[Federal Register Volume 68, Number 33 (Wednesday, February 19, 2003)]
[Notices]
[Pages 8077-8083]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-3925]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control


Payments to Persons Who Hold Certain Categories of Judgments 
Against Cuba or Iran

February 19, 2003.
AGENCY: Department of the Treasury; Office of Foreign Assets Control.

ACTION: Notice.

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SUMMARY: This notice specifies the Secretary of the Treasury's 
intention to pay on March 21, 2003 certain claims filed pursuant to 
section 2002 of the Victims of Trafficking and Violence Protection Act 
of 2000, Public Law no. 106-386, as amended by the Foreign Relations 
Authorization Act, Fiscal Year 2003, Public Law 107-228. Section 2002 
directs the Secretary to make payments to persons who hold certain 
categories of judgments against Cuba or Iran in suits brought under 28 
U.S.C. 1605(a)(7).
    This notice also specifies the procedures necessary for persons 
filing applications after November 26, 2002, to establish eligibility 
for payments authorized by section 2002 of the Victims of Trafficking 
and Violence Protection Act of 2000 (the ``VTVPA''), Public Law no. 
106-386, as amended by section 686 of the Foreign Relations 
Authorization Act, Fiscal Year 2003, Public Law no. 107-228, and as 
further amended by section 201 of the Terrorism Risk Insurance Act of 
2002 (the ``TRIA''), Public Law no. 107-297. The publication of this 
notice necessarily precedes the making of payments in order to 
implement the TRIA's amendments to the VTVPA. This notice supersedes 
the two notices previously published by the Department of the Treasury 
(``the Treasury'') on November 22, 2000, and December 15, 2000, at 65 
FR 70382 and 65 FR 78533, respectively, for all such applications filed 
after November 26, 2002. The rules set forth in the two preceding 
notices shall continue to apply to applications filed with the Treasury 
prior to November 26, 2002, that are still pending before the Treasury. 
Applications filed with the Treasury before November 26, 2002, that 
were determined to be ineligible for payment are no longer pending 
before the Treasury. Those applicants previously determined to be 
ineligible for payment, but who may now be eligible due to amendments 
of section 2002, must therefore file new applications with the Treasury 
pursuant to the rules set forth in this new notice.
    This notice also sets forth estimates of the funds available for 
payment of eligible Iran-related claims for payment under section 2002 
that are filed with the Treasury after November 26, 2002.

DATES: This notice is effective February 19, 2003.

FOR FURTHER INFORMATION CONTACT: For questions regarding submission of 
applications, Rochelle E. Stern, Chief, Policy Planning and Program 
Management Division, Office of Foreign Assets Control, tel.: 202/622-
2500. For legal questions, Office of the Chief Counsel (Foreign Assets 
Control), tel.: 202/622-2410.

Part 1. Payment of Certain Claims on March 21, 2003

    The Treasury expects to complete the processing of payment on March 
21, 2003 to certain claimants pursuant to section 2002 of the Victims 
of Trafficking and Violence Protection Act of 2000 (the ``VTVPA''), 
Public Law No. 106-386, as amended by section 686 of the Foreign 
Relations Authorization Act, Fiscal Year 2003, Public Law No. 107-228. 
The claimants scheduled to receive payment on March 21, 2003 are those 
who filed lawsuits against Iran on June 6, 2000, received judgments in 
the lawsuit entitled Carlson v. The Islamic Republic of Iran, Civil 
Case No. 00-CV-1309 (D.D.C.), and filed claims for payment with the 
Treasury prior to November 26, 2002.

[[Page 8078]]

    Section 2002 of the Victims of Trafficking and Violence Protection 
Act of 2000 (the ``VTVPA''), Public Law No. 106-386, as amended by 
section 686 of the Foreign Relations Authorization Act, Fiscal Year 
2003, Public Law No. 107-228, and as further amended by section 201 of 
the Terrorism Risk Insurance Act of 2002 (the ``TRIA''), Public Law No. 
107-297 will hereinafter be referred to as ``section 2002''.

Part 2. Applicants; Deadlines for Submission of Applications

    The term ``Applicant,'' as used herein, refers to a person 
described in section 2002(a)(2) as eligible for payment under such 
section 2002 and who files a claim for payment with the Treasury after 
November 26, 2002. A person described in section 2002(a)(2) is
    (1) A person who, as of July 20, 2000, held a final judgment 
awarding compensatory damages on a claim or claims brought under 
section 1605(a)(7) of title 28, United States Code, against Iran or 
Cuba, or the right to payment of an amount awarded as a judicial 
sanction with respect to such claim or claims, or
    (2) a person who filed a suit under such section 1605(a)(7) on 
February 17, 1999, December 13, 1999, January 28, 2000, March 15, 2000, 
June 6, 2000, July 27, 2000, any other date before October 28, 2000, or 
January 16, 2002, and holds a final judgment awarding compensatory 
damages against either Iran (as described below) or Cuba in such suit. 
With respect to those who filed suits against Iran, such persons must 
hold final judgments for compensatory damages issued as of November 26, 
2002, or must have filed suit on January 16, 2002.
    Those who filed claims with the Treasury prior to November 26, 
2002, and whose claims were denied, but who may now be eligible for 
payment due to amendments to Public Law 106-386, must resubmit 
applications in accordance with this notice. The requirements of Parts 
2 through 6 of this notice do not apply to claimants who have already 
received payment or whose claims are still pending with the Treasury.
    Each Applicant must submit a separate, complete application 
containing all the information and documentation described in Part 3, 
below. If an Applicant is currently represented by counsel, his or her 
application must be submitted through that counsel.
    Section 2002 distinguishes between final judgments issued as of and 
after November 26, 2002. In the case of Applicants holding final 
judgments that were issued as of November 26, 2002, complete 
applications for payment, as described in Part 3, below, must be 
received in the Department of the Treasury's Office of Foreign Assets 
Control by April 7, 2003. In the case of any Applicant holding a final 
judgment issued after November 26, 2002, in the case filed on January 
16, 2002, and identified in section 2002(a)(2)(A) with respect to Iran, 
complete applications for payment, as described in Part 3, below, must 
be received in the Office of Foreign Assets Control within 20 calendar 
days after the date such judgment becomes final.

Part 3. Applications for Payment

    Applications for payment under section 2002 must be sent to the 
Office of Foreign Assets Control, U.S. Department of the Treasury, 1500 
Pennsylvania Avenue, NW., Washington, DC 20220, Attn: Rochelle E. 
Stern. Applications must contain all of the information and 
documentation as specified in this Part 3. Applications must be sent by 
overnight mail or by overnight courier. Applications sent 
electronically, via facsimile, by hand delivery, certified mail, or any 
other means other than overnight mail or overnight courier shall be 
deemed noncomplying. All information and documentation required by 
paragraphs (a) through (f) below must be submitted to the noted address 
by overnight mail or by overnight courier.
    All information required by paragraphs (a) through (f) of this Part 
3 is to be provided in the order set forth below and numbered 
correspondingly.
    (a) Information Regarding Applicant and Payment.
    (1) Information Regarding Applicant: An Applicant shall submit the 
following information:
    (A) name, address, telephone number, and, if available, facsimile 
number of Applicant and Applicant's social security number or taxpayer 
identification number; and
    (B) if the Applicant is represented by counsel, name(s), 
address(es), telephone number(s), and facsimile number(s) of 
Applicant's counsel.
    (2) Payment Information: Payments will be made by electronic funds 
transfer. Payments will be made only to the Applicant or the 
Applicant's counsel. The application shall designate which of these 
parties is to receive the payment by including one of the following two 
statements:
    ``Payment of amounts owing to [insert name of Applicant] under 
section 2002 shall be made to [insert name of Applicant].''
    ``Payment of amounts owing to [insert name of Applicant] under 
section 2002 shall be made to [insert name of Applicant's counsel].''
    An Applicant shall submit the following information:
    (A) name of person or entity to whom payment is to be made [insert 
name of Applicant or Applicant's counsel] (the ``payee'');
    (B) American Bankers Association Routing and Transit Code number of 
the bank holding payee's account (include copy of canceled check or 
savings deposit slip);
    (C) name and address of payee's bank;
    (D) payee's bank account number;
    (E) type of account (checking or savings); and
    (F) social security number or taxpayer identification number of 
payee.
    (b) Documentation on Compensatory Damages.
    An Applicant shall submit a copy of the final judgment awarding the 
Applicant compensatory damages on a claim or claims brought by the 
Applicant under 28 U.S.C. 1605(a)(7). This copy must be certified by 
the clerk of the court that awarded the judgment.
    In addition, the Applicant must submit a statement signed pursuant 
to 28 U.S.C. 1746 identifying what proportion, if any, of his 
compensatory damage award has been paid. This statement must also 
provide a description of all ongoing attachment and/or execution 
proceedings relating to the Applicant's judgment, including the case 
name and number, the name and location of the court where such 
proceeding has been filed, the date of filing, and the names of all 
parties involved.
    (c) Documentation on Punitive Damages.
    An Applicant who elects to receive 110 percent of compensatory 
damages, as allowed under section 2002(a)(1)(A), shall submit a copy of 
the final judgment awarding the Applicant punitive damages on a claim 
or claims brought by the Applicant under 28 U.S.C. 1605(a)(7). This 
copy must be certified by the clerk of the court that awarded the 
judgment.
    In addition, the Applicant must submit a statement signed pursuant 
to 28 U.S.C. 1746 identifying what proportion, if any, of his punitive 
damage award has been paid. This statement must also provide a 
description of all ongoing attachment and/or execution proceedings 
relating to the Applicant's judgment, including the case name and 
number, the name and location of the court where such proceeding has 
been filed, the date of

[[Page 8079]]

filing, and the names of all parties involved.
    (d) Documentation on Sanctions.
    (1) An Applicant seeking payment of amounts awarded as sanctions by 
judicial order on April 18, 2000 (as corrected on June 2, 2000) in 
connection with a claim or claims brought by the Applicant under 28 
U.S.C. 1605(a)(7) shall submit a copy of the judicial order of April 
18, 2000 (as corrected on June 2, 2000) awarding the Applicant 
sanctions. The copy must be certified by the clerk of the court that 
issued the order.
    (2) The Applicant must also establish that this order is final and 
not subject to further appellate review. The Applicant can so establish 
by providing one of the following:
    (A) a copy of a judgment of dismissal by the U.S. Court of Appeals 
of any pending appeal from the sanctions order, which copy must be 
certified by the clerk of the court of appeals;
    (B) a signed statement that the time to appeal the sanctions order 
has expired without a notice of appeal having been filed, or a signed 
written waiver of the right to seek any further review of any adverse 
aspect of the sanctions order from any party that would have a basis 
for seeking review of that decision;
    (C)(i) a copy of a final decision by the U.S. Court of Appeals on 
the sanctions order that affirms or otherwise leaves intact the 
sanctions order, in whole or in part, and that has been certified by 
the clerk of the Court of Appeals and,
    (ii)(I) a citation to the order of the U.S. Supreme Court denying 
certiorari or dismissing any pending petition for a writ of certiorari;
    (II) a signed statement that the time to petition for a writ of 
certiorari has expired, without such a petition having been filed; or
    (III) if the time to petition for a writ of certiorari has not 
expired, a signed written waiver from all unsuccessful appellants of 
their right to petition for a writ of certiorari; or
    (D) a copy of a final decision by the U.S. Supreme Court on the 
sanctions order that affirms or otherwise leaves intact the sanctions 
order, in whole or in part.
    (e) Documentation on Final Judgment or Date Suit Commenced.
    In order to receive payment, an Applicant must meet one of the 
following two requirements documenting the final judgment and, where 
applicable, the date on which the Applicant's suit commenced.
    (1) To meet the first requirement, the Applicant must establish 
that he or she had, as of July 20, 2000, a final judgment for a claim 
or claims brought under 28 U.S.C. 1605(a)(7) or the right to payment of 
an amount awarded as a judicial sanction with respect to such claim or 
claims. The Applicant can establish that he or she had a final judgment 
for a claim or claims brought under 28 U.S.C. 1605(a)(7) as of July 20, 
2000, by submitting the judgment specified in Part 3(b) above, which 
must be dated July 20, 2000, or earlier, along with all appellate 
orders on that judgment, if any, and a signed statement demonstrating 
why further appellate review is unavailable. The Applicant can 
establish that he or she had a right to payment of an amount awarded as 
a judicial sanction by submitting the order specified in Part 3(d) 
above, which must be dated July 20, 2000, or earlier, along with proof 
that this order is final and not subject to further appellate review.
    (2) If an Applicant does not satisfy paragraph (1) above, the 
Applicant shall submit satisfactory proof of the following:
    (A) The date on which the Applicant filed a suit against Iran or 
Cuba under 28 U.S.C. 1605(a)(7). This proof shall be in the form of a 
docket sheet or other document that has been certified by the clerk of 
the court in which the suit was filed. Applicants proceeding under this 
paragraph shall be eligible for payment only if suit was filed on 
February 17, 1999, December 13, 1999, January 28, 2000, March 15, 2000, 
June 6, 2000, July 27, 2000, any other date before October 28, 2000, or 
January 16, 2002.
    (B) That Applicant has a final judgment in a suit described in Part 
3(e)(2)(A) above. The Applicant can satisfy this requirement by 
submitting the judgment specified in Part 3(b) above, along with all 
appellate orders on that judgment, if any, and a signed statement 
demonstrating why further appellate review is unavailable. Applicants 
shall be eligible for payment only if such judgment was issued as of 
November 26, 2002, with the exception of any final judgment entered in 
the case filed on January 16, 2002.
    (f) Election of Payment Option and Associated Relinquishment.
    (1) All Applicants must elect a payment option established by 
section 2002. If the Applicant has received an award of punitive 
damages, the Applicant shall elect to receive either 110 percent or 100 
percent of the compensatory damages, amounts necessary to pay post-
judgment interest under 28 U.S.C. 1961, and, where applicable, the 
amount awarded as sanctions on or in connection with a claim or claims 
brought under 28 U.S.C. 1605(a)(7). If the Applicant has not received 
an award of punitive damages, the Applicant shall elect to receive 100 
percent of the compensatory damages, amounts necessary to pay post-
judgment interest under 28 U.S.C. 1961, and, where applicable, the 
amount awarded as sanctions on or in connection with a claim or claims 
brought under 28 U.S.C. 1605(a)(7). It is not within the Department of 
the Treasury's purview to advise Applicants on which option they should 
select.
    By electing one of these options, the Applicant relinquishes 
certain claims and rights, as specified in section 2002. See section 
2002(a)(2)(B)-(D). If an Applicant elects to receive 110 percent of the 
compensatory damages, amounts necessary to pay post-judgment interest 
under 28 U.S.C. 1961, and, where applicable, the amount awarded as 
sanctions on or in connection with a claim or claims brought under 28 
U.S.C. 1605(a)(7) (110 percent option), the Applicant must relinquish 
all claims and rights to compensatory damages and amounts awarded as 
judicial sanctions, as well as all claims and rights to punitive 
damages. Section 2002(a)(2)(B)-(C).
    If an Applicant elects to receive 100 percent of the compensatory 
damages, amounts necessary to pay post-judgment interest under 28 
U.S.C. 1961, and, where applicable, the amount awarded as sanctions on 
or in connection with a claim or claims brought under 28 U.S.C. 
1605(a)(7) (100 percent option), the Applicant must relinquish all 
claims and rights to compensatory damages and amounts awarded as 
judicial sanctions, as well as ``all rights to execute against or 
attach property that is at issue in claims against the United States 
before an international tribunal, that is the subject of awards 
rendered by such tribunal, or that is subject to section 1610(f)(1)(A) 
of title 28, United States Code.'' Section 2002(a)(2)(D). Title 28 
U.S.C. 1610(f)(1)(A), in turn, addresses ``any property with respect to 
which financial transactions are prohibited or regulated pursuant to 
section 5(b) of the Trading with the Enemy Act (50 U.S.C. App. 5(b)) 
(``TWEA''), section 620(a) of the Foreign Assistance Act of 1961 (22 
U.S.C. 2370(a)), sections 202 and 203 of the International Emergency 
Economic Powers Act (50 U.S.C. 1701-1702) (``IEEPA''), or any other 
proclamation, order, regulation, or license issued pursuant thereto.'' 
28 U.S.C. 1610(f)(1)(A). Virtually every transaction involving Cuban 
property within the jurisdiction of the United States is ``prohibited 
or regulated'' pursuant to TWEA. Additionally, almost every transaction 
involving Iranian property within the jurisdiction of the

[[Page 8080]]

United States is ``prohibited or regulated'' pursuant to IEEPA. Section 
2002(a)(2)(D) therefore prohibits an Applicant who elects the 100 
percent option from seeking to execute his or her punitive damage award 
against, or from seeking to attach, virtually all Iranian or Cuban 
assets within the jurisdiction of the United States.
    To make an election, the Applicant must submit two declarations as 
set forth in Parts 3(f)(3-4) below. The Applicant must submit (1) 
either the declaration set forth in Part 3(f)(3)(A) or that set forth 
in Part 3(f)(3)(B), and (2) the declaration set forth in Part 3(f)(4). 
All declarations submitted must be completed in full.
    In making payments under section 2002, subject to funds 
availability, the Secretary will pay post-judgment interest on 110 
percent of compensatory damages or 100 percent of compensatory damages, 
according to whether the Applicant elects to receive payment equaling 
110 or 100 percent of compensatory damages. The Secretary will not pay 
post-judgment interest on portions of the judgment for which the 
Applicant is not entitled to receive payment under section 2002, 
including amounts awarded as punitive damages. Nor will the Secretary 
pay post-judgment interest on the amounts awarded as sanctions, as 
section 2002(a)(1) does not provide for payment of post-judgment 
interest on sanctions awards.
    (2) Section 201 of the Terrorism Risk Insurance Act of 2002 (the 
``TRIA''), Public Law No. 107-297 (``section 201'').
    Section 201 amends section 2002 by, inter alia, establishing a 
partial, pro rata payment mechanism, which is described in Part 5 
below. This partial payment mechanism, set forth in new subsection (d) 
of section 2002, will come into effect in the event that the Secretary 
of the Treasury determines that 90 percent of the amounts available to 
be paid under section 2002(b)(2) are inadequate to pay the total amount 
of compensatory damages awarded in judgments issued as of November 26, 
2002, in cases identified in section 2002(a)(2)(a) with respect to 
Iran. If this determination is made, the payment an Applicant receives 
will be less than the full amount of unpaid compensatory damages 
awarded to the Applicant and will not include amounts necessary to pay 
post-judgment interest under 28 U.S.C. 1961.
    Section 201 also amends section 2002 to provide, in new subsection 
(d)(5), that any person receiving less than the full amount of 
compensatory damages awarded to that party in a judgment to which new 
subsection (d) applies shall not be required to make the election set 
forth in section 2002(a)(2)(B) (i.e., relinquishing all claims and 
rights to compensatory damages and judicial sanctions) or, with respect 
to section 2002(a)(2)(D), the election relating to relinquishment of 
any right to execute or attach property that is subject to section 
1610(f)(1)(A) of title 28, United States Code. However, such person 
shall be required to relinquish rights set forth (1) in section 
2002(a)(2)(C) (i.e., all rights and claims to punitive damages), and 
(2) in section 2002(a)(2)(D) with respect to enforcement against 
property that is at issue in claims against the United States before an 
international tribunal or that is the subject of awards by such 
tribunal.
    To take account of new subsection (d)(5), the elections of the 110 
percent option and the 100 percent option that appeared in prior 
Federal Register notices on this subject have been amended, as set 
forth in Part 3(f)(3) below. The amendments provide that, in the event 
the Secretary makes the determination that funds are inadequate as 
specified in section 2002(d)(1)(A), the payment the Applicant receives 
will be less than the full amount of unpaid compensatory damages, and 
such payment will not include amounts necessary to pay post-judgment 
interest under 28 U.S.C. 1961. In that event, the relinquishments 
already made in the declarations and described in Part 3(f)(1) above 
shall be null and void, and, in lieu thereof, the Applicant, as 
required by new subsection (d)(5), relinquishes all rights and claims 
to punitive damages and all rights to execute against or attach 
property that is at issue in claims against the United States before an 
international tribunal or that is the subject of awards by such 
tribunal.
    (3) To make an election, the Applicant must submit two declarations 
as set forth in Parts 3(f)(3-4) below. The Applicant must submit (1) 
either the declaration set forth in Part 3(f)(3)(A) or that set forth 
in Part 3(f)(3)(B), and (2) the declaration set forth in Part 3(f)(4). 
The Applicant must sign each declaration pursuant to 28 U.S.C. 1746. 
All declarations submitted must be completed in full.
    To make the election, the Applicant shall submit one of the two 
declarations set forth in (A) and (B) below. As set forth in Part 
3(f)(1) above, applicants who have received awards of punitive damages 
shall elect either the declaration set forth in (A) or (B) below. 
Applicants who have not received awards of punitive damages shall use 
the declaration set forth in (B) below.
    (A) ``I, -------- (insert name of Applicant), elect to receive 110 
percent of the amount awarded to me as compensatory damages, amounts 
necessary to pay post-judgment interest under 28 U.S.C. 1961, and, 
where applicable, amounts awarded as judicial sanctions on or in 
connection with the claim or claims I brought under 28 U.S.C. 
1605(a)(7). By so electing, I state that I have been awarded a judgment 
that includes an award of punitive damages. I further state, as 
required by section 2002 of the Victims of Trafficking and Violence 
Protection Act of 2000, P.L. No. 106-386 as amended by section 686 of 
the Foreign Relations Authorization Act, Fiscal Year 2003, Public Law 
No. 107-228, and as further amended by section 201 of the Terrorism 
Risk Insurance Act of 2002, Public Law No. 107-297 (``section 2002''), 
that I relinquish (a) all claims and rights to compensatory damages and 
amounts awarded as judicial sanctions under such judgments and any 
related interest, costs, and attorneys fees, and (b) all claims and 
rights to punitive damages awarded in connection with such claim or 
claims and any related interest, costs, and attorneys fees. In 
relinquishing these above-mentioned claims and rights, I recognize that 
I relinquish any rights to seek writs of attachment, execution, or 
garnishment, or any other form of post-judgment process intended to 
obtain partial or complete satisfaction of any amounts awarded in 
connection with the claim or claims under 28 U.S.C. 1605(a)(7) for 
which I am electing to receive payment.
    ``I understand that this relinquishment is irrevocable once the 
payment is credited to the bank account I have identified in this 
application. I further agree and acknowledge that, pursuant to section 
2002(c), once the payment is credited to the bank account I have 
identified in this application, and to the extent such payment is made 
under section 2002(b)(2)(B), the United States shall be fully 
subrogated and assigned to all of my rights as a judgment creditor, and 
to the rights, if any, of any other person or entity to whom payments 
are made (collectively `payees'), against the debtor foreign state. 
Such subrogation and assignment of payees' rights as judgment creditors 
is binding on their guardians, heirs, executors, administrators or 
assigns.
    ``In the event that the Secretary of the Treasury determines that 
90 percent of the amounts available to be paid under section 2002(b)(2) 
are inadequate to pay the total amount of compensatory damages awarded 
in judgments issued as of November 26, 2002, in cases

[[Page 8081]]

identified in section 2002(a)(2)(A) with respect to Iran, I understand 
that the payment that I receive will be less than the full amount of 
compensatory damages awarded to me and that such payment will not 
include amounts necessary to pay post-judgment interest under 28 U.S.C. 
1961. In that event, the relinquishment set forth above shall be null 
and void and, in lieu thereof, as required by section 2002(d)(5), I 
hereby relinquish (1) all rights and claims to punitive damages awarded 
in connection with the claim or claims I brought under 28 U.S.C. 
1605(a)(7) and any related interest, costs, and attorneys fees, and (2) 
all rights to execute against or attach property that is at issue in 
claims against the United States before an international tribunal or 
that is the subject of awards by such tribunal.
    ``I understand that the relinquishment that I make in the event of 
any pro rata distribution is irrevocable once the payment is credited 
to the bank account I have identified in this application. I further 
agree and acknowledge that, pursuant to section 2002(c), once the 
payment is credited to the bank account I have identified in this 
application, and to the extent such payment is made under section 
2002(b)(2)(B), the United States shall be subrogated and assigned, to 
the extent of such payment, to my rights as a judgment creditor, and to 
the rights, if any, of any other person or entity to whom payments are 
made (collectively ``payees''), against the debtor foreign state. Such 
subrogation and assignment of payees' rights as judgment creditors is 
binding on their guardians, heirs, executors, administrators or 
assigns.
    ``I declare under penalty of perjury under the laws of the United 
States of America that the foregoing is true and correct. Executed on 
(insert date).''
    (B) ``I, -------- (insert name of Applicant), elect to receive 100 
percent of the amount awarded to me as compensatory damages, amounts 
necessary to pay post-judgment interest under 28 U.S.C. 1961, and, 
where applicable, amounts awarded as judicial sanctions on or in 
connection with the claim or claims I brought under 28 U.S.C. 
1605(a)(7). By so electing, as required by section 2002 of the Victims 
of Trafficking and Violence Protection Act of 2000, P.L. No. 106-386 as 
amended by section 686 of the Foreign Relations Authorization Act, 
Fiscal Year 2003, Public Law No. 107-228, and as further amended by 
section 201 of the Terrorism Risk Insurance Act of 2002, Public Law No. 
107-297 (``section 2002''), I relinquish (a) all claims and rights to 
compensatory damages and amounts awarded as judicial sanctions under 
such judgments and any related interest, costs, and attorneys fees, and 
(b) all rights to execute against or attach property that is at issue 
in claims against the United States before an international tribunal, 
that is the subject of awards rendered by such tribunal, or that is 
subject to 28 U.S.C. 1610(f)(1)(A). In relinquishing these above-
mentioned claims and rights, I recognize that I relinquish any rights 
to seek writs of attachment, execution, or garnishment, or any other 
form of post-judgment process directed against property that is at 
issue in claims against the United States before an international 
tribunal, that is the subject of awards rendered by such tribunal, or 
that is subject to 28 U.S.C. 1610(f)(1)(A) and intended to obtain 
partial or complete satisfaction of any amounts awarded in connection 
with the claim or claims under 28 U.S.C. 1605(a)(7) for which I am 
electing to receive payment.
    ``I understand that this relinquishment is irrevocable once the 
payment is credited to the bank account I have identified in this 
application. I further agree and acknowledge that, pursuant to section 
2002(c), once the payment is credited to the bank account I have 
identified in this application, and to the extent such payment is made 
under section 2002(b)(2)(B), the United States shall be fully 
subrogated and assigned to all of my rights as a judgment creditor, and 
to the rights, if any, of any other person or entity to whom payments 
are made (collectively ``payees''), against the debtor foreign state. 
Such subrogation and assignment of payees' rights as judgment creditors 
is binding on their guardians, heirs, executors, administrators or 
assigns.
    ``In the event that the Secretary of the Treasury determines that 
90 percent of the amounts available to be paid under section 2002(b)(2) 
are inadequate to pay the total amount of compensatory damages awarded 
in judgments issued as of November 26, 2002, in cases identified in 
section 2002(a)(2)(A) with respect to Iran, I understand that the 
payment that I receive will be less than the full amount of 
compensatory damages awarded to me and that such payment will not 
include amounts necessary to pay post-judgment interest under 28 U.S.C. 
1961. In that event, the relinquishment set forth above shall be null 
and void and, in lieu thereof, as required by section 2002(d)(5), I 
hereby relinquish (1) all rights and claims to punitive damages awarded 
in connection with the claim or claims I brought under 28 U.S.C. 
1605(a)(7) and any related interest, costs, and attorneys fees, and (2) 
all rights to execute against or attach property that is at issue in 
claims against the United States before an international tribunal or 
that is the subject of awards by such tribunal.
    ``I understand that the relinquishment that I make in the event of 
any pro rata distribution is irrevocable once the payment is credited 
to the bank account I have identified in this application. I further 
agree and acknowledge that, pursuant to section 2002(c), once the 
payment is credited to the bank account I have identified in this 
application, and to the extent such payment is made under section 
2002(b)(2)(B), the United States shall be subrogated and assigned, to 
the extent of such payment, to my rights as a judgment creditor, and to 
the rights, if any, of any other person or entity to whom payments are 
made (collectively ``payees''), against the debtor foreign state. Such 
subrogation and assignment of payees' rights as judgment creditors is 
binding on their guardians, heirs, executors, administrators or 
assigns.
    ``I declare under penalty of perjury under the laws of the United 
States of America that the foregoing is true and correct. Executed on 
(insert date).''
    (4) In addition, all Applicants shall submit the following 
declaration, which, pursuant to 28 U.S.C. 1746, must be signed by the 
applicant and, if the payee is different from the applicant, the payee.
    ``I/We & --------, (insert name of Applicant) and & -------- 
(insert name of payee, if different from Applicant) am/are entitled to 
the entire amount to be paid in this application. No other person, 
corporation, law firm, or other entity whatsoever either claims or is 
otherwise entitled to receive any portion of this payment from the 
United States of America. If any other person, corporation, law firm, 
or other entity (a ``Third Party'') is ever determined by a final 
judgment of a court of the United States to be entitled to all or part 
of the payment made to the Applicant and payee (as named above), we 
(the Applicant and payee) promise immediately to reimburse, with 
interest, the United States for whatever amount of money is paid by it 
to a Third Party, and agree further to indemnify and hold harmless the 
United States for any such claims for payment asserted by a Third Party 
against the United States.
    ``I/we declare under penalty of perjury under the laws of the 
United States of America that the foregoing is true and correct. 
Executed on (insert date).''

Part 4. Sources of Funds for Payment

    Section 2002 specifies the sources and amount of funds available 
for the payments authorized by that section.

[[Page 8082]]

See section 2002(b). For purposes of funding payments in connection 
with judgments and sanctions against Cuba, section 2002 provides that 
the President shall vest and liquidate up to and not exceeding the 
amount of property of the Government of Cuba and sanctioned entities in 
the United States or any commonwealth, territory, or possession thereof 
that has been blocked pursuant to section 5(b) of the Trading with the 
Enemy Act (50 U.S.C. App. 5(b)), sections 202 and 203 of the 
International Emergency Economic Powers Act (50 U.S.C. 1701-1702), or 
any other proclamation, order, or regulation issued thereunder. It 
further provides that for the purposes of paying amounts for judicial 
sanctions, payment shall be made from funds or accounts subject to 
sanctions as of April 18, 2000, or from blocked assets of the 
Government of Cuba. See section 2002(b)(1).
    For purposes of funding payments in connection with judgments 
against Iran, section 2002 provides that the Secretary shall make 
payments from amounts paid and liquidated from (a) rental proceeds 
accrued on the date of the enactment of the VTVPA from Iranian 
diplomatic and consular property located in the United States, and (b) 
funds not otherwise made available in an amount not to exceed the total 
of the amount in the Iran Foreign Military Sales Program account within 
the Foreign Military Sales Fund on the date of the enactment of the 
VTVPA to the extent provided by section 2002(b)(2)(B). The amount of 
funds made available by (a), above, will be determined based in part on 
information provided by the Department of State. The amount of funds 
initially made available by (b), above, was determined based on 
information provided by the Department of Defense.

Part 5. Payments to Applicants

    Payments described in this Part are made pursuant to section 
2002(d).
    (a) Judgments issued as of November 26, 2002
    (1) Following the expiration of the period for submitting claims as 
described in Part 2 of this notice, the Secretary promptly will 
determine whether 90 percent of the amounts available to be paid under 
section 2002(b)(2) are inadequate to pay the total amount of 
compensatory damages awarded in eligible final judgments issued as of 
November 26, 2002, to Applicants. See section 2002(d)(1)(A).
    (2) In the event that the Secretary determines that 90 percent of 
the amounts available to be paid under section 2002(b)(2) are 
inadequate to pay the total amount of compensatory damages awarded in 
eligible final judgments issued as of November 26, 2002 to Applicants 
in cases identified in section 2002(a)(2)(A) with respect to Iran, the 
Secretary will, not later than 60 days after making such determination, 
make payment from such amounts available to be paid under section 
2002(b)(2) to each Applicant to which such a judgment has been issued 
in an amount equal to a share, calculated under section 2002 (d)(1)(B), 
of 90 percent of the amounts available to be paid under section 2002 
(b)(2) that have not been subrogated to the United States under section 
2002 as of November 26, 2002.
    (3) The share that is payable to an Applicant under (a) of this 
Part 5, including any Applicant issued a final judgment as of November 
26, 2002, in a suit filed on a date added by the amendment made by 
section 686 of Public Law 107-228, shall be equal to the proportion 
that the amount of unpaid compensatory damages awarded in a final 
judgment issued to that Applicant bears to the total amount of all 
unpaid compensatory damages awarded to all Applicants to whom such 
judgments have been issued as of November 26, 2002, in cases identified 
in section 2002(a)(2)(A) with respect to Iran.
    (b) Subsequent Judgment
    The Secretary will pay to any Applicant awarded a final judgment 
after November 26, 2002, in the case filed on January 16, 2002, and 
identified in section 2002 (a)(2)(A) with respect to Iran, an amount 
equal to a share, calculated under section 2002(d)(2)(B), of the 
balance of the amounts available to be paid under section 2002(b)(2) 
that remain following the disbursement of all payments as described in 
(a) of this Part 5. The Secretary will make such payment not later than 
30 calendar days after such judgment becomes final. To the extent that 
funds are available, the amount paid to such Applicant will be the 
amount the Applicant would have been paid as described in (a) of this 
Part 5 if the Applicant had been awarded the judgment prior to November 
26, 2002.
    (c) Additional Payments
    (1) Not later than 30 calendar days after the disbursement of all 
payments described in (a) and (b) of this Part 5, the Secretary will 
make an additional payment to each Applicant who received a payment 
under (a) or (b) of this Part 5 in an amount equal to a share, 
calculated as described below, of the balance of the amounts available 
to be paid under section 2002(b)(2) that remain following the 
disbursement of all payments as described in (a) and (b) of this Part 
5.
    (2) The share payable to each such Applicant shall be equal to the 
proportion that the amount of compensatory damages awarded that 
Applicant bears to the total amount of all compensatory damages awarded 
to all Applicants who received a payment as described in (a) or (b) of 
this Part 5.

Part 6. Available Funds for Iran-Related Claims

    Congress has directed that payments of eligible Iran-related claims 
pursuant to section 2002 be made from the following two sources of 
funds:
    (2) Judgments Against Iran.--For purposes of funding payments under 
subsection (a) in the case of judgments against Iran, the Secretary of 
the Treasury shall make such payments from amounts paid and liquidated 
from--
    (A) rental proceeds accrued on the date of the enactment of this 
Act from Iranian diplomatic and consular property located in the United 
States; and
    (B) funds not otherwise made available in an amount not to exceed 
the total of the amount in the Iran Foreign Military Sales Program 
account within the Foreign Military Sales Fund on the date of the 
enactment of this Act.

Section 2002(b)(2).

    With respect to the funds referred to in section 2002(b)(2)(A), the 
Treasury anticipates that approximately $7.8 million in rental proceeds 
accrued as of October 28, 2000, from Iranian diplomatic and consular 
property located in the United States will be available for the payment 
of the eligible claims filed with the Treasury after November 26, 2002, 
including but not limited to any claims re-filed with the Treasury 
after having been denied prior to November 26, 2002.
    With respect to the funds referred to in section 2002(b)(2)(B), the 
Treasury anticipates that approximately $14 million will be available 
for the payment of the eligible claims filed with the Treasury after 
November 26, 2002, pursuant to section 2002, including but not limited 
to any claims re-filed with the Treasury after having been denied prior 
to November 26, 2002.
    With respect to the funds referred to in section 20029b)(2)(A), the 
Treasury anticipates that approximately $14 million will be available 
for the payment of the eligible claims filed with the Treasury after 
November 26, 2002, pursuant to section 2002, including but not limited 
to any claims re-filed with the Treasury after having been denied prior 
to November 26, 2002.

[[Page 8083]]

Part 7. Notice Requirements Inapplicable

    This notice advises applicants of the availability of funds 
pursuant to section 2002 and explains the nature of the information and 
documentation requirements established by that section. Accordingly, it 
has been determined that notice and public procedure are not required 
pursuant to 5 U.S.C. 553(a). Moreover, notice and public procedure are 
unnecessary pursuant to 5 U.S.C. 553(b)(B) because this notice merely 
explains the requirements of section 2002 and does not affect the 
substantive rights of applicants under that section. Notice and public 
procedure are impracticable and contrary to the public interest 
pursuant to 5 U.S.C. 553(b)(B) because section 2002 requires that 
payments be made ``promptly,'' see section 2002(a)(1), and it is in the 
public interest to establish the procedures to request payments without 
delay.

Part 8. Paperwork Reduction Act

    The collection of information contained in this notice has been 
reviewed and approved by the Office of Management and Budget (OMB) 
pursuant to section 3507 of the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501 et seq.) and assigned OMB Control Number 1505-0177. An 
agency may not conduct or sponsor, and a person is not required to 
respond to, an information collection that does not display a currently 
valid OMB control number. The collection of information specified in 
this notice is required to enable the Department of the Treasury to 
determine the eligibility of an applicant under section 2002. The 
collection of information is voluntary, but it is required to obtain a 
payment authorized by section 2002. The estimated average burden per 
applicant is 3 hours. Comments concerning the accuracy of this burden 
estimate and suggestions for reducing this burden should be directed to 
the agency contact specified earlier in this notice and to OMB, 
Attention: Desk Officer for the Department of the Treasury, Office of 
Information and Regulatory Affairs, Washington, DC 20503.
    The figures provided above are only estimates of amounts available 
and may be subject to change.

    Dated: February 7, 2003.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.
    Approved: February 12, 2003.
Kenneth Lawson,
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 03-3925 Filed 2-13-03; 1:47 pm]
BILLING CODE 4810-25-P