46 U.S.C. § 53714 — Guarantee fees

Page 450 TITLE 46—SHIPPING § 53714 HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53713(a) ...... 46 App.:1274(f)(1) (words before pro- viso). June 29, 1936, ch. 858, title XI, § 1104A(f)(1), (4) [§ 1104A formerly § 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. 913; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; § 1104 renumbered as § 1104A, Pub. L. 101–380, title IV, § 4115(f)(1), Aug. 18, 1990, 104 Stat. 521; Pub. L. 107–314, title XXXV, § 3503(2), Dec. 2, 2002, 116 Stat. 2754; Pub. L. 108–136, title XXXV, § 3526(2), Nov. 24, 2003, 117 Stat. 1801. 53713(b) ...... 46 App.:1274(f)(1) (proviso). 53713(c) ...... 46 App.:1274(f)(4). Editorial Notes AMENDMENTS 2019—Subsec. (a). Pub. L. 116–92, § 3506(h)(1)(A), sub- stituted ‘‘reasonable for processing the application and monitoring the loan guarantee, including for—’’ for ‘‘reasonable for—’’ in introductory provisions. Subsec. (a)(4). Pub. L. 116–92, § 3506(h)(1)(B), sub- stituted ‘‘or a deposit fund under section 53716 of this title;’’ for ‘‘; and’’. Subsec. (a)(6). Pub. L. 116–92, § 3506(h)(1)(C), (D), added par. (6). Subsec. (c). Pub. L. 116–92, § 3506(h)(2)(B)–(D), des- ignated existing provisions as par. (1) and inserted heading, redesignated former pars. (1) to (3) as subpars. (A) to (C), respectively, of par. (1) and realigned mar- gins, and added par. (2). Pub. L. 116–92, § 3506(h)(2)(A), which directed amend- ment of par. (1) of subsec. (c) by substituting ‘‘under section 53703(c) of this title’’ for ‘‘under section 53708(d) of this title’’, was executed by making the substitution in introductory provisions of subsec. (c) to reflect the probable intent of Congress and the subsequent des- ignation of the provisions of subsec. (c) as subsec. (c)(1). See above. 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(D). See 2006 Amendment note below. Subsecs. (a), (c). Pub. L. 110–181, § 3522(a)(10)(B), incor- porated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(D), into this section, by inserting ‘‘or Administrator’’ after ‘‘Secretary’’ wherever appear- ing in introductory provisions. See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note pre- ceding section 101 of this title. 2006—Pub. L. 109–163, § 3507(a)(1)(D), which directed the amendment of section 1274(f) of the former Appen- dix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment note for subsecs. (a), (c) and Historical and Revision notes above. § 53714. Guarantee fees (a) REGULATIONS.—Subject to this section, the Secretary or Administrator shall prescribe regu- lations to assess a fee for guaranteeing an obli- gation under this chapter. (b) COMPUTATION OF FEE.— (1) IN GENERAL.—The amount of the fee for a guarantee under this chapter shall be equal to the sum of the amounts determined under paragraph (2) for the years in which the guar- antee is in effect. (2) PRESENT VALUE FOR EACH YEAR.—The amount referred to in paragraph (1) for a year in which the guarantee is in effect is the present value of the amount calculated under paragraph (3). To determine the present value, the Secretary or Administrator shall apply a discount rate determined by the Secretary of the Treasury, considering current market yields on outstanding obligations of the United States Government having periods to maturity comparable to the period to matu- rity for the guaranteed obligation. (3) CALCULATION OF AMOUNT.—The amount referred to in paragraph (2) shall be calculated by multiplying— (A) the estimated average unpaid principal amount of the obligation that will be out- standing during the year (excluding the av- erage amount, other than interest, on de- posit during the year in an escrow fund under section 53715 of this title); by (B) the fee rate set under paragraph (4). (4) SETTING FEE RATES.—To set the fee rate referred to in paragraph (3)(B), the Secretary or Administrator shall establish a formula that— (A) takes into account the security pro- vided for the guaranteed obligation; and (B) is a sliding scale based on the credit- worthiness of the obligor, using— (i) the lowest allowable rate under para- graph (5) for the most creditworthy obli- gors; and (ii) the highest allowable rate under paragraph (5) for the least creditworthy obligors. (5) PERMISSIBLE RANGE OF RATES.—The fee rate set under paragraph (4) shall be— (A) for a delivered vessel or equipment, at least 0.5 percent and not more than 1 per- cent; and (B) for a vessel to be constructed, recon- structed, or reconditioned or equipment to be delivered, at least 0.25 percent and not more than 0.5 percent. (c) WHEN FEE COLLECTED.—A fee for the guar- antee of an obligation under this chapter shall be collected not later than the date on which an amount is first paid on the obligation. (d) FINANCING THE FEE.—A fee paid under this section is eligible to be financed under this chapter and shall be included in the actual cost of the obligation guaranteed. (e) NOT REFUNDABLE.—A fee paid under this section is not refundable. However, an obligor shall receive credit for the amount paid for the remaining term of the obligation if the obliga- tion is refinanced and guaranteed under this chapter after the refinancing. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1613; Pub. L. 109–163, div. C, title XXXV, Page 451 TITLE 46—SHIPPING § 53715 § 3507(a)(1)(D), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(10)(B), (b), Jan. 28, 2008, 122 Stat. 598.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53714(a) ...... 46 App.:1274(e)(1). June 29, 1936, ch. 858, title XI, § 1104A(e) [§ 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. 913; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 98–595, § 1(12), Oct. 30, 1984, 98 Stat. 3131; § 1104 renumbered as § 1104A, Pub. L. 101–380, title IV, § 4115(f)(1), Aug. 18, 1990, 104 Stat. 521; Pub. L. 104–239, § 13(c), Oct. 8, 1996, 110 Stat. 3136. 53714(b) ...... 46 App.:1274(e)(2). 53714(c) ...... 46 App.:1274(e)(3). 53714(d) ...... 46 App.:1274(e)(5). 53714(e) ...... 46 App.:1274(e)(4). Editorial Notes AMENDMENTS 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(D). See 2006 Amendment note below. Subsecs. (a), (b)(2), (4). Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(D), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’, except the sec- ond place appearing in subsec. (b)(2). See 2006 Amend- ment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note pre- ceding section 101 of this title. 2006—Pub. L. 109–163, § 3507(a)(1)(D), which directed the amendment of section 1274(e) of the former Appen- dix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment note for subsecs. (a), (b)(2), (4) and Histor- ical and Revision notes above. § 53715. Escrow fund (a) IN GENERAL.—If the proceeds of an obliga- tion guaranteed under this chapter are to be used to finance the construction, reconstruc- tion, or reconditioning of a vessel that will serve as security for a guarantee under this chapter, the Secretary or Administrator may accept and hold in escrow, under an escrow agreement with the obligor, a portion of the proceeds of all obli- gations guaranteed under this chapter whose proceeds are to be so used which is equal to— (1) the excess of— (A) the principal amount of all obligations whose proceeds are to be so used; over (B) 75 percent or 87.5 percent, whichever is applicable under section 53709(b) of this title, of the amount paid by or for the account of the obligor for the construction, reconstruc- tion, or reconditioning of the vessel; plus (2) any interest the Secretary or Adminis- trator may require on the amount described in paragraph (1). (b) SECURITY INVOLVING BOTH UNCOMPLETED AND DELIVERED VESSELS.—If the security for the guarantee of an obligation relates both to a ves- sel to be constructed, reconstructed, or recondi- tioned and to a delivered vessel, the principal amount of the obligation shall be prorated for purposes of subsection (a) under regulations pre- scribed by the Secretary or Administrator. (c) DISBURSEMENT BEFORE TERMINATION OF AGREEMENT.— (1) PURPOSES.—The Secretary or Adminis- trator shall disburse amounts in the escrow fund, as specified in the escrow agreement, to— (A) pay amounts the obligor is obligated to pay for— (i) the construction, reconstruction, or reconditioning of a vessel used as security for the guarantee; and (ii) interest on the obligations; (B) redeem the obligations under a refi- nancing guaranteed under this chapter; and (C) pay any excess interest deposits to the obligor at times provided for in the escrow agreement. (2) MANNER OF PAYMENT.—If a payment be- comes due under the guarantee before the ter- mination of the escrow agreement, the amount in the escrow fund at the time the payment becomes due, including realized in- come not yet paid to the obligor, shall be paid into the appropriate account under section 53717 of this title. The amount shall be cred- ited against amounts due or to become due from the obligor to the Secretary or Adminis- trator on the guaranteed obligations or, to the extent not so required, be paid to the obligor. (d) PAYMENTS REQUIRED BEFORE DISBURSE- MENT.— (1) IN GENERAL.—No disbursement shall be made under subsection (c) to any person until the total amount paid by or for the account of the obligor from sources other than the pro- ceeds of the obligation equals at least 25 per- cent or 12.5 percent, whichever is applicable under section 53709(b) of this title, of the ag- gregate actual cost of the vessel, as previously approved by the Secretary or Administrator. If the aggregate actual cost of the vessel has increased since the Secretary’s or Administra- tor’s initial approval or if it increases after the first disbursement is permitted under this subsection, then no further disbursements shall be made under subsection (c) until the total amount paid by or for the account of the obligor from sources other than the proceeds of the obligation equals at least 25 percent or 12.5 percent, as applicable, of the increase, as determined by the Secretary or Adminis- trator, in the aggregate actual cost of the ves- sel. This paragraph does not require the Sec- retary or Administrator to consent to finance any increase in actual cost unless the Sec- retary or Administrator determines that such an increase in the obligation meets all the terms and conditions of this chapter or other applicable law.