,,ii #aadth ,,congress #b;d ,session ,s4 #cddb ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,september #bh1 #bjaf ,mr4 ,blumenthal introduced the following bill2 which was read twice and referred to the ,committee on ,banking1 ,housing1 and ,urban ,affairs ,a ,,bill ,to amend the ,terrorism ,risk ,insurance ,act of #bjjb to provide for the release of certain blocked assets1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,terrorism ,victims ,protection ,act4 #b4 ,execution of payment ,section #bja of the ,terrorism ,risk ,insurance ,act of #bjjb 7#bh ,u4,s4,c4 #afaj note7 is amended-- 7#a7 in subsection 7a71 by striking subsection 7b7 and inserting subsections 7b7 and 7e72 7#b7 by redesignating subsection 7d7 as subsection 7g72 7#c7 by inserting after subsection 7c7 the following3 7d7 ,discharge from liability for funds transfers ,the final order directing attachment in aid of execution or execution against an asset described in subsection 7g77#c77;,a77iii71 including any mid-stream electronic funds transfer to a judgment creditor under this section1 shall provide that-- 7#a7 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 transfer2 7#b7 for purposes of determining the liability of the originator of any mid-stream funds transfer to a terrorist party1 or to the agency or instrumentality of such a terrorist party1 the mid-stream funds transfer shall be treated as if it were completed and payment were received by the intended beneficiary2 and 7#c7 the terrorist party1 and any agency or instrumentality of that terrorist party1 shall be barred from pursuing any claims related to the assets turned over pursuant to this section against any entity discharged under paragraphs 7#a7 and 7#b74 7e7 ,third-,party interest in blocked assets 7#a7 ,in general ,except as provided in paragraph 7#b71 if a court determines that a person other than a terrorist party or any agency or instrumentality of that terrorist party holds equitable title to1 or a beneficial interest in1 the blocked assets of that terrorist party 7including the blocked assets of any agency or instrumentality of that terrorist party7 or has a constitutionally protected interest in those blocked assets1 the court may make the blocked assets available for execution or attachment in aid of execution under subsection 7a7 only to the extent that-- 7,a7 the terrorist party or any agency or instrumentality of a terrorist party has an ownership interest1 as described in subsection 7g77#c77;,a71 in the blocked assets2 and 7,b7 the execution or attachment does not infringe upon the constitutionally protected interest in the assets4 7#b7 ,exception ,paragraph 7#a7 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 ,iran4 7f7 ,international transfers 7#a7 ,in general ,except as provided in paragraph 7#b77;,c7-- 7,a7 a transfer described in subsection 7g77#c77;,c7 shall be null and void2 and 7,b7 the asset that is the subject of the transfer shall be treated as if the asset remains in the ,united ,states4 7#b7 ,jurisdiction ,any court that has personal jurisdiction over the transferee of an asset described in paragraph 7#a77;,b7 may-- 7,a7 order the transferee to return the asset to the ,united ,states2 and 7,b7 if the transferee fails to obey an order described in subparagraph 7,a7-- 7i7 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 7#a77;,b7 to be an asset of a terrorist party or any agency or instrumentality of that terrorist party2 and 7ii7 issue an award against the transferee in an amount that is not greater than the value of the transferred asset described in paragraph 7#a77;,b74 7,c7 ,exceptions ,a transfer of an asset that would otherwise be null and void under paragraph 7#a7 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-- 7i7 the person no longer has possession or control of the asset2 7ii7 the transfer of the asset was not a willful violation by the person-- 7,i7 of the provisions of any orders or regulations issued by the ,united ,states that seized or froze assets under section #e7;b7 of the ,trading ,with the ,enemy ,act 7#ej ,u4,s4,c4 #dcje7;b772 or 7,,ii7 under sections #bjb and #bjc of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja and #agjb72 7iii7 the person did not have reasonable cause to know or suspect1 in view of all the facts and circumstances known by or available to the person-- 7,i7 that the transfer required a license or authorization issued by the ,office of ,foreign ,assets ,control of the ,department of the ,treasury 7in this subparagraph referred to as the ,office72 or 7,,ii7 that a license or authorization described in subclause 7,i71 if the license or authorization purports to cover the transfer1 had been obtained by-- 7aa7 the misrepresentation of a third party2 7bb7 withholding material facts2 or 7cc7 other fraudulent means2 and 7iv7 the person submitted to the ,office a report containing a full description of the circumstances relating to the transfer promptly upon discovering that-- 7,i7 the transfer violated any of the provisions described in clause 7ii72 7,,ii7 the transfer was not licensed or authorized by the ,office2 or 7,,iii7 if the person had obtained a license or authorization that purported to apply to the transfer1 the license had been obtained under circumstances described in clause 7iii77,,ii74 2 and 7#d7 in subsection 7g71 as so redesignated-- 7,a7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#d7 and 7#i71 respectively2 7,b7 by inserting after paragraph 7#b7 the following3 7#c7 ,blocked asset of that terrorist party ,the term blocked assets of that terrorist party 7including the blocked assets of any agency or instrumentality of that terrorist party7 means-- 7,a7 any blocked asset in which the terrorist party or any agency or instrumentality of that terrorist party has a direct1 indirect1 beneficial1 equitable1 or legal ownership interest under ,state or ,federal law1 including-- 7i7 a financial asset beneficially owned by a terrorist party or any agency or instrumentality of that terrorist party2 7ii7 any interest1 sale1 and redemption payment related to a financial asset described in clause 7i7 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 credited2 and 7iii7 a transfer of funds1 including any mid-stream electronic funds transfer in possession of an intermediary bank if-- 7,i7 the terrorist party or any agency or instrumentality of the terrorist party is the originator or the beneficiary of the fund transfer2 or 7,,ii7 the transfer was conducted for the direct or indirect benefit of the terrorist party or any agency or instrumentality of that terrorist party1 including the central bank or monetary authority of the terrorist party1 regardless of whether the transfer was initiated by a non-state-owned1 non-,u4,s4 financial institution located outside of the ,united ,states and only passes through the financial system of the ,united ,states to another non-state-owned1 non-,u4,s4 financial institution located outside of the ,united ,states2 7,b7 any asset located outside the ,united ,states that1 if located in the ,united ,states1 would be subject to an order or regulation seizing or freezing assets under section #e7;b7 of the ,trading ,with the ,enemy ,act 7#ej ,u4,s4,c4 #dcje7;b77 or sections #bjb and #bjc of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja and #agjb71 if a court in the ,united ,states has personal jurisdiction over the person in possession or custody of the asset located outside the ,united ,states2 and 7,c7 any attempted direct or indirect transfer from an account located in the ,united ,states to an account located outside of the ,united ,states that-- 7i7 relates to any financial asset described in subparagraph 7,a72 and 7ii7 is for the direct or indirect benefit of the terrorist party or any agency or instrumentality of the terrorist party1 regardless of whether the transfer is completed by a book entry1 a wire transfer1 or any other means4 2 and 7,c7 by inserting after paragraph 7#d71 as so redesignated1 the following3 7#e7 ,financial agency ,the term financial agency has the meaning given the term in section #ecab7;a7 of title #ca1 ,united ,states ,code4 7#f7 ,financial asset ,the term financial asset-- 7,a7 has the meaning given the term in ,article #h-ajb of the ,uniform ,commercial ,code2 and 7,b7 includes cash4 7#g7 ,financial institution ,the term financial institution has the meaning given the term in section #ecab7;a7 of title #ca1 ,united ,states ,code4 7#h7 ,intermediary bank ,the term intermediary bank has the meaning given the term in ,article #d;,a-#ajd of the ,uniform ,commercial ,code4 4 #c4 ,exceptions to the immunity from attachment or execution ,section #afaj of title #bh1 ,united ,states ,code1 is amended by striking subsection 7g7 and inserting the following3 7g7 ,property in certain actions 7#a7 ,definitions ,in this subsection-- 7,a7 the term financial agency has the meaning given the term in section #ecab7;a7 of title #ca2 7,b7 the term financial asset-- 7i7 has the meaning given the term in ,article #h-ajb of the ,uniform ,commercial ,code2 and 7ii7 includes cash2 7,c7 the term financial institution has the meaning given the term in section #ecab7;a7 of title #ca2 7,d7 the term intermediary bank has the meaning given the term in ,article #d;,a-#ajd of the ,uniform ,commercial ,code2 and 7,e7 the term property of a foreign state against which a judgment is entered under section #afje;,a1 and the property of an agency or instrumentality of such a state includes-- 7i7 a financial asset beneficially owned by a terrorist party or its agency or instrumentality2 7ii7 any interest1 sale1 and redemption payment related to a financial asset described in clause 7i7 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 its agency or instrumentality maintains an account in its name to which the financial asset has been credited2 and 7iii7 a transfer of funds1 including any mid-stream electronic funds transfer in possession of an intermediary bank if-- 7,i7 such terrorist party or its agency or instrumentality is the originator or the beneficiary of the fund transfer2 or 7,,ii7 the transfer was conducted for the direct or indirect benefit of such terrorist party or its agency or instrumentality1 including the central bank or monetary authority of the terrorist party1 regardless of whether the transfer was initiated by a non-state-owned1 non-,u4,s4 financial institution located outside of the ,united ,states and only passes through the financial system of the ,united ,states to another non-state-owned1 non-,u4,s4 financial institution located outside of the ,united ,states4 7#b7 ,transfers null and void 7,a7 ,in general ,except as provided in subparagraph 7,c71 any attempted direct or indirect transfer from an account located in the ,united ,states to an account located outside of the ,united ,states shall be null and void1 and the asset that is the subject of the transfer shall be treated as if the asset remains in the ,united ,states1 if the transfer-- 7i7 relates to any financial asset described in paragraph 7#a77;,e72 7ii7 is for the direct or indirect benefit of a foreign state or an agency or instrumentality of that foreign state1 regardless of whether the transfer is completed by means of a book entry1 wire transfer1 or otherwise2 and 7iii7 violates any court order1 retraining notice1 judgment lien1 or other process in aid of enforcement of1 or that constitutes a fraudulent conveyance or transfer with respect to1 a judgment under section #afje;,a against that foreign state or the agency or instrumentality of that foreign state4 7,b7 ,jurisdiction ,a court that has personal jurisdiction over the transferee of a transfer described in subparagraph 7,a7 may-- 7i7 order the transferee to return the financial asset to the ,united ,states2 and 7ii7 if the transferee fails to obey an order under clause 7i7-- 7,i7 deem any asset that is an amount not greater than the value of the transferred asset to be an asset of a foreign state or an agency or instrumentality of the foreign state2 and 7,,ii7 issue an award against the transferee in an amount that is not greater than the value of the transferred asset4 7,c7 ,exception ,any transfer that otherwise would be null and void under subparagraph 7,a7 shall not be deemed to be null and void if the person who held or maintained the asset that was the subject of the transfer establishes that the transfer did not represent a willful violation of the provisions of any court order1 retraining notice1 judgment lien1 or other process in aid of enforcement of a judgment under section #afje;,a against a foreign state or an agency or instrumentality of that foreign state4 7#c7 ,applicable property ,subject to paragraph 7#d7 and notwithstanding any other provision of law1 including any provision of law relating to sovereign immunity and the provisions of section #afaa1 the property of a foreign state against which a judgment is entered under section #afje;,a or under section #afje7;a77#g7 7as such section was in effect on ,january #bg1 #bjjh71 and the property of an agency or instrumentality of such a state1 including property that is a separate juridical entity or is an interest held directly or indirectly in a separate juridical entity1 is subject to attachment in aid of execution1 and execution1 upon that judgment as provided in this subsection1 regardless of-- 7,a7 the level of economic control over the property by the government of the foreign state2 7,b7 whether the profits of the property go to that government2 7,c7 the degree to which officials of that government manage the property or otherwise control its daily affairs2 7,d7 whether that government is the sole beneficiary in interest of the property2 or 7,e7 whether establishing the property as a separate entity would entitle the foreign state to benefits in ,united ,states courts while avoiding its obligations4 7#d7 ,united states sovereign immunity inapplicable ,any property of a foreign state1 or agency or instrumentality of a foreign state1 to which paragraph 7#a7 applies shall not be immune from attachment in aid of execution1 or execution1 upon a judgment entered under section #afje;,a or under section #afje7;a77#g7 7as such section was in effect on ,january #bg1 #bjjh71 because the property is regulated by the ,united ,states ,government by reason of action taken against that foreign state under the ,trading ,with the ,enemy ,act 7#ej ,u4,s4,c4 #dcja et seq47 or the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq474 7#e7 ,third-party joint property holders ,nothing in this subsection shall be construed to supersede the authority of a court to prevent appropriately the impairment of an interest held by a person who is not liable in the action giving rise to a judgment in property subject to attachment in aid of execution1 or execution1 upon such judgment4 7#f7 ,discharge from liability ,the final judgment directing attachment in aid of execution or execution against an asset described in paragraph 7#a77;,e77iii71 including any mid-stream electronic funds transfer to a judgment creditor under this section shall provide that-- 7,a7 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 transfer2 7,b7 for purposes of determining the liability of the originator of any mid-stream funds transfer to a foreign state against which a judgment has been entered under section #afje;,a or under section #afje7;a77#g7 7as such section was in effect on ,january #bg1 #bjjh71 or to the agency or instrumentality of such a state1 the mid-stream transfer shall be treated as if it were completed and payment were received by the intended beneficiary2 and 7,c7 the foreign state against which a judgment has been entered under section #afje;,a or under section #afje7;a77#g7 7as such section was in effect on ,january #bg1 #bjjh71 and each agency and instrumentality of such a state shall be barred from pursuing any claim related to the assets turned over pursuant to this subsection against any entity discharged pursuant to subparagraphs 7,a7 and 7,b74 7#g7 ,state preemption ,to the extent that any ,state or local law is inconsistent with the requirements of this subsection1 the requirements of this subsection shall preempt such ,state or local law4 4