Cites conditions for Federal payments. Mandates insurer participation in the Program.
Sets forth a transition period followed by an initial Program period (January 1, 2003, to December 31, 2005) during which insurers must make available: (1) coverage for insured losses in all property and casualty insurance policies; and (2) property and casualty insurance for insured losses that does not differ materially from coverage limitations applicable to losses from events other than acts of terrorism.
Directs the Secretary to promulgate regulations that apply this title to State residual market insurance entities and State workers' compensation funds.
States that the Federal share of compensation for insured losses of an insurer shall be 90 percent of the portion of such losses exceeding the insurer deductible required to be paid during the Program Year.
Prohibits duplicative compensation for insurance losses under any other Federal program.
Caps at $100 billion the annual aggregate insured losses for which either the Secretary or an insurer that has met its insurer deductible shall be liable. Directs the Secretary to determine the pro rata share of insured losses to be paid by each insurer that incurs insured losses under the Program.
Requires the Secretary to notify Congress if estimated or actual aggregate annual insured losses during the Program exceed $100 billion. States that Congress shall determine payment procedures and the source of payments for excess insured losses.
Grants the Secretary sole discretion to determine the time at which claims for insured losses or acts of terrorism become final. States that such determination is final (unless expressly provided) and not subject to judicial review.
Prescribes formulae and other requirements for the: (1) insurance marketplace aggregate retention amount; (2) mandatory recoupment amount of the Federal share; and (3) policyholder premium surcharge for terrorism loss risk-spreading premiums (including certain adjustments for urban and smaller commercial and rural areas and different lines of insurance).
Authorizes the Secretary to apply this title to other types of captive insurers and self-insurance arrangements by municipalities and other entities (such as workers' compensation self-insurance programs and State workers' compensation reinsurance pools), but only if such application is determined before the occurrence of an act of terrorism in which the entity incurs an insured loss and all provisions of this title are applied comparably to such entities.
Provides that this title neither prevents nor limits insurers from obtaining reinsurance coverage for insurer deductibles or insured losses, nor does obtaining such coverage affect the calculation of deductibles or retentions.
Prohibits the combined amount of Federal financial assistance and reinsurance proceeds from exceeding the aggregate amount of the insurer's insured losses for specified periods.
Directs the Secretary to study: (1) whether adequate and affordable catastrophe reinsurance for acts of terrorism is available to issuers of group life insurance, and the extent to which the threat of terrorism reduces the availability of group life insurance for consumers; and (2) the potential effects of acts of terrorism on the availability of life insurance and other lines of insurance coverage, including personal lines.
(Sec. 104) Cites the powers and authorities granted to the Secretary for Program implementation, including authority to assess a civil monetary penalty against any insurer for violation of this title.
Makes appropriations for Federal payments and administration expenses under the Program.
(Sec. 105) Preempts and nullifies any pre-existing terrorism exclusion clause in a property and casualty insurance contract (including a State-approved contract) to the extent that it excludes losses that would otherwise be insured losses. Allows reinstatement of such exclusion, however, upon an affirmative written authorization from the insured, or upon the insured's failure to pay an increased premium for terrorism coverage despite due notice from the insurer.
(Sec. 106) Preserves the jurisdiction or regulatory authority of the State insurance commissioner (or any State agency or office performing like functions over any insurer), except as specifically provided in this title.
(Sec. 107) Declares that a Federal cause of action is the exclusive cause of action and remedy for claims for property damage, personal injury, or death arising out of, or resulting from an act of terrorism (thus preempting a State cause of action).
(Sec. 108) Sunsets the Program on December 31, 2005.
Directs the Secretary to study and report to Congress on: (1) Program effectiveness and the likely capacity of the property and casualty insurance industry to offer terrorism risk insurance after Program termination; and (2) the availability and affordability of such insurance for various policyholders, including railroads, trucking, and public transit.
Title II: Treatment of Terrorist Assets - (Sec. 201) Subjects to execution or attachment in aid of execution the blocked assets of terrorists (including terrorist organizations and state sponsors of terrorism) in order to satisfy a judgment on a claim based upon an act of terrorism, to the extent that the parties have been adjudged liable for compensatory damages.
Permits a Presidential waiver (with certain exceptions) of such attachment against property subject to the Vienna Convention on Diplomatic Relations, or the Vienna Convention on Consular Relations, after the President determines on an asset-by-asset basis that it is necessary in the national security interest.
Amends the Victims of Trafficking and Violence Protection Act of 2000 to: (1) revise the time frame under which certain claimants who filed suit are considered eligible for payment in connection with certain anti-terrorism judgments against Iran or Cuba; (2) prescribe guidelines for the distribution of account balances and proceeds inadequate to satisfy the full amount of compensatory awards against Iran; and (3) authorize the Secretary to promulgate guidelines for establishing claims of a right to payment.
Title III: Federal Reserve Board Provisions - (Sec. 301) Amends the Federal Reserve Act to state that certain actions that currently require the affirmative vote of five members of the Board of Governors of the Federal Reserve System may nevertheless be taken upon the unanimous vote of all members then in office if fewer than five.
Authorizes the Board to take action upon the unanimous vote of all available members then in office with respect to discounts for individuals, partnerships, and corporations, if at least two members are available, all available members participate in the action and unanimously determine that: (1) unusual and exigent circumstances exist and the borrower is unable to secure adequate credit accommodations from other sources; (2) action on the matter is necessary to prevent, correct, or mitigate serious harm to the economy or the stability of the financial system of the United States; (3) the other Board members have not been able to be contacted and action is required before the number of Board members otherwise required to vote on the matter can be contacted; and (4) any credit extended by a Federal reserve bank pursuant to such action is payable upon demand of the Board.
Mandates Board documentation of such determinations.
[107th Congress Public Law 297]
[From the U.S. Government Publishing Office]
<DOC>
[DOCID: f:publ297.107]
[[Page 2321]]
TERRORISM RISK INSURANCE ACT OF 2002
[[Page 116 STAT. 2322]]
Public Law 107-297
107th Congress
An Act
To ensure the continued financial capacity of insurers to provide
coverage for risks from terrorism. <<NOTE: Nov. 26, 2002 - [H.R.
3210]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress <<NOTE: Terrorism Risk Insurance
Act of 2002.>> assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short <<NOTE: 15 USC 6701 note.>> Title.--This Act may be cited
as the ``Terrorism Risk Insurance Act of 2002''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--TERRORISM INSURANCE PROGRAM
Sec. 101. Congressional findings and purpose.
Sec. 102. Definitions.
Sec. 103. Terrorism Insurance Program.
Sec. 104. General authority and administration of claims.
Sec. 105. Preemption and nullification of pre-existing terrorism
exclusions.
Sec. 106. Preservation provisions.
Sec. 107. Litigation management.
Sec. 108. Termination of Program.
TITLE II--TREATMENT OF TERRORIST ASSETS
Sec. 201. Satisfaction of judgments from blocked assets of terrorists,
terrorist organizations, and State sponsors of terrorism.
TITLE III--FEDERAL RESERVE BOARD PROVISIONS
Sec. 301. Certain authority of the Board of Governors of the Federal
Reserve System.
TITLE I--TERRORISM <<NOTE: 15 USC 6701 note.>> INSURANCE PROGRAM
SEC. 101. CONGRESSIONAL FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds that--
(1) the ability of businesses and individuals to obtain
property and casualty insurance at reasonable and predictable
prices, in order to spread the risk of both routine and
catastrophic loss, is critical to economic growth, urban
development, and the construction and maintenance of public and
private housing, as well as to the promotion of United States
exports and foreign trade in an increasingly interconnected
world;
(2) property and casualty insurance firms are important
financial institutions, the products of which allow
mutualization of risk and the efficient use of financial
resources and enhance
[[Page 116 STAT. 2323]]
the ability of the economy to maintain stability, while
responding to a variety of economic, political, environmental,
and other risks with a minimum of disruption;
(3) the ability of the insurance industry to cover the
unprecedented financial risks presented by potential acts of
terrorism in the United States can be a major factor in the
recovery from terrorist attacks, while maintaining the stability
of the economy;
(4) widespread financial market uncertainties have arisen
following the terrorist attacks of September 11, 2001, including
the absence of information from which financial institutions can
make statistically valid estimates of the probability and cost
of future terrorist events, and therefore the size, funding, and
allocation of the risk of loss caused by such acts of terrorism;
(5) a decision by property and casualty insurers to deal
with such uncertainties, either by terminating property and
casualty coverage for losses arising from terrorist events, or
by radically escalating premium coverage to compensate for risks
of loss that are not readily predictable, could seriously hamper
ongoing and planned construction, property acquisition, and
other business projects, generate a dramatic increase in rents,
and otherwise suppress economic activity; and
(6) the United States Government should provide temporary
financial compensation to insured parties, contributing to the
stabilization of the United States economy in a time of national
crisis, while the financial services industry develops the
systems, mechanisms, products, and programs necessary to create
a viable financial services market for private terrorism risk
insurance.
(b) Purpose.--The purpose of this title is to establish a temporary
Federal program that provides for a transparent system of shared public
and private compensation for insured losses resulting from acts of
terrorism, in order to--
(1) protect consumers by addressing market disruptions and
ensure the continued widespread availability and affordability
of property and casualty insurance for terrorism risk; and
(2) allow for a transitional period for the private markets
to stabilize, resume pricing of such insurance, and build
capacity to absorb any future losses, while preserving State
insurance regulation and consumer protections.
SEC. 102. DEFINITIONS.
In this title, the following definitions shall apply:
(1) Act of terrorism.--
(A) Certification.--The term ``act of terrorism''
means any act that is certified by the Secretary, in
concurrence with the Secretary of State, and the
Attorney General of the United States--
(i) to be an act of terrorism;
(ii) to be a violent act or an act that is
dangerous to--
(I) human life;
(II) property; or
(III) infrastructure;
[[Page 116 STAT. 2324]]
(iii) to have resulted in damage within the
United States, or outside of the United States in
the case of--
(I) an air carrier or vessel
described in paragraph (5)(B); or
(II) the premises of a United States
mission; and
(iv) to have been committed by an individual
or individuals acting on behalf of any foreign
person or foreign interest, as part of an effort
to coerce the civilian population of the United
States or to influence the policy or affect the
conduct of the United States Government by
coercion.
(B) Limitation.--No act shall be certified by the
Secretary as an act of terrorism if--
(i) the act is committed as part of the course
of a war declared by the Congress, except that
this clause shall not apply with respect to any
coverage for workers' compensation; or
(ii) property and casualty insurance losses
resulting from the act, in the aggregate, do not
exceed $5,000,000.
(C) Determinations final.--Any certification of, or
determination not to certify, an act as an act of
terrorism under this paragraph shall be final, and shall
not be subject to judicial review.
(D) Nondelegation.--The Secretary may not delegate
or designate to any other officer, employee, or person,
any determination under this paragraph of whether,
during the effective period of the Program, an act of
terrorism has occurred.
(2) Affiliate.--The term ``affiliate'' means, with respect
to an insurer, any entity that controls, is controlled by, or is
under common control with the insurer.
(3) Control.--An entity has ``control'' over another entity,
if--
(A) the entity directly or indirectly or acting
through 1 or more other persons owns, controls, or has
power to vote 25 percent or more of any class of voting
securities of the other entity;
(B) the entity controls in any manner the election
of a majority of the directors or trustees of the other
entity; or
(C) the Secretary determines, after notice and
opportunity for hearing, that the entity directly or
indirectly exercises a controlling influence over the
management or policies of the other entity.
(4) Direct earned premium.--The term ``direct earned
premium'' means a direct earned premium for property and
casualty insurance issued by any insurer for insurance against
losses occurring at the locations described in subparagraphs (A)
and (B) of paragraph (5).
(5) Insured loss.--The term ``insured loss'' means any loss
resulting from an act of terrorism (including an act of war, in
the case of workers' compensation) that is covered by primary or
excess property and casualty insurance issued by an insurer if
such loss--
[[Page 116 STAT. 2325]]
(A) occurs within the United States; or
(B) occurs to an air carrier (as defined in section
40102 of title 49, United States Code), to a United
States flag vessel (or a vessel based principally in the
United States, on which United States income tax is paid
and whose insurance coverage is subject to regulation in
the United States), regardless of where the loss occurs,
or at the premises of any United States mission.
(6) Insurer.--The term ``insurer'' means any entity,
including any affiliate thereof--
(A) that is--
(i) licensed or admitted to engage in the
business of providing primary or excess insurance
in any State;
(ii) not licensed or admitted as described in
clause (i), if it is an eligible surplus line
carrier listed on the Quarterly Listing of Alien
Insurers of the NAIC, or any successor thereto;
(iii) approved for the purpose of offering
property and casualty insurance by a Federal
agency in connection with maritime, energy, or
aviation activity;
(iv) a State residual market insurance entity
or State workers' compensation fund; or
(v) any other entity described in section
103(f), to the extent provided in the rules of the
Secretary issued under section 103(f);
(B) that receives direct earned premiums for any
type of commercial property and casualty insurance
coverage, other than in the case of entities described
in sections 103(d) and 103(f); and
(C) that meets any other criteria that the Secretary
may reasonably prescribe.
(7) Insurer deductible.--The term ``insurer deductible''
means--
(A) for the Transition Period, the value of an
insurer's direct earned premiums over the calendar year
immediately preceding the date of enactment of this Act,
multiplied by 1 percent;
(B) for Program Year 1, the value of an insurer's
direct earned premiums over the calendar year
immediately preceding Program Year 1, multiplied by 7
percent;
(C) for Program Year 2, the value of an insurer's
direct earned premiums over the calendar year
immediately preceding Program Year 2, multiplied by 10
percent;
(D) for Program Year 3, the value of an insurer's
direct earned premiums over the calendar year
immediately preceding Program Year 3, multiplied by 15
percent; and
(E) notwithstanding subparagraphs (A) through (D),
for the Transition Period, Program Year 1, Program Year
2, or Program Year 3, if an insurer has not had a full
year of operations during the calendar year immediately
preceding such Period or Program Year, such portion of
the direct earned premiums of the insurer as the
Secretary determines appropriate, subject to appropriate
methodologies established by the Secretary for measuring
such direct earned premiums.
(8) NAIC.--The term ``NAIC'' means the National Association
of Insurance Commissioners.
[[Page 116 STAT. 2326]]
(9) Person.--The term ``person'' means any individual,
business or nonprofit entity (including those organized in the
form of a partnership, limited liability company, corporation,
or association), trust or estate, or a State or political
subdivision of a State or other governmental unit.
(10) Program.--The term ``Program'' means the Terrorism
Insurance Program established by this title.
(11) Program years.--
(A) Transition period.--The term ``Transition
Period'' means the period beginning on the date of
enactment of this Act and ending on December 31, 2002.
(B) Program year 1.--The term ``Program Year 1''
means the period beginning on January 1, 2003 and ending
on December 31, 2003.
(C) Program year 2.--The term ``Program Year 2''
means the period beginning on January 1, 2004 and ending
on December 31, 2004.
(D) Program year 3.--The term ``Program Year 3''
means the period beginning on January 1, 2005 and ending
on December 31, 2005.
(12) Property and casualty insurance.--The term ``property
and casualty insurance''--
(A) means commercial lines of property and casualty
insurance, including excess insurance, workers'
compensation insurance, and surety insurance; and
(B) does not include--
(i) Federal crop insurance issued or reinsured
under the Federal Crop Insurance Act (7 U.S.C.
1501 et seq.), or any other type of crop or
livestock insurance that is privately issued or
reinsured;
(ii) private mortgage insurance (as that term
is defined in section 2 of the Homeowners
Protection Act of 1998 (12 U.S.C. 4901)) or title
insurance;
(iii) financial guaranty insurance issued by
monoline financial guaranty insurance
corporations;
(iv) insurance for medical malpractice;
(v) health or life insurance, including group
life insurance;
(vi) flood insurance provided under the
National Flood Insurance Act of 1968 (42 U.S.C.
4001 et seq.); or
(vii) reinsurance or retrocessional
reinsurance.
(13) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(14) State.--The term ``State'' means any State of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of the Northern Mariana Islands,
American Samoa, Guam, each of the United States Virgin Islands,
and any territory or possession of the United States.
(15) United states.--The term ``United States'' means the
several States, and includes the territorial sea and the
continental shelf of the United States, as those terms are
defined in the Violent Crime Control and Law Enforcement Act of
1994 (18 U.S.C. 2280, 2281).
[[Page 116 STAT. 2327]]
(16) Rule of construction for dates.--With respect to any
reference to a date in this title, such day shall be construed--
(A) to begin at 12:01 a.m. on that date; and
(B) to end at midnight on that date.
SEC. 103. TERRORISM INSURANCE PROGRAM.
(a) Establishment of Program.--
(1) In general.--There is established in the Department of
the Treasury the Terrorism Insurance Program.
(2) Authority of the secretary.--Notwithstanding any other
provision of State or Federal law, the Secretary shall
administer the Program, and shall pay the Federal share of
compensation for insured losses in accordance with subsection
(e).
(3) Mandatory participation.--Each entity that meets the
definition of an insurer under this title shall participate in
the Program.
(b) Conditions for Federal Payments.--No payment may be made by the
Secretary under this section with respect to an insured loss that is
covered by an insurer, unless--
(1) the person that suffers the insured loss, or a person
acting on behalf of that person, files a claim with the insurer;
(2) the insurer provides clear and conspicuous disclosure to
the policyholder of the premium charged for insured losses
covered by the Program and the Federal share of compensation for
insured losses under the Program--
(A) <<NOTE: Deadline.>> in the case of any policy
that is issued before the date of enactment of this Act,
not later than 90 days after that date of enactment;
(B) in the case of any policy that is issued within
90 days of the date of enactment of this Act, at the
time of offer, purchase, and renewal of the policy; and
(C) in the case of any policy that is issued more
than 90 days after the date of enactment of this Act, on
a separate line item in the policy, at the time of
offer, purchase, and renewal of the policy;
(3) the insurer processes the claim for the insured loss in
accordance with appropriate business practices, and any
reasonable procedures that the Secretary may prescribe; and
(4) the insurer submits to the Secretary, in accordance with
such reasonable procedures as the Secretary may establish--
(A) a claim for payment of the Federal share of
compensation for insured losses under the Program;
(B) written certification--
(i) of the underlying claim; and
(ii) of all payments made for insured losses;
and
(C) certification of its compliance with the
provisions of this subsection.
(c) Mandatory Availability.--
(1) Initial program periods.--During the period beginning on
the first day of the Transition Period and ending on the last
day of Program Year 2, each entity that meets the definition of
an insurer under section 102--
[[Page 116 STAT. 2328]]
(A) shall make available, in all of its property and
casualty insurance policies, coverage for insured
losses; and
(B) shall make available property and casualty
insurance coverage for insured losses that does not
differ materially from the terms, amounts, and other
coverage limitations applicable to losses arising from
events other than acts of terrorism.
(2) Program <<NOTE: Deadline.>> year 3.--Not later than
September 1, 2004, the Secretary shall, based on the factors
referred to in section 108(d)(1), determine whether the
provisions of subparagraphs (A) and (B) of paragraph (1) should
be extended through Program Year 3.
(d) State Residual Market Insurance Entities.--
(1) In <<NOTE: Regulations.>> general.--The Secretary shall
issue regulations, as soon as practicable after the date of
enactment of this Act, that apply the provisions of this title
to State residual market insurance entities and State workers'
compensation funds.
(2) Treatment of certain entities.--For purposes of the
regulations issued pursuant to paragraph (1)--
(A) a State residual market insurance entity that
does not share its profits and losses with private
sector insurers shall be treated as a separate insurer;
and
(B) a State residual market insurance entity that
shares its profits and losses with private sector
insurers shall not be treated as a separate insurer, and
shall report to each private sector insurance
participant its share of the insured losses of the
entity, which shall be included in each private sector
insurer's insured losses.
(3) Treatment of participation in certain entities.--Any
insurer that participates in sharing profits and losses of a
State residual market insurance entity shall include in its
calculations of premiums any premiums distributed to the insurer
by the State residual market insurance entity.
(e) Insured Loss Shared Compensation.--
(1) Federal share.--
(A) In general.--The Federal share of compensation
under the Program to be paid by the Secretary for
insured losses of an insurer during the Transition
Period and each Program Year shall be equal to 90
percent of that portion of the amount of such insured
losses that exceeds the applicable insurer deductible
required to be paid during such Transition Period or
such Program Year.
(B) Prohibition on duplicative compensation.--The
Federal share of compensation for insured losses under
the Program shall be reduced by the amount of
compensation provided by the Federal Government to any
person under any other Federal program for those insured
losses.
(2) Cap on annual liability.--
(A) In general.--Notwithstanding paragraph (1) or
any other provision of Federal or State law, if the
aggregate insured losses exceed $100,000,000,000, during
the period beginning on the first day of the Transition
Period and ending on the last day of Program Year 1, or
during Program Year 2 or Program Year 3 (until such time
as the Congress may act otherwise with respect to such
losses)--
[[Page 116 STAT. 2329]]
(i) the Secretary shall not make any payment
under this title for any portion of the amount of
such losses that exceeds $100,000,000,000; and
(ii) no insurer that has met its insurer
deductible shall be liable for the payment of any
portion of that amount that exceeds
$100,000,000,000.
(B) Insurer share.--For purposes of subparagraph
(A), the Secretary shall determine the pro rata share of
insured losses to be paid by each insurer that incurs
insured losses under the Program.
(3) Notice to congress.--The Secretary shall notify the
Congress if estimated or actual aggregate insured losses exceed
$100,000,000,000 during the period beginning on the first day of
the Transition Period and ending on the last day of Program Year
1, or during Program Year 2 or Program Year 3, and the Congress
shall determine the procedures for and the source of any
payments for such excess insured losses.
(4) Final netting.--The Secretary shall have sole discretion
to determine the time at which claims relating to any insured
loss or act of terrorism shall become final.
(5) Determinations final.--Any determination of the
Secretary under this subsection shall be final, unless expressly
provided, and shall not be subject to judicial review.
(6) Insurance marketplace aggregate retention amount.--For
purposes of paragraph (7), the insurance marketplace aggregate
retention amount shall be--
(A) for the period beginning on the first day of the
Transition Period and ending on the last day of Program
Year 1, the lesser of--
(i) $10,000,000,000; and
(ii) the aggregate amount, for all insurers,
of insured losses during such period;
(B) for Program Year 2, the lesser of--
(i) $12,500,000,000; and
(ii) the aggregate amount, for all insurers,
of insured losses during such Program Year; and
(C) for Program Year 3, the lesser of--
(i) $15,000,000,000; and
(ii) the aggregate amount, for all insurers,
of insured losses during such Program Year.
(7) Recoupment of federal share.--
(A) Mandatory recoupment amount.--For purposes of
this paragraph, the mandatory recoupment amount for each
of the periods referred to in subparagraphs (A), (B),
and (C) of paragraph (6) shall be the difference
between--
(i) the insurance marketplace aggregate
retention amount under paragraph (6) for such
period; and
(ii) the aggregate amount, for all insurers,
of insured losses during such period that are not
compensated by the Federal Government because such
losses--
(I) are within the insurer
deductible for the insurer subject to
the losses; or
(II) are within the portion of
losses of the insurer that exceed the
insurer deductible, but are not
compensated pursuant to paragraph (1).
[[Page 116 STAT. 2330]]
(B) No mandatory recoupment if uncompensated losses
exceed insurance marketplace retention.--Notwithstanding
subparagraph (A), if the aggregate amount of
uncompensated insured losses referred to in clause (ii)
of such subparagraph for any period referred to in
subparagraph (A), (B), or (C) of paragraph (6) is
greater than the insurance marketplace aggregate
retention amount under paragraph (6) for such period,
the mandatory recoupment amount shall be $0.
(C) Mandatory establishment of surcharges to recoup
mandatory recoupment amount.--The Secretary shall
collect, for repayment of the Federal financial
assistance provided in connection with all acts of
terrorism (or acts of war, in the case of workers
compensation) occurring during any of the periods
referred to in subparagraph (A), (B), or (C) of
paragraph (6), terrorism loss risk-spreading premiums in
an amount equal to any mandatory recoupment amount for
such period.
(D) Discretionary recoupment of remainder of
financial assistance.--To the extent that the amount of
Federal financial assistance provided exceeds any
mandatory recoupment amount, the Secretary may recoup,
through terrorism loss risk-spreading premiums, such
additional amounts that the Secretary believes can be
recouped, based on--
(i) the ultimate costs to taxpayers of no
additional recoupment;
(ii) the economic conditions in the commercial
marketplace, including the capitalization,
profitability, and investment returns of the
insurance industry and the current cycle of the
insurance markets;
(iii) the affordability of commercial
insurance for small- and medium-sized businesses;
and
(iv) such other factors as the Secretary
considers appropriate.
(8) Policy surcharge for terrorism loss risk-spreading
premiums.--
(A) Policyholder premium.--Any amount established by
the Secretary as a terrorism loss risk-spreading premium
shall--
(i) be imposed as a policyholder premium
surcharge on property and casualty insurance
policies in force after the date of such
establishment;
(ii) begin with such period of coverage during
the year as the Secretary determines appropriate;
and
(iii) be based on a percentage of the premium
amount charged for property and casualty insurance
coverage under the policy.
(B) Collection.--The Secretary shall provide for
insurers to collect terrorism loss risk-spreading
premiums and remit such amounts collected to the
Secretary.
(C) Percentage limitation.--A terrorism loss risk-
spreading premium (including any additional amount
included in such premium on a discretionary basis
pursuant to paragraph (7)(D)) may not exceed, on an
annual basis, the amount equal to 3 percent of the
premium charged
[[Page 116 STAT. 2331]]
for property and casualty insurance coverage under the
policy.
(D) Adjustment for urban and smaller commercial and
rural areas and different lines of insurance.--
(i) Adjustments.--In determining the method
and manner of imposing terrorism loss risk-
spreading premiums, including the amount of such
premiums, the Secretary shall take into
consideration--
(I) the economic impact on
commercial centers of urban areas,
including the effect on commercial rents
and commercial insurance premiums,
particularly rents and premiums charged
to small businesses, and the
availability of lease space and
commercial insurance within urban areas;
(II) the risk factors related to
rural areas and smaller commercial
centers, including the potential
exposure to loss and the likely
magnitude of such loss, as well as any
resulting cross-subsidization that might
result; and
(III) the various exposures to
terrorism risk for different lines of
insurance.
(ii) Recoupment of adjustments.--Any mandatory
recoupment amounts not collected by the Secretary
because of adjustments under this subparagraph
shall be recouped through additional terrorism
loss risk-spreading premiums.
(E) Timing of premiums.--The Secretary may adjust
the timing of terrorism loss risk-spreading premiums to
provide for equivalent application of the provisions of
this title to policies that are not based on a calendar
year, or to apply such provisions on a daily, monthly,
or quarterly basis, as appropriate.
(f) Captive Insurers and Other Self-Insurance Arrangements.--The
Secretary may, in consultation with the NAIC or the appropriate State
regulatory authority, apply the provisions of this title, as
appropriate, to other classes or types of captive insurers and other
self-insurance arrangements by municipalities and other entities (such
as workers' compensation self-insurance programs and State workers'
compensation reinsurance pools), but only if such application is
determined before the occurrence of an act of terrorism in which such an
entity incurs an insured loss and all of the provisions of this title
are applied comparably to such entities.
(g) Reinsurance to Cover Exposure.--
(1) Obtaining coverage.--This title may not be construed to
limit or prevent insurers from obtaining reinsurance coverage
for insurer deductibles or insured losses retained by insurers
pursuant to this section, nor shall the obtaining of such
coverage affect the calculation of such deductibles or
retentions.
(2) Limitation on financial assistance.--The amount of
financial assistance provided pursuant to this section shall not
be reduced by reinsurance paid or payable to an insurer from
other sources, except that recoveries from such other sources,
taken together with financial assistance for the Transition
Period or a Program Year provided pursuant to this section, may
not exceed the aggregate amount of the insurer's insured
[[Page 116 STAT. 2332]]
losses for such period. If such recoveries and financial
assistance for the Transition Period or a Program Year exceed
such aggregate amount of insured losses for that period and
there is no agreement between the insurer and any reinsurer to
the contrary, an amount in excess of such aggregate insured
losses shall be returned to the Secretary.
(h) Group Life Insurance Study.--
(1) Study.--The Secretary shall study, on an expedited
basis, whether adequate and affordable catastrophe reinsurance
for acts of terrorism is available to life insurers in the
United States that issue group life insurance, and the extent to
which the threat of terrorism is reducing the availability of
group life insurance coverage for consumers in the United
States.
(2) Conditional Coverage.--To the extent that the Secretary
determines that such coverage is not or will not be reasonably
available to both such insurers and consumers, the Secretary
shall, in consultation with the NAIC--
(A) apply the provisions of this title, as
appropriate, to providers of group life insurance; and
(B) provide such restrictions, limitations, or
conditions with respect to any financial assistance
provided that the Secretary deems appropriate, based on
the study under paragraph (1).
(i) Study and Report.--
(1) Study.--The Secretary, after consultation with the NAIC,
representatives of the insurance industry, and other experts in
the insurance field, shall conduct a study of the potential
effects of acts of terrorism on the availability of life
insurance and other lines of insurance coverage, including
personal lines.
(2) Report.--Not <<NOTE: Deadline.>> later than 9 months
after the date of enactment of this Act, the Secretary shall
submit a report to the Congress on the results of the study
conducted under paragraph (1).
SEC. 104. GENERAL AUTHORITY AND ADMINISTRATION OF CLAIMS.
(a) General Authority.--The Secretary shall have the powers and
authorities necessary to carry out the Program, including authority--
(1) to investigate and audit all claims under the Program;
and
(2) <<NOTE: Regulations.>> to prescribe regulations and
procedures to effectively administer and implement the Program,
and to ensure that all insurers and self-insured entities that
participate in the Program are treated comparably under the
Program.
(b) Interim Rules and Procedures.--The Secretary may issue interim
final rules or procedures specifying the manner in which--
(1) insurers may file and certify claims under the Program;
(2) the Federal share of compensation for insured losses
will be paid under the Program, including payments based on
estimates of or actual insured losses;
(3) the Secretary may, at any time, seek repayment from or
reimburse any insurer, based on estimates of insured losses
under the Program, to effectuate the insured loss sharing
provisions in section 103; and
(4) the Secretary will determine any final netting of
payments under the Program, including payments owed to the
[[Page 116 STAT. 2333]]
Federal Government from any insurer and any Federal share of
compensation for insured losses owed to any insurer, to
effectuate the insured loss sharing provisions in section 103.
(c) Consultation.--The Secretary shall consult with the NAIC, as the
Secretary determines appropriate, concerning the Program.
(d) Contracts for Services.--The Secretary may employ persons or
contract for services as may be necessary to implement the Program.
(e) Civil Penalties.--
(1) In general.--The Secretary may assess a civil monetary
penalty in an amount not exceeding the amount under paragraph
(2) against any insurer that the Secretary determines, on the
record after opportunity for a hearing--
(A) has failed to charge, collect, or remit
terrorism loss risk-spreading premiums under section
103(e) in accordance with the requirements of, or
regulations issued under, this title;
(B) has intentionally provided to the Secretary
erroneous information regarding premium or loss amounts;
(C) submits to the Secretary fraudulent claims under
the Program for insured losses;
(D) has failed to provide the disclosures required
under subsection (f); or
(E) has otherwise failed to comply with the
provisions of, or the regulations issued under, this
title.
(2) Amount.--The amount under this paragraph is the greater
of $1,000,000 and, in the case of any failure to pay, charge,
collect, or remit amounts in accordance with this title or the
regulations issued under this title, such amount in dispute.
(3) Recovery of amount in dispute.--A penalty under this
subsection for any failure to pay, charge, collect, or remit
amounts in accordance with this title or the regulations under
this title shall be in addition to any such amounts recovered by
the Secretary.
(f) Submission of Premium Information.--
(1) In general.--The Secretary shall annually compile
information on the terrorism risk insurance premium rates of
insurers for the preceding year.
(2) Access to information.--To the extent that such
information is not otherwise available to the Secretary, the
Secretary may require each insurer to submit to the NAIC
terrorism risk insurance premium rates, as necessary to carry
out paragraph (1), and the NAIC shall make such information
available to the Secretary.
(3) Availability to congress.--The Secretary shall make
information compiled under this subsection available to the
Congress, upon request.
(g) Funding.--
(1) Federal payments.--There are hereby appropriated, out of
funds in the Treasury not otherwise appropriated, such sums as
may be necessary to pay the Federal share of compensation for
insured losses under the Program.
(2) Administrative expenses.--There are hereby appropriated,
out of funds in the Treasury not otherwise appropriated, such
sums as may be necessary to pay reasonable costs of
administering the Program.
[[Page 116 STAT. 2334]]
SEC. 105. PREEMPTION AND NULLIFICATION OF PRE-EXISTING TERRORISM
EXCLUSIONS.
(a) General Nullification.--Any terrorism exclusion in a contract
for property and casualty insurance that is in force on the date of
enactment of this Act shall be void to the extent that it excludes
losses that would otherwise be insured losses.
(b) General Preemption.--Any State approval of any terrorism
exclusion from a contract for property and casualty insurance that is in
force on the date of enactment of this Act, shall be void to the extent
that it excludes losses that would otherwise be insured losses.
(c) Reinstatement of Terrorism Exclusions.--Notwithstanding
subsections (a) and (b) or any provision of State law, an insurer may
reinstate a preexisting provision in a contract for property and
casualty insurance that is in force on the date of enactment of this Act
and that excludes coverage for an act of terrorism only--
(1) if the insurer has received a written statement from the
insured that affirmatively authorizes such reinstatement; or
(2) if--
(A) the insured fails to pay any increased premium
charged by the insurer for providing such terrorism
coverage; and
(B) the insurer provided notice, at least 30 days
before any such reinstatement, of--
(i) the increased premium for such terrorism
coverage; and
(ii) the rights of the insured with respect to
such coverage, including any date upon which the
exclusion would be reinstated if no payment is
received.
SEC. 106. PRESERVATION PROVISIONS.
(a) State Law.--Nothing in this title shall affect the jurisdiction
or regulatory authority of the insurance commissioner (or any agency or
office performing like functions) of any State over any insurer or other
person--
(1) except as specifically provided in this title; and
(2) except that--
(A) the definition of the term ``act of terrorism''
in section 102 shall be the exclusive definition of that
term for purposes of compensation for insured losses
under this title, and shall preempt any provision of
State law that is inconsistent with that definition, to
the extent that such provision of law would otherwise
apply to any type of insurance covered by this title;
(B) during the period beginning on the date of
enactment of this Act and ending on December 31, 2003,
rates and forms for terrorism risk insurance covered by
this title and filed with any State shall not be subject
to prior approval or a waiting period under any law of a
State that would otherwise be applicable, except that
nothing in this title affects the ability of any State
to invalidate a rate as excessive, inadequate, or
unfairly discriminatory, and, with respect to forms,
where a State has prior approval authority, it shall
apply to allow subsequent review of such forms; and
[[Page 116 STAT. 2335]]
(C) during the period beginning on the date of
enactment of this Act and for so long as the Program is
in effect, as provided in section 108, including
authority in subsection 108(b), books and records of any
insurer that are relevant to the Program shall be
provided, or caused to be provided, to the Secretary,
upon request by the Secretary, notwithstanding any
provision of the laws of any State prohibiting or
limiting such access.
(b) Existing Reinsurance Agreements.--Nothing in this title shall be
construed to alter, amend, or expand the terms of coverage under any
reinsurance agreement in effect on the date of enactment of this Act.
The terms and conditions of such an agreement shall be determined by the
language of that agreement.
SEC. 107. LITIGATION MANAGEMENT.
(a) Procedures and Damages.--
(1) In general.--If the Secretary makes a determination
pursuant to section 102 that an act of terrorism has occurred,
there shall exist a Federal cause of action for property damage,
personal injury, or death arising out of or resulting from such
act of terrorism, which shall be the exclusive cause of action
and remedy for claims for property damage, personal injury, or
death arising out of or relating to such act of terrorism,
except as provided in subsection (b).
(2) Preemption of state actions.--All State causes of action
of any kind for property damage, personal injury, or death
arising out of or resulting from an act of terrorism that are
otherwise available under State law are hereby preempted, except
as provided in subsection (b).
(3) Substantive law.--The substantive law for decision in
any such action described in paragraph (1) shall be derived from
the law, including choice of law principles, of the State in
which such act of terrorism occurred, unless such law is
otherwise inconsistent with or preempted by Federal law.
(4) Jurisdiction.--For <<NOTE: Deadline.>> each
determination described in paragraph (1), not later than 90 days
after the occurrence of an act of terrorism, the Judicial Panel
on Multidistrict Litigation shall designate 1 district court or,
if necessary, multiple district courts of the United States that
shall have original and exclusive jurisdiction over all actions
for any claim (including any claim for loss of property,
personal injury, or death) relating to or arising out of an act
of terrorism subject to this section. The Judicial Panel on
Multidistrict Litigation shall select and assign the district
court or courts based on the convenience of the parties and the
just and efficient conduct of the proceedings. For purposes of
personal jurisdiction, the district court or courts designated
by the Judicial Panel on Multidistrict Litigation shall be
deemed to sit in all judicial districts in the United States.
(5) Punitive damages.--Any amounts awarded in an action
under paragraph (1) that are attributable to punitive damages
shall not count as insured losses for purposes of this title.
(b) Exclusion.--Nothing in this section shall in any way limit the
liability of any government, an organization, or person who knowingly
participates in, conspires to commit, aids and abets, or commits any act
of terrorism with respect to which a determination described in
subsection (a)(1) was made.
[[Page 116 STAT. 2336]]
(c) Right of Subrogation.--The United States shall have the right of
subrogation with respect to any payment or claim paid by the United
States under this title.
(d) Relationship to Other Law.--Nothing in this section shall be
construed to affect--
(1) any party's contractual right to arbitrate a dispute; or
(2) any provision of the Air Transportation Safety and
System Stabilization Act (Public Law 107-42; 49 U.S.C. 40101
note.).
(e) Effective <<NOTE: Applicability.>> Period.--This section shall
apply only to actions described in subsection (a)(1) that arise out of
or result from acts of terrorism that occur or occurred during the
effective period of the Program.
SEC. 108. TERMINATION OF PROGRAM.
(a) Termination of Program.--The Program shall terminate on December
31, 2005.
(b) Continuing Authority to Pay or Adjust Compensation.--Following
the termination of the Program, the Secretary may take such actions as
may be necessary to ensure payment, recoupment, reimbursement, or
adjustment of compensation for insured losses arising out of any act of
terrorism occurring during the period in which the Program was in effect
under this title, in accordance with the provisions of section 103 and
regulations promulgated thereunder.
(c) Repeal; Savings Clause.--This title is repealed on the final
termination date of the Program under subsection (a), except that such
repeal shall not be construed--
(1) to prevent the Secretary from taking, or causing to be
taken, such actions under subsection (b) of this section,
paragraph (4), (5), (6), (7), or (8) of section 103(e), or
subsection (a)(1), (c), (d), or (e) of section 104, as in effect
on the day before the date of such repeal, or applicable
regulations promulgated thereunder, during any period in which
the authority of the Secretary under subsection (b) of this
section is in effect; or
(2) to prevent the availability of funding under section
104(g) during any period in which the authority of the Secretary
under subsection (b) of this section is in effect.
(d) Study and Report on the Program.--
(1) Study.--The Secretary, in consultation with the NAIC,
representatives of the insurance industry and of policy holders,
other experts in the insurance field, and other experts as
needed, shall assess the effectiveness of the Program and the
likely capacity of the property and casualty insurance industry
to offer insurance for terrorism risk after termination of the
Program, and the availability and affordability of such
insurance for various policyholders, including railroads,
trucking, and public transit.
(2) Report.--The <<NOTE: Deadline.>> Secretary shall submit
a report to the Congress on the results of the study conducted
under paragraph (1) not later than June 30, 2005.
[[Page 116 STAT. 2337]]
TITLE II--TREATMENT OF TERRORIST ASSETS
SEC. 201. SATISFACTION OF JUDGMENTS FROM BLOCKED ASSETS OF TERRORISTS,
TERRORIST ORGANIZATIONS, AND STATE SPONSORS OF TERRORISM.
(a) In <<NOTE: 28 USC 1610 note.>> General.--Notwithstanding any
other provision of law, and except as provided in subsection (b), in
every case in which a person has obtained a judgment against a terrorist
party on a claim based upon an act of terrorism, or for which a
terrorist party is not immune under section 1605(a)(7) of title 28,
United States Code, the blocked assets of that terrorist party
(including the blocked assets of any agency or instrumentality of that
terrorist party) shall be subject to execution or attachment in aid of
execution in order to satisfy such judgment to the extent of any
compensatory damages for which such terrorist party has been adjudged
liable.
(b) Presidential <<NOTE: 28 USC 1610 note.>> Waiver.--
(1) In general.--Subject to paragraph (2), upon determining
on an asset-by-asset basis that a waiver is necessary in the
national security interest, the President may waive the
requirements of subsection (a) in connection with (and prior to
the enforcement of) any judicial order directing attachment in
aid of execution or execution against any property subject to
the Vienna Convention on Diplomatic Relations or the Vienna
Convention on Consular Relations.
(2) Exception.--A waiver under this subsection shall not
apply to--
(A) property subject to the Vienna Convention on
Diplomatic Relations or the Vienna Convention on
Consular Relations that has been used by the United
States for any nondiplomatic purpose (including use as
rental property), or the proceeds of such use; or
(B) the proceeds of any sale or transfer for value
to a third party of any asset subject to the Vienna
Convention on Diplomatic Relations or the Vienna
Convention on Consular Relations.
(c) Special Rule for Cases Against Iran.--Section 2002 of the
Victims of Trafficking and Violence Protection Act of 2000 (Public Law
106-386; 114 Stat. 1542), as amended by section 686 of Public Law 107-
228, <<NOTE: Ante, p. 1411.>> is further amended--
(1) in subsection (a)(2)(A)(ii), by striking ``July 27,
2000, or January 16, 2002'' and inserting ``July 27, 2000, any
other date before October 28, 2000, or January 16, 2002'';
(2) in subsection (b)(2)(B), by inserting after ``the date
of enactment of this Act'' the following: ``(less amounts
therein as to which the United States has an interest in
subrogation pursuant to subsection (c) arising prior to the date
of entry of the judgment or judgments to be satisfied in whole
or in part hereunder)'';
(3) <<NOTE: 28 USC 1606, 1610 and note.>> by redesignating
subsections (d), (e), and (f) as subsections (e), (f), and (g),
respectively; and
(4) by inserting after subsection (c) the following new
subsection (d):
``(d) Distribution of Account Balances and Proceeds Inadequate to
Satisfy Full Amount of Compensatory Awards Against Iran.--
[[Page 116 STAT. 2338]]
``(1) Prior judgments.--
``(A) In general.--In the event that the Secretary
determines that 90 percent of the amounts available to
be paid under subsection (b)(2) are inadequate to pay
the total amount of compensatory damages awarded in
judgments issued as of the date of the enactment of this
subsection in cases identified in subsection (a)(2)(A)
with respect to Iran, the Secretary shall, not later
than 60 days after such date, make payment from such
amounts available to be paid under subsection (b)(2) to
each party to which such a judgment has been issued in
an amount equal to a share, calculated under
subparagraph (B), of 90 percent of the amounts available
to be paid under subsection (b)(2) that have not been
subrogated to the United States under this Act as of the
date of enactment of this subsection.
``(B) Calculation of payments.--The share that is
payable to a person under subparagraph (A), including
any person issued a final judgment as of the date of
enactment of this subsection in a suit filed on a date
added by the amendment made by section 686 of Public Law
107-228, shall be equal to the proportion that the
amount of unpaid compensatory damages awarded in a final
judgment issued to that person bears to the total amount
of all unpaid compensatory damages awarded to all
persons to whom such judgments have been issued as of
the date of enactment of this subsection in cases
identified in subsection (a)(2)(A) with respect to Iran.
``(2) Subsequent judgment.--
``(A) In general.--The Secretary shall pay to any
person awarded a final judgment after the date of
enactment of this subsection, in the case filed on
January 16, 2002, and identified in subsection (a)(2)(A)
with respect to Iran, an amount equal to a share,
calculated under subparagraph (B), of the balance of the
amounts available to be paid under subsection (b)(2)
that remain following the disbursement of all payments
as provided by paragraph (1). The Secretary shall make
such payment not later than 30 days after such judgment
is awarded.
``(B) Calculation of payments.--To the extent that
funds are available, the amount paid under subparagraph
(A) to such person shall be the amount the person would
have been paid under paragraph (1) if the person had
been awarded the judgment prior to the date of enactment
of this subsection.
``(3) Additional payments.--
``(A) In <<NOTE: Deadline.>> general.--Not later
than 30 days after the disbursement of all payments
under paragraphs (1) and (2), the Secretary shall make
an additional payment to each person who received a
payment under paragraph (1) or (2) in an amount equal to
a share, calculated under subparagraph (B), of the
balance of the amounts available to be paid under
subsection (b)(2) that remain following the disbursement
of all payments as provided by paragraphs (1) and (2).
``(B) Calculation of payments.--The share payable
under subparagraph (A) to each such person shall be
equal
[[Page 116 STAT. 2339]]
to the proportion that the amount of compensatory
damages awarded that person bears to the total amount of
all compensatory damages awarded to all persons who
received a payment under paragraph (1) or (2).
``(4) Statutory construction.--Nothing in this subsection
shall bar, or require delay in, enforcement of any judgment to
which this subsection applies under any procedure or against
assets otherwise available under this section or under any other
provision of law.
``(5) Certain rights and claims not relinquished.--Any
person receiving less than the full amount of compensatory
damages awarded to that party in a judgment to which this
subsection applies shall not be required to make the election
set forth in subsection (a)(2)(B) or, with respect to subsection
(a)(2)(D), the election relating to relinquishment of any right
to execute or attach property that is subject to section
1610(f)(1)(A) of title 28, United States Code, except that such
person shall be required to relinquish rights set forth--
``(A) in subsection (a)(2)(C); and
``(B) in subsection (a)(2)(D) with respect to
enforcement against property that is at issue in claims
against the United States before an international
tribunal or that is the subject of awards by such
tribunal.
``(6) Guidelines for establishing claims of a right to
payment.--The Secretary may promulgate reasonable guidelines
through which any person claiming a right to payment under this
section may inform the Secretary of the basis for such claim,
including by submitting a certified copy of the final judgment
under which such right is claimed and by providing commercially
reasonable payment instructions. The Secretary shall take all
reasonable steps necessary to ensure, to the maximum extent
practicable, that such guidelines shall not operate to delay or
interfere with payment under this section.''.
(d) Definitions.--In <<NOTE: 28 USC 1610 note.>> this section, the
following definitions shall apply:
(1) Act of terrorism.--The term ``act of terrorism'' means--
(A) any act or event certified under section 102(1);
or
(B) to the extent not covered by subparagraph (A),
any terrorist activity (as defined in section
212(a)(3)(B)(iii) of the Immigration and Nationality Act
(8 U.S.C. 1182(a)(3)(B)(iii))).
(2) Blocked asset.--The term ``blocked asset'' means--
(A) 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 sections 202 and 203 of the
International Emergency Economic Powers Act (50 U.S.C.
1701; 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 such license has been specifically
required by statute other than the International
[[Page 116 STAT. 2340]]
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) in the case of 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 law of the United States, is being used
exclusively for diplomatic or consular purposes.
(3) Certain property.--The term ``property subject to the
Vienna Convention on Diplomatic Relations or the Vienna
Convention on Consular Relations'' and the term ``asset subject
to the Vienna Convention on Diplomatic Relations or the Vienna
Convention on Consular Relations'' mean any property or asset,
respectively, 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 or
the Vienna Convention on Consular Relations, as the case may be.
(4) Terrorist party.--The term ``terrorist party'' means a
terrorist, a terrorist organization (as defined in section
212(a)(3)(B)(vi) of the Immigration and Nationality Act (8
U.S.C. 1182(a)(3)(B)(vi))), or a foreign state designated as a
state sponsor of terrorism under section 6(j) of the Export
Administration Act of 1979 (50 U.S.C. App. 2405(j)) or section
620A of the Foreign Assistance Act of 1961 (22 U.S.C. 2371).
TITLE III--FEDERAL RESERVE BOARD PROVISIONS
SEC. 301. CERTAIN AUTHORITY OF THE BOARD OF GOVERNORS OF THE FEDERAL
RESERVE SYSTEM.
Section 11 of the Federal Reserve Act (12 U.S.C. 248) is amended by
adding at the end the following new subsection:
``(r)(1) Any action that this Act provides may be taken only upon
the affirmative vote of 5 members of the Board may be taken upon the
unanimous vote of all members then in office if there are fewer than 5
members in office at the time of the action.
``(2)(A) Any action that the Board is otherwise authorized to take
under section 13(3) may be taken upon the unanimous vote of all
available members then in office, if--
``(i) at least 2 members are available and all available
members participate in the action;
``(ii) the available members unanimously determine that--
``(I) unusual and exigent circumstances exist and
the borrower is unable to secure adequate credit
accommodations from other sources;
``(II) action on the matter is necessary to prevent,
correct, or mitigate serious harm to the economy or the
stability of the financial system of the United States;
``(III) despite the use of all means available
(including all available telephonic, telegraphic, and
other electronic means), the other members of the Board
have not been able to be contacted on the matter; and
[[Page 116 STAT. 2341]]
``(IV) action on the matter is required before the
number of Board members otherwise required to vote on
the matter can be contacted through any available means
(including all available telephonic, telegraphic, and
other electronic means); and
``(iii) any credit extended by a Federal reserve bank
pursuant to such action is payable upon demand of the Board.
``(B) <<NOTE: Records.>> The available members of the Board shall
document in writing the determinations required by subparagraph (A)(ii),
and such written findings shall be included in the record of the action
and in the official minutes of the Board, and copies of such record
shall be provided as soon as practicable to the members of the Board who
were not available to participate in the action and to the Chairman of
the Committee on Banking, Housing, and Urban Affairs of the Senate and
to the Chairman of the Committee on Financial Services of the House of
Representatives.''.
Approved November 26, 2002.
LEGISLATIVE HISTORY--H.R. 3210 (S. 2600):
---------------------------------------------------------------------------
HOUSE REPORTS: Nos. 107-300, Pt. 1 (Comm. on Financial Services) and Pt.
2 (Comm. on Ways and Means) and 107-779 (Comm. of Conference).
CONGRESSIONAL RECORD:
Vol. 147 (2001):
Nov. 29, considered and passed
House.
Vol. 148 (2002):
July 25, considered and passed
Senate, amended, in lieu of S.
2600.
Nov. 14, House agreed to conference
report.
Nov. 19, Senate agreed to conference
report.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 38 (2002):
Nov. 26, Presidential remarks.
<all>
Conference papers: Senate report and manager's statement and message on House action held at the desk in Senate.
Rule H. Res. 607 passed House.
Mr. Oxley brought up conference report H. Rept. 107-779 for consideration under the provisions of H. Res. 607. (consideration: CR H8802-8809)
DEBATE - The House proceeded with one hour of debate on the conference report.
The previous question was ordered without objection.
Conference report agreed to in House: On agreeing to the conference report Agreed to by voice vote.
Motions to reconsider laid on the table Agreed to without objection.
On agreeing to the conference report Agreed to by voice vote.
Cloture motion on the conference report to accompany H.R. 3210 presented in Senate.
Conference report considered in Senate by Unanimous Consent. (consideration: CR S11524-11530)
Cloture on the conference report to accompany H.R. 3210 invoked in Senate by Yea-Nay Vote. 85 - 12. Record Vote Number: 251.
Roll Call #251 (Senate)Enacted as Public Law 107-297
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line
Conference report agreed to in Senate: Senate agreed to conference report by Yea-Nay Vote. 86 - 11. Record Vote Number: 252.
Roll Call #252 (Senate)Senate agreed to conference report by Yea-Nay Vote. 86 - 11. Record Vote Number: 252.
Roll Call #252 (Senate)Message on Senate action sent to the House.
Presented to President.
Presented to President.
Signed by President.
Signed by President.
Became Public Law No: 107-297.
Became Public Law No: 107-297.