Article 4.2 provides that where the Laws of either country require residence in that country in order to qualify for or receive social security Benefits, a person may also qualify for and receive those Benefits while residing in the other country. By virtue of SSA's published finding about Uruguay's social security system (see FR Doc No 94-7097), the United States has long paid benefits to Uruguayan citizens who do not satisfy U.S. residency requirements for Benefit payment contained in section 202(t)(1) of the Act.

However, the nonpayment exception is subject to other U.S. payment restrictions based on residency requirements for dependents and survivors; e.g., section 202(t)(11) of the Act. Both countries intend that under this Agreement, Nationals of either country may qualify for or receive Benefits while residing in the other country. Accordingly, under section 233(c)(2) of the Act, this Agreement will permit the United States to pay dependents and survivors currently subject to such residency requirements as well as certain persons who are third country nationals residing in either country.