Page:United States Statutes at Large Volume 114 Part 1.djvu/243

 PUBLIC LAW 106-185—APR. 25, 2000 114 STAT. 207 shelter in the community for the claimant and all dependents residing with the claimant; "(iii) the property is not, and is not traceable to, the proceeds of any criminal offense; and "(iv) the claimant acquired his or her interest in the property through marriage, divorce, or legal separation, or the claimant was the spouse or legal dependent of a person whose death resulted in the transfer of the property to the claimant through inheritance or probate, except that the court shall limit the value of any real property interest for which innocent ownership is recognized under this subparagraph to the value necessary to maintain reasonable shelter in the community for such claimant and all dependents residing with the claimant. "(4) Notwithstanding any provision of this subsection, no person may assert an ownership interest under this subsection in contraband or other property that it is illegal to possess. "(5) If the court determines, in accordance with this section, that an innocent owner has a partial interest in property otherwise subject to forfeiture, or a joint tenancy or tenancy by the entirety in such property, the court may enter an appropriate order— "(A) severing the property; "(B) transferring the property to the Government with a provision that the Government compensate the innocent owner to the extent of his or her ownership interest once a final order of forfeiture has been entered and the property has been reduced to liquid assets; or "(C) permitting the innocent owner to retain the property subject to a lien in favor of the Government to the extent of the forfeitable interest in the property. "(6) In this subsection, the term 'owner'— "(A) means a person with an ownership interest in the specific property sought to be forfeited, including a leasehold, lien, mortgage, recorded security interest, or valid assignment of an ownership interest; and "(B) does not include— "(i) a person with only a general unsecured interest in, or claim against, the property or estate of another; "(ii) a bailee unless the bailor is identified and the bailee shows a colorable legitimate interest in the property seized; or "(iii) a nominee who exercises no dominion or control over the property. "(e) MOTION TO SET ASIDE FORFEITURE.— Courts. "(1) Any person entitled to written notice in any nonjudicial civil forfeiture proceeding under a civil forfeiture statute who does not receive such notice may file a motion to set aside a declaration of forfeiture with respect to that person's interest in the property, which motion shall be granted if— "(A) the Government knew, or reasonably should have known, of the moving partes interest and failed to take reasonable steps to provide such party with notice; and "(B) the moving party did not know or have reason to know of the seizure within sufficient time to file a timely claim.

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