§ 1631g. — Payment of debts.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 22USC1631g]
TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
CHAPTER 21--SETTLEMENT OF INTERNATIONAL CLAIMS
SUBCHAPTER II--VESTING AND LIQUIDATION OF BULGARIAN, HUNGARIAN, AND
RUMANIAN PROPERTY
Sec. 1631g. Payment of debts
(a) Claims allowable; defenses
Any property vested in the designee of the President pursuant to
section 1631a(a) of this title, or the net proceeds thereof, shall be
equitably applied by such designee in accordance with this section to
the payment of debts owed by the person who owned such property
immediately prior to its vesting in such designee. No debt claim shall
be allowed under this section--
(1) if it is asserted against Bulgaria, Hungary, or Rumania
(including the government or any political subdivisions, agencies,
or instrumentalities thereof); or
(2) if it is based upon an obligation expressed or payable in
any currency other than the currency of the United States; or
(3) if it was not due and owing--
(A) on October 9, 1940, in the event the property in respect
of which such debt claim is filed was owned immediately prior to
vesting by a national of Rumania;
(B) on March 4, 1941, in the event the property in respect
of which such debt claim is filed was owned immediately prior to
vesting by a national of Bulgaria; or
(C) on March 13, 1941, in the event that the property in
respect of which such debt claim is filed was owned immediately
prior to vesting by a national of Hungary.
Any defense to the payment of such claim which would have been available
to the debtor shall be available to the designee, except that the period
from and after December 7, 1941, shall not be included for the purpose
of determining the applicability of any statute of limitations. Debt
claims allowable under this section shall include only those of natural
persons who were citizens of the United States at the dates their
debtors became obligated to them; those of other natural persons who are
and have been continuously since December 7, 1941, residents of the
United States; those of corporations organized under the laws of the
United States or any State, Territory, or possession thereof, or the
District of Columbia; and those acquired by the designee of the
President under this subchapter. Successors in interest by inheritance,
devise, bequest, or operation of law of debt claimants, other than
persons who would themselves be disqualified hereunder 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 designee of the President under this subchapter 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 Federal
Register. In no event shall the time extend beyond the expiration of one
year from the date of the last vesting in the designee of the President
of any property of a debtor in respect to whose debts the date is fixed.
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 proceeds in respect of which a suit or proceeding for
return pursuant to this subchapter is pending.
(c) Examination of claims; finality of determination
The designee shall examine the claims, and such evidence in respect
thereof as may be presented to him or as he may introduce into the
record, and shall make a determination, with respect to each claim, of
allowance or disallowance, in whole or in part. The determination of the
designee that a claim is within either paragraph (1) or (2) of
subsection (a) of this section shall be final and shall not be subject
to judicial review, and such claim shall not be considered a debt claim
for any purpose under this section.
(d) Fund 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 disposition
of, any property owned by the debtor immediately prior to its vesting in
the designee of the President, as shall remain after deduction of (1)
the amount of the expenses of the designee (including both expenses in
connection with such property or proceeds thereof, and such portion as
the designee shall fix of his other expenses), and of taxes, as defined
in section 1631k of this title, paid by the designee in respect of such
property or proceeds; and (2) such amount, if any, as the designee may
establish as a cash reserve for the future payment of such expenses and
taxes. If the money available hereunder for the payment of debt claims
against the debtor is insufficient for the satisfaction of all claims
allowed by the designee, ratable payments shall be made in accordance
with subsection (g) of this section to the extent permitted by the money
available and additional payments shall be made whenever the designee
shall determine that substantial further money has become available,
through liquidation of any such property or otherwise. The designee
shall not be required, through any judgment of any court, levy of
execution, or otherwise, to sell or liquidate any property vested in
him, for the purpose of paying or satisfying any debt claim.
(e) Amount payable; disallowance; notice; review; additional evidence;
judgment
If the aggregate of debt claims filed as prescribed does not exceed
the money from which, in accordance with subsection (d) of this section,
payment may be made, the designee shall pay each claim to the extent
allowed, and shall serve by registered mail, on each claimant whose
claim is disallowed in whole or in part, a notice of such disallowance.
Within sixty days after the date of mailing of the designee's
determination, any debt claimant whose claim has been disallowed in
whole or in part may file in the District Court of the United States for
the District of Columbia a complaint for review of such disallowance
naming the designee as defendant. Such complaint shall be served on the
designee. The designee, within forty-five days after service on him,
shall certify and file in said court a transcript of the record of
proceedings with respect to the claim in question. Upon good cause shown
such time may be extended by the court. Such record shall include the
claim as filed, such evidence with respect thereto as may have been
presented to the designee or introduced into the record by him, and the
determination of the designee with respect thereto, including any
findings made by him. The court may, in its discretion, take additional
evidence, upon a showing that such evidence was offered to and excluded
by the designee, or could not reasonably have been adduced before him or
was not available to him. The court shall enter judgment affirming,
modifying, or reversing the designee's determination, and directing
payment in the amount, if any, which it finds due.
(f) Schedule of debt claims allowed; notice; review; additional
evidence; intervention; judgment
If the aggregate of debt claims filed as prescribed exceeds the
money from which, in accordance with subsection (d) of this section,
payment may be made, the designee shall prepare and serve by registered
mail on all claimants a schedule of all debt claims allowed and the
proposed payment to each claimant. In preparing such schedule, the
designee shall assign priorities in accordance with subsection (g) of
this section. Within sixty days after the date of mailing of such
schedule, any claimant considering himself aggrieved may file in the
District Court of the United States for the District of Columbia a
complaint for review of such schedule, naming the designee as defendant.
A copy of such complaint shall be served upon the designee and on each
claimant named in the schedule. The designee within forty-five days
after service on him, shall certify and file in said court a transcript
of the record of proceedings with respect to such schedule. Upon good
cause shown such time may be extended by the court. Such record shall
include the claims in question as filed, such evidence with respect
thereto as may have been presented to the designee or introduced into
the record by him, any findings or other determinations made by the
designee with respect thereto, and the schedule prepared by the
designee. The court may, in its discretion, take additional evidence,
upon a showing that such evidence was offered to and excluded by the
designee or could not reasonably have been adduced before him or was not
available to him. Any interested debt claimant who has filed a claim
with the designee pursuant to this section, upon timely application to
the court, shall be permitted to intervene in such review proceedings.
The court shall enter judgment affirming or modifying the schedule as
prepared by the designee and directing payment, if any be found due,
pursuant to the schedule as affirmed or modified and to the extent of
the money from which, in accordance with subsection (d) of this section,
payment may be made. Pending the decision of the court on such complaint
for review, and pending final determination of any appeal from such
decision, payment may be made only to an extent, if any, consistent with
the contentions of all claimants for review.
(g) Priority of claims
Debt claims shall be paid in the following order of priority: (1)
Wage and salary claims, not to exceed $600; (2) claims entitled to
priority under sections 3713(a) and 9309 of title 31, except as provided
in subsection (h) of this section; (3) all other claims for services
rendered; for expenses incurred in connection with such services, for
rent, for goods and materials delivered to the debtor, and for payments
made to the debtor for goods or services not received by the claimant;
(4) all other debt claims. No payment shall be made to claimants within
a subordinate class unless the money from which, in accordance with
subsection (d) of this section, payment may be made permits payment in
full of all allowed claims in every prior class.
(h) Priority as debt due United States
No debt of any kind shall be entitled to priority under any law of
the United States or any State, Territory, or possession thereof, or the
District of Columbia, solely by reason of becoming a debt due or owing
to the United States as a result of its acquisition by the designee of
the President under this subchapter.
(i) Exclusiveness of relief
The sole relief and remedy available to any person seeking
satisfaction of a debt claim out of any property vested in the designee
under section 1631a(a) of this title, or the proceeds thereof, shall be
the relief and remedy provided in this section, and suits for the
satisfaction of debt claims shall not be instituted, prosecuted, or
further maintained except in conformity with this section. No person
asserting any interest, right, or title in any property or proceeds
acquired by the designee shall be barred from proceeding pursuant to
this subchapter for the return thereof, by reason of any proceeding
which he may have brought pursuant to this section; nor shall any
security interest asserted by the creditor in any such property or
proceeds be deemed to have been waived solely by reason of such
proceeding. Nothing contained in this section shall bar any person from
the prosecution of any suit at law or in equity against the original
debtor or against any other person who may be liable for the payment of
any debt for which a claim might have been filed hereunder. No
purchaser, lessee, licensee, or other transferee of any property from
the designee shall, solely by reason of such purchase, lease, license,
or transfer, become liable for the payment of any debt owed by the
person who owned such property prior to its vesting in the designee.
Payment by the designee to any debt claimant shall constitute, to the
extent of payment, a discharge of the indebtedness represented by the
claim.
(Mar. 10, 1950, ch. 54, title II, Sec. 208, as added Aug. 9, 1955, ch.
645, Sec. 3, 69 Stat. 565.)
Codification
In subsec. (g), ``sections 3713(a) and 9309 of title 31''
substituted for ``sections 3466 and 3468 of the Revised Statutes (31
U.S.C., secs. 191 and 193)'' on authority of Pub. L. 97-258, Sec. 4(b),
Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title
31, Money and Finance.
Section Referred to in Other Sections
This section is referred to in sections 1631a, 1631h, 1631l of this
title.
