I 
112TH CONGRESS 
1ST SESSION H. R. 2597 
To amend the International Claims Settlement Act of 1949 to allow for 
certain claims of nationals of the United States against Turkey, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 20, 2011 
Mr. PALLONE (for himself, Mrs. MALONEY, and Mr. BILIRAKIS) introduced 
the following bill; which was referred to the Committee on Foreign Af-
fairs, and in addition to the Committee on the Judiciary, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within the jurisdiction of the committee 
concerned 
A BILL 
To amend the International Claims Settlement Act of 1949 
to allow for certain claims of nationals of the United 
States against Turkey, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American-Owned Prop-
erty in Occupied Cyprus Claims Act’’. 
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SEC. 2. INTERNATIONAL CLAIMS SETTLEMENT ACT. 
The International Claims Settlement Act of 1949 (22 
U.S.C. 1621 et seq.) is amended by adding at the end 
the following new title: 
‘‘TITLE VIII—CLAIMS AGAINST 
TURKEY 
‘‘SEC. 801. PURPOSE. 
‘‘The purpose of this title is to provide for the deter-
mination of the validity and amounts of claims against 
Turkey that arise out of the continued exclusion of nation-
als of the United States from property such nationals own 
that is located in those portions of the territory of Cyprus 
that Turkey occupies. This title shall not be construed as 
authorizing or as any intention to authorize an appropria-
tion by the United States for the purpose of paying such 
claims. 
‘‘SEC. 802. DEFINITIONS. 
‘‘As used in this title: 
‘‘(1) CLAIMANT.—The term ‘claimant’ means 
any national of the United States who files a claim 
under this title. 
‘‘(2) CLAIMS FUND.—The term ‘Claims Fund’ 
means the claims fund described in section 808(a). 
‘‘(3) COMMISSION.—The term ‘Commission’ 
means the Foreign Claims Settlement Commission 
of the United States. 
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‘‘(4) CYPRUS.—The term ‘Cyprus’ means the 
Republic of Cyprus. 
‘‘(5) NATIONAL OF THE UNITED STATES.—The 
term ‘national of the United States’ means— 
‘‘(A) a natural person who is either a cit-
izen of the United States or an alien lawfully 
admitted for permanent residence to the United 
States; 
‘‘(B) a natural person who acquired title to 
property in Cyprus through intestate or testate 
succession under the laws of the United States 
or of any State, the District of Columbia, the 
Commonwealth of Puerto Rico, or any territory 
or possession of the United States from or 
through a natural person described in subpara-
graph (A); or 
‘‘(C) a corporation or other legal entity 
that is organized under the laws of the United 
States or of any State, the District of Colum-
bia, the Commonwealth of Puerto Rico, or any 
territory or possession of the United States, if 
one or more natural persons described in sub-
paragraph (A) own, directly or indirectly, 50 
percent or more of the outstanding capital stock 
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or other beneficial interest of such corporation 
or entity. 
‘‘(6) PROPERTY.—The term ‘property’ means 
any real property or any right or interest in real 
property, including any leasehold interest, held 
under the laws of Cyprus and located in any portion 
of the territory of Cyprus that is occupied by Tur-
key. 
‘‘(7) TURKEY.—The term ‘Turkey’ means— 
‘‘(A) the Republic of Turkey; 
‘‘(B) any political subdivision, agency, or 
instrumentality of the Republic of Turkey, in-
cluding the Turkish Armed Forces; 
‘‘(C) any agent of the Government of Tur-
key, or any unincorporated association that 
purports to discharge any function of a nation- 
state under the auspices of the Republic of Tur-
key, including the unincorporated association 
known as the ‘Turkish Republic of Northern 
Cyprus’; 
‘‘(D) any organization that purports to be 
a political subdivision, agency, or instrumen-
tality of the unincorporated association known 
as the ‘Turkish Republic of Northern Cyprus’; 
and 
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‘‘(E) any natural person or legal entity 
that purports to claim or hold any title or right 
to property described in paragraph (6) under 
the alleged authority of any entity described in 
of subparagraph (A), (B), (C), or (D). 
‘‘SEC. 803. COMMENCEMENT OF NEGOTIATIONS BY THE 
SECRETARY OF STATE. 
‘‘(a) IN GENERAL.—The President is urged to au-
thorize the Secretary of State to commence negotiations 
with Turkey and to continue such negotiations until an 
agreement is reached with respect to the payment by Tur-
key of claims certified under section 806. 
‘‘(b) REQUIREMENT
TO
RECEIVE
CLAIMS.—The 
Commission shall receive claims under section 804, deter-
mine the validity of such claims, and make awards under 
section 804 as of the effective date of the American-Owned 
Property in Occupied Cyprus Claims Act without regard 
to whether or not— 
‘‘(1) the President authorizes the Secretary of 
State to commence the negotiations to which sub-
section (a) refers; and 
‘‘(2) if the President does authorize the Sec-
retary of State to commence such negotiations, the 
Secretary of State commences such negotiations. 
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‘‘SEC. 804. RECEIPT AND DETERMINATION OF CLAIMS. 
‘‘(a) DETERMINATION OF CLAIMS.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), 
the Commission shall receive and determine in ac-
cordance with applicable substantive law, including 
international law, the validity and amounts of claims 
by nationals of the United States against Turkey 
arising on or after July 20, 1974, for the fair rental 
market value of the use and continued occupation by 
Turkey of property located in the territory of Cyprus 
that— 
‘‘(A) is owned by such nationals under the 
laws of Cyprus; and 
‘‘(B) at the time the exclusion from or oc-
cupation of the property began, was owned 
wholly or partially, directly or indirectly, by na-
tionals of the United States under the laws of 
Cyprus. 
‘‘(2) LIMITATION.—The Commission shall re-
duce the dollar amount of the fair rental market 
value of each claim to the extent that possession of 
the property has been restored to the claimant or 
the claimant has received actual and adequate com-
pensation for the use and occupation of the property 
from any source on account of the same loss or 
losses for which the claim is filed. 
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‘‘(b) OWNERSHIP RIGHTS RETAINED.—No claimant 
shall be required nor be deemed, either directly or indi-
rectly, to transfer, waive, or otherwise forfeit any right of 
ownership in or to the property that claimant owns under 
the laws of Cyprus as a condition to or as the result of 
filing a claim, having the claim determined, or accepting 
an award based on the claim. 
‘‘(c) SUBMISSION OF CLAIMS.— 
‘‘(1) REQUIREMENT TO ESTABLISH TIME PE-
RIOD.—Not later than 60 calendar days after the 
date of the enactment of an appropriations Act that 
makes available funds for the payment of adminis-
trative expenses incurred by the Commission in car-
rying out this title, the Commission shall establish a 
period during which claimants may submit claims 
under this title. 
‘‘(2) PUBLICATION.—The Commission shall 
publish in the Federal Register the beginning and 
ending dates of the time period to which paragraph 
(1) refers. 
‘‘(3) TIME PERIOD.—The time period to which 
paragraph (1) refers may not exceed 24 consecutive 
calendar months beginning with the first month fol-
lowing the month in which the notice is published 
under paragraph (2). 
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‘‘SEC. 805. OWNERSHIP OF CLAIMS. 
‘‘A claim may be favorably considered under section 
804— 
‘‘(1) only if the property right on which it is 
based was owned, wholly or partially, directly or in-
directly, by a national of the United States under 
the laws of Cyprus on the date on which the exclu-
sion from or occupation of the property began; and 
‘‘(2) only to the extent that the claim has been 
held or acquired by one or more nationals of the 
United States continuously from that date until the 
date on which the claim is filed with the Commis-
sion. 
‘‘SEC. 806. CERTIFICATION; ASSIGNED CLAIMS. 
‘‘(a) CERTIFICATION OF CLAIMS.— 
‘‘(1) CERTIFICATION TO THE CLAIMANT.—The 
Commission shall certify to each claimant who files 
a claim under this title— 
‘‘(A) the dollar amount determined by the 
Commission to be the loss suffered by the 
claimant that is covered by this title; and 
‘‘(B) if, on the date on which the Commis-
sion makes the certification under subpara-
graph (A), Turkey is excluding the claimant 
from the claimant’s property, a mathematical 
basis determined by the Commission for calcu-
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lating the loss suffered by the claimant for the 
continued use and occupation of the property by 
Turkey after the date of the award. 
‘‘(2) CERTIFICATION
TO
THE
SECRETARY
OF 
STATE.—The Commission shall certify to the Sec-
retary of State— 
‘‘(A) the dollar amount of each claim cer-
tified under paragraph (1)(A); 
‘‘(B) any mathematical basis certified 
under paragraph (1)(B) in connection with that 
claim; and 
‘‘(C) a statement of the evidence upon 
which the Commission relied and the reasoning 
employed by the Commission in determining the 
dollar amount described in subparagraph (A) 
and the mathematical basis described in sub-
paragraph (B). 
‘‘(b) ASSIGNED CLAIMS.—In any case in which a 
claim under this title is assigned by purchase before the 
Commission determines the amount due on that claim, the 
amount so determined may not exceed the amount of ac-
tual consideration paid by the last such assignee. 
‘‘SEC. 807. CONSOLIDATED AWARDS. 
‘‘With respect to any claim under section 804 that, 
at the time of the award, is vested in persons other than 
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the person by whom the original loss was sustained, the 
Commission shall issue a consolidated award in favor of 
all claimants then entitled to the award. The award shall 
indicate the respective interests of such claimants in the 
award. All such claimants shall participate, in proportion 
to their indicated interests, in any payments that may be 
made under this title in all respects as if the award had 
been in favor of a single person. 
‘‘SEC. 808. CLAIMS FUND. 
‘‘(a) AUTHORITY.—The Secretary of the Treasury 
may establish in the Treasury of the United States a 
Claims Fund for the payment of unsatisfied claims of na-
tionals of the United States against Turkey, as authorized 
by this title. 
‘‘(b) CONTRIBUTIONS
TO
CLAIMS
FUND.—The 
Claims Fund shall consist of such sums as may be paid 
to or realized by the United States pursuant to the terms 
of any agreement settling those claims described in section 
804 that may be concluded between the Governments of 
the United States and Turkey. 
‘‘(c) DEDUCTION OF ADMINISTRATIVE EXPENSES.— 
The Secretary of the Treasury shall deduct from any 
amounts covered into the Claims Fund a dollar amount 
equal to 5 percent thereof as reimbursement to the Gov-
ernment of the United States for expenses incurred by the 
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Commission and by the Department of the Treasury in 
the administration of this title. The amounts so deducted 
shall be covered into the Treasury as miscellaneous re-
ceipts. 
‘‘SEC. 809. AWARD PAYMENT PROCEDURES. 
‘‘(a) CERTIFICATION OF AWARDS TO SECRETARY OF 
THE TREASURY.—The Commission shall certify to the 
Secretary of the Treasury the dollar amount of each award 
made pursuant to section 804. 
‘‘(b) PAYMENT OF AWARDS.— 
‘‘(1) PRINCIPAL AMOUNTS.—Upon certification 
of each award made under section 804, the Sec-
retary of the Treasury shall, out of the sums covered 
into the Claims Fund, make payments on account of 
such awards as follows, and in the following order 
of priority: 
‘‘(A) Payment in the amount of $25,000 
or the principal amount of the award, whichever 
is less. 
‘‘(B) Thereafter, payments from time to 
time, in ratable proportions, on account of the 
unpaid balance of the principal amounts of all 
awards according to the proportions that the 
unpaid balance of such awards bear to the total 
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amount in the Claims Fund available for dis-
tribution at the time such payments are made. 
‘‘(2) SUBSEQUENT PAYMENTS.—After payment 
has been made in full of the principal amounts of all 
awards pursuant to paragraph (1), pro rata pay-
ments may be made on account of any interest that 
may be allowed on such awards. 
‘‘(c) REGULATIONS.—Payments or applications for 
payments under subsection (b) shall be made in accord-
ance with such regulations as the Secretary of the Treas-
ury may prescribe. 
‘‘SEC. 810. SETTLEMENT PERIOD. 
‘‘The Commission shall complete its affairs in connec-
tion with the settlement of claims pursuant to this title 
not later than the end of the 3-year period beginning on 
the final date for the filing of claims as provided in section 
804(c). 
‘‘SEC. 811. TRANSFER OF RECORDS. 
‘‘The Secretary of State, the Secretary of the Treas-
ury, and the Secretary of Defense shall transfer or other-
wise make available to the Commission such records and 
documents relating to claims authorized by this title as 
may be required by the Commission in carrying out its 
functions under this title. 
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‘‘SEC. 812. FEES FOR SERVICES. 
‘‘(a) LIMITATION ON FEES.— 
‘‘(1) LIMITATION.—Remuneration on account 
of services rendered on behalf of any claimant in 
connection with any claim filed with the Commission 
under this title may not exceed 10 percent of the 
total dollar amount paid pursuant to an award cer-
tified under the provisions of this title on account of 
such claim. 
‘‘(2) NOTIFICATION
OF
AGREEMENTS.—Any 
agreement contrary to the limitation set forth in 
paragraph (1) is unlawful and void. 
‘‘(b) PENALTY FOR VIOLATION.—Any person who de-
mands or receives any remuneration that exceeds the max-
imum remuneration set forth in subsection (a) shall be 
fined under title 18, United States Code, imprisoned for 
not more than 12 months, or both. 
‘‘SEC. 813. APPLICATION OF OTHER PROVISIONS. 
‘‘(a) IN GENERAL.— 
‘‘(1) PROVISIONS.—To the extent that they are 
not inconsistent with the provisions of the title, the 
following provisions of title I of this Act shall apply 
to this title: 
‘‘(A) Subsections (b), (c), (d), (e) and (h) 
of section 4. 
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‘‘(B) Subsections (c), (d), (e) and (f) of 
section 7. 
‘‘(2) REFERENCE.—Any reference to ‘this title’ 
in the provisions described in subparagraph (A) or 
(B) of paragraph (1) is a reference to such provi-
sions and to this title. 
‘‘(b) ADMINISTRATIVE PROCEDURE.—Except as oth-
erwise set forth in this title and in those provisions of title 
I set forth in subparagraph (A) or (B) of subsection 
(a)(1), the Commission shall comply with the provisions 
of subchapter II of chapter 5, and the provisions of chap-
ter 7, of title 5, United States Code. 
‘‘SEC. 814. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated for any fis-
cal year beginning on or after October 1, 2010, such sums 
as may be necessary to enable the Commission and the 
Department of the Treasury to pay their respective admin-
istrative expenses incurred in carrying out their functions 
under this title. Amounts appropriated under this section 
may remain available until expended.’’. 
SEC. 3. JURISDICTION OF UNITED STATES DISTRICT 
COURTS. 
(a) IN GENERAL.—Chapter 85 of title 28, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
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‘‘§ 1370. Civil actions by nationals of the United 
States who own real property in Cyprus 
against private persons 
‘‘(a) JURISDICTION.—The district courts shall have 
original jurisdiction of any civil action that is brought— 
‘‘(1) by a national of the United States— 
‘‘(A) who holds title to any real property 
under the laws of Cyprus that is located in that 
portion of the territory of Cyprus that is occu-
pied by Turkey; and 
‘‘(B) who has been excluded from that 
property by reason of such occupation; 
‘‘(2) against any private person who for any 
purpose and in any way uses, occupies, or benefits 
from that property at any time during the period of 
such exclusion; and 
‘‘(3) for the fair rental value of the property 
during the period of such use, occupation, or benefit. 
‘‘(b) DEFINITIONS.—As used in this section— 
‘‘(1) the term ‘national of the United States’ 
means— 
‘‘(A) a natural person who is either a cit-
izen of the United States or an alien lawfully 
admitted for permanent residence to the United 
States; 
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‘‘(B) a natural person who acquired title to 
property in Cyprus through intestate or testate 
succession under the laws of the United States 
or of any State, the District of Columbia, the 
Commonwealth of Puerto Rico, or any territory 
or possession of the United States from or 
through a natural person described in subpara-
graph (A); or 
‘‘(C) a corporation or other legal entity 
that is organized under the laws of the United 
States or of any State, the District of Colum-
bia, the Commonwealth of Puerto Rico, or any 
territory or possession of the United States, if 
one or more natural persons described in sub-
paragraph (A) own, directly or indirectly, 50 
percent or more of the outstanding capital stock 
or other beneficial interest of such corporation 
or entity; 
‘‘(2) the term ‘property’ means any real prop-
erty or any right or interest in any real property, in-
cluding any leasehold interest, to which a national of 
the United States holds title under the laws of Cy-
prus; 
‘‘(3) the term ‘Turkey’ means— 
‘‘(A) the Republic of Turkey; 
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‘‘(B) any political subdivision, agency, or 
instrumentality of the Republic of Turkey, in-
cluding the Turkish Armed Forces; 
‘‘(C) any agent of or unincorporated asso-
ciation that purports to discharge any function 
of a nation-state under the auspices of the Re-
public of Turkey, including the unincorporated 
association known as the ‘Turkish Republic of 
Northern Cyprus’; and 
‘‘(D) any organization that purports to be 
a political subdivision, agency, or instrumen-
tality of the unincorporated association known 
as the ‘Turkish Republic of Northern Cyprus’; 
‘‘(4) the term ‘Cyprus’ means the Republic of 
Cyprus; and 
‘‘(5) the term ‘private person’ means— 
‘‘(A) any natural person who— 
‘‘(i) at any time on or after July 20, 
1974, uses, occupies, or benefits from 
property in Cyprus, if such use, occupa-
tion, or benefit was enabled by Turkey or 
any person or entity, other than a national 
of the United States who held lawful title 
to that property under the laws of Cyprus 
as of July 20, 1974; and 
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‘‘(ii) holds such title when any civil 
action under this section is brought by rea-
son of such use, occupation, or benefit; and 
‘‘(B) any corporation or other legal entity 
that— 
‘‘(i) is organized under the laws of the 
United States or of any State, the District 
of Columbia, the Commonwealth of Puerto 
Rico, or any territory or possession of the 
United States or under the laws of any for-
eign state; and 
‘‘(ii)(I) at any time on or after July 
20, 1974, uses, occupies, or benefits from 
property in Cyprus, if such use, occupa-
tion, or benefit was enabled by Turkey or 
any person or entity, other than a national 
of the United States who held title to that 
property under the laws of Cyprus as of 
July 20, 1974; and 
‘‘(II) holds such title when any civil 
action under this section is brought by rea-
son of such use, occupation, or benefit. 
‘‘(c) SPECIAL RULES.—For purposes of this sec-
tion— 
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‘‘(1) process is served if service is accomplished 
in any manner set forth in this title; 
‘‘(2) the district court shall not consider the 
doctrine of forum non conveniens in any civil action 
asserted under this section and shall refuse to hear 
any motion or request by any person or party that 
the civil action be dismissed on the grounds of forum 
non conveniens; 
‘‘(3) in determining whether the person or 
party asserting the civil action has lawful title, the 
district court shall apply only the laws of Cyprus in 
making that determination; and 
‘‘(4) in determining the amount of any award 
in any civil action, the district court shall consider 
only evidence of the fair rental market value of the 
property for each calendar year for which the plain-
tiff has been excluded from its property, as that 
value would have been calculated in Cyprus if the 
plaintiff had not been excluded from the property. 
‘‘(d) LIMITATION
ON ACTIONS.—Any civil action 
against a private person under this section may be brought 
at any time before the end of the period of 36 consecutive 
calendar months that begins after the last day of the 
month in which the private person ceases to use, occupy, 
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or benefit from the property that is the subject of the ac-
tion. This subsection applies in lieu of section 1658.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 85 of title 28, United States Code, is 
amended by adding at the end the following new item: 
‘‘1370. Civil actions by nationals of the United States who own real property 
in Cyprus against private persons.’’. 
(c) APPLICABILITY.—The amendments made by this 
section shall apply to any cause of action arising before, 
on, or after the date of the enactment of this Act. 
SEC. 4. VENUE. 
(a) IN GENERAL.—Chapter 87 of title 28, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 1414. Venue of civil actions against private persons 
brought by nationals of the United States 
who own real property in Cyprus 
‘‘Notwithstanding any other provision of this chapter, 
a civil action under section 1370 may be brought only in 
the District Court for the District of Columbia or the Dis-
trict Court for the Southern District of New York.’’. 
(b) CONFORMING AMENDMENT.—The table of sec-
tions for chapter 87 of title 28, United States Code, is 
amended by adding at the end the following new item: 
‘‘1414. Venue of civil actions against private persons brought by nationals of 
the United States who own real property in Cyprus.’’. 
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SEC. 5. EFFECTIVE DATE. 
Subject to section 3(c), this Act and the amendments 
made by this Act shall take effect on the date of the enact-
ment of this Act. 
Æ 
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