II

103D CONGRESS

1ST SESSION S. 1119

To amend the International Emergency Economic Powers Act to provide

for the payment of certain secured debts, and for other purposes.

IN THE SENATE OF THE UNITED STATES

JUNE 16 (legislative day, JUNE 15), 1993

Mr. ROBB (for himself, Mr. DOLE, Mrs. MURRAY, Mr. HELMS, Mr. CAMPBELL, Mr. WARNER, Mr. KERREY, Mr. HATCH, Mr. EXON, Mr.

FAIRCLOTH, Mr. BROWN, Mr. SASSER, and Mr. BOND) introduced the

following bill; which was read twice and referred to the Committee on

Banking, Housing, and Urban Affairs

A BILL

To amend the International Emergency Economic Powers

Act to provide for the payment of certain secured debts,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Secured Payment Act

5 of 1993’’.

6 SEC. 2. FINDINGS AND PURPOSE.

7 (a) FINDINGS.—The Congress finds that—
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1 (1) a number of United States corporations and

2 their foreign subsidiaries engaged in lawful trade

3 with Iraq and fulfilled their contractual or letter of

4 credit obligations before August 2, 1990, but have

5 not been paid;

6 (2) since August 2, 1990, pursuant to Execu7 tive Orders No. 12722 and No. 12724, the Depart8 ment of the Treasury has frozen Iraqi assets in the

9 United States, including funds sufficient to pay the

10 debts described in the preceding paragraph, even

11 though (A) payment is secured by irrevocable letters

12 of credit, and (B) the transactions covered by the

13 letters of credit are otherwise complete; and

14 (3) the Department of the Treasury has no ju15 risdiction over such funds.

16 (b) PURPOSE.—The purpose of this Act is to provide

17 for the immediate release to the lawful owners of the funds

18 described in subsection (a)(2).

19 SEC. 3. AMENDMENT OF THE INTERNATIONAL EMERGENCY

20 ECONOMIC POWERS ACT.

21 (a) GRANT OF AUTHORITY.—Section 203(b) of the

22 International Emergency Economic Powers Act (50

23 U.S.C. 1702(b)) is amended—

24 (1) by redesignating paragraphs (1), (2), and

25 (3) as subparagraphs (A), (B), and (C), respectively;
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1 (2) by inserting ‘‘(1)’’ immediately after ‘‘(b)’’;

2 (3) by amending paragraph (1) (as redesig3 nated)—

4 (A) by striking out ‘‘or’’ at the end of sub5 paragraph (B);

6 (B) by striking the period at the end of

7 subparagraph (C) and inserting ‘‘; or’’; and

8 (C) by adding at the end the following new

9 subparagraph:

10 ‘‘(D) payments under irrevocable letters of

11 credit issued by a United States or foreign bank,

12 from any type of account, of amounts owed to or for

13 the benefit of a national of the United States, in14 cluding any foreign subsidiary or branch thereof,

15 that is the beneficiary of an irrevocable letter of

16 credit and that shipped the goods, or otherwise per17 formed its obligations under an underlying contract,

18 before the declaration of any national emergency

19 under section 202.’’; and

20 (4) by adding at the end the following new

21 paragraph:

22 ‘‘(2) Paragraph (1)(D) shall not apply to any United

23 States national who is found to have violated the Export

24 Administration Act of 1979, the Arms Export Control Act,
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1 or any license, order, or regulation issued under either

2 Act.’’.

3 (b) APPLICATION OF AMENDMENTS.—The amend4 ments made by subsection (a) apply to actions taken by

5 the President under section 203 of the International Eco6 nomic Emergency Powers Act before the date of enact7 ment of this Act which are in effect on such date and to

8 actions taken under such section on or after such date.

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