46 U.S.C. § 53709 — Amount of obligations

Page 445 TITLE 46—SHIPPING § 53709 HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53708(a) ...... 46 App.:1274(d)(1)(A). June 29, 1936, ch. 858, title XI, § 1104A(d)(1), (2) [§ 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. 910; Pub. L. 96–561, title II, § 220(3)(C), Dec. 22, 1980, 94 Stat. 3293; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 97–35, title XVI, § 1606(c), Aug. 13, 1981, 95 Stat. 752; Pub. L. 98–595, § 1(6), Oct. 30, 1984, 98 Stat. 3130; § 1104 re- numbered as § 1104A, Pub. L. 101–380, title IV, § 4115(f)(1), Aug. 18, 1990, 104 Stat. 521. 53708(b) ...... 46 App.:1274(d)(1)(B). 53708(c) ...... 46 App.:1274(d)(2). 53708(d) ...... 46 App.:1274(f)(2). June 29, 1936, ch. 858, title XI, § 1104A(f)(2), (3), as added Pub. L. 108–136, title XXXV, § 3526(2)(C), Nov. 24, 2003, 117 Stat. 1801. 53708(e) ...... 46 App.:1274(f)(3). Editorial Notes AMENDMENTS 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(D), (2)(D), (b)(3)(A), (4). See 2006 Amendment note below. Subsec. (a). Pub. L. 110–181, § 3522(a)(4)(A), (B), incor- porated the substance of the amendment by Pub. L. 109–163, § 3507(a)(2)(D), (b)(3)(A), into this section by sub- stituting in the heading, ‘‘Administrator’’ for ‘‘Sec- retary of Transportation’’ and, in introductory provi- sions, ‘‘Administrator may’’ for ‘‘Secretary of Trans- portation may’’, ‘‘Administrator finds’’ for ‘‘Secretary finds’’, and ‘‘Administrator shall’’ for ‘‘Secretary shall’’. 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. Subsec. (b). Pub. L. 110–181, § 3522(a)(4)(C), (D), struck out ‘‘of Commerce’’ after ‘‘Secretary’’ in heading and the first time appearing in introductory provisions. Subsec. (c). Pub. L. 110–181, § 3522(a)(4)(D), struck out ‘‘of Commerce’’ after ‘‘Secretary’’. Subsec. (d). Pub. L. 110–181, § 3522(a)(4)(E), incor- porated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(D), (b)(4)(A), (C), into this section by inserting ‘‘or Administrator’’ after ‘‘The Secretary’’ and substituting ‘‘or financial structures. A third party independent analysis conducted under this subsection shall be performed by a private sector expert in assess- ing such risk factors who is selected by the Secretary or Administrator.’’ for ‘‘financial structures, or other risk factors identified by the Secretary. Any inde- pendent analysis conducted under this subsection shall be performed by a party chosen by the Secretary.’’ 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. Subsec. (e). Pub. L. 110–181, § 3522(a)(4)(F), incor- porated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(D), (b)(4)(B), into this section by in- serting ‘‘or Administrator’’ after ‘‘chapter, the Sec- retary’’ and substituting ‘‘or financial structures’’ for ‘‘financial structures, or other risk factors identified by the Secretary’’. 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(a)(1)(D), (2)(D), (b)(3)(A), (4), which directed the amendment of section 1274(d)(1)(A), (f)(2), (3) of the former Appendix to this title from which this section was derived in part, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amend- ment notes for subsecs. (a), (d), and (e) and Historical and Revision notes above. § 53709. Amount of obligations (a) IN GENERAL.—The principal of an obliga- tion may not be guaranteed in an amount great- er than the amount determined by multiplying the percentage applicable under subsection (b) by— (1) the amount paid by or for the account of the obligor (as determined by the Secretary or Administrator, which determination shall be conclusive) for the construction, reconstruc- tion, or reconditioning of the vessel used as se- curity for the guarantee; or (2) if the obligor creates an escrow fund under section 53715 of this title, the actual cost of the vessel. (b) LIMITATIONS ON AMOUNT BORROWED.— (1) IN GENERAL.—Except as otherwise pro- vided, the principal amount of an obligation guaranteed under this chapter may not exceed 75 percent of the actual cost or depreciated ac- tual cost, as determined by the Secretary or Administrator, of the vessel used as security for the guarantee. (2) CERTAIN APPROVED VESSELS.—The prin- cipal amount may not exceed 87.5 percent of the actual cost or depreciated actual cost if— (A) the size and speed of the vessel are ap- proved by the Secretary or Administrator; (B) the vessel is or would have been eligi- ble for mortgage aid for construction under section 509 of the Merchant Marine Act, 1936, or would have been eligible except that the vessel was built with a construction-dif- ferential subsidy and the subsidy has been repaid; and (C) the vessel is of a type described in that section for which the minimum down pay- ment required by that section is 12.5 percent of the cost of the vessel. (3) FISHING VESSELS AND FISHERY FACILI- TIES.—For a fishing vessel or fishery facility, the principal amount may not exceed 80 per- cent of the actual cost or depreciated actual cost. However, debt for the vessel or facility may not be placed through the Federal Fi- nancing Bank. (4) OTEC.—For an ocean thermal energy conversion facility or plantship constructed without a construction-differential subsidy, the principal amount may not exceed 87.5 per- cent of the actual cost or depreciated actual cost of the facility or plantship. (c) SECURITY INVOLVING MULTIPLE VESSELS.— The principal amount of an obligation having more than one vessel as security for the guar- Page 446 TITLE 46—SHIPPING § 53710 antee may not exceed the sum of the principal amounts allowable for all the vessels. (d) PROHIBITION ON UNIFORM PERCENTAGE LIMI- TATIONS.—The Secretary or Administrator may not establish a percentage under any provision of subsection (b) that is to be applied uniformly to all guarantees or commitments to guarantee made under that provision. (e) PROHIBITION ON MINIMUM PRINCIPAL AMOUNT.—The Secretary may not establish, as a condition of eligibility for a guarantee under this chapter, a minimum principal amount for an obligation covering the reconstruction or re- conditioning of a fishing vessel or fishery facil- ity. For purposes of this chapter, the reconstruc- tion or reconditioning of a fishing vessel or fish- ery facility does not include the routine minor repair or maintenance of the vessel or facility. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1609; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C), (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; Pub. L. 116–92, div. C, title XXXV, § 3506(f), Dec. 20, 2019, 133 Stat. 1972.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53709(a) ...... 46 App.:1273(c). June 29, 1936, ch. 858, title XI, § 1103(c), as added June 23, 1938, ch. 600, § 46, 52 Stat. 969; Aug. 15, 1953, ch. 513, § 1, 67 Stat. 626; Sept. 3, 1954, ch. 1265, § 3, 68 Stat. 1268; June 25, 1956, ch. 438, 70 Stat. 332; Aug. 7, 1956, ch. 1026, § 1(a), (c), (d), 70 Stat. 1087; Pub. L. 91–469, § 30, Oct. 21, 1970, 84 Stat. 1035; restated Pub. L. 92–507, § 3, Oct. 19, 1972, 86 Stat. 910; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166. 53709(b) ...... 46 App.:1274(b)(2). June 29, 1936, ch. 858, title XI, § 1104A(b)(2), (last 2 sentences), (c)(1) (last sen- tence) [§ 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. 910; Pub. L. 95–257, Apr. 7, 1978, 92 Stat. 194; Pub. L. 96–320, title II, § 202(c), Aug. 3, 1980, 94 Stat. 992; Pub. L. 96–561, title II, § 220(3)(B), Dec. 22, 1980, 94 Stat. 3293; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 99–509, title V, § 5003, Oct. 21, 1986, 100 Stat. 1912; § 1104 renum- bered as § 1104A, Pub. L. 101–380, title IV, § 4115(f)(1), Aug. 18, 1990, 104 Stat. 521; Pub. L. 103–160, div. A, title XIII, § 1356(3)(B), (C), Nov. 30, 1993, 107 Stat. 1813; Pub. L. 104–297, title III, § 302(a)(5), Oct. 11, 1996, 110 Stat. 3615. HISTORICAL AND REVISION NOTES—CONTINUED Revised Section Source (U.S. Code) Source (Statutes at Large) 53709(c) ...... 46 App.:1274(c)(1) (last sentence). 53709(d) ...... 46 App.:1274(i). June 29, 1936, ch. 858, title XI, § 1104A(i), as added Pub. L. 103–160, div. A, title XIII, § 1356(3)(E), Nov. 30, 1993, 107 Stat. 1814. 53709(e) ...... 46 App.:1274(b) (last 2 sentences). Subsections (a) and (d) are substituted for the source provisions for clarity and to eliminate unnecessary words. Editorial Notes REFERENCES IN TEXT Section 509 of the Merchant Marine Act, 1936, referred to in subsec. (b)(2)(B), is section 509 of act June 29, 1936, ch. 858, 49 Stat. 1985, which is set out as a note under section 53101 of this title. AMENDMENTS 2019—Subsec. (b)(3) to (6). Pub. L. 116–92 redesignated pars. (4) and (5) as (3) and (4), respectively, and struck out former par. (3) and par. (6) which read as follows: ‘‘(3) BARGES.—For a barge constructed without a con- struction-differential subsidy or for which the subsidy has been repaid, the principal amount may not exceed 87.5 percent of the actual cost or depreciated actual cost. ‘‘(6) ELIGIBLE EXPORT VESSELS.—For an eligible export vessel, the principal amount may not exceed 87.5 per- cent of the actual cost or depreciated actual cost.’’ 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(C), (D). See 2006 Amendment note below. Subsecs. (a)(1), (b)(1), (2)(A), (d). Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(C), (D), into this section by inserting ‘‘or Administrator’’ after ‘‘Secretary’’. 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)(C), (D), which di- rected the amendment of sections 1273(c) and 1274(b)(2), (c)(1), (i) of the former Appendix to this title from which this section was derived in part, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment note for subsecs. (a)(1), (b)(1), (2)(A), (d) and Historical and Revi- sion notes above. § 53710. Contents of obligations (a) IN GENERAL.—An obligation guaranteed under this chapter must— (1) provide for payments by the obligor satis- factory to the Secretary or Administrator; (2) provide for interest (exclusive of guar- antee fees and other fees) at a rate not more than the annual rate on the unpaid principal that the Secretary or Administrator deter- mines is reasonable, considering the range of interest rates prevailing in the private market for similar loans and the risks assumed by the Secretary or Administrator; (3) have a maturity date satisfactory to the Secretary or Administrator, but— (A) not more than 25 years after the date of delivery of the vessel used as security for the guarantee; or (B) if the vessel has been reconstructed or reconditioned, not more than the later of— (i) 25 years after the date of delivery of the vessel; or