Opinion ID: 393982
Heading Depth: 1
Heading Rank: 3

Heading: designated national

Text: 18 In the February 22, 1977, letter denying Than's application for an unblocking license, the Secretary stated: 19 The Dong Phuong Bank, a Vietnamese corporation, is a designated national under the Regulations. The Regulations prohibit, in the absence of a Treasury license, all transactions involving assets in the United States in which a Vietnamese national has, or has had on or since April 30, 1975, any interest whatsoever. On April 30, 1975, the Bank had an interest in the funds due under all contracts which had been assigned to it. This interest could not be transferred after April 30, 1975, without a license from this Office. 20 The actions of the shareholders and directors of the Bank described in the Application were ineffective to dissolve it or transfer its assets. The Resolution signed by the directors of the bank ten days prior to the fall of Viet-Nam stated that its intent was to allocate management and control of the United States assets of the Bank to the shareholders who left Saigon prior to its fall. The Resolution did not even purport to transfer the bank's interest in the United States assets to those shareholders. Further, no evidence has been submitted in support of the assertion that the Resolution effected a valid dissolution of the corporation under the laws of South Vietnam. Accordingly, there was neither a dissolution nor a transfer made prior to April 30, 1975, of the Bank's interest in the funds to the shareholders who left Vietnam. 21 Than contends that the Secretary abused his discretion in refusing to grant him a license for several reasons. First, he maintains that there is no designated national with an interest in the assets at issue because the Bank ceased to exist prior to the effective date and was not, therefore, a corporation with an interest in the funds which would be subject to the blocking provisions of the Regulations. He argues that the April 15, 1975, shareholder-director Resolution dissolved the corporation prior to April 30 and transferred its United States based assets to those shareholders who fled Vietnam. Than argues that the Secretary erred in failing to give effect to this Resolution. We cannot say that the Secretary's interpretation of the Resolution based on the facts before him 12 was arbitrary, capricious, an abuse of discretion, or contrary to law. The meaning of the Resolution is at best ambiguous and the document does not, by its terms, conclusively establish an intent to dissolve the corporation. It merely provides that the shareholders managing to flee Vietnam should have the authority to manage and make use of the Bank's overseas assets. No mention is made of any authorization for those shareholders to own those assets outright. Because a rational nexus existed between the facts presented in the application before the Secretary and his determination that the Resolution did not effect a dissolution, we may not set aside that determination. See Certified Color Manufacturers Association v. Mathews, 543 F.2d 284, 294 (D.C.Cir.1976). 22 Than contended alternatively that even if the Resolution was ineffective to dissolve the Bank, the Bank was seized and destroyed upon the fall of Saigon shortly before the Regulations became effective as to South Vietnam. This issue, however, was not before the Secretary, 13 and it was not a basis for his decision to deny the license. Than may not, therefore, raise the issue for the first time before the district court or upon appeal. 14