PUBLIC LAW 107–297—NOV. 26, 2002

TERRORISM RISK INSURANCE ACT OF 2002

116 STAT. 2322 PUBLIC LAW 107–297—NOV. 26, 2002

Public Law 107–297

107th Congress

An Act

To ensure the continued financial capacity of insurers to provide coverage for

risks from terrorism.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Terrorism

Risk Insurance Act of 2002’’.

(b) TABLE OF CONTENTS.—The table of contents for this Act

is as follows:

Sec. 1. Short title; table of contents.

TITLE I—TERRORISM INSURANCE PROGRAM

Sec. 101. Congressional findings and purpose.

Sec. 102. Definitions.

Sec. 103. Terrorism Insurance Program.

Sec. 104. General authority and administration of claims.

Sec. 105. Preemption and nullification of pre-existing terrorism exclusions.

Sec. 106. Preservation provisions.

Sec. 107. Litigation management.

Sec. 108. Termination of Program.

TITLE II—TREATMENT OF TERRORIST ASSETS

Sec. 201. Satisfaction of judgments from blocked assets of terrorists, terrorist organizations, and State sponsors of terrorism.

TITLE III—FEDERAL RESERVE BOARD PROVISIONS

Sec. 301. Certain authority of the Board of Governors of the Federal Reserve System.

TITLE I—TERRORISM INSURANCE

PROGRAM

SEC. 101. CONGRESSIONAL FINDINGS AND PURPOSE.

(a) FINDINGS.—The Congress finds that—

(1) the ability of businesses and individuals to obtain property and casualty insurance at reasonable and predictable

prices, in order to spread the risk of both routine and catastrophic loss, is critical to economic growth, urban development,

and the construction and maintenance of public and private

housing, as well as to the promotion of United States exports

and foreign trade in an increasingly interconnected world;

(2) property and casualty insurance firms are important

financial institutions, the products of which allow mutualization

of risk and the efficient use of financial resources and enhance

15 USC 6701

note.

15 USC 6701

note.

Terrorism Risk

Insurance Act of

2002.

Nov. 26, 2002

[H.R. 3210]

PUBLIC LAW 107–297—NOV. 26, 2002 116 STAT. 2323

the ability of the economy to maintain stability, while

responding to a variety of economic, political, environmental,

and other risks with a minimum of disruption;

(3) the ability of the insurance industry to cover the

unprecedented financial risks presented by potential acts of

terrorism in the United States can be a major factor in the

recovery from terrorist attacks, while maintaining the stability

of the economy;

(4) widespread financial market uncertainties have arisen

following the terrorist attacks of September 11, 2001, including

the absence of information from which financial institutions

can make statistically valid estimates of the probability and

cost of future terrorist events, and therefore the size, funding,

and allocation of the risk of loss caused by such acts of terrorism;

(5) a decision by property and casualty insurers to deal

with such uncertainties, either by terminating property and

casualty coverage for losses arising from terrorist events, or

by radically escalating premium coverage to compensate for

risks of loss that are not readily predictable, could seriously

hamper ongoing and planned construction, property acquisition,

and other business projects, generate a dramatic increase in

rents, and otherwise suppress economic activity; and

(6) the United States Government should provide temporary financial compensation to insured parties, contributing

to the stabilization of the United States economy in a time

of national crisis, while the financial services industry develops

the systems, mechanisms, products, and programs necessary

to create a viable financial services market for private terrorism

risk insurance.

(b) PURPOSE.—The purpose of this title is to establish a temporary Federal program that provides for a transparent system

of shared public and private compensation for insured losses

resulting from acts of terrorism, in order to—

(1) protect consumers by addressing market disruptions

and ensure the continued widespread availability and affordability of property and casualty insurance for terrorism risk;

and

(2) allow for a transitional period for the private markets

to stabilize, resume pricing of such insurance, and build

capacity to absorb any future losses, while preserving State

insurance regulation and consumer protections.

SEC. 102. DEFINITIONS.

In this title, the following definitions shall apply:

(1) ACT OF TERRORISM.—

(A) CERTIFICATION.—The term ‘‘act of terrorism’’ means

any act that is certified by the Secretary, in concurrence

with the Secretary of State, and the Attorney General

of the United States—

(i) to be an act of terrorism;

(ii) to be a violent act or an act that is dangerous

to—

(I) human life;

(II) property; or

(III) infrastructure;

116 STAT. 2324 PUBLIC LAW 107–297—NOV. 26, 2002

(iii) to have resulted in damage within the United

States, or outside of the United States in the case

of— (I) an air carrier or vessel described in paragraph (5)(B); or

(II) the premises of a United States mission;

and

(iv) to have been committed by an individual or

individuals acting on behalf of any foreign person or

foreign interest, as part of an effort to coerce the

civilian population of the United States or to influence

the policy or affect the conduct of the United States

Government by coercion.

(B) LIMITATION.—No act shall be certified by the Secretary as an act of terrorism if— (i) the act is committed as part of the course of

a war declared by the Congress, except that this clause

shall not apply with respect to any coverage for

workers’ compensation; or

(ii) property and casualty insurance losses

resulting from the act, in the aggregate, do not exceed

$5,000,000.

(C) DETERMINATIONS FINAL.—Any certification of, or

determination not to certify, an act as an act of terrorism

under this paragraph shall be final, and shall not be subject

to judicial review.

(D) NONDELEGATION.—The Secretary may not delegate

or designate to any other officer, employee, or person, any

determination under this paragraph of whether, during

the effective period of the Program, an act of terrorism

has occurred.

(2) AFFILIATE.—The term ‘‘affiliate’’ means, with respect

to an insurer, any entity that controls, is controlled by, or

is under common control with the insurer.

(3) CONTROL.—An entity has ‘‘control’’ over another entity,

if—

(A) the entity directly or indirectly or acting through

1 or more other persons owns, controls, or has power to

vote 25 percent or more of any class of voting securities

of the other entity;

(B) the entity controls in any manner the election

of a majority of the directors or trustees of the other entity;

or

(C) the Secretary determines, after notice and opportunity for hearing, that the entity directly or indirectly

exercises a controlling influence over the management or

policies of the other entity.

(4) DIRECT EARNED PREMIUM.—The term ‘‘direct earned

premium’’ means a direct earned premium for property and

casualty insurance issued by any insurer for insurance against

losses occurring at the locations described in subparagraphs

(A) and (B) of paragraph (5).

(5) INSURED LOSS.—The term ‘‘insured loss’’ means any

loss resulting from an act of terrorism (including an act of

war, in the case of workers’ compensation) that is covered

by primary or excess property and casualty insurance issued

by an insurer if such loss—

PUBLIC LAW 107–297—NOV. 26, 2002 116 STAT. 2325

(A) occurs within the United States; or

(B) occurs to an air carrier (as defined in section 40102

of title 49, United States Code), to a United States flag

vessel (or a vessel based principally in the United States,

on which United States income tax is paid and whose

insurance coverage is subject to regulation in the United

States), regardless of where the loss occurs, or at the premises of any United States mission.

(6) INSURER.—The term ‘‘insurer’’ means any entity,

including any affiliate thereof— (A) that is— (i) licensed or admitted to engage in the business

of providing primary or excess insurance in any State;

(ii) not licensed or admitted as described in clause

(i), if it is an eligible surplus line carrier listed on

the Quarterly Listing of Alien Insurers of the NAIC,

or any successor thereto;

(iii) approved for the purpose of offering property

and casualty insurance by a Federal agency in connection with maritime, energy, or aviation activity;

(iv) a State residual market insurance entity or

State workers’ compensation fund; or

(v) any other entity described in section 103(f),

to the extent provided in the rules of the Secretary

issued under section 103(f);

(B) that receives direct earned premiums for any type

of commercial property and casualty insurance coverage,

other than in the case of entities described in sections

103(d) and 103(f); and

(C) that meets any other criteria that the Secretary

may reasonably prescribe.

(7) INSURER DEDUCTIBLE.—The term ‘‘insurer deductible’’

means—

(A) for the Transition Period, the value of an insurer’s

direct earned premiums over the calendar year immediately

preceding the date of enactment of this Act, multiplied

by 1 percent;

(B) for Program Year 1, the value of an insurer’s direct

earned premiums over the calendar year immediately preceding Program Year 1, multiplied by 7 percent;

(C) for Program Year 2, the value of an insurer’s direct

earned premiums over the calendar year immediately preceding Program Year 2, multiplied by 10 percent;

(D) for Program Year 3, the value of an insurer’s

direct earned premiums over the calendar year immediately

preceding Program Year 3, multiplied by 15 percent; and

(E) notwithstanding subparagraphs (A) through (D),

for the Transition Period, Program Year 1, Program Year

2, or Program Year 3, if an insurer has not had a full

year of operations during the calendar year immediately

preceding such Period or Program Year, such portion of

the direct earned premiums of the insurer as the Secretary

determines appropriate, subject to appropriate methodologies established by the Secretary for measuring such direct

earned premiums.

(8) NAIC.—The term ‘‘NAIC’’ means the National Association of Insurance Commissioners.

116 STAT. 2326 PUBLIC LAW 107–297—NOV. 26, 2002

(9) PERSON.—The term ‘‘person’’ means any individual,

business or nonprofit entity (including those organized in the

form of a partnership, limited liability company, corporation,

or association), trust or estate, or a State or political subdivision

of a State or other governmental unit.

(10) PROGRAM.—The term ‘‘Program’’ means the Terrorism

Insurance Program established by this title.

(11) PROGRAM YEARS.—

(A) TRANSITION PERIOD.—The term ‘‘Transition Period’’

means the period beginning on the date of enactment of

this Act and ending on December 31, 2002.

(B) PROGRAM YEAR 1.—The term ‘‘Program Year 1’’

means the period beginning on January 1, 2003 and ending

on December 31, 2003.

(C) PROGRAM YEAR 2.—The term ‘‘Program Year 2’’

means the period beginning on January 1, 2004 and ending

on December 31, 2004.

(D) PROGRAM YEAR 3.—The term ‘‘Program Year 3’’

means the period beginning on January 1, 2005 and ending

on December 31, 2005.

(12) PROPERTY AND CASUALTY INSURANCE.—The term ‘‘property and casualty insurance’’—

(A) means commercial lines of property and casualty

insurance, including excess insurance, workers’ compensation insurance, and surety insurance; and

(B) does not include—

(i) Federal crop insurance issued or reinsured

under the Federal Crop Insurance Act (7 U.S.C. 1501

et seq.), or any other type of crop or livestock insurance

that is privately issued or reinsured;

(ii) private mortgage insurance (as that term is

defined in section 2 of the Homeowners Protection

Act of 1998 (12 U.S.C. 4901)) or title insurance;

(iii) financial guaranty insurance issued by

monoline financial guaranty insurance corporations;

(iv) insurance for medical malpractice;

(v) health or life insurance, including group life

insurance;

(vi) flood insurance provided under the National

Flood Insurance Act of 1968 (42 U.S.C. 4001 et seq.);

or

(vii) reinsurance or retrocessional reinsurance.

(13) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of the Treasury.

(14) STATE.—The term ‘‘State’’ means any State of the

United States, the District of Columbia, the Commonwealth

of Puerto Rico, the Commonwealth of the Northern Mariana

Islands, American Samoa, Guam, each of the United States

Virgin Islands, and any territory or possession of the United

States.

(15) UNITED STATES.—The term ‘‘United States’’ means the

several States, and includes the territorial sea and the continental shelf of the United States, as those terms are defined

in the Violent Crime Control and Law Enforcement Act of

1994 (18 U.S.C. 2280, 2281).

PUBLIC LAW 107–297—NOV. 26, 2002 116 STAT. 2327

(16) RULE OF CONSTRUCTION FOR DATES.—With respect to

any reference to a date in this title, such day shall be

construed—

(A) to begin at 12:01 a.m. on that date; and

(B) to end at midnight on that date.

SEC. 103. TERRORISM INSURANCE PROGRAM.

(a) ESTABLISHMENT OF PROGRAM.—

(1) IN GENERAL.—There is established in the Department

of the Treasury the Terrorism Insurance Program.

(2) AUTHORITY OF THE SECRETARY.—Notwithstanding any

other provision of State or Federal law, the Secretary shall

administer the Program, and shall pay the Federal share of

compensation for insured losses in accordance with subsection

(e).

(3) MANDATORY PARTICIPATION.—Each entity that meets

the definition of an insurer under this title shall participate

in the Program.

(b) CONDITIONS FOR FEDERAL PAYMENTS.—No payment may

be made by the Secretary under this section with respect to an

insured loss that is covered by an insurer, unless—

(1) the person that suffers the insured loss, or a person

acting on behalf of that person, files a claim with the insurer;

(2) the insurer provides clear and conspicuous disclosure

to the policyholder of the premium charged for insured losses

covered by the Program and the Federal share of compensation

for insured losses under the Program—

(A) in the case of any policy that is issued before

the date of enactment of this Act, not later than 90 days

after that date of enactment;

(B) in the case of any policy that is issued within

90 days of the date of enactment of this Act, at the time

of offer, purchase, and renewal of the policy; and

(C) in the case of any policy that is issued more than

90 days after the date of enactment of this Act, on a

separate line item in the policy, at the time of offer, purchase, and renewal of the policy;

(3) the insurer processes the claim for the insured loss

in accordance with appropriate business practices, and any

reasonable procedures that the Secretary may prescribe; and

(4) the insurer submits to the Secretary, in accordance

with such reasonable procedures as the Secretary may

establish—

(A) a claim for payment of the Federal share of compensation for insured losses under the Program;

(B) written certification—

(i) of the underlying claim; and

(ii) of all payments made for insured losses; and

(C) certification of its compliance with the provisions

of this subsection.

(c) MANDATORY AVAILABILITY.—

(1) INITIAL PROGRAM PERIODS.—During the period beginning on the first day of the Transition Period and ending

on the last day of Program Year 2, each entity that meets

the definition of an insurer under section 102—

Deadline.

116 STAT. 2328 PUBLIC LAW 107–297—NOV. 26, 2002

(A) shall make available, in all of its property and

casualty insurance policies, coverage for insured losses;

and

(B) shall make available property and casualty insurance coverage for insured losses that does not differ materially from the terms, amounts, and other coverage limitations applicable to losses arising from events other than

acts of terrorism.

(2) PROGRAM YEAR 3.—Not later than September 1, 2004,

the Secretary shall, based on the factors referred to in section

108(d)(1), determine whether the provisions of subparagraphs

(A) and (B) of paragraph (1) should be extended through Program Year 3.

(d) STATE RESIDUAL MARKET INSURANCE ENTITIES.— (1) IN GENERAL.—The Secretary shall issue regulations,

as soon as practicable after the date of enactment of this

Act, that apply the provisions of this title to State residual

market insurance entities and State workers’ compensation

funds.

(2) TREATMENT OF CERTAIN ENTITIES.—For purposes of the

regulations issued pursuant to paragraph (1)—

(A) a State residual market insurance entity that does

not share its profits and losses with private sector insurers

shall be treated as a separate insurer; and

(B) a State residual market insurance entity that

shares its profits and losses with private sector insurers

shall not be treated as a separate insurer, and shall report

to each private sector insurance participant its share of

the insured losses of the entity, which shall be included

in each private sector insurer’s insured losses.

(3) TREATMENT OF PARTICIPATION IN CERTAIN ENTITIES.—

Any insurer that participates in sharing profits and losses

of a State residual market insurance entity shall include in

its calculations of premiums any premiums distributed to the

insurer by the State residual market insurance entity.

(e) INSURED LOSS SHARED COMPENSATION.—

(1) FEDERAL SHARE.—

(A) IN GENERAL.—The Federal share of compensation

under the Program to be paid by the Secretary for insured

losses of an insurer during the Transition Period and each

Program Year shall be equal to 90 percent of that portion

of the amount of such insured losses that exceeds the

applicable insurer deductible required to be paid during

such Transition Period or such Program Year.

(B) PROHIBITION ON DUPLICATIVE COMPENSATION.—The

Federal share of compensation for insured losses under

the Program shall be reduced by the amount of compensation provided by the Federal Government to any person

under any other Federal program for those insured losses.

(2) CAP ON ANNUAL LIABILITY.—

(A) IN GENERAL.—Notwithstanding paragraph (1) or

any other provision of Federal or State law, if the aggregate

insured losses exceed $100,000,000,000, during the period

beginning on the first day of the Transition Period and

ending on the last day of Program Year 1, or during Program Year 2 or Program Year 3 (until such time as the

Congress may act otherwise with respect to such losses)—

Regulations.

Deadline.

PUBLIC LAW 107–297—NOV. 26, 2002 116 STAT. 2329

(i) the Secretary shall not make any payment

under this title for any portion of the amount of such

losses that exceeds $100,000,000,000; and

(ii) no insurer that has met its insurer deductible

shall be liable for the payment of any portion of that

amount that exceeds $100,000,000,000.

(B) INSURER SHARE.—For purposes of subparagraph

(A), the Secretary shall determine the pro rata share of

insured losses to be paid by each insurer that incurs

insured losses under the Program.

(3) NOTICE TO CONGRESS.—The Secretary shall notify the

Congress if estimated or actual aggregate insured losses exceed

$100,000,000,000 during the period beginning on the first day

of the Transition Period and ending on the last day of Program

Year 1, or during Program Year 2 or Program Year 3, and

the Congress shall determine the procedures for and the source

of any payments for such excess insured losses.

(4) FINAL NETTING.—The Secretary shall have sole discretion to determine the time at which claims relating to any

insured loss or act of terrorism shall become final.

(5) DETERMINATIONS FINAL.—Any determination of the Secretary under this subsection shall be final, unless expressly

provided, and shall not be subject to judicial review.

(6) INSURANCE MARKETPLACE AGGREGATE RETENTION

AMOUNT.—For purposes of paragraph (7), the insurance marketplace aggregate retention amount shall be—

(A) for the period beginning on the first day of the

Transition Period and ending on the last day of Program

Year 1, the lesser of—

(i) $10,000,000,000; and

(ii) the aggregate amount, for all insurers, of

insured losses during such period;

(B) for Program Year 2, the lesser of—

(i) $12,500,000,000; and

(ii) the aggregate amount, for all insurers, of

insured losses during such Program Year; and

(C) for Program Year 3, the lesser of—

(i) $15,000,000,000; and

(ii) the aggregate amount, for all insurers, of

insured losses during such Program Year.

(7) RECOUPMENT OF FEDERAL SHARE.—

(A) MANDATORY RECOUPMENT AMOUNT.—For purposes

of this paragraph, the mandatory recoupment amount for

each of the periods referred to in subparagraphs (A), (B),

and (C) of paragraph (6) shall be the difference between—

(i) the insurance marketplace aggregate retention

amount under paragraph (6) for such period; and

(ii) the aggregate amount, for all insurers, of

insured losses during such period that are not compensated by the Federal Government because such

losses—

(I) are within the insurer deductible for the

insurer subject to the losses; or

(II) are within the portion of losses of the

insurer that exceed the insurer deductible, but

are not compensated pursuant to paragraph (1).

116 STAT. 2330 PUBLIC LAW 107–297—NOV. 26, 2002

(B) NO MANDATORY RECOUPMENT IF UNCOMPENSATED

LOSSES EXCEED INSURANCE MARKETPLACE RETENTION.—Notwithstanding subparagraph (A), if the aggregate amount

of uncompensated insured losses referred to in clause (ii)

of such subparagraph for any period referred to in subparagraph (A), (B), or (C) of paragraph (6) is greater than

the insurance marketplace aggregate retention amount

under paragraph (6) for such period, the mandatory

recoupment amount shall be $0.

(C) MANDATORY ESTABLISHMENT OF SURCHARGES TO

RECOUP MANDATORY RECOUPMENT AMOUNT.—The Secretary

shall collect, for repayment of the Federal financial assistance provided in connection with all acts of terrorism (or

acts of war, in the case of workers compensation) occurring

during any of the periods referred to in subparagraph

(A), (B), or (C) of paragraph (6), terrorism loss riskspreading premiums in an amount equal to any mandatory

recoupment amount for such period.

(D) DISCRETIONARY RECOUPMENT OF REMAINDER OF

FINANCIAL ASSISTANCE.—To the extent that the amount

of Federal financial assistance provided exceeds any

mandatory recoupment amount, the Secretary may recoup,

through terrorism loss risk-spreading premiums, such additional amounts that the Secretary believes can be recouped,

based on—

(i) the ultimate costs to taxpayers of no additional

recoupment;

(ii) the economic conditions in the commercial

marketplace, including the capitalization, profitability,

and investment returns of the insurance industry and

the current cycle of the insurance markets;

(iii) the affordability of commercial insurance for

small- and medium-sized businesses; and

(iv) such other factors as the Secretary considers

appropriate.

(8) POLICY SURCHARGE FOR TERRORISM LOSS RISK-SPREADING

PREMIUMS.—

(A) POLICYHOLDER PREMIUM.—Any amount established

by the Secretary as a terrorism loss risk-spreading premium shall—

(i) be imposed as a policyholder premium surcharge on property and casualty insurance policies in

force after the date of such establishment;

(ii) begin with such period of coverage during the

year as the Secretary determines appropriate; and

(iii) be based on a percentage of the premium

amount charged for property and casualty insurance

coverage under the policy.

(B) COLLECTION.—The Secretary shall provide for

insurers to collect terrorism loss risk-spreading premiums

and remit such amounts collected to the Secretary.

(C) PERCENTAGE LIMITATION.—A terrorism loss riskspreading premium (including any additional amount

included in such premium on a discretionary basis pursuant

to paragraph (7)(D)) may not exceed, on an annual basis,

the amount equal to 3 percent of the premium charged

PUBLIC LAW 107–297—NOV. 26, 2002 116 STAT. 2331

for property and casualty insurance coverage under the

policy.

(D) ADJUSTMENT FOR URBAN AND SMALLER COMMERCIAL

AND RURAL AREAS AND DIFFERENT LINES OF INSURANCE.—

(i) ADJUSTMENTS.—In determining the method and

manner of imposing terrorism loss risk-spreading premiums, including the amount of such premiums, the

Secretary shall take into consideration—

(I) the economic impact on commercial centers

of urban areas, including the effect on commercial

rents and commercial insurance premiums,

particularly rents and premiums charged to small

businesses, and the availability of lease space and

commercial insurance within urban areas;

(II) the risk factors related to rural areas and

smaller commercial centers, including the potential

exposure to loss and the likely magnitude of such

loss, as well as any resulting cross-subsidization

that might result; and

(III) the various exposures to terrorism risk

for different lines of insurance.

(ii) RECOUPMENT OF ADJUSTMENTS.—Any mandatory recoupment amounts not collected by the Secretary

because of adjustments under this subparagraph shall

be recouped through additional terrorism loss riskspreading premiums.

(E) TIMING OF PREMIUMS.—The Secretary may adjust

the timing of terrorism loss risk-spreading premiums to

provide for equivalent application of the provisions of this

title to policies that are not based on a calendar year,

or to apply such provisions on a daily, monthly, or quarterly

basis, as appropriate.

(f) CAPTIVE INSURERS AND OTHER SELF-INSURANCE ARRANGEMENTS.—The Secretary may, in consultation with the NAIC or

the appropriate State regulatory authority, apply the provisions

of this title, as appropriate, to other classes or types of captive

insurers and other self-insurance arrangements by municipalities

and other entities (such as workers’ compensation self-insurance

programs and State workers’ compensation reinsurance pools), but

only if such application is determined before the occurrence of

an act of terrorism in which such an entity incurs an insured

loss and all of the provisions of this title are applied comparably

to such entities.

(g) REINSURANCE TO COVER EXPOSURE.—

(1) OBTAINING COVERAGE.—This title may not be construed

to limit or prevent insurers from obtaining reinsurance coverage

for insurer deductibles or insured losses retained by insurers

pursuant to this section, nor shall the obtaining of such coverage affect the calculation of such deductibles or retentions.

(2) LIMITATION ON FINANCIAL ASSISTANCE.—The amount

of financial assistance provided pursuant to this section shall

not be reduced by reinsurance paid or payable to an insurer

from other sources, except that recoveries from such other

sources, taken together with financial assistance for the Transition Period or a Program Year provided pursuant to this section,

may not exceed the aggregate amount of the insurer’s insured

116 STAT. 2332 PUBLIC LAW 107–297—NOV. 26, 2002

losses for such period. If such recoveries and financial assistance for the Transition Period or a Program Year exceed such

aggregate amount of insured losses for that period and there

is no agreement between the insurer and any reinsurer to

the contrary, an amount in excess of such aggregate insured

losses shall be returned to the Secretary.

(h) GROUP LIFE INSURANCE STUDY.— (1) STUDY.—The Secretary shall study, on an expedited

basis, whether adequate and affordable catastrophe reinsurance

for acts of terrorism is available to life insurers in the United

States that issue group life insurance, and the extent to which

the threat of terrorism is reducing the availability of group

life insurance coverage for consumers in the United States.

(2) CONDITIONAL COVERAGE.—To the extent that the Secretary determines that such coverage is not or will not be

reasonably available to both such insurers and consumers, the

Secretary shall, in consultation with the NAIC— (A) apply the provisions of this title, as appropriate,

to providers of group life insurance; and

(B) provide such restrictions, limitations, or conditions

with respect to any financial assistance provided that the

Secretary deems appropriate, based on the study under

paragraph (1).

(i) STUDY AND REPORT.—

(1) STUDY.—The Secretary, after consultation with the

NAIC, representatives of the insurance industry, and other

experts in the insurance field, shall conduct a study of the

potential effects of acts of terrorism on the availability of life

insurance and other lines of insurance coverage, including personal lines.

(2) REPORT.—Not later than 9 months after the date of

enactment of this Act, the Secretary shall submit a report

to the Congress on the results of the study conducted under

paragraph (1).

SEC. 104. GENERAL AUTHORITY AND ADMINISTRATION OF CLAIMS.

(a) GENERAL AUTHORITY.—The Secretary shall have the powers

and authorities necessary to carry out the Program, including

authority—

(1) to investigate and audit all claims under the Program;

and

(2) to prescribe regulations and procedures to effectively

administer and implement the Program, and to ensure that

all insurers and self-insured entities that participate in the

Program are treated comparably under the Program.

(b) INTERIM RULES AND PROCEDURES.—The Secretary may issue

interim final rules or procedures specifying the manner in which—

(1) insurers may file and certify claims under the Program;

(2) the Federal share of compensation for insured losses

will be paid under the Program, including payments based

on estimates of or actual insured losses;

(3) the Secretary may, at any time, seek repayment from

or reimburse any insurer, based on estimates of insured losses

under the Program, to effectuate the insured loss sharing provisions in section 103; and

(4) the Secretary will determine any final netting of payments under the Program, including payments owed to the

Regulations.

Deadline.

PUBLIC LAW 107–297—NOV. 26, 2002 116 STAT. 2333

Federal Government from any insurer and any Federal share

of compensation for insured losses owed to any insurer, to

effectuate the insured loss sharing provisions in section 103.

(c) CONSULTATION.—The Secretary shall consult with the NAIC,

as the Secretary determines appropriate, concerning the Program.

(d) CONTRACTS FOR SERVICES.—The Secretary may employ persons or contract for services as may be necessary to implement

the Program.

(e) CIVIL PENALTIES.— (1) IN GENERAL.—The Secretary may assess a civil monetary penalty in an amount not exceeding the amount under

paragraph (2) against any insurer that the Secretary determines, on the record after opportunity for a hearing— (A) has failed to charge, collect, or remit terrorism

loss risk-spreading premiums under section 103(e) in

accordance with the requirements of, or regulations issued

under, this title;

(B) has intentionally provided to the Secretary erroneous information regarding premium or loss amounts;

(C) submits to the Secretary fraudulent claims under

the Program for insured losses;

(D) has failed to provide the disclosures required under

subsection (f); or

(E) has otherwise failed to comply with the provisions

of, or the regulations issued under, this title.

(2) AMOUNT.—The amount under this paragraph is the

greater of $1,000,000 and, in the case of any failure to pay,

charge, collect, or remit amounts in accordance with this title

or the regulations issued under this title, such amount in

dispute.

(3) RECOVERY OF AMOUNT IN DISPUTE.—A penalty under

this subsection for any failure to pay, charge, collect, or remit

amounts in accordance with this title or the regulations under

this title shall be in addition to any such amounts recovered

by the Secretary.

(f) SUBMISSION OF PREMIUM INFORMATION.—

(1) IN GENERAL.—The Secretary shall annually compile

information on the terrorism risk insurance premium rates

of insurers for the preceding year.

(2) ACCESS TO INFORMATION.—To the extent that such

information is not otherwise available to the Secretary, the

Secretary may require each insurer to submit to the NAIC

terrorism risk insurance premium rates, as necessary to carry

out paragraph (1), and the NAIC shall make such information

available to the Secretary.

(3) AVAILABILITY TO CONGRESS.—The Secretary shall make

information compiled under this subsection available to the

Congress, upon request.

(g) FUNDING.—

(1) FEDERAL PAYMENTS.—There are hereby appropriated,

out of funds in the Treasury not otherwise appropriated, such

sums as may be necessary to pay the Federal share of compensation for insured losses under the Program.

(2) ADMINISTRATIVE EXPENSES.—There are hereby appropriated, out of funds in the Treasury not otherwise appropriated, such sums as may be necessary to pay reasonable

costs of administering the Program.

116 STAT. 2334 PUBLIC LAW 107–297—NOV. 26, 2002

SEC. 105. PREEMPTION AND NULLIFICATION OF PRE-EXISTING TERRORISM EXCLUSIONS.

(a) GENERAL NULLIFICATION.—Any terrorism exclusion in a contract for property and casualty insurance that is in force on the

date of enactment of this Act shall be void to the extent that

it excludes losses that would otherwise be insured losses.

(b) GENERAL PREEMPTION.—Any State approval of any terrorism exclusion from a contract for property and casualty insurance

that is in force on the date of enactment of this Act, shall be

void to the extent that it excludes losses that would otherwise

be insured losses.

(c) REINSTATEMENT OF TERRORISM EXCLUSIONS.—Notwithstanding subsections (a) and (b) or any provision of State law,

an insurer may reinstate a preexisting provision in a contract

for property and casualty insurance that is in force on the date

of enactment of this Act and that excludes coverage for an act

of terrorism only—

(1) if the insurer has received a written statement from

the insured that affirmatively authorizes such reinstatement;

or

(2) if—

(A) the insured fails to pay any increased premium

charged by the insurer for providing such terrorism coverage; and

(B) the insurer provided notice, at least 30 days before

any such reinstatement, of—

(i) the increased premium for such terrorism coverage; and

(ii) the rights of the insured with respect to such

coverage, including any date upon which the exclusion

would be reinstated if no payment is received.

SEC. 106. PRESERVATION PROVISIONS.

(a) STATE LAW.—Nothing in this title shall affect the jurisdiction or regulatory authority of the insurance commissioner (or any

agency or office performing like functions) of any State over any

insurer or other person—

(1) except as specifically provided in this title; and

(2) except that—

(A) the definition of the term ‘‘act of terrorism’’ in

section 102 shall be the exclusive definition of that term

for purposes of compensation for insured losses under this

title, and shall preempt any provision of State law that

is inconsistent with that definition, to the extent that such

provision of law would otherwise apply to any type of

insurance covered by this title;

(B) during the period beginning on the date of enactment of this Act and ending on December 31, 2003, rates

and forms for terrorism risk insurance covered by this

title and filed with any State shall not be subject to prior

approval or a waiting period under any law of a State

that would otherwise be applicable, except that nothing

in this title affects the ability of any State to invalidate

a rate as excessive, inadequate, or unfairly discriminatory,

and, with respect to forms, where a State has prior approval

authority, it shall apply to allow subsequent review of

such forms; and

PUBLIC LAW 107–297—NOV. 26, 2002 116 STAT. 2335

(C) during the period beginning on the date of enactment of this Act and for so long as the Program is in

effect, as provided in section 108, including authority in

subsection 108(b), books and records of any insurer that

are relevant to the Program shall be provided, or caused

to be provided, to the Secretary, upon request by the Secretary, notwithstanding any provision of the laws of any

State prohibiting or limiting such access.

(b) EXISTING REINSURANCE AGREEMENTS.—Nothing in this title

shall be construed to alter, amend, or expand the terms of coverage

under any reinsurance agreement in effect on the date of enactment

of this Act. The terms and conditions of such an agreement shall

be determined by the language of that agreement.

SEC. 107. LITIGATION MANAGEMENT.

(a) PROCEDURES AND DAMAGES.— (1) IN GENERAL.—If the Secretary makes a determination

pursuant to section 102 that an act of terrorism has occurred,

there shall exist a Federal cause of action for property damage,

personal injury, or death arising out of or resulting from such

act of terrorism, which shall be the exclusive cause of action

and remedy for claims for property damage, personal injury,

or death arising out of or relating to such act of terrorism,

except as provided in subsection (b).

(2) PREEMPTION OF STATE ACTIONS.—All State causes of

action of any kind for property damage, personal injury, or

death arising out of or resulting from an act of terrorism

that are otherwise available under State law are hereby preempted, except as provided in subsection (b).

(3) SUBSTANTIVE LAW.—The substantive law for decision

in any such action described in paragraph (1) shall be derived

from the law, including choice of law principles, of the State

in which such act of terrorism occurred, unless such law is

otherwise inconsistent with or preempted by Federal law.

(4) JURISDICTION.—For each determination described in

paragraph (1), not later than 90 days after the occurrence

of an act of terrorism, the Judicial Panel on Multidistrict Litigation shall designate 1 district court or, if necessary, multiple

district courts of the United States that shall have original

and exclusive jurisdiction over all actions for any claim

(including any claim for loss of property, personal injury, or

death) relating to or arising out of an act of terrorism subject

to this section. The Judicial Panel on Multidistrict Litigation

shall select and assign the district court or courts based on

the convenience of the parties and the just and efficient conduct

of the proceedings. For purposes of personal jurisdiction, the

district court or courts designated by the Judicial Panel on

Multidistrict Litigation shall be deemed to sit in all judicial

districts in the United States.

(5) PUNITIVE DAMAGES.—Any amounts awarded in an action

under paragraph (1) that are attributable to punitive damages

shall not count as insured losses for purposes of this title.

(b) EXCLUSION.—Nothing in this section shall in any way limit

the liability of any government, an organization, or person who

knowingly participates in, conspires to commit, aids and abets,

or commits any act of terrorism with respect to which a determination described in subsection (a)(1) was made.

Deadline.

116 STAT. 2336 PUBLIC LAW 107–297—NOV. 26, 2002

(c) RIGHT OF SUBROGATION.—The United States shall have

the right of subrogation with respect to any payment or claim

paid by the United States under this title.

(d) RELATIONSHIP TO OTHER LAW.—Nothing in this section shall

be construed to affect—

(1) any party’s contractual right to arbitrate a dispute;

or

(2) any provision of the Air Transportation Safety and

System Stabilization Act (Public Law 107–42; 49 U.S.C. 40101

note.).

(e) EFFECTIVE PERIOD.—This section shall apply only to actions

described in subsection (a)(1) that arise out of or result from acts

of terrorism that occur or occurred during the effective period of

the Program.

SEC. 108. TERMINATION OF PROGRAM.

(a) TERMINATION OF PROGRAM.—The Program shall terminate

on December 31, 2005.

(b) CONTINUING AUTHORITY TO PAY OR ADJUST COMPENSATION.—Following the termination of the Program, the Secretary

may take such actions as may be necessary to ensure payment,

recoupment, reimbursement, or adjustment of compensation for

insured losses arising out of any act of terrorism occurring during

the period in which the Program was in effect under this title,

in accordance with the provisions of section 103 and regulations

promulgated thereunder.

(c) REPEAL; SAVINGS CLAUSE.—This title is repealed on the

final termination date of the Program under subsection (a), except

that such repeal shall not be construed—

(1) to prevent the Secretary from taking, or causing to

be taken, such actions under subsection (b) of this section,

paragraph (4), (5), (6), (7), or (8) of section 103(e), or subsection

(a)(1), (c), (d), or (e) of section 104, as in effect on the day

before the date of such repeal, or applicable regulations promulgated thereunder, during any period in which the authority

of the Secretary under subsection (b) of this section is in effect;

or

(2) to prevent the availability of funding under section

104(g) during any period in which the authority of the Secretary

under subsection (b) of this section is in effect.

(d) STUDY AND REPORT ON THE PROGRAM.—

(1) STUDY.—The Secretary, in consultation with the NAIC,

representatives of the insurance industry and of policy holders,

other experts in the insurance field, and other experts as

needed, shall assess the effectiveness of the Program and the

likely capacity of the property and casualty insurance industry

to offer insurance for terrorism risk after termination of the

Program, and the availability and affordability of such insurance for various policyholders, including railroads, trucking,

and public transit.

(2) REPORT.—The Secretary shall submit a report to the

Congress on the results of the study conducted under paragraph

(1) not later than June 30, 2005.

Deadline.

Applicability.

PUBLIC LAW 107–297—NOV. 26, 2002 116 STAT. 2337

TITLE II—TREATMENT OF TERRORIST

ASSETS

SEC. 201. SATISFACTION OF JUDGMENTS FROM BLOCKED ASSETS OF

TERRORISTS, TERRORIST ORGANIZATIONS, AND STATE

SPONSORS OF TERRORISM.

(a) IN GENERAL.—Notwithstanding any other provision of law,

and except as provided in subsection (b), in every case in which

a person has obtained a judgment against a terrorist party on

a claim based upon an act of terrorism, or for which a terrorist

party is not immune under section 1605(a)(7) of title 28, United

States Code, the blocked assets of that terrorist party (including

the blocked assets of any agency or instrumentality of that terrorist

party) shall be subject to execution or attachment in aid of execution

in order to satisfy such judgment to the extent of any compensatory

damages for which such terrorist party has been adjudged liable.

(b) PRESIDENTIAL WAIVER.— (1) IN GENERAL.—Subject to paragraph (2), upon determining on an asset-by-asset basis that a waiver is necessary

in the national security interest, the President may waive the

requirements of subsection (a) in connection with (and prior

to the enforcement of) any judicial order directing attachment

in aid of execution or execution against any property subject

to the Vienna Convention on Diplomatic Relations or the Vienna

Convention on Consular Relations.

(2) EXCEPTION.—A waiver under this subsection shall not

apply to—

(A) property subject to the Vienna Convention on Diplomatic Relations or the Vienna Convention on Consular

Relations that has been used by the United States for

any nondiplomatic purpose (including use as rental property), or the proceeds of such use; or

(B) the proceeds of any sale or transfer for value to

a third party of any asset subject to the Vienna Convention

on Diplomatic Relations or the Vienna Convention on Consular Relations.

(c) SPECIAL RULE FOR CASES AGAINST IRAN.—Section 2002 of

the Victims of Trafficking and Violence Protection Act of 2000

(Public Law 106–386; 114 Stat. 1542), as amended by section 686

of Public Law 107–228, is further amended— (1) in subsection (a)(2)(A)(ii), by striking ‘‘July 27, 2000,

or January 16, 2002’’ and inserting ‘‘July 27, 2000, any other

date before October 28, 2000, or January 16, 2002’’;

(2) in subsection (b)(2)(B), by inserting after ‘‘the date

of enactment of this Act’’ the following: ‘‘(less amounts therein

as to which the United States has an interest in subrogation

pursuant to subsection (c) arising prior to the date of entry

of the judgment or judgments to be satisfied in whole or in

part hereunder)’’;

(3) by redesignating subsections (d), (e), and (f) as subsections (e), (f), and (g), respectively; and

(4) by inserting after subsection (c) the following new subsection (d):

‘‘(d) DISTRIBUTION OF ACCOUNT BALANCES AND PROCEEDS INAD- EQUATE TO SATISFY FULL AMOUNT OF COMPENSATORY AWARDS

AGAINST IRAN.—

28 USC 1606,

1610 and note.

Ante, p. 1411.

28 USC 1610

note.

28 USC 1610

note.

116 STAT. 2338 PUBLIC LAW 107–297—NOV. 26, 2002

‘‘(1) PRIOR JUDGMENTS.— ‘‘(A) IN GENERAL.—In the event that the Secretary

determines that 90 percent of the amounts available to

be paid under subsection (b)(2) are inadequate to pay the

total amount of compensatory damages awarded in judgments issued as of the date of the enactment of this subsection in cases identified in subsection (a)(2)(A) with

respect to Iran, the Secretary shall, not later than 60

days after such date, make payment from such amounts

available to be paid under subsection (b)(2) to each party

to which such a judgment has been issued in an amount

equal to a share, calculated under subparagraph (B), of

90 percent of the amounts available to be paid under subsection (b)(2) that have not been subrogated to the United

States under this Act as of the date of enactment of this

subsection.

‘‘(B) CALCULATION OF PAYMENTS.—The share that is

payable to a person under subparagraph (A), including

any person issued a final judgment as of the date of enactment of this subsection 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 person bears to the total amount of

all unpaid compensatory damages awarded to all persons

to whom such judgments have been issued as of the date

of enactment of this subsection in cases identified in subsection (a)(2)(A) with respect to Iran.

‘‘(2) SUBSEQUENT JUDGMENT.—

‘‘(A) IN GENERAL.—The Secretary shall pay to any person awarded a final judgment after the date of enactment

of this subsection, in the case filed on January 16, 2002,

and identified in subsection (a)(2)(A) with respect to Iran,

an amount equal to a share, calculated under subparagraph

(B), of the balance of the amounts available to be paid

under subsection (b)(2) that remain following the disbursement of all payments as provided by paragraph (1). The

Secretary shall make such payment not later than 30 days

after such judgment is awarded.

‘‘(B) CALCULATION OF PAYMENTS.—To the extent that

funds are available, the amount paid under subparagraph

(A) to such person shall be the amount the person would

have been paid under paragraph (1) if the person had

been awarded the judgment prior to the date of enactment

of this subsection.

‘‘(3) ADDITIONAL PAYMENTS.—

‘‘(A) IN GENERAL.—Not later than 30 days after the

disbursement of all payments under paragraphs (1) and

(2), the Secretary shall make an additional payment to

each person who received a payment under paragraph (1)

or (2) in an amount equal to a share, calculated under

subparagraph (B), of the balance of the amounts available

to be paid under subsection (b)(2) that remain following

the disbursement of all payments as provided by paragraphs (1) and (2).

‘‘(B) CALCULATION OF PAYMENTS.—The share payable

under subparagraph (A) to each such person shall be equal

Deadline.

PUBLIC LAW 107–297—NOV. 26, 2002 116 STAT. 2339

to the proportion that the amount of compensatory damages

awarded that person bears to the total amount of all

compensatory damages awarded to all persons who received

a payment under paragraph (1) or (2).

‘‘(4) STATUTORY CONSTRUCTION.—Nothing in this subsection

shall bar, or require delay in, enforcement of any judgment

to which this subsection applies under any procedure or against

assets otherwise available under this section or under any

other provision of law. ‘‘(5) CERTAIN RIGHTS AND CLAIMS NOT RELINQUISHED.—Any

person receiving less than the full amount of compensatory

damages awarded to that party in a judgment to which this

subsection applies shall not be required to make the election

set forth in subsection (a)(2)(B) or, with respect to subsection

(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, except that such

person shall be required to relinquish rights set forth— ‘‘(A) in subsection (a)(2)(C); and

‘‘(B) in subsection (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.

‘‘(6) GUIDELINES FOR ESTABLISHING CLAIMS OF A RIGHT TO

PAYMENT.—The Secretary may promulgate reasonable guidelines through which any person claiming a right to payment

under this section may inform the Secretary of the basis for

such claim, including by submitting a certified copy of the

final judgment under which such right is claimed and by providing commercially reasonable payment instructions. The Secretary shall take all reasonable steps necessary to ensure,

to the maximum extent practicable, that such guidelines shall

not operate to delay or interfere with payment under this

section.’’.

(d) DEFINITIONS.—In this section, the following definitions shall

apply:

(1) ACT OF TERRORISM.—The term ‘‘act of terrorism’’

means—

(A) any act or event certified under section 102(1);

or

(B) to the extent not covered by subparagraph (A),

any terrorist activity (as defined in section 212(a)(3)(B)(iii)

of the Immigration and Nationality Act (8 U.S.C.

1182(a)(3)(B)(iii))).

(2) BLOCKED ASSET.—The term ‘‘blocked asset’’ means—

(A) any asset seized or frozen by the United States

under section 5(b) of the Trading With the Enemy Act

(50 U.S.C. App. 5(b)) or under sections 202 and 203 of

the International Emergency Economic Powers Act (50

U.S.C. 1701; 1702); and

(B) does not include property that— (i) is subject to a license issued by the United

States Government for final payment, transfer, or disposition by or to a person subject to the jurisdiction

of the United States in connection with a transaction

for which the issuance of such license has been specifically required by statute other than the International

28 USC 1610

note.

116 STAT. 2340 PUBLIC LAW 107–297—NOV. 26, 2002

Emergency Economic Powers Act (50 U.S.C. 1701 et

seq.) or the United Nations Participation Act of 1945

(22 U.S.C. 287 et seq.); or

(ii) in the case of property subject to the Vienna

Convention on Diplomatic Relations or the Vienna

Convention on Consular Relations, or that enjoys

equivalent privileges and immunities under the law

of the United States, is being used exclusively for

diplomatic or consular purposes.

(3) CERTAIN PROPERTY.—The term ‘‘property subject to the

Vienna Convention on Diplomatic Relations or the Vienna

Convention on Consular Relations’’ and the term ‘‘asset subject

to the Vienna Convention on Diplomatic Relations or the Vienna

Convention on Consular Relations’’ mean any property or asset,

respectively, the attachment in aid of execution or execution

of which would result in a violation of an obligation of the

United States under the Vienna Convention on Diplomatic Relations or the Vienna Convention on Consular Relations, as the

case may be.

(4) TERRORIST PARTY.—The term ‘‘terrorist party’’ means

a terrorist, a terrorist organization (as defined in section

212(a)(3)(B)(vi) of the Immigration and Nationality Act (8

U.S.C. 1182(a)(3)(B)(vi))), or a foreign state designated as a

state sponsor of terrorism under section 6(j) of the Export

Administration Act of 1979 (50 U.S.C. App. 2405(j)) or section

620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371).

TITLE III—FEDERAL RESERVE BOARD

PROVISIONS

SEC. 301. CERTAIN AUTHORITY OF THE BOARD OF GOVERNORS OF

THE FEDERAL RESERVE SYSTEM.

Section 11 of the Federal Reserve Act (12 U.S.C. 248) is

amended by adding at the end the following new subsection:

‘‘(r)(1) Any action that this Act provides may be taken only

upon the affirmative vote of 5 members of the Board may be

taken upon the unanimous vote of all members then in office

if there are fewer than 5 members in office at the time of the

action.

‘‘(2)(A) Any action that the Board is otherwise authorized to

take under section 13(3) may be taken upon the unanimous vote

of all available members then in office, if—

‘‘(i) at least 2 members are available and all available

members participate in the action;

‘‘(ii) the available members unanimously determine that—

‘‘(I) unusual and exigent circumstances exist and the

borrower is unable to secure adequate credit accommodations from other sources;

‘‘(II) action on the matter is necessary to prevent, correct, or mitigate serious harm to the economy or the stability of the financial system of the United States;

‘‘(III) despite the use of all means available (including

all available telephonic, telegraphic, and other electronic

means), the other members of the Board have not been

able to be contacted on the matter; and

PUBLIC LAW 107–297—NOV. 26, 2002 116 STAT. 2341

LEGISLATIVE HISTORY—H.R. 3210 (S. 2600):

HOUSE REPORTS: Nos. 107–300, Pt. 1 (Comm. on Financial Services) and Pt. 2

(Comm. on Ways and Means) and 107–779 (Comm. of Conference).

CONGRESSIONAL RECORD:

Vol. 147 (2001): Nov. 29, considered and passed House.

Vol. 148 (2002): July 25, considered and passed Senate, amended, in lieu of S.

2600.

Nov. 14, House agreed to conference report.

Nov. 19, Senate agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):

Nov. 26, Presidential remarks.

Æ

‘‘(IV) action on the matter is required before the

number of Board members otherwise required to vote on

the matter can be contacted through any available means

(including all available telephonic, telegraphic, and other

electronic means); and

‘‘(iii) any credit extended by a Federal reserve bank pursuant to such action is payable upon demand of the Board.

‘‘(B) The available members of the Board shall document in

writing the determinations required by subparagraph (A)(ii), and

such written findings shall be included in the record of the action

and in the official minutes of the Board, and copies of such record

shall be provided as soon as practicable to the members of the

Board who were not available to participate in the action and

to the Chairman of the Committee on Banking, Housing, and Urban

Affairs of the Senate and to the Chairman of the Committee on

Financial Services of the House of Representatives.’’.

Approved November 26, 2002.

Records.