46 U.S.C. § 53717 — Management of funds in the Treasury

Page 453 TITLE 46—SHIPPING § 53717 (3) RETENTION AGAINST DEFAULT.—The Sec- retary or Administrator may retain and offset any or all of the cash of an obligor in the fund, and any income realized thereon, as part of the Secretary’s or Administrator’s recovery against the obligor in case of a default by the obligor on an obligation. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1616; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(H), (3), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(10)(B), (11), (b), Jan. 28, 2008, 122 Stat. 598.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53716 .......... 46 App.:1279b. June 29, 1936, ch. 858, title XI, § 1109, as added Pub. L. 107–107, title XXXV, § 3503, Dec. 28, 2001, 115 Stat. 1392. In subsection (a), the word ‘‘established’’ is omitted for consistency with other codified titles of the United States Code. Editorial Notes AMENDMENTS 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(H), (3). See 2006 Amendment note below. Pub. L. 110–181, § 3522(a)(10)(B), (11), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(H), (3), into this section by inserting ‘‘or Ad- ministrator’’ after ‘‘Secretary’’ wherever appearing, ex- cept the second place appearing in subsec. (c), and in- serting ‘‘or Administrator’s’’ after ‘‘Secretary’s’’ in subsec. (d)(3). See 2006 Amendment note below and sec- tion 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title. 2006—Pub. L. 109–163, § 3507(a)(1)(H), (3), which di- rected the amendment of section 1279b of the former Appendix to this title from which this section was de- rived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment notes and Historical and Revision notes above. § 53717. Management of funds in the Treasury (a) DEFINITION.—In this section, the term ‘‘FCRA’’ means the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). (b) LOAN GUARANTEES BY ADMINISTRATOR.— (1) WHEN NOT SUBJECT TO FCRA.—The Admin- istrator shall account for payments and dis- bursements involving obligations guaranteed under this chapter and not subject to FCRA in an account in the Treasury entitled the Fed- eral Ship Financing Fund Liquidating Ac- count (a liquidating account as defined in FCRA). (2) WHEN SUBJECT TO FCRA.—The Adminis- trator shall account for payments and dis- bursements involving obligations guaranteed under this chapter and subject to FCRA in a separate account in the Treasury entitled the Federal Ship Financing Guaranteed Loan Fi- nancing Account (a financing account as de- fined in FCRA). (c) LOAN GUARANTEES BY SECRETARY.— (1) WHEN NOT SUBJECT TO FCRA.—The Sec- retary shall account for payments and dis- bursements involving obligations guaranteed under this chapter and not subject to FCRA in a separate account in the Treasury established for this purpose. (2) WHEN SUBJECT TO FCRA.—The Secretary shall account for payments and disbursements involving obligations guaranteed under this chapter and subject to FCRA in a separate ac- count in the Treasury established for this pur- pose. (d) DIRECT LOANS BY SECRETARY.—The Sec- retary shall account for payments and disburse- ments involving direct loans made under this chapter in a separate account in the Treasury established for this purpose. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1616; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(B), (D), (c)(2), Jan. 6, 2006, 119 Stat. 3555, 3556; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(7), (9)(B), (b), Jan. 28, 2008, 122 Stat. 598.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53717 .......... 46 App.:1272. June 29, 1936, ch. 858, title XI, § 1102, as added June 23, 1938, ch. 600, § 46, 52 Stat. 969; Sept. 3, 1954, ch. 1265, § 2, 68 Stat. 1268; Pub. L. 86–123, § 1(2), July 31, 1959, 73 Stat. 269; Pub. L. 92–507, § 2, Oct. 19, 1972, 86 Stat. 910; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166. 46 App.:1274(g). June 29, 1936, ch. 858, title XI, § 1104A(g) [§ 1104A for- merly § 1104], as added June 23, 1938, ch. 600, § 46, 52 Stat. 970; Aug. 4, 1939, ch. 417, § 14, 53 Stat. 1187; Sept. 28, 1950, ch. 1093, § 4, 64 Stat. 1078; Aug. 15, 1953, ch. 513, § 2, 67 Stat. 626; Sept. 3, 1954, ch. 1265, § 4, 68 Stat. 1269; Pub. L. 86–123, §§ 1(3), 2, July 31, 1959, 73 Stat. 269, 271; Pub. L. 86–127, § 1(3), (4), July 31, 1959, 73 Stat. 273; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 86–685, §§ 2, 3, Sept. 2, 1960, 74 Stat. 733; Pub. L. 90–341, June 15, 1968, 82 Stat. 180; Pub. L. 91–469, §§ 31, 32, Oct. 21, 1970, 84 Stat. 1035; restated Pub. L. 92–507, § 3, Oct. 19, 1972, 86 Stat. 914; Pub. L. 96–561, title II, § 220(3)(D), Dec. 22, 1980, 94 Stat. 3294; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 97–35, title XVI, § 1606(d), Aug. 13, 1981, 95 Stat. 752; § 1104 renumbered as § 1104A, Pub. L. 101–380, title IV, § 4115(f)(1), Aug. 18, 1990, 104 Stat. 521. 46 App.:1280. Pub. L. 85–469, title I, § 101 (par. under heading ‘‘Fed- eral Ship Mortgage Insur- ance Fund’’), June 25, 1958, 72 Stat. 231; Pub. L. 97–31, § 12(137), Aug. 6, 1981, 95 Stat. 166. The Federal Ship Financing Fund which had been created by 46 App. U.S.C. 1272 is obsolete as a result of the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). This section codifies the current requirements and practices for the management of funds under this chapter, based on the requirements of that Act. Page 454 TITLE 46—SHIPPING § 53718 Editorial Notes REFERENCES IN TEXT The Federal Credit Reform Act of 1990, referred to in subsec. (a), is title V of Pub. L. 93–344, as added by Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–609, which is classified generally to subchapter III (§ 661 et seq.) of chapter 17A of Title 2, The Congress. For complete classification of this Act to the Code, see Short Title note set out under section 621 of Title 2 and Tables. AMENDMENTS 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(B), (D), (c)(2). See 2006 Amendment note below. Subsec. (b). Pub. L. 110–181, § 3522(a)(9)(B), incor- porated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(B), (D), (c)(2), into this section by substituting ‘‘Administrator’’ for ‘‘Secretary of Trans- portation’’ wherever appearing in heading and text. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construc- tion note preceding section 101 of this title. Subsecs. (c), (d). Pub. L. 110–181, § 3522(a)(7), struck out ‘‘of Commerce’’ after ‘‘Secretary’’ wherever appear- ing in headings and text. 2006—Pub. L. 109–163, § 3507(a)(1)(B), (D), (c)(2), which directed the amendment of sections 1272, 1274(g), and 1280 of the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment note for subsec. (b) and Historical and Revision notes above. § 53718. Annual report to Congress The Administrator shall report to Congress annually on the loan guarantee program under this chapter. Each report shall include— (1) the size, in dollars, of the portfolio of loans guaranteed; (2) the size, in dollars, of projects in the portfolio facing financial difficulties; (3) the number and type of projects covered; (4) a profile of pending loan applications; (5) the amount of appropriations available for new guarantees; (6) a profile of each project approved since the last report; and (7) a profile of any defaults since the last re- port. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1617; Pub. L. 109–163, div. C, title XXXV, § 3507(c)(3), Jan. 6, 2006, 119 Stat. 3556; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(9)(C), (b), Jan. 28, 2008, 122 Stat. 598.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53718 .......... 46 App.:1280b. Pub. L. 108–136, title XXXV, § 3527, Nov. 24, 2003, 117 Stat. 1802. Editorial Notes AMENDMENTS 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(c)(3). See 2006 Amendment note below. Pub. L. 110–181, § 3522(a)(9)(C), incorporated the sub- stance of the amendment by Pub. L. 109–163, § 3507(c)(3), into this section by substituting ‘‘Administrator’’ for ‘‘Secretary of Transportation’’ in introductory provi- sions. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title. 2006—Pub. L. 109–163, § 3507(c)(3), which directed the amendment of section 1280b of the former Appendix to this title from which this section was derived, was re- pealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment notes and Historical and Revision notes above. § 53719. Best practices The Secretary or Administrator shall ensure that all standard documents and agreements that relate to loan guarantees made pursuant to this chapter are reviewed and updated every four years to ensure that such documents and agreements meet the current commercial best practices to the extent permitted by law. (Added Pub. L. 116–92, div. C, title XXXV, § 3506(i)(1), Dec. 20, 2019, 133 Stat. 1973.) SUBCHAPTER II—DEFAULT PROVISIONS § 53721. Rights of obligee (a) DEMANDS BY OBLIGEES.—Except as provided in subsection (c), if an obligor has continued in default for 30 days in the payment of principal or interest on an obligation guaranteed under this chapter, the obligee or the obligee’s agent may demand that the Secretary or Adminis- trator pay the unpaid principal amount of the obligation and the unpaid interest on the obliga- tion to the date of payment. The demand must be made within the earlier of— (1) a period that may be specified in the guarantee or a related agreement; or (2) 90 days from the date of the default. (b) PAYMENTS BY SECRETARY OR ADMINIS- TRATOR.— (1) IN GENERAL.—If a demand is made under subsection (a), the Secretary or Administrator shall pay to the obligee or the obligee’s agent the unpaid principal amount of the obligation and the unpaid interest on the obligation to the date of payment. Payment shall be made within the earlier of— (A) a period that may be specified in the guarantee or a related agreement; or (B) 30 days from the date of the demand. (2) IF NO EXISTING DEFAULT.—The Secretary or Administrator is not required to make pay- ment under this subsection if, within the ap- propriate period under paragraph (1), the Sec- retary or Administrator finds that the obligor was not in default or that the default was rem- edied before the demand. (c) ASSUMPTION OF RIGHTS AND OBLIGATIONS BEFORE DEMAND.—An obligee or the obligee’s agent may not demand payment under this sec- tion if the Secretary or Administrator, before the demand and on terms that may be provided in the obligation or a related agreement, has as- sumed the obligor’s rights and duties under the obligation and any related agreement and made any payment in default. However, the guarantee of the obligation remains in effect after the Sec- retary’s or Administrator’s assumption. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1617; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C), (F), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(10)(B), (11), (b), Jan. 28, 2008, 122 Stat. 598.)