Sec. 2. Execution of payment

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Section 201 of the Terrorism Risk Insurance Act of 2002 ( 28 U.S.C. 1610 note) is amended— in subsection (a), by striking subsection

(b)and inserting subsections

(b)and

(e); by redesignating subsection

(d)as subsection (g); by inserting after subsection

(c)the following: The final order directing attachment in aid of execution or execution against an asset described in subsection (g)(3)(A)(iii), including any mid-stream electronic funds transfer to a judgment creditor under this section, shall provide that— any financial agency or financial institution ordered to attach in aid of execution or execute against any such asset that is involved in processing any transfer related to those assets shall be discharged of any and all liability to any party with respect to such funds transfer; for purposes of determining the liability of the originator of any mid-stream funds transfer to a terrorist party, or to the agency or instrumentality of such a terrorist party, the mid-stream funds transfer shall be treated as if it were completed and payment were received by the intended beneficiary; and the terrorist party, and any agency or instrumentality of that terrorist party, shall be barred from pursuing any claims related to the assets turned over pursuant to this section against any entity discharged under paragraphs

(1)and (2). Except as provided in paragraph (2), if a court determines that a person other than a terrorist party or any agency or instrumentality of that terrorist party holds equitable title to, or a beneficial interest in, the blocked assets of that terrorist party (including the blocked assets of any agency or instrumentality of that terrorist party) or has a constitutionally protected interest in those blocked assets, the court may make the blocked assets available for execution or attachment in aid of execution under subsection

(a)only to the extent that— the terrorist party or any agency or instrumentality of a terrorist party has an ownership interest, as described in subsection (g)(3)(A), in the blocked assets; and the execution or attachment does not infringe upon the constitutionally protected interest in the assets. Paragraph

(1)shall not apply to any custodial interest of a foreign securities intermediary or a related intermediary that holds the blocked assets outside of the United States for the benefit of the Government of Iran. Except as provided in paragraph (2)(C)— a transfer described in subsection (g)(3)(C) shall be null and void; and the asset that is the subject of the transfer shall be treated as if the asset remains in the United States. Any court that has personal jurisdiction over the transferee of an asset described in paragraph (1)(B) may— order the transferee to return the asset to the United States; and if the transferee fails to obey an order described in subparagraph (A)— deem any asset in an account of the transferee in the United States that is an amount not greater than the value of the transferred asset described in paragraph (1)(B) to be an asset of a terrorist party or any agency or instrumentality of that terrorist party; and issue an award against the transferee in an amount that is not greater than the value of the transferred asset described in paragraph (1)(B). A transfer of an asset that would otherwise be null and void under paragraph

(1)may not be deemed to be null and void with respect to any person who held or maintained the property before the transfer if that person establishes that— the person no longer has possession or control of the asset; the transfer of the asset was not a willful violation by the person— of the provisions of any orders or regulations issued by the United States that seized or froze assets under section 5(b) of the Trading With the Enemy Act ( 50 U.S.C. 4305(b) ); or under sections 202 and 203 of the International Emergency Economic Powers Act (50 U.S.C. 1701 and 1702); the person did not have reasonable cause to know or suspect, in view of all the facts and circumstances known by or available to the person— that the transfer required a license or authorization issued by the Office of Foreign Assets Control of the Department of the Treasury (in this subparagraph referred to as the Office ); or that a license or authorization described in subclause (I), if the license or authorization purports to cover the transfer, had been obtained by— the misrepresentation of a third party; withholding material facts; or other fraudulent means; and the person submitted to the Office a report containing a full description of the circumstances relating to the transfer promptly upon discovering that— the transfer violated any of the provisions described in clause (ii); the transfer was not licensed or authorized by the Office; or if the person had obtained a license or authorization that purported to apply to the transfer, the license had been obtained under circumstances described in clause (iii)(II). ; and in subsection (g), as so redesignated— by redesignating paragraphs

(3)and

(4)as paragraphs

(4)and (9), respectively; by inserting after paragraph

(2)the following: The term blocked assets of that terrorist party (including the blocked assets of any agency or instrumentality of that terrorist party) means— any blocked asset in which the terrorist party or any agency or instrumentality of that terrorist party has a direct, indirect, beneficial, equitable, or legal ownership interest under State or Federal law, including— a financial asset beneficially owned by a terrorist party or any agency or instrumentality of that terrorist party; any interest, sale, and redemption payment related to a financial asset described in clause

(i)that is received in an account maintained in the United States at a financial agency or financial institution regardless of where the terrorist party or any agency or instrumentality of that terrorist party maintains an account in the name to which the financial asset has been credited; and a transfer of funds, including any mid-stream electronic funds transfer in possession of an intermediary bank if— the terrorist party or any agency or instrumentality of the terrorist party is the originator or the beneficiary of the fund transfer; or the transfer was conducted for the direct or indirect benefit of the terrorist party or any agency or instrumentality of that terrorist party, including the central bank or monetary authority of the terrorist party, regardless of whether the transfer was initiated by a non-state-owned, non-U.S. financial institution located outside of the United States and only passes through the financial system of the United States to another non-state-owned, non-U.S. financial institution located outside of the United States; any asset located outside the United States that, if located in the United States, would be subject to an order or regulation seizing or freezing assets under section 5(b) of the Trading With the Enemy Act ( 50 U.S.C. 4305(b) ) or sections 202 and 203 of the International Emergency Economic Powers Act (50 U.S.C. 1701 and 1702), if a court in the United States has personal jurisdiction over the person in possession or custody of the asset located outside the United States; and any attempted direct or indirect transfer from an account located in the United States to an account located outside of the United States that— relates to any financial asset described in subparagraph (A); and is for the direct or indirect benefit of the terrorist party or any agency or instrumentality of the terrorist party, regardless of whether the transfer is completed by a book entry, a wire transfer, or any other means. ; and by inserting after paragraph (4), as so redesignated, the following: The term financial agency has the meaning given the term in section 5312(a) of title 31, United States Code. The term financial asset — has the meaning given the term in Article 8–102 of the Uniform Commercial Code; and includes cash. The term financial institution has the meaning given the term in section 5312(a) of title 31, United States Code. The term intermediary bank has the meaning given the term in Article 4A–104 of the Uniform Commercial Code. .

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U.S. Code

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cites case law

Sec. 2

Execution of payment

U.S.C.§ 1610

U.S.C.§ 4305

U.S.C.§ 1701

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