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1 1 (January 14, 2020)

handle is hein.crs/govbhzx0001 and id is 1 raw text is: ~* or 101 ' Researh Service Iran's Central Bank Asks Supreme Court to Consider Whether the Bank's Assets Abroad are Immune from Attachment to Satisfy Terror Judgments Updated January 14, 2020 Update: The Supreme Court on January 13, 2020, granted review and vacated the decision below, remanding to the Second Circuit for reconsideration in light of section 1226 of the National Defense Authorization Act for FY 2020 (PL. 116-92), which amended section 502 of the Iran Threat Reduction and Syria Human Rights Act of 2012 (22 LS. C. § 8772) to make the assets at issue in this case available for execution to satisfy the judgment. The original post from May 30, 2018follows. Iran's central bank, Bank Markazi, has asked the Supreme Court to reverse a decision by the U.S. Court of Appeals for the Second Circuit (Second Circuit) , which concluded that the bank's assets held in Luxembourg may be ordered transferred to New York for possible satisfaction of terrorism judgments obtained under the Foreign Sovereign Immunities Act (FSIA). At issue is Bank Markazi's right to payment of bond proceeds of about $1.68 billion being held by, reflected on the books of, and recorded as a debt owed by Clearstream Banking, S.A. (Clearstream), a financial institution in Luxembourg specializing in bond and equity investments. The plaintiffs are a group of judgment creditors against Iran who prevailed in actions they brought under the terrorism exception to the FSIA, including the victims of the 1983 Marine Corps barracks bombing in Beirut, Lebanon (awarded damages in Peterson v. Ilamic Republic ofIrban), as well as victims of other terrorist attacks supported by Iran. They are owed approximately $3.8 billion in compensatory damages. Iran defaulted in each of their cases. At the district court level, the plaintiffs argued that the bond proceeds at issue were actually held as cash at JP Morgan Chase in New York and were thus subject to the court's turnover order to partially satisfy their judgments. The district court found that the bond proceeds were located in Luxembourg and were thus immune from attachment under the FSIA because the FSIA execution immunity exceptions applied only to foreign sovereign assets in the United States. (Execution immunity refers to the immunity of the property of foreign sovereigns to attachment by a court unless an exception applies. For an explanation of Congressional Research Service https://crsreports.congress.gov LSB10140 CRS NS GHT Prpred For Meumbers and Comrm ttees of Conress ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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