Sponsor
Thomas Kean
Representative · R-NJ
Representative · R-NJ
The bill favors quicker, more certain recovery for judgment creditors by locking in an entity's status at the time enforcement begins, at the cost of risking attachment of assets of entities that later sever ties and prompting additional timing-related litigation.
Final-judgment holders (creditors) gain a clear rule that an entity's agency/instrumentality status is assessed at the time they begin execution or attachment, reducing uncertainty about whether enforcement actions are valid.
Final-judgment holders and financial institutions can recover funds more quickly because defendants cannot later defeat enforcement by changing their agency/instrumentality status after execution or attachment has begun.
Persons or entities alleged to be an agency or instrumentality of a terrorist party risk having assets attached based on their status at filing even if they later sever ties, potentially resulting in wrongful or outdated seizures.
Creditors and defendants may face increased litigation over the exact timing of filings and procedural issues, raising legal costs and adding burden to courts.
Based on analysis of 2 sections of legislative text.
Sets the date for deciding whether an entity is an agency or instrumentality of a terrorist party to the filing date of an execution/attachment action for judgment collection.
Official title: To amend the Terrorism Risk Insurance Act of 2002 to clarify the timing of the assessment with respect to the status of whether an entity is an agency or instrumentality of a terrorist party.
Introduced September 10, 2026 by Thomas Kean · Last progress September 10, 2026
Amends the rules for collecting civil judgments against persons or entities tied to terrorist parties by changing when a defendant's status as an "agency or instrumentality" of a terrorist party is determined. The bill says that agency/instrumentality status must be assessed as of the date the judgment creditor files an action to execute on, or attach property in aid of execution of, the final judgment. The change shifts the timing for that legal determination (from whatever prior date applied) to the commencement/filing date of the execution or attachment action, which can affect whether certain foreign entities or assets are subject to seizure to satisfy terrorism-related judgments.