Article 6 Payments under bonds
Except under the authority of a permission referred to in paragraph (1) of article 4A of the Iraq and Kuwait (United Nations Sanctions) Order 1990 or granted under this Order by the Lieutenant Governor of the Bailiwick of Guernsey or, as the case may be, of the Bailiwick of Jersey, no person shall make any payment to or to the order of any person in Iraq or Kuwait under or in respect of a bond to which this article applies.
Except under the authority of a permission granted under this Order, no person shall do any act for the purpose of obtaining payment or make any payment in respect of any right to indemnity in respect of any bond to which this article applies, where payment under or in respect of the bond is, or would if payment were to be made by a person referred to in paragraph (6) below be, unlawful by virtue of paragraph (1) above.
A bond to which this article applies is a bond given in respect of a contract the performance of which is wholly or in part unlawful by virtue of this Order, or the Export of Goods (Control) (Iraq and Kuwait Sanctions) Order 1990.
In this article—
“bond” means an agreement under which a person (“the obligor”) agrees that, if called upon to do so, or if a third party fails to fulfil obligations owed to another, the obligor will make payment to or to the order of the other party to the agreement, and
“make payment” means make payment by any method, including but not restricted to, the grant or any agreement to the exercise of any right of set off, accord and satisfaction and adjustment of any account.
Any person who makes payment or does any act for the purpose of obtaining payment in contravention of paragraph (1) or (2) above shall be guilty of an offence against this Order.
Paragraphs (1) and (2) above shall apply to any person within the Bailiwick of Guernsey or, as the case may be, the Bailiwick of Jersey and to any person elsewhere who—
is a British citizen, a British Dependent Territories citizen, a British Overseas citizen or a British protected person and is ordinarily resident in the Bailiwick of Guernsey or, as the case may be, the Bailiwick of Jersey, or
is a body incorporated or constituted under the law of any part of the Bailiwick of Guernsey or, as the case may be, the law of the Bailiwick of Jersey.
Any permission granted under this article may be either general or special, may be subject to or without conditions, may be limited so as to expire on a specified date unless renewed and may be varied or revoked by the person who granted it.