H.R. 10339: Terrorism Judgment Collection Act

This bill would change a rule in the Terrorism Risk Insurance Act of 2002 that affects how people with terrorism-related court judgments can try to collect money.

What the bill changes

Under current law, certain assets of a foreign state may be used to satisfy a judgment if the foreign state is connected to a terrorist party. This bill clarifies when the government should decide whether a person or entity counts as an “agency or instrumentality of a terrorist party.”

Specifically, the bill says that this status must be determined based on the date when the judgment holder starts an action to enforce the judgment, such as a lawsuit for execution or attachment in aid of execution. In simple terms, it locks in the relevant status at the time collection efforts begin.

Practical effect

This would make it clearer which entities can be targeted for collection when someone is trying to recover money awarded in a terrorism-related judgment. It could reduce disputes over whether a defendant’s status changed before or after the enforcement action started.

What it does not do

The bill does not create new terrorism judgments, change the standards for winning such cases, or broadly change the Terrorism Risk Insurance Act. It is focused on one timing question for enforcing existing judgments.

Relevant Companies

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