22 U.S.C. § 8772: Interests in certain…

Summary

Allows certain financial assets held in the United States by a foreign securities intermediary to be seized to pay court awards against Iran for compensatory damages for personal injury or death caused by torture, extrajudicial killing, aircraft sabotage, hostage‑taking, or providing material support for those acts. The asset must be a blocked asset (or would be blocked if it were in the U.S.) and equal in value to an Iranian financial asset that the same intermediary or a related intermediary holds abroad, including assets of Iran’s central bank or other government agencies. This rule overrides inconsistent State law and claims of sovereign immunity. A court must first find that Iran has the equitable or beneficial interest in the asset and that no one else has a constitutional property right; if others do, only Iran’s share may be taken without violating those rights. The covered assets are those named in Peterson et al. v. Islamic Republic of Iran, Case No. 10 Civ. 4518 (BSJ) (GWG), as restrained and modified by the court order dated June 27, 2008 and extended by orders dated June 23, 2009, May 10, 2010, and June 11, 2010 (while still restrained), and those named in Peterson et al. v. Islamic Republic of Iran, Case No. 13 Civ. 9195 (LAP). Defined terms, one line each: Blocked asset — an asset seized or frozen by the U.S. under section 4305(b) of title 50 or under sections 202 or 203 of the International Emergency Economic Powers Act, excluding property covered by a required U.S. license for final payment or diplomatic/consular property under the Vienna Conventions. Financial asset / securities intermediary — meanings from the Uniform Commercial Code; financial asset also includes cash. Iran — the Government of Iran, including its central bank and any agency or instrumentality. Person — an individual or an entity. Entity — a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization. Terrorist party — as defined in section 201(d) of the Terrorism Risk Insurance Act of 2002 (28 U.S.C. 1610 note). United States — all territory and waters under U.S. jurisdiction.

Title 22, §8772

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Interests in blocked assets

(1)In general

Subject to paragraph (2), notwithstanding any other provision of law, including any provision of law relating to sovereign immunity, and preempting any inconsistent provision of State law, a financial asset that is—

(A)held by or for a foreign securities intermediary doing business in the United States;

(B)a blocked asset (whether or not subsequently unblocked), or an asset that would be blocked if the asset were located in the United States, that is property described in subsection (b); and

(C)equal in value to a financial asset of Iran, including an asset of the central bank or monetary authority of the Government of Iran or any agency or instrumentality of that Government, that such foreign securities intermediary or a related intermediary holds abroad,

shall be subject to execution or attachment in aid of execution, or to an order directing that the asset be brought to the State in which the court is located and subsequently to execution or attachment in aid of execution, in order to satisfy any judgment to the extent of any compensatory damages awarded 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, without regard to concerns relating to international comity.

(2)Court determination required

In order to ensure that Iran is held accountable for paying the judgments described in paragraph (1) and in furtherance of the broader goals of this Act to sanction Iran, prior to an award turning over any asset pursuant to execution or attachment in aid of execution with respect to any judgments against Iran described in paragraph (1), the court shall determine whether Iran holds equitable title to, or the beneficial interest in, the assets described in subsection (b) and that no other person possesses a constitutionally protected interest in the assets described in subsection (b) under the Fifth Amendment to the Constitution of the United States. To the extent the court determines that a person other than Iran holds—

(A)equitable title to, or a beneficial interest in, the assets described in subsection (b) (excluding a custodial interest of a foreign securities intermediary or a related intermediary that holds the assets abroad for the benefit of Iran); or

(B)a constitutionally protected interest in the assets described in subsection (b),

such assets shall be available only for execution or attachment in aid of execution to the extent of Iran’s equitable title or beneficial interest therein and to the extent such execution or attachment does not infringe upon such constitutionally protected interest.

(b)Financial assets described

The financial assets described in this section are the financial assets that are—

(1)identified in and the subject of proceedings in the United States District Court for the Southern District of New York in Peterson et al. v. Islamic Republic of Iran et al., Case No. 10 Civ. 4518 (BSJ) (GWG), that were restrained by restraining notices and levies secured by the plaintiffs in those proceedings, as modified by court order dated June 27, 2008, and extended by court orders dated June 23, 2009, May 10, 2010, and June 11, 2010, so long as such assets remain restrained by court order; and

(2)identified in and the subject of proceedings in the United States District Court for the Southern District of New York in Peterson et al. v. Islamic Republic of Iran et al., Case No. 13 Civ. 9195 (LAP).

(c)Rules of construction

Nothing in this section shall be construed—

(1)to affect the availability, or lack thereof, of a right to satisfy a judgment in any other action against a terrorist party in any proceedings other than proceedings referred to in subsection (b); or

(2)to apply to assets other than the assets described in subsection (b), or to preempt State law, including the Uniform Commercial Code, except as expressly provided in subsection (a)(1).

(d)Definitions

In this section: (1) Blocked asset

(2)Financial asset; securities intermediary

The terms “financial asset” and “securities intermediary” have the meanings given those terms in the Uniform Commercial Code, but the former includes cash.

(3)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.

(4)Person

(A)In general

The term “person” means an individual or entity.

(B)Entity

The term “entity” means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization.

(5)Terrorist party

The term “terrorist party” has the meaning given that term in section 201(d) of the Terrorism Risk Insurance Act of 2002 (28 U.S.C. 1610 note).

(6)United States

The term “United States” includes all territory and waters, continental, or insular, subject to the jurisdiction of the United States.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (a)(2), is Pub. L. 112–158, Aug. 10, 2012, 126 Stat. 1214, known as the Iran Threat Reduction and Syria Human Rights Act of 2012, which is classified principally to this chapter. For complete classification of this Act to the Code, see

Short Title

note set out under section 8701 of this title and Tables. The International Emergency Economic Powers Act, referred to in subsec. (d)(1)(B)(i), is title II of Pub. L. 95–223, Dec. 28, 1977, 91 Stat. 1626, which is classified generally to chapter 35 (§ 1701 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see

Short Title

note set out under section 1701 of Title 50 and Tables. The United Nations Participation Act of 1945, referred to in subsec. (d)(1)(B)(i), is act of Dec. 20, 1945, ch. 583, 59 Stat. 619, which is classified to subchapter XVI (§ 287 et seq.) of chapter 7 of this title. For complete classification of this Act to the Code, see

Short Title

note set out under section 287 of this title and Tables. section 201(d) of the Terrorism Risk Insurance Act of 2002, referred to in subsec. (d)(5), is section 201(d) of Pub. L. 107–297, which is set out as a note under section 1610 of Title 28, Judiciary and Judicial Procedure. Codification Section is comprised of section 502 of Pub. L. 112–158. Subsec. (e) of section 502 of Pub. L. 112–158 amended section 1610 of Title 28, Judiciary and Judicial Procedure, and amended section 201 of Pub. L. 107–297, set out as a note under section 1610 of Title 28.

Amendments

2019—Subsec. (a)(1). Pub. L. 116–92, § 1226(1)(C), inserted “, or to an order directing that the asset be brought to the State in which the court is located and subsequently to execution or attachment in aid of execution,” after “in aid of execution” and “, without regard to concerns relating to international comity” after “resources for such an act” in concluding provisions. Subsec. (a)(1)(A). Pub. L. 116–92, § 1226(1)(A), which directed substitution of “by or” for “in the United States” in subpar. (A), was executed by making the substitution for “in the United States” the first time appearing in subpar. (A), to reflect the probable intent of Congress. Subsec. (a)(1)(B). Pub. L. 116–92, § 1226(1)(B), inserted “, or an asset that would be blocked if the asset were located in the United States,” after “unblocked)”. Subsec. (b). Pub. L. 116–92, § 1226(2), substituted “that are—” and par. (1) designation for “that are” and “court order; and” for “court order.” and added par. (2).

§8772 Interests in Certain Financial Assets of Iran

Summary

Title 22, §8772

Notes & Related Subsidiaries

Editorial Notes

References in Text

Short Title

Short Title

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Amendments

Citations & Metadata