22 U.S.C. § 1627 — Creation of special funds in Treasury

Page 409 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 1627 1953—Subsec. (b). Act Aug. 8, 1953, increased the amount deductible to cover expenses from 3 to 5 per- cent. Statutory Notes and Related Subsidiaries REFERENCES TO THIS SUBCHAPTER DEEMED TO INCLUDE SECTION 119 OF H.R. 2076 References to this subchapter deemed to include sec- tion 119 of H.R. 2076, see section 119(b) of H.R. 2076, as enacted into law by Pub. L. 104–91, set out as an Au- thority of Foreign Claims Settlement Commission note under section 1644 of this title. Executive Documents ABOLITION OF INTERNATIONAL CLAIMS COMMISSION AND TRANSFER OF FUNCTIONS International Claims Commission of the United States, including offices of its members, abolished and functions of Commission and of members, officers, and employees thereof transferred to Foreign Claims Set- tlement Commission of the United States by Reorg. Plan No. 1, of 1954, §§ 1, 2, 4, eff. July 1, 1954, 19 F.R. 3985, 68 Stat. 1279, set out as a note under section 1622 of this title. For provisions transferring Foreign Claims Settle- ment Commission of the United States as a separate agency within the Department of Justice, see section 1622a et seq. of this title. § 1627. Creation of special funds in Treasury (a) Credits to, and payment from funds There are created in the Treasury of the United States (1) a special fund to be known as the Yugoslav Claims Fund; and (2) such other special funds as may, in the discretion of the Secretary of the Treasury, be required, each to be a claims fund to be known by the name of the foreign government which has entered into a settlement agreement with the Government of the United States as described in subsection (a) of section 1623 of this title. There shall be cov- ered into the Treasury to the credit of the prop- er special fund all funds hereinafter specified. All payments authorized under section 1626 of this title shall be disbursed from the proper fund, as the case may be, and all amounts cov- ered into the Treasury to the credit of the afore- said funds are permanently appropriated for the making of the payments authorized by section 1626 of this title. (b) Credits to Yugoslav Claims Fund; credits to other funds The Secretary of the Treasury is authorized and directed to cover into— (1) the Yugoslav Claims Fund the sum of $17,000,000 being the amount paid by the Gov- ernment of the Federal People’s Republic of Yugoslavia pursuant to the Yugoslav Claims Agreement of 1948; (2) a special fund created for that purpose pursuant to subsection (a) of this section any amounts hereafter paid, in United States dol- lars, by a foreign government which has en- tered into a claims settlement agreement with the Government of the United States as de- scribed in subsection (a) of section 1623 of this title. (c) Payment of awards The Secretary of the Treasury is authorized and directed out of the sums covered, prior to July 24, 1968, into any of the funds pursuant to subsection (b) of this section, and after making the deduction provided for in section 1626(b)(1) of this title— (1) to make payments in full of the principal of awards of $1,000 or less, certified pursuant to section 1624 of this title; (2) to make payments of $1,000 on the prin- cipal of each award of more than $1,000 in prin- cipal amount, certified pursuant to section 1624 of this title; (3) to make additional payment of not to ex- ceed 25 per centum of the unpaid principal of awards in the principal amount of more than $1,000; (4) after completing the payments prescribed by paragraphs (2) and (3) of this subsection, to make payments, from time to time in ratable proportions, on account of the unpaid prin- cipal of all awards in the principal amount of more than $1,000, according to the proportions which the unpaid principal of such awards bear to the total amount in the fund available for distribution at the time such payments are made; and (5) after payment has been made of the prin- cipal amounts of all such awards, to make pro rata payments on account of accrued interest on such awards as bear interest. (d) Payment of balance to Yugoslav Government; certification of adjudication costs; finality of certification The Secretary of the Treasury, upon the con- currence of the Secretary of State, is authorized and directed, out of the sum covered into the Yugoslav Claims Fund pursuant to subsection (b) of this section, after completing the pay- ments of such funds pursuant to subsection (c) of this section, to make payment of the balance of any sum remaining in such fund to the Gov- ernment of the Federal People’s Republic of Yugoslavia to the extent required under article 1(c) of the Yugoslav Claims Agreement of 1948. The Secretary of State shall certify to the Sec- retary of the Treasury the total cost of adju- dication, not borne by the claimants, attrib- utable to the Yugoslav Claims Agreement of 1948. Such certification shall be final and con- clusive and shall not be subject to review by any other official, or department, agency, or estab- lishment of the United States. (e) Payments; priorities Except as provided in subsection (f), the Sec- retary of the Treasury is authorized and di- rected out of sums covered, subsequent to July 24, 1968, into any special fund created pursuant to this section to make payment on account of awards certified by the Commission pursuant to this subchapter with respect to claims included within the terms of a claims settlement agree- ment concluded between the Government of the United States and a foreign government as de- scribed in section 1623(a) of this title, as follows and in the following order of priority: (1) Payment in the amount of $1,000 or the principal amount of the award, whichever is less; (2) Thereafter, payments from time to time on account of the unpaid principal balance of each remaining award which shall bear to such Page 410 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 1627 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; and (3) Thereafter, payments from time to time on account of the unpaid balance of each award of interest which shall bear to such un- paid 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. (f) People’s Republic of China; claim payment priorities (1) 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 author- ized and directed to make payments on account of awards certified by the Commission pursuant to subchapter 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) Payment in the amount of $1,000 or the principal amount of the award, whichever is less. (B) Thereafter, except as provided in para- graph (2), to the extent there remain unpaid principal balances on awards, payments from time to time on account of the unpaid prin- cipal 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, payments 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 ag- gregate unpaid balance of interest of all such awards. (2)(A) For the purpose of computing the pay- ments 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 subchapter V shall be re- duced by the amount of Federal tax benefits de- rived 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 October 13, 1980. 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 Inter- nal Revenue Code of 1986, were decreased with respect to the loss or losses upon which the claim was based. The sum of the amounts which would otherwise be payable but for this para- graph which are not paid to any such claimant shall be aggregated, and the Secretary of the Treasury is authorized and directed to make payments out of such aggregated sums in ac- cordance with subparagraph (B). (B) To the extent that there remain unpaid principal balances on awards to claimants which were, on the date of nationalization or other taking of property, nonprofit organizations op- erated exclusively for the promotion of social welfare, religious, charitable, or educational purposes (after payments made to such non- profit organizations pursuant to subparagraphs (A) and (B) of paragraph (1) are taken into ac- count), the Secretary of the Treasury is author- ized and directed to make payments from time to time on account of the unpaid principal bal- ance of each remaining award to such nonprofit organizations which bear to such unpaid prin- cipal balance the same proportion as the total sums aggregated pursuant to subparagraph (A) at the times such payments are made bear to the aggregate unpaid principal balance of all such awards to nonprofit organizations. (g) Authority to invest and recover expenses from funds The Secretary of the Treasury is authorized and directed to invest the amounts held respec- tively in the ‘‘special funds’’ established by this section in public debt securities with maturities suitable for the needs of the separate accounts and bearing interest at rates determined by the Secretary, taking into consideration the aver- age market yield on outstanding marketable ob- ligations of the United States of comparable ma- turities. The interest earned on the amounts in each special fund shall be used to make pay- ments, in accordance with subsection (c), on awards payable from that special fund. (Mar. 10, 1950, ch. 54, title I, § 8, 64 Stat. 17; Aug. 9, 1955, ch. 645, § 1, 69 Stat. 562; Pub. L. 90–421, § 1(4), (5), July 24, 1968, 82 Stat. 420; Pub. L. 96–445, Oct. 13, 1980, 94 Stat. 1891; Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100–204, title I, § 142(a), Dec. 22, 1987, 101 Stat. 1350.) Editorial Notes REFERENCES IN TEXT The Internal Revenue Code of 1939, referred to in sub- sec. (f)(2)(A), was generally repealed by section 7851 of the Internal Revenue Code of 1954, Title 26. The Inter- nal Revenue Code of 1954 was redesignated the Internal Revenue Code of 1986 by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095. For table of comparisons of the 1939 Code to the 1986 Code, see Table I preceding section 1 of Title 26, Internal Revenue Code. See also section 7852(b) of Title 26, Internal Revenue Code, for provision that ref- erences in any other law to a provision of the 1939 Code, unless expressly incompatible with the intent thereof, shall be deemed a reference to the corresponding provi- sion of the 1986 Code. Chapter 1 of the Internal Revenue Code of 1939, re- ferred to in subsec. (f)(2)(A), was comprised of sections 1 to 482 of former Title 26, Internal Revenue Code. Sec- tion 14 of former Title 26 was repealed by act Oct. 20, 1951, ch. 521, title I, pt. II, § 121(g), 65 Stat. 469. Sections 34 and 185 of former Title 26 were repealed by act Feb. 25, 1944, ch. 63, title I, §§ 106(c)(2), 107(a), 58 Stat. 31. Sec- tions 264 and 363 of former Title 26 were repealed by act Oct. 21, 1942, ch. 619, title I, §§ 159(e), 170(a), 56 Stat. 860, 878. Sections 430 to 474 of former Title 26 were omitted, Page 411 TITLE 22—FOREIGN RELATIONS AND INTERCOURSE § 1631a and subsequently, along with the remaining sections of former Title 26 comprising chapter 1, except sections 143 and 144, were repealed by sections 7851(a)(1)(A) of Title 26, Internal Revenue Code. Sections 143 and 144 of former Title 26 were repealed by section 7851(a)(1)(B) of Title 26. Chapter 2A of the Internal Revenue Code of 1939, re- ferred to in subsec. (f)(2)(A), was comprised of sections 500 to 511 of former Title 26, Internal Revenue Code. Sections 500 to 511 were repealed by section 7851(a)(1)(A) of Title 26, Internal Revenue Code. Chapter 2B of the Internal Revenue Code of 1939, re- ferred to in subsec. (f)(2)(A), was comprised of sections 600 to 605 of former Title 26, Internal Revenue Code. Sections 600 to 605 were repealed by act Nov. 8, 1945, ch. 453, title II, § 202, 59 Stat. 574, eff. with respect to tax- able years ending June 30, 1946. Chapter 2D of the Internal Revenue Code of 1939, re- ferred to in subsec. (f)(2)(A), was comprised of sections 700 to 706 of former Title 26, Internal Revenue Code. Sections 700 to 716 were repealed by section 7851(a)(1)(A) of Title 26, Internal Revenue Code. Chapter 2E of the Internal Revenue Code of 1939, re- ferred to in subsec. (f)(2)(A), was comprised of sections 710 to 784 of former Title 26, Internal Revenue Code. Sections 710 to 736, 740, 742 to 744, 750, 751, 760, 761 and 780 to 784 were repealed by act Nov. 8, 1945, ch. 453, title I, § 122(a), 59 Stat. 568. Section 741 was repealed by act Oct. 21, 1942, ch. 619, title II, §§ 224(b), 228(b), 56 Stat. 920, 925. Section 752 was repealed by act Oct. 21, 1942, ch. 619, title II, § 229(a)(1), 56 Stat. 931, eff. as of Oct. 8, 1940. Subtitle A of the Internal Revenue Code of 1986, re- ferred to in subsec. (f)(2)(A), is subtitle A of act Aug. 16, 1954, ch. 736, 68A Stat. 4, which comprises Subtitle A (§ 1 et seq.) of Title 26, Internal Revenue Code. AMENDMENTS 1987—Subsec. (g). Pub. L. 100–204 added subsec. (g). 1986—Subsec. (f)(2)(A). Pub. L. 99–514 substituted ‘‘In- ternal Revenue Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’. 1980—Subsec. (e). Pub. L. 96–445, § 1(1), substituted ‘‘Except as provided in subsection (f), the Secretary of the Treasury’’ for ‘‘The Secretary of the Treasury’’. Subsec. (f). Pub. L. 96–445, § 1(2), added subsec. (f). 1968—Subsec. (c). Pub. L. 90–421, § 1(4), inserted ‘‘, prior to July 24, 1968,’’ after ‘‘the sums covered’’ and substituted ‘‘section 1626(b)(1) of this title’’ for ‘‘section 1626(b) of this title’’. Subsec. (e). Pub. L. 90–421, § 1(5), added subsec. (e). 1955—Act Aug. 9, 1955, amended credit to section by designating act Mar. 10, 1950, as ‘‘title I’’. Statutory Notes and Related Subsidiaries REFERENCES TO THIS SUBCHAPTER DEEMED TO INCLUDE SECTION 119 OF H.R. 2076 References to this subchapter deemed to include sec- tion 119 of H.R. 2076, see section 119(b) of H.R. 2076, as enacted into law by Pub. L. 104–91, set out as an Au- thority of Foreign Claims Settlement Commission note under section 1644 of this title. Executive Documents ABOLITION OF INTERNATIONAL CLAIMS COMMISSION AND TRANSFER OF FUNCTIONS International Claims Commission of the United States, including offices of its members, abolished and functions of Commission and of members, officers, and employees thereof transferred to Foreign Claims Set- tlement Commission of the United States by Reorg. Plan No. 1 of 1954, §§ 1, 2, 4, eff. July 1, 1954, 19 F.R. 3985, 68 Stat. 1279, set out as a note under section 1622 of this title. For provisions transferring Foreign Claims Settle- ment Commission of the United States as a separate agency within the Department of Justice, see section 1622a et seq. of this title. SUBCHAPTER II—VESTING AND LIQUIDA- TION OF BULGARIAN, HUNGARIAN, AND RUMANIAN PROPERTY § 1631. Definitions As used in this subchapter the term— (1) ‘‘Person’’ means a natural person, part- nership, association, other unincorporated body, corporation, or body politic. (2) ‘‘Property’’ means any property, right, or interest. (3) ‘‘Treaty of peace’’, with respect to a country, means the treaty of peace with that country signed at Paris, France, February 10, 1947, which came into force between that coun- try and the United States on September 15, 1947. (Mar. 10, 1950, ch. 54, title II, § 201, as added Aug. 9, 1955, ch. 645, § 3, 69 Stat. 562.) § 1631a. Property owned by Bulgaria, Hungary, and Rumania or any national thereof (a) Vesting of property; liquidation; disposition of net proceeds In accordance with article 25 of the treaty of peace with Bulgaria, article 29 of the treaty of peace with Hungary, and article 27 of the treaty of peace with Rumania, any property which was blocked in accordance with Executive Order 8389 of April 10, 1940, as amended, and remains blocked on August 9, 1955, and which, as of Sep- tember 15, 1947, was owned directly or indirectly by Bulgaria, Hungary, and Rumania or by any national thereof as defined in such Executive order, shall vest in such officer or agency as the President may from time to time designate and shall vest when, as, and upon such terms as the President or his designee shall direct. Such property shall be sold or otherwise liquidated as expeditiously as possible after vesting under such rules and regulations as the President or his designee may prescribe. The net proceeds re- maining upon completion of the administration and liquidation thereof, including the adjudica- tion of any suits or claims with respect thereto under sections 1631f and 1631g of this title, shall be covered into the Treasury. Notwithstanding the preceding provisions of this subsection, any such property determined by the President or his designee to be owned directly by a natural person shall not be vested under this subsection but shall remain blocked subject to release when, as, and upon such terms as the President or his designee may prescribe. If, at any time within one year from the date of the vesting of any property under this subsection, the Presi- dent or his designee shall determine that it was directly owned at the date of vesting by a nat- ural person, then the President or his designee shall divest such property and restore it to its blocked status prior to vesting, subject to re- lease when, as, and upon such terms as the President or his designee may prescribe, or if such property has been liquidated, shall divest the net proceeds thereof and carry them in blocked accounts with the Treasury, bearing no interest, in the name of the owner thereof at the date of vesting, subject to release when, as, and upon such terms as the President or his designee may prescribe.