Posting Collateral Under The Foreign Sovereign Immunities Act: Arbitration v. Litigation1

By Robert M. Hall I. Introduction Reinsurers owned by foreign nations are often required to post collateral by reinsurance contracts. Some state statutes require collateral when disputes arise.2 However, the Foreign Sovereign Immunities Act ("FSIA"), 28 U.S.C.S. § 1609 states: "Subject to existing international agreements to which the United States is a party at the time of the enactment of this Act the property in the United States of a foreign state shall be immune from attachment...(read more)