TO ALL MEMBERS 9 July 2010 Dear Sirs Sanctions against Iran and impact on club cover We refer to our circular dated 1 February 2010 when we advised members of the potential issues for the association arising out of US sanctions against Iran. Earlier this year the association’s rules were changed so that the board could introduce a specific substantive rule change mid-year to prevent the association being adversely affected by the proposed sanctions legislation. The USA has now finalised the legislation. President Obama signed the Comprehensive Iran Sanctions, Accountability, and Divestment Act on 1 July 2010. That Act is now in force. The Act exposes not only shipowners performing voyages with refined petroleum products to Iran but also their insurers (P&I and H&M) to the risk of sanction. The Act prohibits a company from knowingly, directly and significantly providing goods, services, technology, information or support, above specified values, that: (a) facilitate Iran's domestic production of refined petroleum products, or (b) contributes to Iran's ability to import refined petroleum products. These prohibitions also apply to the provision of shipping and insurance services. The penalties that may be imposed include the prohibition of US banking or property transactions, significant fines and/or imprisonment. Appropriate rule changes as set out below have now been made by the board, to take effect from Monday 12 July 2010 at 12.00 noon GMT. .. /...