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H.R. 5506 (99th): A bill to amend the International Claims Settlement Act of 1949 to provide that the value of claims be based on the fair market value of the property taken.

The text of the bill below is as of Oct 8, 1986 (Passed Congress).

100 STAT. 1138                   PUBLIC LAW 99-451—OCT. 8, 1986
                 Public Law 99-451
                 99th Congress                                      "       '    '   '
                                                    An Act
  Oct. 8, 1986   To amend the International Claims Settlement Act of 1949 to provide that the value
  [H.R. 5506]            of claims be based on the fair market value of the property taken.
                  Be it enacted by the Senate and House of Representatives of the
                 United States of America in Congress assembled,
Securities.        (a) FAIR MARKET VALUE.—Section 4(a) of the International Claims
                 Settlement Act of 1949 (22 U.S.C. 1623(a)) is amended by amending
                 the second sentence to read as follows: "In the decision of claims
                 under this title, the Commission shall apply the following in the
                 following order:
                         "(1) The provisions of the applicable claims agreement as
                      provided in this subsection.
                         "(2) The applicable principles of international law, justice,
                      and equity. In determining the value of a claim under inter-
                      national law, the Commission shall award the fair market value
                      of the property as of the time of the taking by the foreign
                      government involved (without regard to any action or event
                      that occurs after the taking), except that the value of the claim
                      shall not reflect any diminution in value attributable to actions
                      which are carried out, or threats of action which are made, by
                      the foreign government with respect to the property before the
                      taking. Fair market value shall be ascertained in accordance
                      with the method most appropriate to the property taken and
                      equitable to the claimant, including—
                              "(i) market value of outstanding equity securities;
                              "(ii) replacement value;
                              "(iii) going-concern value (which includes consideration of
                           an enterprise's profitability); and
                              "(iv) book value.
                      In the case of any claim for losses in a service industry, the
                      appropriate basis of valuation shall be presumed to be that
                      referred to in clause (iii). For purposes of the preceding sen-
                      tence, the term 'service' means economic activity the output of
                      which is other than tangible goods.",
                   (b) APPLICABILITY.—Section 4 of the International Claims Settle-
                 ment Act of 1949 is amended by adding at the end the following:
                    "(k) In exercising authority granted after the date of the enact-
                 ment of this subsection under this or any other Act, the Commis-
                 sion, in determining the value of claims of the Government of the
                 United States or of nationals of the United States (as defined in this
                 Act or such other Act) against any foreign government for losses
                 arising from the nationalization or other taking of property, shall
Supra.           comply with the principles set forth in subsection (a)(2) of this


PUBLIC LAW 99-451—OCT. 8, 1986 100 STAT. 1139 SEC. 2. EFFECTIVE DATE. 22 USC 1623 The amendments made by this Act shall apply to any claim pending on the date of the enactment of this Act and to any other claim determined after such date. Approved October 8, 1986. LEGISLATIVE HISTORY—H.R. 5506: HOUSE REPORTS: No. 99-837 (Comm. on Foreign Affairs). CONGRESSIONAL RECORD, Vol. 132 (1986): Sept. 22, considered and passed House. Sept. 24, considered and passed Senate.