Bill Text: NY A07967 | 2011-2012 | General Assembly | Amended

New York Assembly Bill 7967 (Prior Session Legislation)

Bill Title: Relates to contracts governing debt obligations of foreign states.

Spectrum: Moderate Partisan Bill (Democrat 16-3)

Status: (Introduced - Dead) 2012-01-04 - referred to judiciary [A07967 Detail]

Download: New_York-2011-A07967-Amended.html

                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        7967--A
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     May 25, 2011
                                      ___________
       Introduced  by  M.  of  A.  SIMOTAS,  P. RIVERA, WEPRIN, REILLY, JAFFEE,
         MONTESANO, SPANO, LAVINE, BRAUNSTEIN -- Multi-Sponsored by -- M. of A.
         CROUCH, McLAUGHLIN, MENG, NOLAN --  read  once  and  referred  to  the
         Committee  on Judiciary -- committee discharged, bill amended, ordered
         reprinted as amended and recommitted to said committee
       AN ACT to amend the general obligations  law,  in  relation  to  certain
         provisions of contracts governing debt obligations of foreign states
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1.  The general obligations law is amended  by  adding  a  new
    2  section 5-336 to read as follows:
    3    S 5-336. SURVIVAL OF ENTRY OF FINAL JUDGMENT AND NON-MERGER INTO FINAL
    4  JUDGMENT  OF  PROVISIONS  OF  CONTRACTS  GOVERNING DEBT OBLIGATIONS OF A
    5  FOREIGN STATE.
    6    1. AS A MATTER OF PUBLIC POLICY, THE PROVISIONS OF A CONTRACT  GOVERN-
    7  ING A DEBT OBLIGATION OF A FOREIGN STATE, AS DEFINED IN 28 UNITED STATES
    8  CODE  SECTION  1603, THAT ARE NOT DIRECTLY ADDRESSED IN A FINAL JUDGMENT
    9  IN FAVOR OF THE HOLDER OF THE DEBT OBLIGATION AGAINST THE FOREIGN STATE,
   10  SHALL SURVIVE THE ENTRY OF SUCH FINAL JUDGMENT AND SHALL NOT  BE  MERGED
   11  INTO SUCH FINAL JUDGMENT. SUCH PROVISIONS INCLUDE BUT ARE NOT LIMITED TO
   12  A PROVISION THAT:
   13    (A) WAIVES THE IMMUNITY OF SUCH FOREIGN STATE IN RESPECT OF ACTIONS OR
   14  PROCEEDINGS, INCLUDING ACTIONS OR PROCEEDINGS TO ENFORCE ANY FINAL JUDG-
   15  MENT  ENTERED  AGAINST  SUCH  FOREIGN STATE, BROUGHT BY ANY HOLDER BASED
   16  UPON OR WITH RESPECT TO SUCH OBLIGATION; OR
   17    (B) DESIGNATES THE COURTS OR JURISDICTION TO WHICH THE  FOREIGN  STATE
   18  HAS  SUBMITTED  FOR  PURPOSES  OF SUIT, OR FOR ACTIONS OR PROCEEDINGS TO
   19  ENFORCE ANY FINAL JUDGMENT; OR
   20    (C) DESIGNATES THE CHOICE OF LAW SET FORTH IN ANY  SUCH  CONTRACT  FOR
   21  PURPOSES OF DETERMINING THE RIGHTS AND DUTIES OF THE PARTIES TO ANY SUCH
   22  CONTRACT; OR
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD09939-05-1
       A. 7967--A                          2
    1    (D)  OBLIGATES  THE FOREIGN STATE TO APPOINT AND MAINTAIN AN AGENT FOR
    2  SERVICE OF PROCESS IN THE JURISDICTION TO WHICH THE  FOREIGN  STATE  HAS
    3  SUBMITTED OR IN WHICH IT IS SUBJECT TO JURISDICTION; OR
    4    (E) COMMITS NOT TO CREATE OR PERMIT TO SUBSIST ANY LIEN, PLEDGE, MORT-
    5  GAGE,  SECURITY  INTEREST, DEED OF TRUST, CHARGE OR OTHER ENCUMBRANCE OR
    6  PREFERENTIAL ARRANGEMENT WHICH HAS THE PRACTICAL EFFECT OF  CONSTITUTING
    7  A SECURITY INTEREST; OR
    8    (F) CONCERNS A PARI PASSU CLAUSE.
    9    2. FOR PURPOSES OF THIS SECTION, "FINAL JUDGMENT" SHALL MEAN ANY JUDG-
   10  MENT THAT IS NO LONGER ELIGIBLE TO BE APPEALED TO ANY COURT.
   11    S 2. This act shall take effect immediately and shall be applicable to
   12  all unsatisfied judgments against a foreign state.