defined in section 1(b)(7) 
of the International Banking Act of 1978); 
(B) a credit union; 
(C) a securities firm, including a broker or dealer; 
(D) an insurance company, including an agency or 
underwriter; and 
(E) any other company that provides financial services. 
(6) FINISHED PRODUCT.—^The term "finished product" has 
the meaning given that term in section llA(e)(2) of the Export 
Administration Act of 1979 (50 U.S.C. App. 2410a(e)(2)). 
(7) FOREIGN PERSON.—The term "foreign person" means— 
(A) an individual who is not a United States person 
or an alien lawfully admitted for permanent residence into 
the United States; or 
(B) a corporation, partnership, or other nongovern-
mental entity which is not a United States person. 
(8) GOODS AND TECHNOLOGY.—The terms "goods" and "tech-
nology" have the meanings given those terms in section 16 
of the Export Administration Act of 1979 (50 U.S.C. App. 2415). 
(9) INVESTMENT.—The term "investment" means any of 
the following activities if such activity is undertaken pursuant 
to an agreement, or pursuant to the exercise of rights under 
such an agreement, that is entered into with the Government 
of Iran or a nongovenmental entity in Iran, or with the Govern-
110 STAT. 1550 
PUBLIC LAW 104-172—AUG. 5, 1996 
ment of Libya or a nongovernmental entity in Libya, on or 
after the date of the enactment of this Act: 
(A) The entry into a contract that includes responsibil-
ity for the development of petroleum resources located in 
Iran or Libya (as the case may be), or the entry into 
a contract providing for the general supervision and 
guarantee of another person's performance of such a con-
tract. 
(B) The purchase of a share of ownership, including 
an equity interest, in that development. 
(C) The entry into a contract providing for the partici-
pation in royalties, earnings, or profits in that development, 
without regard to the form of the participation. 
The term "investment" does not include the entry into, perform-
ance, or financing of a contract to sell or purchase goods, 
services, or technology. 
(10) IRAN.—The term "Iran" includes any agency or 
instrumentality of Iran. 
(11) IRANIAN DIPLOMATS AND REPRESENTATIVES OF OTHER 
GOVERNMENT AND MILITARY OR QUASI-GOVERNMENTAL INSTITU-
TIONS OF IRAN.—^The term "Iranian diplomats and representa-
tives of other government and military or quasi-governmental 
institutions of Iran" includes employees, representatives, or 
affiliates of Iran's— 
(A) Foreign Ministry; 
(B) Ministry of Intelligence and Security; 
(C) Revolutionary Guard Corps; 
(D) Crusade for Reconstruction; 
(E) Qods (Jerusalem) Forces; 
(F) Interior Ministry; 
(G) Foundation for the Oppressed and Disabled; 
(H) Prophet's Foundation; 
(I) June 5th Foundation; 
(J) Martyr's Foundation; 
(K) Islamic Propagation Organization; and 
(L) Ministry of Islamic Guidance. 
(12) LIBYA,—The term "Libya" includes any agency or 
instrumentality of Libya. 
(13) NUCLEAR EXPLOSIVE DEVICE.—The term "nuclear explo-
sive device" means any device, whether assembled or disassem-
bled, that is designed to produce an instantaneous release 
of an amount of nuclear energy from special nuclear material 
(as defined in section ll(aa) of the Atomic Energy Act of 1954) 
that is greater than the amount of energy that would be 
released from the detonation of one pound of trinitrotoluene 
(TNT). 
(14) PERSON.—^The term "person" means— 
(A) a natural person; 
(B) a corporation, business association, partnership, 
society, trust, any other nongovernmental entity, organiza-
tion, or group, and any governmental entity operating as 
a business enterprise; and 
(C) any successor to any entity described in subpara-
graph (B). 
(15) 
PETROLEUM 
RESOURCES.—^The 
term 
"petroleum 
resources" includes petroleum and natural gas resources. 
PUBLIC LAW 104-172—AUG. 5, 1996 
110 STAT. 1551 
(16) UNITED STATES OR STATE.—^The term "United States" 
or "State" means the several States, the District of Columbia, 
the Commonwealth of Puerto Rico, the Commonwealth of the 
Northern Mariana Islands, American Samoa, Guam, the United 
States Virgin Islands, and any other territory or possession 
of the United States. 
(17) UNITED STATES PERSON.—The term "United States per-
son" means— 
(A) a natural person who is a citizen of the United 
States or who owes permanent allegiance to the United 
States; and 
(B) a corporation or other legal entity which is orga-
nized under the laws of thfe United States, any State or 
territory thereof, or the District of Columbia, if natural 
persons described in subparagraph (A) own, directly or 
indirectly, more than 50 percent of the outstanding capital 
stock or other beneficial interest in such legal entity. 
Approved August 5, 1996. 
L E G I S L A T I V E H I S T O R Y — H . R . 3107 (S. 1228): 
HOUSE REPORTS: No. 104-523, Pt. 1 (Comm. on International Relations) and Pt. 
2 (Comm. on Ways and Means). 
SENATE REPORTS: No. 104-187 accompanying S. 1228 (Comm. on Banking, Hous-
ing, and Urban Affairs). 
CONGRESSIONAL RECORD, Vol. 142 (1996): 
June 18, 19, considered and passed House. 
July 16, considered and passed Senate, amended. 
July 23, House concurred in Senate amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): 
Aug. 5, Presidential remarks.