To clarify certain provisions relating to the interests of Iran in certain assets, and for other purposes.

SECTION 1. INTERESTS IN FINANCIAL ASSETS OF IRAN.

    (a) Interests in Blocked Assets.--Notwithstanding any other 
provision of law, and preempting any inconsistent provision of State 
law, the property interest of Iran in a blocked asset shall include an 
interest in property of any nature whatsoever, direct or indirect, 
including any direct or indirect interest in securities or other 
financial assets immobilized or in any other manner held in book entry 
form and credited to a securities account in the United States and the 
proceeds thereof, or in any funds transfers held in a United States 
financial institution. The property interest of Iran in securities or 
other financial assets immobilized or in any other manner held in book 
entry form and credited to a securities account in the United States 
and proceeds thereof shall be deemed to exist at every tier of 
securities intermediary necessary to hold an interest in any such 
securities or other financial assets. The property interest of Iran in 
a funds transfer shall exist at any intermediary bank necessary to 
complete such funds transfer.
    (b) Property in the United States of Iran.--Notwithstanding any 
other provision of law, and preempting any inconsistent provision of 
State law, the property, including any interest in the property, of 
Iran shall be deemed to be property in the United States of Iran if--
            (1) that property is an interest, held directly or 
        indirectly for the benefit of Iran or for the benefit of any 
        securities intermediary that directly or indirectly holds the 
        interest for the benefit of Iran, in securities or other 
        financial assets that are represented by certificates or are in 
        other physical form and are immobilized, custodized, or held 
        for safekeeping or any other reason in the United States; or
            (2) that property is an interest in securities or other 
        financial assets held in book entry form or otherwise, and 
        credited to a securities account in the United States by any 
        securities intermediary directly or indirectly for the benefit 
        of Iran or for the benefit of any other securities intermediary 
        that directly or indirectly holds the interest for the benefit 
        of Iran.
    (c) Determination of Whether Securities or Other Assets Are Held or 
Credited to a Securities Account in the United States.--For purposes of 
this section, an interest in securities or other financial assets is 
held and credited to a securities account in the United States by a 
securities intermediary if the securities intermediary is located in 
the United States. A securities intermediary is conclusively presumed 
to be located in the United States if it is regulated in its capacity 
as a securities intermediary under the laws of the United States.
    (d) Commercial Activity in the United States.--Notwithstanding any 
other provision of law, the ownership by Iran, or its central bank or 
monetary authority, of any property, including the interest in property 
described in paragraphs (1) and (2) of subsection (b), or any other 
interest in property, shall be deemed to be commercial activity in the 
United States and that property, including any interest in that 
property, shall be deemed not to be held for the central bank's or 
monetary authority's own account.
    (e) Applicability.--This section applies to all attachments and 
proceedings in aid of execution issued or obtained before, on, or after 
the date of the enactment of this Act with respect to judgments entered 
against Iran for damages for personal injury or death caused by an act 
of torture, extrajudicial killing, aircraft sabotage, or hostage-
taking, or the provision of material support or resources for such an 
act.
    (f) Definitions.--In this section:
            (1) Blocked asset.--The term ``blocked asset''--
                    (A) means 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 section 202 or 203 
                of the International Emergency Economic Powers Act (50 
                U.S.C. 1701 and 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 the license has been 
                        specifically required by a provision of law 
                        other than the International 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) is 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 laws of the United States, 
                        and is being used exclusively for diplomatic or 
                        consular purposes.
            (2) Clearing corporation.--The term ``clearing 
        corporation'' means--
                    (A) a clearing agency (as defined in section 
                3(a)(23) of the Securities Exchange Act of 1934 (15 
                U.S.C. 78c(a)(23)));
                    (B) a Federal reserve bank; or
                    (C) any other person that provides clearance or 
                settlement services with respect to financial assets 
                that would require it to register as a clearing agency 
                under the Federal securities laws but for an exclusion 
                or exemption from the registration requirement under 
                section 3(a)(23)(B) of the Securities Exchange Act of 
                1934, if its activities as a clearing corporation, 
                including promulgation of rules, are subject to 
                regulation by a Federal or State governmental 
                authority.
            (3) Financial asset; security.--The terms ``financial 
        asset'' and ``security'' have the meanings given those terms in 
        the Uniform Commercial Code.
            (4) Iran.--The term ``Iran'' means the Government of Iran, 
        including the central bank or monetary authority of that 
        Government and any agency or instrumentality of that 
        Government.
            (5) Property subject to the vienna convention on diplomatic 
        relations or the vienna convention on consular relations.--The 
        term ``property subject to the Vienna Convention on Diplomatic 
        Relations or the Vienna Convention on Consular Relations'' 
        means any property 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, done at Vienna April 18, 1961, or the Convention on 
        Consular Relations, done at Vienna April 24, 1963.
            (6) Securities intermediary.--The term ``securities 
        intermediary'' means--
                    (A) a clearing corporation; or
                    (B) a person, including a bank or broker, that in 
                the ordinary course of its business maintains 
                securities accounts for others and is acting in that 
                capacity.
            (7) United states.--The terms ``United States'' includes 
        all territory and waters, continental or insular, subject to 
        the jurisdiction of the United States.

SEC. 2. EXCEPTIONS TO THE IMMUNITY FROM ATTACHMENT OR EXECUTION.

    (a) Title 28, United States Code.--Section 1610 of title 28, United 
States Code, is amended--
            (1) in subsection (a)(7), by inserting after ``section 
        1605A'' the following: ``or section 1605(a)(7) (as such section 
        was in effect on January 27, 2008)'';
            (2) in subsection (b)--
                    (A) in paragraph (2)--
                            (i) by striking ``(5), 1605(b), or 1605A'' 
                        and inserting ``(5) or 1605(b)''; and
                            (ii) by striking the period at the end and 
                        inserting ``, or''; and
                    (B) by adding after paragraph (2) the following:
            ``(3) the judgment relates to a claim for which the agency 
        or instrumentality is not immune by virtue of section 1605A of 
        this chapter or section 1605(a)(7) of this chapter (as such 
        section was in effect on January 27, 2008), regardless of 
        whether the property is or was involved in the act upon which 
        the claim is based.'';
            (3) by amending subsection (c) to read as follows:
    ``(c)(1) No attachment or execution referred to in any of 
paragraphs (1) through (6) of subsection (a), or in paragraph (1) or 
(2) of subsection (b), shall be permitted until the court of original 
jurisdiction has ordered such attachment and execution after having 
determined that a reasonable period of time has elapsed following the 
entry of judgment and the giving of any notice required under section 
1608(e) of this chapter.
    ``(2) No attachment or execution referred to in paragraph (7) of 
subsection (a) or paragraph (3) of subsection (b) shall be permitted 
until the court of original jurisdiction has ordered that such 
attachment and execution may proceed after having determined that a 
reasonable period of time has elapsed following the entry of judgment 
and the giving of any notice required under section 1608(e) of this 
chapter. For purposes of the preceding sentence, substantial compliance 
with the requirements of section 1608(e) shall be deemed to be 
sufficient service under such section, and the rejection of or refusal 
to accept delivery of a default judgment served in substantial 
compliance with such requirements shall not affect the sufficiency of 
such service. The order of the court under this paragraph need not 
specify the assets that are to be subject to such attachment or 
execution.''; and
            (4) in subsection (g)(1), in the matter preceding 
        subparagraph (A), by inserting after ``section 1605A'' the 
        following: ``or section 1605(a)(7) (as such section was in 
        effect on January 27, 2008)''.
    (b) Terrorism Risk Insurance Act of 2002.--Section 201(a) of the 
Terrorism Risk Insurance Act of 2002 (28 U.S.C. 1610 note) is amended 
by striking ``section 1605(a)(7)'' and inserting ``section 1605A or 
1605(a)(7) (as such section was in effect on January 27, 2008)''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the enactment of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 110-181; 122 Stat. 
3) and shall apply with respect to--
            (1) any judgment pursuant to section 1605A of title 28, 
        United States Code, or section 1605(a)(7) of such Code (as such 
        section was in effect on January 27, 2008), that is entered 
        before, on, or after the date of the enactment of such Act; and
            (2) any attachment or other proceedings in aid of 
        execution, or execution, that is issued, obtained, or commenced 
        before, on, or after the date of the enactment of such Act, 
        upon a judgment described in paragraph (1).

Summary: States that the property interest of Iran in: (1) a blocked asset shall include an interest in property of any nature whatsoever, including any direct or indirect interest in securities or other financial assets immobilized or in any other manner held in book entry form and credited to a securities account in the United States, or in any funds transfers held in a U.S. financial institution; (2) securities or other financial assets immobilized or in any other manner held in book entry form and credited to a securities account in the United States shall be deemed to exist at every tier of securities intermediary necessary to hold an interest in any such securities or other financial assets; and (3) a funds transfer shall exist at any intermediary bank necessary to complete such funds transfer.

States that property of Iran shall be deemed to be property in the United States of Iran if that property is: (1) an interest, held for Iran's benefit or for the benefit of any securities intermediary that directly or indirectly holds the interest for Iran's benefit, in securities or other financial assets that are represented by certificates or are in other physical form and are immobilized, custodized, or held for safekeeping or any other reason in the United States; or (2) an interest in securities or other financial assets held in book entry form or otherwise, and credited to a securities account in the United States by any securities intermediary directly or indirectly for Iran's benefit or for the benefit of any other securities intermediary that directly or indirectly holds the interest for Iran's benefit.

States that: (1) an interest in securities or other financial assets is held and credited to a securities account in the United States by a securities intermediary if the securities intermediary is located in the United States; and (2) ownership by Iran, or its central bank or monetary authority, of any property shall be deemed to be commercial activity in the United States and that property, including any interest in that property, shall be deemed not to be held for the central bank's or monetary authority's own account.

Revises provisions regarding exceptions to the immunity from attachment or execution of a foreign state's property in the United States.