A bill to amend the International Claims Settlement Act of 1949 to provide that the value of claims be based on the fair market value of the property taken.
PL 99-451 (H.R.5506), enacted 10/08/1986

100 STAT. 1138 
PUBLIC LAW 99-451—OCT. 8, 1986 
Public Law 99-451 
99th Congress 
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An Act 
Oct. 8, 1986 
To amend the International Claims Settlement Act of 1949 to provide that the value 
[H.R. 5506] 
of claims be based on the fair market value of the property taken. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. DETERMINATION OF VALUE OF CLAIMS. 
Securities. 
(a) FAIR MARKET VALUE.—Section 4(a) of the International Claims 
Settlement Act of 1949 (22 U.S.C. 1623(a)) is amended by amending 
the second sentence to read as follows: "In the decision of claims 
under this title, the Commission shall apply the following in the 
following order: 
"(1) The provisions of the applicable claims agreement as 
provided in this subsection. 
"(2) The applicable principles of international law, justice, 
and equity. In determining the value of a claim under inter-
national law, the Commission shall award the fair market value 
of the property as of the time of the taking by the foreign 
government involved (without regard to any action or event 
that occurs after the taking), except that the value of the claim 
shall not reflect any diminution in value attributable to actions 
which are carried out, or threats of action which are made, by 
the foreign government with respect to the property before the 
taking. Fair market value shall be ascertained in accordance 
with the method most appropriate to the property taken and 
equitable to the claimant, including— 
"(i) market value of outstanding equity securities; 
"(ii) replacement value; 
"(iii) going-concern value (which includes consideration of 
an enterprise's profitability); and 
"(iv) book value. 
In the case of any claim for losses in a service industry, the 
appropriate basis of valuation shall be presumed to be that 
referred to in clause (iii). For purposes of the preceding sen-
tence, the term 'service' means economic activity the output of 
which is other than tangible goods.", 
(b) APPLICABILITY.—Section 4 of the International Claims Settle-
ment Act of 1949 is amended by adding at the end the following: 
"(k) In exercising authority granted after the date of the enact-
ment of this subsection under this or any other Act, the Commis-
sion, in determining the value of claims of the Government of the 
United States or of nationals of the United States (as defined in this 
Act or such other Act) against any foreign government for losses 
arising from the nationalization or other taking of property, shall 
Supra. 
comply with the principles set forth in subsection (a)(2) of this 
section.". 
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PUBLIC LAW 99-451—OCT. 8, 1986 
100 STAT. 1139 
SEC. 2. EFFECTIVE DATE. 
22 USC 1623 
The amendments made by this Act shall apply to any claim 
pending on the date of the enactment of this Act and to any other 
claim determined after such date. 
Approved October 8, 1986. 
LEGISLATIVE HISTORY—H.R. 5506: 
HOUSE REPORTS: No. 99-837 (Comm. on Foreign Affairs). 
CONGRESSIONAL RECORD, Vol. 132 (1986): 
Sept. 22, considered and passed House. 
Sept. 24, considered and passed Senate.