50 U.S.C. § 4330 — Notice of claim; institution of suits; com-

Page 1091 TITLE 50—WAR AND NATIONAL DEFENSE § 4330 ration of one year from Aug. 23, 1954, for transfer of property to eligible persons, and declaring that filing of notice of claim would not bar payment of debt claims under section 4331 of this title. 1954—Subsec. (h). Act Aug. 23, 1954, added subsec. (h). 1952—Subsec. (a)(2)(D). Act June 6, 1952, increased from $5,000,000 to $9,000,000 the limitation on amount of property which may be returned to nationals. 1950—Subsec. (a)(2)(D). Act Sept. 29, 1950, clarified au- thority of Alien Property Custodian to return vested property to a person who possessed American citizen- ship at all times since Dec. 7, 1941, despite concurrent enemy citizenship and residence in enemy territory, and authorized return of vested property to American women who lost their citizenship solely because of marriage, and who have reacquired their citizenship prior to Sept. 29, 1950. 1947—Subsec. (a)(2). Act Aug. 5, 1947, provided that re- turns shall not be made to any owner, legal representa- tive, or successor in interest, of the Governments of Germany, Japan, Rumania, Bulgaria, or Hungary; or to corporations or associations organized under the laws of such countries; or to an individual voluntarily resi- dent in such countries at any time since Dec. 7, 1941; or to an individual who was at any time after Dec. 7, 1941, a citizen or subject of such country and present in the territory of such nation. 1946—Subsec. (a)(2)(C), (D). Act Aug. 8, 1946, inserted provisos in subdivs. (C) and (D). Statutory Notes and Related Subsidiaries CHANGE OF NAME Tax Court of the United States redesignated United States Tax Court pursuant to Pub. L. 91–172, title IX, § 951, Dec. 30, 1969, 83 Stat. 730. See section 7441 of Title 26, Internal Revenue Code. TRANSFER OF FUNCTIONS Renegotiation Board terminated and all property, in- cluding records, of Board transferred to Administrator of General Services on Mar. 31, 1979, pursuant to Pub. L. 95–431, title V, § 501, Oct. 10, 1978, 92 Stat. 1043. PURPOSE OF ACT AUGUST 5, 1947 Act Aug. 5, 1947, ch. 499, 61 Stat. 784, provided in part: ‘‘Whereas article 79 of the Treaty of Peace with Italy, signed at Paris on February 10, 1947, grants to the Al- lied and Associated Powers the right to seize and retain ‘all property rights and interests which on the coming into force of the present treaty are within its territory and belong to Italy or to Italian nationals, and to apply such property or the proceeds thereof to such purposes as it may desire, within the limits of its claims and those of its nationals against Italy or Italian nationals, including debts, other than claims fully satisfied under other articles of the present treaty’ and further pro- vides that ‘All Italian property, or the proceeds there- of, in excess of the amount of such claims, shall be re- turned’; and ‘‘Whereas, pursuant to article 79 of the treaty of peace, negotiations have been entered into between the Governments of the United States and of Italy looking toward an agreement under which, upon the return of property, formerly Italian, in the United States, Italy will place at the disposal of the United States funds to be used in meeting certain claims of nationals of the United States; and ‘‘Whereas, for the purpose of carrying out such agree- ment, it is desirable to authorize, in accordance with the procedures provided for in section 32 of the Trading With the Enemy Act of October 6, 1917 (40 Stat. 411), as amended [50 U.S.C. 4329], return to Italy or citizens or subjects of Italy, or corporations or associations orga- nized under the laws of Italy, of property vested in or transferred to the United States or its agencies; and ‘‘Whereas, for the purpose of aiding the revival of the Italian economy and establishing it on a self-sustaining basis, it is desirable that there be returned or trans- ferred to Italy those Italian vessels acquired by the United States after December 7, 1941, for use in the war effort and now owned by the United States and vessels of a total tonnage approximately equal to the tonnage of those Italian vessels seized by the United States after September 1, 1939, and lost while being employed in the United States war effort’’. RETURN OF ITALIAN PROPERTY Act Aug. 5, 1947, ch. 499, § 1, 61 Stat. 784, provided: ‘‘That the President, or such officer or agency as he may designate, is hereby authorized to return, in ac- cordance with the procedures provided for in section 32 of the Trading With the Enemy Act, as amended [50 U.S.C. 4329], any property or interest, or the net pro- ceeds thereof, which has been, since December 18, 1941, vested in or transferred to any officer or agency of the United States pursuant to the Trading With the Enemy Act, as amended [50 U.S.C. 4301 et seq.], and which im- mediately prior to such vesting or transfer was the property or interest of Italy or a citizen or subject of Italy, or a corporation or association organized under the laws of Italy.’’ TRANSFER OF VESSELS TO ITALIAN GOVERNMENT Act Aug. 5, 1947, ch. 499, § 4, 61 Stat. 786, provided: ‘‘The President is authorized upon such terms as he deems necessary (a) to transfer to the Government of Italy all vessels which were under Italian registry and flag on September 1, 1939, and were thereafter acquired by the United States and are now owned by the United States; and (b) with respect to any vessel under Italian registry and flag on September 1, 1939, and subse- quently seized in United States ports and thereafter lost while being employed in the United States war ef- fort, to transfer to the Government of Italy surplus merchant vessels of the United States of a total ton- nage approximately equal to the total tonnage of the Italian vessels lost: Provided, That no monetary com- pensation shall be paid either for the use by the United States or its agencies of former Italian vessels so ac- quired or seized or for the return or transfer of such vessels or substitute vessels.’’ Executive Documents TRANSFER OF FUNCTIONS Functions vested by law in Alien Property Custodian and Office of Alien Property Custodian transferred to Attorney General by Reorg. Plan No. 1 of 1947, § 101, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951, set out in the Ap- pendix to Title 5, Government Organization and Em- ployees. § 4330. Notice of claim; institution of suits; com- putation of time No return may be made pursuant to section 4309 or 4329 of this title unless notice of claim has been filed: (a) in the case of any property or interest acquired by the United States prior to December 18, 1941, by August 9, 1948; or (b) in the case of any property or interest acquired by the United States on or after December 18, 1941, not later than one year from February 9, 1954, or two years from the vesting of the property or inter- est in respect of which the claim is made, which- ever is later. No suit pursuant to section 4309 of this title may be instituted after April 30, 1949, or after the expiration of two years from the date of the seizure by or vesting in the Alien Property Custodian, as the case may be, of the property or interest in respect of which relief is sought, whichever is later, but in computing such two years there shall be excluded any pe- riod during which there was pending a suit or claim for return pursuant to section 4309 or 4329(a) of this title. Page 1092 TITLE 50—WAR AND NATIONAL DEFENSE § 4331 1 So in original. Probably should be ‘‘1938’’. (Oct. 6, 1917, ch. 106, § 33, as added Dec. 18, 1941, ch. 593, title III, § 305, as added Aug. 8, 1946, ch. 878, § 1, 60 Stat. 925; amended Aug. 5, 1947, ch. 499, § 3, 61 Stat. 786; July 1, 1948, ch. 794, 62 Stat. 1218; Feb. 9, 1954, ch. 4, 68 Stat. 7; Aug. 23, 1954, ch. 830, § 2, 68 Stat. 768; Pub. L. 87–846, title II, § 204(b), Oct. 22, 1962, 76 Stat. 1115.) Editorial Notes CODIFICATION Section was formerly classified to section 33 of the former Appendix to this title prior to editorial reclassi- fication and renumbering as this section. Prior to classification as section 33, section was for- merly classified to section 620 of the former Appendix to this title. AMENDMENTS 1962—Pub. L. 87–846 struck out before period at end of first sentence ‘‘; except that return may be made to successor organizations designated pursuant to section 4329(h) of this title if notice of claim is filed before the expiration of one year from the effective date of this Act’’. 1954—Act Aug. 23, 1954, inserted before period at end of first sentence ‘‘; except that return may be made to successor organizations designated pursuant to section 4329(h) of this title if notice of claim is filed before the expiration of one year from the effective date of this Act’’. Act Feb. 9, 1954, substituted ‘‘not later than one year from February 9, 1954’’ for ‘‘by April 30, 1949’’ in first sentence. 1948—Act July 1, 1948, amended section generally, ex- tending time for filing claims under section 4309 or 4329 of this title. 1947—Act Aug. 5, 1947, provided that notice of certain claims could be filed by Aug. 8, 1948, or that Italian no- tice of claim could be filed by July 31, 1949. Executive Documents TRANSFER OF FUNCTIONS Functions vested by law in Alien Property Custodian and Office of Alien Property Custodian transferred to Attorney General by Reorg. Plan No. 1 of 1947, § 101, eff. July 1, 1947, 12 F.R. 4534, 61 Stat. 951, set out in the Ap- pendix to Title 5, Government Organization and Em- ployees. § 4331. Payment of debts (a) Claims allowable; defenses Any property or interest vested in or trans- ferred to the Alien Property Custodian (other than any property or interest acquired by the United States prior to December 18, 1941), or the net proceeds thereof, shall be equitably applied by the Custodian in accordance with the provi- sions of this section to the payment of debts owed by the person who owned such property or interest immediately prior to its vesting in or transfer to the Alien Property Custodian. No debt claim shall be allowed under this section if it was not due and owing at the time of such vesting or transfer, or if it arose from any ac- tion or transactions prohibited by or pursuant to this chapter and not licensed or otherwise au- thorized pursuant thereto, or (except in the case of debt claims acquired by the Custodian) if it was at the time of such vesting or transfer due and owing to any person who has since the be- ginning of the war been convicted of violation of this chapter, as amended, sections 1 to 6 of the Criminal Code, title I of the Act of June 15, 1917 (ch. 30, 40 Stat. 217), as amended; the Act of April 20, 1918 (ch. 59, 40 Stat. 534), as amended; the Act of June 8, 1934 1 (ch. 327, 52 Stat. 631), as amended; the Act of January 12, 1938 (ch. 2, 52 Stat. 3); title I, Alien Registration Act, 1940 (ch. 439, 54 Stat. 670); the Act of October 17, 1940 (ch. 897, 54 Stat. 1201); or the Act of June 25, 1942 (ch. 447, 56 Stat. 390). Any defense to the payment of such claims which would have been available to the debtor shall be available to the Custodian, except that the period from and after the begin- ning of the war shall not be included for the pur- pose of determining the application of any stat- ute of limitations. Debt claims allowable here- under shall include only those of citizens of the United States or of the Philippine Islands; those of corporations organized under the laws of the United States or any State, Territory, or posses- sion thereof, or the District of Columbia or the Philippine Islands; those of other natural per- sons who are and have been since the beginning of the war residents of the United States and who have not during the war been interned or paroled pursuant to the Alien Enemy Act; and those acquired by the Custodian. Legal rep- resentatives (whether or not appointed by a court in the United States) or successors in in- terest by inheritance, devise, bequest, or oper- ation of law or debt claimants, other than per- sons who would themselves be disqualified here- under from allowance of a debt claim, shall be eligible for payment to the same extent as their principals or predecessors would have been. (b) Time limit for filing claims; extension; notice The Custodian shall fix a date or dates after which the filing of debt claims in respect of any or all debtors shall be barred, and may extend the time so fixed, and shall give at least sixty days’ notice thereof by publication in the Fed- eral Register. In no event shall the time extend beyond the expiration of two years from the date of the last vesting in or transfer to the Cus- todian of any property or interest of a debtor in respect of whose debts the date is fixed, or from August 8, 1946, whichever is later. No debt shall be paid prior to the expiration of one hundred and twenty days after publication of the first such notice in respect of the debtor, nor in any event shall any payment of a debt claim be made out of any property or interest or proceeds in respect of which a suit or proceeding pursuant to this chapter for return is pending and was in- stituted prior to the expiration of such one hun- dred and twenty days. (c) Examination of claims The Custodian shall examine the claims, and such evidence in respect thereof as may be pre- sented to him or as he may introduce into the record, and shall make a determination, with re- spect to each claim, of allowance or disallow- ance, in whole or in part. (d) Funds for debt payments Payment of debt claims shall be made only out of such money included in, or received as net proceeds from the sale, use, or other disposi- tion of, any property or interest owned by the