§4312 Property Transferred to Alien Property Custodian

Summary

All money (including checks and demand drafts) the alien property custodian gets must be put into the U.S. Treasury right away. The Treasury Secretary may invest that money in U.S. bonds or certificates under rules the President creates. As soon after the war as the President thinks practical, those investments must be sold and the money put into the Treasury. Other property from an enemy or an ally of an enemy must be kept safe and managed by the custodian. The President may name U.S. banks or trust companies to hold such property. The custodian may deposit securities (not demand money) with those banks or the Treasury. Those depositaries can collect dividends, interest, or maturing payments and must send the money to the Treasury. The custodian has the powers of a common-law trustee for non-money property and, under the President’s rules, may manage, use, or sell it. Except when selling to the United States, property must be sold only to U.S. citizens at public sale to the highest bidder after public notice at the property's location, unless the President decides otherwise. The custodian may reject all bids and resell if the President orders. Anyone who buys for a secret principal, to resell to a noncitizen, or to benefit a noncitizen commits a misdemeanor and faces up to $10,000 fine, up to 10 years in prison, or both, and the property is forfeited. U.S. corporations and similar entities must transfer shares to the custodian on demand when certificates are presented. Sale proceeds go into the Treasury. The custodian may direct that money or property be paid to the Treasurer with the same effect as if paid to the custodian. After the war, enemy claims to money or property held by the custodian or in the Treasury will be handled as Congress directs, but the President or courts may order specific payments or transfers under sections 4309 and 4310, and the Treasurer must repay licensees when ordered under section 4310. Definitions (one line each): Alien Property Custodian — the official who receives and manages enemy property. Treasury Secretary — head of the U.S. Treasury who can invest funds. Treasurer of the United States — official who may receive payments on the custodian’s order.