Opinion ID: 393941
Heading Depth: 2
Heading Rank: 3

Heading: The Expropriation

Text: 9 On July 6, 1960, following the deterioration of relations between Cuba and the United States, Cuba enacted Law No. 851 which, inter alia, authorized officials of the Republic to proceed to nationalize, through forced expropriations, the properties or enterprises owned by physical and corporate persons who are nationals of the United States of North America .... 5 On September 17, 1960, Resolution No. 2 pursuant to Law No. 851 expropriated and nationalized all of Boston's Cuban branches, and placed Banco Nacional in charge. The Resolution read in part as follows: We Resolve: 10 First: To order the nationalization, by expropriation, and, consequently, award to the Cuban Government, in absolute ownership, all the assets, rights and shares deriving from the utilization thereof, especially the banks, including all their branches and agencies located in Cuba, which are the property of the following legal persons: 1 The First National City Bank of New York 2 The First National Bank of Boston 3 The Chase Manhattan Bank 11 Second: Consequently, the Cuban Government is substituted for the legal persons named in the foregoing paragraph as to the aforesaid assets, rights and shares, as well as the assets and liabilities of the aforementioned companies. 12 Fourth: ... the President of the National Bank of Cuba is assigned to take over, with all the authority inherent in his office, the administration of the assets and banking businesses which are the subject of the action decreed in the present Resolution. 13 On September 17, 1960, Banco Nacional took physical possession and control of Branches' assets and operations. It has not reimbursed Boston for any of the 324 letter of credit payments. 14 Following the expropriation Boston collected from various sources a total of $941,470 in the Branches account, representing funds received from Banco Nacional in September 1970, the proceeds of a number of bought bills belonging to Branches, and Branches' correspondent balance with other banks.