[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4070 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 4070
To clarify certain provisions relating to the interests of Iran in
certain assets, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 16, 2012
Mr. Turner of New York introduced the following bill; which was
referred to the Committee on Foreign Affairs, and in addition to the
Committees on Financial Services and the Judiciary, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To clarify certain provisions relating to the interests of Iran in
certain assets, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. INTERESTS IN FINANCIAL ASSETS OF IRAN.
(a) Interests in Blocked Assets.--Notwithstanding any other
provision of law, and preempting any inconsistent provision of State
law, the property interest of Iran in a blocked asset shall include an
interest in property of any nature whatsoever, direct or indirect,
including any direct or indirect interest in securities or other
financial assets immobilized or in any other manner held in book entry
form and credited to a securities account in the United States and the
proceeds thereof, or in any funds transfers held in a United States
financial institution. The property interest of Iran in securities or
other financial assets immobilized or in any other manner held in book
entry form and credited to a securities account in the United States
and proceeds thereof shall be deemed to exist at every tier of
securities intermediary necessary to hold an interest in any such
securities or other financial assets. The property interest of Iran in
a funds transfer shall exist at any intermediary bank necessary to
complete such funds transfer.
(b) Property in the United States of Iran.--Notwithstanding any
other provision of law, and preempting any inconsistent provision of
State law, the property, including any interest in the property, of
Iran shall be deemed to be property in the United States of Iran if--
(1) that property is an interest, held directly or
indirectly for the benefit of Iran or for the benefit of any
securities intermediary that directly or indirectly holds the
interest for the benefit of Iran, in securities or other
financial assets that are represented by certificates or are in
other physical form and are immobilized, custodized, or held
for safekeeping or any other reason in the United States; or
(2) that property is an interest in securities or other
financial assets held in book entry form or otherwise, and
credited to a securities account in the United States by any
securities intermediary directly or indirectly for the benefit
of Iran or for the benefit of any other securities intermediary
that directly or indirectly holds the interest for the benefit
of Iran.
(c) Determination of Whether Securities or Other Assets Are Held or
Credited to a Securities Account in the United States.--For purposes of
this section, an interest in securities or other financial assets is
held and credited to a securities account in the United States by a
securities intermediary if the securities intermediary is located in
the United States. A securities intermediary is conclusively presumed
to be located in the United States if it is regulated in its capacity
as a securities intermediary under the laws of the United States.
(d) Commercial Activity in the United States.--Notwithstanding any
other provision of law, the ownership by Iran, or its central bank or
monetary authority, of any property, including the interest in property
described in paragraphs (1) and (2) of subsection (b), or any other
interest in property, shall be deemed to be commercial activity in the
United States and that property, including any interest in that
property, shall be deemed not to be held for the central bank's or
monetary authority's own account.
(e) Applicability.--This section applies to all attachments and
proceedings in aid of execution issued or obtained before, on, or after
the date of the enactment of this Act with respect to judgments entered
against Iran for damages for personal injury or death caused by an act
of torture, extrajudicial killing, aircraft sabotage, or hostage-
taking, or the provision of material support or resources for such an
act.
(f) Definitions.--In this section:
(1) Blocked asset.--The term ``blocked asset''--
(A) means any asset seized or frozen by the United
States under section 5(b) of the Trading With the Enemy
Act (50 U.S.C. App. 5(b)) or under section 202 or 203
of the International Emergency Economic Powers Act (50
U.S.C. 1701 and 1702); and
(B) does not include property that--
(i) is subject to a license issued by the
United States Government for final payment,
transfer, or disposition by or to a person
subject to the jurisdiction of the United
States in connection with a transaction for
which the issuance of the license has been
specifically required by a provision of law
other than the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.) or the
United Nations Participation Act of 1945 (22
U.S.C. 287 et seq.); or
(ii) is property subject to the Vienna
Convention on Diplomatic Relations or the
Vienna Convention on Consular Relations, or
that enjoys equivalent privileges and
immunities under the laws of the United States,
and is being used exclusively for diplomatic or
consular purposes.
(2) Clearing corporation.--The term ``clearing
corporation'' means--
(A) a clearing agency (as defined in section
3(a)(23) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)(23)));
(B) a Federal reserve bank; or
(C) any other person that provides clearance or
settlement services with respect to financial assets
that would require it to register as a clearing agency
under the Federal securities laws but for an exclusion
or exemption from the registration requirement under
section 3(a)(23)(B) of the Securities Exchange Act of
1934, if its activities as a clearing corporation,
including promulgation of rules, are subject to
regulation by a Federal or State governmental
authority.
(3) Financial asset; security.--The terms ``financial
asset'' and ``security'' have the meanings given those terms in
the Uniform Commercial Code.
(4) Iran.--The term ``Iran'' means the Government of Iran,
including the central bank or monetary authority of that
Government and any agency or instrumentality of that
Government.
(5) Property subject to the vienna convention on diplomatic
relations or the vienna convention on consular relations.--The
term ``property subject to the Vienna Convention on Diplomatic
Relations or the Vienna Convention on Consular Relations''
means any property the attachment in aid of execution or
execution of which would result in a violation of an obligation
of the United States under the Vienna Convention on Diplomatic
Relations, done at Vienna April 18, 1961, or the Convention on
Consular Relations, done at Vienna April 24, 1963.
(6) Securities intermediary.--The term ``securities
intermediary'' means--
(A) a clearing corporation; or
(B) a person, including a bank or broker, that in
the ordinary course of its business maintains
securities accounts for others and is acting in that
capacity.
(7) United states.--The terms ``United States'' includes
all territory and waters, continental or insular, subject to
the jurisdiction of the United States.
SEC. 2. EXCEPTIONS TO THE IMMUNITY FROM ATTACHMENT OR EXECUTION.
(a) Title 28, United States Code.--Section 1610 of title 28, United
States Code, is amended--
(1) in subsection (a)(7), by inserting after ``section
1605A'' the following: ``or section 1605(a)(7) (as such section
was in effect on January 27, 2008)'';
(2) in subsection (b)--
(A) in paragraph (2)--
(i) by striking ``(5), 1605(b), or 1605A''
and inserting ``(5) or 1605(b)''; and
(ii) by striking the period at the end and
inserting ``, or''; and
(B) by adding after paragraph (2) the following:
``(3) the judgment relates to a claim for which the agency
or instrumentality is not immune by virtue of section 1605A of
this chapter or section 1605(a)(7) of this chapter (as such
section was in effect on January 27, 2008), regardless of
whether the property is or was involved in the act upon which
the claim is based.'';
(3) by amending subsection (c) to read as follows:
``(c)(1) No attachment or execution referred to in any of
paragraphs (1) through (6) of subsection (a), or in paragraph (1) or
(2) of subsection (b), shall be permitted until the court of original
jurisdiction has ordered such attachment and execution after having
determined that a reasonable period of time has elapsed following the
entry of judgment and the giving of any notice required under section
1608(e) of this chapter.
``(2) No attachment or execution referred to in paragraph (7) of
subsection (a) or paragraph (3) of subsection (b) shall be permitted
until the court of original jurisdiction has ordered that such
attachment and execution may proceed after having determined that a
reasonable period of time has elapsed following the entry of judgment
and the giving of any notice required under section 1608(e) of this
chapter. For purposes of the preceding sentence, substantial compliance
with the requirements of section 1608(e) shall be deemed to be
sufficient service under such section, and the rejection of or refusal
to accept delivery of a default judgment served in substantial
compliance with such requirements shall not affect the sufficiency of
such service. The order of the court under this paragraph need not
specify the assets that are to be subject to such attachment or
execution.''; and
(4) in subsection (g)(1), in the matter preceding
subparagraph (A), by inserting after ``section 1605A'' the
following: ``or section 1605(a)(7) (as such section was in
effect on January 27, 2008)''.
(b) Terrorism Risk Insurance Act of 2002.--Section 201(a) of the
Terrorism Risk Insurance Act of 2002 (28 U.S.C. 1610 note) is amended
by striking ``section 1605(a)(7)'' and inserting ``section 1605A or
1605(a)(7) (as such section was in effect on January 27, 2008)''.
(c) Effective Date.--The amendments made by this section shall take
effect as if included in the enactment of the National Defense
Authorization Act for Fiscal Year 2008 (Public Law 110-181; 122 Stat.
3) and shall apply with respect to--
(1) any judgment pursuant to section 1605A of title 28,
United States Code, or section 1605(a)(7) of such Code (as such
section was in effect on January 27, 2008), that is entered
before, on, or after the date of the enactment of such Act; and
(2) any attachment or other proceedings in aid of
execution, or execution, that is issued, obtained, or commenced
before, on, or after the date of the enactment of such Act,
upon a judgment described in paragraph (1).
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