A bill to establish priorities in the payment of claims against the People's Republic of China.
PL 96-445 (H.R.6440), enacted 10/13/1980

PUBLIC LAW 96-445—OCT. 13, 1980 
94 STAT. 1891 
Public Law 96-445 
96th Congress 
An Act 
To establish priorities in the payment of claims against the People's Republic of 
China. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That section 8 of the 
International Claims Settlement Act of 1949 is amended— 
(1) in subsection (e), by striking out "The" after "(e)" and 
inserting in lieu thereof "Except as provided in subsection (0» 
the"; and 
(2) by adding at the end thereof the following: 
"(fKD Out of sums covered after May 11,1979, into the special fund 
created pursuant to this section to receive funds paid by the People's 
Republic of China, the Secretary of the Treasury is authorized and 
directed to make pajonents on account of awards certified by the 
Commission pursuant to title V with respect to claims included 
within the terms of the Agreement Between the Government of the 
United States of America and the Government of the People's 
Republic of China Concerning the Settlement of Claims, signed on 
May 11,1979, in the following order of priority: 
"(A) Pajonent in the amount of $1,000 or the principal amount 
of the award, whichever is less. 
"(B) Thereafter, except as provided in paragraph (2), to the 
extent there remain unpaid principal balances on awards, pay-
ments from time to time on account of the unpaid principal 
balance of each remaining award which bear to such unpaid 
principal balance the same proportion as the total amount 
available for distribution at the time such payments are made 
bears to the aggregate unpaid principal balance of all such 
awards. 
"(C) Thereafter, pajmaents from time to time on account of the 
unpaid balance of each award of interest which bear to such 
unpaid balance of interest the same proportion as the total 
amount available for distribution at the time such payments are 
made bears to the aggregate unpaid balance of interest of all 
such awards. 
"(2XA) For the purpose of computing the payments to be made 
under paragraph (1) to any claimant which was an incorporated 
business enterprise on the date of nationalization or other taking of 
property, the award certified by the Commission under title V shall 
be reduced by the amount of Federal tax benefits derived by such 
claimant on account of the losses upon which such claim was based, 
but in no case shall such payments be reduced below the amount paid 
to such claimant on account of such claim before the date of the 
enactment of this subsection. For purposes of this subparagraph, such 
Federal tax benefits shall be the amount by which the claimant's 
taxes in any prior taxable year or years under chapters 1, 2A, 2B, 2D, 
and 2E of the Internal Revenue Code of 1939, or subtitle A of the 
Internal Revenue Code of 1954, were decreased with respect to the 
Oct. 13, 1980 
[H.R. 6440] 
People's 
Republic 
of China, claim 
payment 
priorities. 
22 u s e 1627. 
22 u s e 1643. 
Federal tax 
benefits. 
53 Stat. 1, 
26 u s e note 
prec. tables. 
26 use 1. 
94 STAT. 1892 
PUBLIC LAW 96-445—OCT. 13, 1980 
loss or losses upon which the claim was based. The sum of the 
amounts which would otherwise be payable but for this paragraph 
which are not paid to any such claimant shall be aggregated, and the 
Secretary of tne Treasury is authorized and directed to make pay-
ments out of such aggregated sums in accordance with subparagraph 
(B). 
Nonprofit 
"(B) To the extent that there remain unpaid principal balances on 
organizations. 
awards to claimants which were, on the date of nationalization or 
other taking of property, nonprofit organizations operated exclu-
sively for the promotion of social welfare, religious, charitable, or 
educational purposes (after payments made to such nonprofit organi-
zations pursuant to subparagraphs (A) and (B) of paragraph (1) are 
taken into account), the Secretary of the Treasury is authorized and 
directed to make payments from time to time on account of the 
unpaid principal balance of each remaining award to such nonprofit 
organizations which bear to such unpaid principal balance the same 
proportion as the total sums aggregated pursuant to subpara-
graph (A) at the times such payments are made bear to the 
aggregate unpaid principal balance of all such awards to nonprofit 
organizations.". 
Approved October 13, 1980. 
LEGISLATIVE HISTORY: 
CONGRESSIONAL RECORD, Vol. 126 (1980): 
Sept. 30, considered and passed House. 
Oct. 1, considered and passed Senate.