[Federal Register Volume 65, Number 226 (Wednesday, November 22, 2000)]
[Notices]
[Pages 70382-70385]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-29953]


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DEPARTMENT OF THE TREASURY

Office of Foreign Assets Control


Payments to Persons Who Hold Certain Categories of Judgments 
Against Cuba or Iran

AGENCY: Department of the Treasury; Office of Foreign Assets Control.

ACTION: Notice.

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SUMMARY: This notice specifies the procedures necessary for persons to 
establish eligibility for payments authorized by section 2002 of the 
Victims of Trafficking and Violence Protection Act of 2000 (Act), 
Public Law No. 106-386 (``Section 2002''). Section 2002 directs the 
Secretary of the Treasury to make payments to persons who hold certain 
categories of judgments against Cuba or Iran in suits brought under 28 
U.S.C. 1605(a)(7).

DATES: This Notice is effective November 20, 2000.

FOR FURTHER INFORMATION CONTACT: For questions regarding submission of 
applications, Rochelle E. Stern, Transactions Analysis Officer, Office 
of Foreign Assets Control. For legal questions, Brett D. Barkey, 
Attorney-Advisor, Office of the Chief Counsel (Foreign Assets Control). 
Both individuals can be reached at 202-622-2671 (not a toll free call).

Part 1. Availability of Funds

    Section 2002 specifies the source and amount of funds available for 
the payments authorized by that Section. See section 2002(b). The 
Department of the Treasury will make a payment to an applicant promptly 
after determining (a) that an application for payment, containing all 
necessary information and documentation specified in Part 2 below, has 
been received by the Department of the Treasury, and (b) that 
sufficient funds are available from the sources identified in section 
2002(b).
    For purposes of funding payments in connection with judgments and 
sanctions against Cuba, section 2002 provides that the President shall 
vest and liquidate up to and not exceeding the amount of property of 
the Government of Cuba and sanctioned entities in the United States or 
any commonwealth, territory, or possession thereof that has been 
blocked pursuant to section 5(b) of the Trading with the Enemy Act (50 
U.S.C. App. 5(b)), sections 202 and 203 of the International Emergency 
Economic Powers Act (50 U.S.C. 1701-1702), or any other proclamation, 
order, or regulation issued thereunder. It further provides that for 
the purposes of paying amounts for judicial sanctions, payment shall be 
made from funds or accounts subject to sanctions as of April 18, 2000, 
or from blocked assets of the Government of Cuba. See section 
2002(b)(1).
    For purposes of funding payments in connection with judgments 
against Iran, Section 2002 provides that the Department of the Treasury 
shall make payments from amounts paid and liquidated from (a) rental 
proceeds accrued on the date of the enactment of the Act from Iranian 
diplomatic and consular property located in the United States, and (b) 
funds not otherwise made available in an amount not to exceed the total 
of the amount in the Iran Foreign Military Sales Program account within 
the Foreign Military Sales Fund on the date of the enactment of the 
Act. See section 2002(b)(2). The amount of funds made available by (a), 
above, will be determined based in part on information provided by the 
Department of State. The amount of funds made available by (b), above, 
will be determined based on information provided by the Department of 
Defense.

Part 2. Applications for Payment

    Applications for payment under section 2002 must be sent to Office 
of Foreign Assets Control, U.S. Department of the Treasury, 1500 
Pennsylvania Avenue, NW., Annex, Second Floor,

[[Page 70383]]

Washington, DC 20220, Attn: Rochelle E. Stern. Applications must 
contain all of the information and documentation as specified in this 
Part 2. APPLICATIONS MUST BE SENT BY U.S. POSTAL SERVICE REGISTERED 
MAIL. Applications sent electronically or by facsimile or delivered by 
hand, courier service, certified mail or any mail service other than 
registered mail shall not be deemed valid. All information required by 
paragraphs (a) through (f) below must be submitted to the noted address 
by U.S. Postal Service registered mail.
    If an applicant is currently represented by counsel, his or her 
application must be submitted through that counsel.

(a) Information Regarding Applicant and Payment

    (1) Information Regarding Applicant: An applicant shall submit the 
following information:
    (A) Name, address, telephone number, and, if available, facsimile 
number of applicant; and
    (B) If the applicant is represented by counsel, name(s), 
address(es), telephone number(s), and facsimile number(s) of 
applicant's counsel.
    (2) Payment Information: Payments will be made by electronic funds 
transfer. Payments will be made only to the applicant or the 
applicant's counsel. The application shall designate which of these 
parties is to receive the payment. An applicant shall submit the 
following information:
    (A) Name of person or entity to whom payment is to be made (payee);
    (B) American Bankers Association Routing and Transit Code number of 
the bank holding payee's account (copy of canceled check or savings 
deposit slip);
    (C) Name and address of payee's bank;
    (D) Payee's bank account number;
    (E) Type of account (checking or savings); and
    (F) Social security number or taxpayer identification number of 
payee.

(b) Documentation on Compensatory Damages

    An applicant shall submit a copy of the judgment awarding the 
applicant compensatory damages on a claim or claims brought by the 
applicant under 28 U.S.C. 1605(a)(7). This copy must be certified by 
the clerk of the court that awarded the judgment.

(c) Documentation on Punitive Damages

    An applicant who elects to receive 110 percent of compensatory 
damages, as allowed under Section 2002(a)(1)(A), shall submit a copy of 
the judgment awarding the applicant punitive damages on a claim or 
claims brought by the applicant under 28 U.S.C. 1605(a)(7). This copy 
must be certified by the clerk of the court that awarded the judgment.

(d) Documentation on Sanctions

    (1) An applicant seeking payment of amounts awarded as sanctions by 
judicial order on April 18, 2000 (as corrected on June 2, 2000) in 
connection with a claim or claims brought by the applicant under 28 
U.S.C. 1605(a)(7) shall submit a copy of the judicial order of April 
18, 2000 (as corrected on June 2, 2000) awarding the applicant 
sanctions. The copy must be certified by the clerk of the court that 
issued the order.
    (2) The applicant must also establish that this order is final and 
not subject to further appellate review. The applicant can so establish 
by providing one of the following:
    (A) A copy of a judgment of dismissal by the U.S. Court of Appeals 
of any pending appeal from the sanctions order, which copy must be 
certified by the clerk of the court of appeals;
    (B) A signed statement that the time to appeal the sanctions order 
has expired without a notice of appeal having been filed, or a signed 
written waiver of the right to seek any further review of any adverse 
aspect of the sanctions order from any party that would have a basis 
for seeking review of that decision;
    (C)(i) A copy of a final decision by the U.S. Court of Appeals on 
the sanctions order that affirms or otherwise leaves intact the 
sanctions order, in whole or in part, and that has been certified by 
the clerk of the Court of Appeals and,
    (ii)(I) a citation to the order of the U.S. Supreme Court denying 
certiorari or dismissing any pending petition for a writ of certiorari;
    (II) a signed statement that the time to petition for a writ of 
certiorari has expired, without such a petition having been filed; or
    (III) if the time to petition for a writ of certiorari has not 
expired, a signed written waiver from all unsuccessful appellants of 
their right to petition for a writ of certiorari; or
    (D) A copy of a final decision by the U.S. Supreme Court on the 
sanctions order that affirms or otherwise leaves intact the sanctions 
order, in whole or in part.

(e) Documentation on Final Judgment or Date Suit Commenced

    In order to receive payment, an applicant must meet one of the 
following two requirements documenting the final judgment and, where 
applicable, the date on which the applicant's suit commenced.
    (1) To meet the first requirement, the applicant must establish 
that he or she had, as of July 20, 2000, a final judgment for a claim 
or claims brought under 28 U.S.C. 1605(a)(7) or the right to payment of 
an amount awarded as a judicial sanction with respect to such claim or 
claims. The applicant can establish that he or she had a final judgment 
for a claim or claims brought under 28 U.S.C. 1605(a)(7) as of July 20, 
2000 by submitting the judgment specified in Part 2(b) above, which 
must be dated July 20, 2000 or earlier, along with all appellate orders 
on that judgment, if any, and a signed statement demonstrating why 
further appellate review is unavailable. The applicant can establish 
that he or she had a right to payment of an amount awarded as a 
judicial sanction by submitting the order specified in Part 2(d) above, 
which must be dated July 20, 2000 or earlier, along with proof that 
this order is final and not subject to further appellate review.
    (2) If an applicant does not satisfy paragraph (1) above, the 
applicant shall submit satisfactory proof of the date on which the 
applicant filed a suit against Iran or Cuba under 28 U.S.C. 1605(a)(7). 
This proof shall be in the form of a docket sheet or other document 
that has been certified by the clerk of the court in which the suit was 
filed. Applicants proceeding under this paragraph shall be eligible for 
payment only if suit was filed on February 17, 1999, December 13, 1999, 
January 28, 2000, March 15, 2000, or July 27, 2000. The applicant must 
also establish that he or she has a final judgment in this suit by 
submitting the judgment specified in Part 2(b) above, along with all 
appellate orders on that judgment, if any, and a signed statement 
demonstrating why further appellate review is unavailable.

(f) Election of Payment Option and Associated Relinquishment

    (1) The applicant shall elect a payment option established by 
Section 2002. To make an election, the applicant must submit two 
declarations as set forth in Parts 2(f)(3)-(4) below. All declarations 
submitted must be completed in full, without modification or 
alteration. Any modification or alteration of any statement will render 
the application noncomplying. It is not within the Department of the 
Treasury's purview to advise applicants on which option they should 
select.
    If the applicant has received an award of punitive damages, the 
applicant shall elect to receive either 110 percent or 100 percent of 
the compensatory damages,

[[Page 70384]]

amounts necessary to pay post-judgment interest under 28 U.S.C. 1961, 
and, where applicable, the amount awarded as sanctions on or in 
connection with a claim or claims brought under 28 U.S.C. 1605(a)(7).
    If the applicant has not received an award of punitive damages, the 
applicant shall elect to receive 100 percent of the compensatory 
damages, amounts necessary to pay post-judgment interest under 28 
U.S.C. 1961, and, where applicable, the amount awarded as sanctions on 
or in connection with a claim or claims brought under 28 U.S.C. 
1605(a)(7).
    By electing one of these options, the applicant relinquishes 
certain claims and rights, as specified in section 2002. See section 
2002(a)(2)(B)-(D).
    (2) If an applicant elects to receive 100 percent of the 
compensatory damages, amounts necessary to pay post-judgment interest 
under 28 U.S.C. 1961, and, where applicable, the amount awarded as 
sanctions on or in connection with a claim or claims brought under 28 
U.S.C. 1605(a)(7) (100 percent option), and to preserve the right to 
collect his or her punitive damage award from Cuba or Iran, the 
applicant must relinquish, inter alia, ``all rights to execute against 
or attach property that is at issue in claims against the United States 
before an international tribunal, that is the subject of awards 
rendered by such tribunal, or that is subject to section 1610(f)(1)(A) 
of title 28, United States Code.'' Section 2002(a)(2)(D). Title 28 
U.S.C. 1610(f)(1)(A), in turn, applies to ``any property with respect 
to which financial transactions are prohibited or regulated pursuant to 
section 5(b) of the Trading with the Enemy Act (50 U.S.C. App. 5(b)) 
(TWEA), section 620(a) of the Foreign Assistance Act of 1961 (22 U.S.C. 
2370(a)), sections 202 and 203 of the International Emergency Economic 
Powers Act (50 U.S.C. 1701-1702) (IEEPA), or any other proclamation, 
order, regulation, or license issued pursuant thereto.'' 28 U.S.C. 
1610(f)(1)(A). Because of the comprehensive sanctions programs in place 
against Iran pursuant to IEEPA and against Cuba pursuant to TWEA, see 
31 C.F.R. Parts 515, 535, and 560, virtually every transaction 
involving Iranian or Cuban property within the jurisdiction of the 
United States is either ``prohibited'' or ``regulated,'' i.e., 
permitted only by a general license in regulations promulgated by the 
Office of Foreign Assets Control (OFAC), Department of the Treasury, or 
by a specific license issued by OFAC. See Regan v. Wald, 468 U.S. 222, 
232-234 (1984). Thus, virtually all Iranian or Cuban property within 
the jurisdiction of the United States is ``property with respect to 
which financial transactions are prohibited or regulated pursuant to'' 
IEEPA or TWEA. Section 2002(a)(2)(D) therefore prohibits an applicant 
who elects the 100 percent option from seeking to execute his or her 
punitive damage award against, or from seeking to attach, virtually all 
Iranian or Cuban assets within the jurisdiction of the United States.
    (3) To make the election, the applicant shall submit one of the two 
declarations set forth in (A) and (B) below. The applicant must sign 
this declaration pursuant to 28 U.S.C. 1746.

    (A) ``I,__________(insert name of applicant), elect to receive 
110 percent of the amount awarded to me as compensatory damages, 
amounts necessary to pay post-judgment interest under 28 U.S.C. 
1961, and, where applicable, amounts awarded as judicial sanctions 
on or in connection with the claim or claims I brought under 28 
U.S.C. 1605(a)(7). By so electing, I state that I have been awarded 
a judgment that includes an award of punitive damages. I further 
state, as required by Section 2002 of P.L. No. 106-386, that I 
relinquish (a) all claims and rights to compensatory damages and 
amounts awarded as judicial sanctions under such judgments and any 
related interest, costs, and attorneys fees, and (b) all claims and 
rights to punitive damages awarded in connection with such claim or 
claims and any related interest, costs, and attorneys fees. In 
relinquishing these above-mentioned claims and rights, I recognize 
that I relinquish any rights to seek writs of attachment, execution, 
or garnishment, or any other form of post-judgment process intended 
to obtain partial or complete satisfaction of any amounts awarded in 
connection with the claim or claims under 28 U.S.C. 1605(a)(7) for 
which I have elected to receive payment.
    ``I understand that this relinquishment is irrevocable once the 
payment is credited to the bank account I have identified in this 
application. I understand that this is true even if, pursuant to my 
election under Part 3(b) of the Federal Register Notice published on 
November 22, 2000, the payment that is credited to the bank account 
I have identified in this application is less than the amount for 
which I applied.
    ``I further agree and acknowledge that, pursuant to Section 
2002(c), once the payment is credited to the bank account I have 
identified in this application, and to the extent such payment is 
made under Section 2002(b)(2)(B), the United States shall be fully 
subrogated and assigned to all of my rights as a judgment creditor, 
and to the rights, if any, of any other person or entity to whom 
payments are made (collectively `payees'), against the debtor 
foreign state. Such subrogation and assignment of payees' rights as 
judgment creditors is binding on their guardians, heirs, executors, 
administrators or assigns.
    ``I declare under penalty of perjury that the foregoing is true 
and correct. Executed on (insert date).''
    (B) ``I,__________(insert name of applicant), elect to receive 
100 percent of the amount awarded to me as compensatory damages, 
amounts necessary to pay post-judgment interest under 28 U.S.C. 
1961, and, where applicable, amounts awarded as judicial sanctions 
on or in connection with the claim or claims I brought under 28 
U.S.C. 1605(a)(7). By so electing, as required by Section 2002 of 
P.L. No. 106-386, I relinquish (a) all claims and rights to 
compensatory damages and amounts awarded as judicial sanctions under 
such judgments and any related interest, costs, and attorneys fees, 
and (b) all rights to execute against or attach property that is at 
issue in claims against the United States before an international 
tribunal, that is the subject of awards rendered by such tribunal, 
or that is subject to 28 U.S.C. 1610(f)(1)(A). In relinquishing 
these above-mentioned claims and rights, I recognize that I 
relinquish any rights to seek writs of attachment, execution, or 
garnishment, or any other form of post-judgment process directed 
against property that is at issue in claims against the United 
States before an international tribunal, that is the subject of 
awards rendered by such tribunal, or that is subject to 28 U.S.C. 
1610(f)(1)(A) and intended to obtain partial or complete 
satisfaction of any amounts awarded in connection with the claim or 
claims under 28 U.S.C. 1605(a)(7) for which I have elected to 
receive payment.
    ``I understand that this relinquishment is irrevocable once the 
payment is credited to the bank account I have identified in this 
application. I understand that this is true even if, pursuant to my 
election under Part 3(b) of the Federal Register Notice published on 
November 22, 2000, the payment that is credited to the bank account 
I have identified in this application is less than the amount for 
which I applied.
    ``I further agree and acknowledge that, pursuant to Section 
2002(c), once the payment is credited to the bank account I have 
identified in this application, and to the extent such payment is 
made under Section 2002(b)(2)(B), the United States shall be fully 
subrogated and assigned to all of my rights as a judgment creditor, 
and to the rights, if any, of any other person or entity to whom 
payments are made (collectively ``payees''), against the debtor 
foreign state. Such subrogation and assignment of payees' rights as 
judgment creditors is binding on their guardians, heirs, executors, 
administrators or assigns.
    ``I declare under penalty of perjury that the foregoing is true 
and correct. Executed on (insert date).''
    (4) In addition, all applicants shall submit the following 
declaration, which, pursuant to 28 U.S.C. 1746, must be signed by 
the applicant and, if the payee is different from the applicant, the 
payee.
    ``I/We, __________ (insert name of applicant) and __________ 
(insert name of payee, if different from applicant) am/are entitled 
to the entire amount to be paid in this application. No other 
person, corporation, law firm, or other entity whatsoever either 
claims or is otherwise entitled to receive any portion of this 
payment from the United States of America.

[[Page 70385]]

If any other person, corporation, law firm, or other entity (a 
``Third Party'') is ever determined by a final judgment of a court 
of the United States to be entitled to all or part of the payment 
made to the applicant and payee (as named above), we (the applicant 
and payee) promise immediately to reimburse, with interest, the 
United States for whatever amount of money is paid by it to a Third 
Party, and agree further to indemnify and hold harmless the United 
States for any such claims for payment asserted by a Third Party 
against the United States.
    ``I/we declare under penalty of perjury that the foregoing is 
true and correct. Executed on (insert date).''

(g) Supplementary Information and Documentation

    The Department of the Treasury may require applicants to submit 
additional information and documentation, including additional 
statements of relinquishment, as it deems appropriate on a case-by-case 
basis. The above-mentioned additional statements of relinquishment may 
include, but are not limited to, statements of relinquishment by 
counsel that currently represent or have represented applicants in 
pursuit of the claims under 28 U.S.C. 1605(a)(7) in connection with 
which the applicant seeks payment.

Part 3. Order of Payment of Applications

    (a) For so long as sufficient funds are available from the sources 
identified in Section 2002(b), the Department of the Treasury will make 
payments on applications in the order in which each complying 
application (as hereinafter defined) is dated by the U.S. Postal 
Service as having been received by the U.S. Postal Service for delivery 
by registered mail. An application will be determined to be complying 
if the Department of the Treasury determines that it has received, for 
its review, all the information and documentation specified in Part 
2(a)-(f) above. If the Department of the Treasury receives a 
noncomplying application, it will notify the applicant of the 
deficiencies. Treasury will determine such applications to be complying 
only when those deficiencies are corrected and will deem them complying 
as of the date indicated by the U.S. Postal Service as the date on 
which the last required item of information or documentation was 
received by the U.S. Postal Service for delivery by registered mail. If 
an application includes all the information and documentation specified 
in Part 2(a)-(f), it will be deemed complying for purposes of this 
Part, even if the Department of the Treasury requests supplementary 
information pursuant to Part 2(g) above. If two or more complying 
applications are dated by the U.S. Postal Service as having been 
received by the U.S. Postal Service on the same day for delivery by 
registered mail, or if the last required items of information or 
documentation for two or more noncomplying applications are received by 
the U.S. Postal Service on the same day for delivery by registered 
mail, the Department of the Treasury will give them the same priority 
for payment.
    (b) If the funds specified in section 2002(b) are insufficient to 
pay an applicant the full amount the applicant has elected to receive, 
the Department of the Treasury will notify the applicant in writing. If 
there are sufficient funds available for a partial payment, the 
Department of the Treasury will specify an office to which the 
applicant shall reply, and the applicant will have two options: (1) To 
withdraw his or her application, or (2) to maintain the application and 
accept partial payment. The applicant shall notify the specified 
Treasury office in writing of his or her choice. If the applicant 
chooses to maintain the application and accept partial payment, the 
relinquishment made pursuant to section 2002(a)(2)(B)-(D), as specified 
in Part 2(f) above, is irrevocable and applies to the same extent as if 
full payment were made by the Department of the Treasury. If available 
funds are sufficient to make only partial payments to two or more 
applicants who have the same priority, the Department of the Treasury 
will give each of these applicants the option of a pro rata payment. 
For each applicant, the pro rata payment will be an identical fixed 
percentage of the payment for which the applicant is eligible. The 
fixed percentage will be set at the maximum amount allowed by available 
funds.

Part 4. Competing Applications

    In the event two or more applications for payment are submitted for 
amounts arising from the same judgment, the Department of the Treasury 
may take such further action as it deems appropriate to resolve any 
competing applications, including, but not limited to, staying 
applications that have been submitted and/or initiating judicial 
action. The Department of the Treasury will have this authority even if 
one or more of these competing applications does not contain all the 
information and documentation required by Part 2(a)-(f).

Part 5. Notice Requirements Inapplicable

    This Notice advises applicants of the availability of funds 
pursuant to Section 2002 and explains the nature of the information and 
documentation requirements established by that section. Accordingly, it 
has been determined that notice and public procedure are not required 
pursuant to 5 U.S.C. 553(a). Moreover, notice and public procedure are 
unnecessary pursuant to 5 U.S.C. 553(b)(B) because this Notice merely 
explains the requirements of section 2002 and does not affect the 
substantive rights of applicants under that section. Notice and public 
procedure are impracticable and contrary to the public interest 
pursuant to 5 U.S.C. 553(b)(B) because section 2002 requires that 
payments be made ``promptly,'' see section 2002(a)(1), and it is in the 
public interest to establish the procedures to request payments without 
delay.

Part 6. Paperwork Reduction Act

    The collection of information contained in this notice has been 
reviewed and approved by the Office of Management and Budget (OMB) 
pursuant to section 3507 of the Paperwork Reduction Act of 1995 (44 
U.S.C. 3501 et seq.) and assigned OMB Control Number 1505-0177. An 
agency may not conduct or sponsor, and a person is not required to 
respond to, an information collection that does not display a currently 
valid OMB control number. The collection of information specified in 
this notice is required to enable the Department of the Treasury to 
determine the eligibility of an applicant under section 2002 of Public 
Law No. 106-386. The collection of information is voluntary, but it is 
required to obtain a payment authorized by Section 2002. The estimated 
average burden per applicant is 3 hours. Comments concerning the 
accuracy of this burden estimate and suggestions for reducing this 
burden should be directed to the agency contact specified earlier in 
this notice and to OMB, Attention: Desk Officer for the Department of 
the Treasury, Office of Information and Regulatory Affairs, Washington, 
DC 20503.

    Dated: November 17, 2000.
R. Richard Newcomb,
Director, Office of Foreign Assets Control.

    Approved: November 17, 2000.
Elisabeth A. Bresee,
Assistant Secretary (Enforcement), Department of the Treasury.
[FR Doc. 00-29953 Filed 11-20-00; 10:04 am]
BILLING CODE 4810-25-P