46 U.S.C. § 53734 — Untitled legal text

Page 460 TITLE 46—SHIPPING § 53734 109–163, § 3507(a)(2)(K), into this section by substituting ‘‘Administrator’’ for ‘‘Secretary’’. 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)(2)(K), which directed the amendment of section 1279e of the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amend- ment note for subsecs. (b), (e) and Historical and Revi- sion notes above. § 53734. Replacement of vessels because of changes in operating standards (a) GENERAL AUTHORITY.—Notwithstanding any other provision of this chapter, the Sec- retary or Administrator, on terms the Secretary or Administrator may prescribe, may guarantee or make a commitment to guarantee the pay- ment of the principal of and interest on an obli- gation that aids in financing or refinancing (in- cluding reimbursement of an obligor for expend- itures previously made for) a contract for the construction or reconstruction of a vessel if— (1) the vessel is designed and to be used for commercial use in coastwise, intercoastal, or foreign trade; (2) the construction or reconstruction is nec- essary to replace a vessel that cannot con- tinue to be operated because of a change re- quired by law in the standards for the oper- ation of vessels, and the applicant for the guarantee or commitment would not other- wise legally be able to continue operating ves- sels in the trades in which the applicant oper- ated vessels before the change; (3) the applicant is presently engaged in transporting cargoes in vessels of the type and class that will be constructed or reconstructed under this section and agrees to employ ves- sels constructed or reconstructed under this section as replacements only for vessels made obsolete by the change in operating standards; (4) the capacity of the vessels to be con- structed or reconstructed under this section will not increase the cargo carrying capacity of the vessels being replaced; (5) the Secretary or Administrator has not determined that the market demand for the vessel over its useful life will diminish so as to make granting the guarantee fiduciarily im- prudent; (6) the vessel, if to be reconstructed, will have a useful life of at least 15 years after the reconstruction; and (7) the Secretary or Administrator has con- sidered the criteria specified in section 53708(a)(3)–(5) of this title. (b) TERM AND AMOUNT OF OBLIGATION.— (1) TERM.—The term of an obligation guaran- teed under this section may not exceed 25 years. (2) AMOUNT.—The amount of an obligation guaranteed under this section may not exceed 87.5 percent of the actual cost or depreciated actual cost to the applicant for the construc- tion or reconstruction of the vessel. The Sec- retary or Administrator may not establish a percentage under this paragraph that is to be applied uniformly to all guarantees or com- mitments to guarantee made under this sec- tion. (c) APPLICABILITY OF OTHER PROVISIONS.—A guarantee or commitment to guarantee under this section is also subject to sections 53701, 53702(a), 53704, 53705, 53707(a), 53708(d) and (e), 53709(a), 53710(a)(1), (2), and (4) and (c), 53711(a), 53713, 53714, 53717, and 53721–53725 of this title. (d) SECURITY AGAINST DEFAULT.—The Sec- retary or Administrator shall require by regula- tion that an applicant under this section provide adequate security against default. (e) GUARANTEE FEES.—The Secretary or Ad- ministrator may establish a fee for the guar- antee of an obligation under this section that is in addition to the fee established under section 53714 of this title. The fee may be— (1) an annual fee of not more than an addi- tional 1 percent added to the fee established under section 53714 of this title; or (2) a fee based on the amount of the obliga- tion versus the percentage of the obligor’s fleet being replaced by vessels constructed or reconstructed under this section. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1624; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(E), 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) 53734(a) ...... 46 App.:1274a(a), (b)(3). June 29, 1936, ch. 858, title XI, § 1104B, as added Pub. L. 101–380, title IV, § 4115(f)(2), Aug. 18, 1990, 104 Stat. 521; amended Pub. L. 102–587, title VI, § 6204, Nov. 4, 1992, 106 Stat. 5094; Pub. L. 103–160, div. A, title XIII, § 1356(4), Nov. 30, 1993, 107 Stat. 1814; Pub. L. 104–239, § 11(2), Oct. 8, 1996, 110 Stat. 3134. 53734(b) ...... 46 App.:1274a(b) (less (3)). 53734(c) ...... 46 App.:1274a(d). 53734(d) ...... 46 App.:1274a(c)(1) (1st sentence). 53734(e) ...... 46 App.:1274a(c)(1) (2d sentence), (2). In subsection (a), in paragraph (1), the words ‘‘as de- fined in section 1244 of this Appendix’’ are omitted be- cause the definition of ‘‘foreign commerce or trade’’ in chapter 1 of the revised title applies without having to say so specifically. Paragraph (6) is substituted for 46 App. U.S.C. 1274a(b)(3) to improve the organization of the source provisions. In subsection (b)(2), the words ‘‘by rule, regulation, or procedure’’ are omitted as unnecessary and for consist- ency with section 53709(d) of the revised title. In subsections (c) and (e), the language concerning the Vessel Replacement Guarantee Fund and the Fed- eral Ship Financing Fund is omitted as obsolete. See the explanation for section 53717. Editorial Notes AMENDMENTS 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(E). See 2006 Amendment note below. Pub. L. 110–181, § 3522(a)(10)(B), incorporated the sub- stance of the amendment by Pub. L. 109–163, § 3507(a)(1)(E), into this section by inserting ‘‘or Admin- istrator’’ after ‘‘Secretary’’ wherever appearing. 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. Page 461 TITLE 46—SHIPPING § 53901 2006—Pub. L. 109–163, § 3507(a)(1)(E), which directed the amendment of section 1274a of the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amend- ment notes and Historical and Revision notes above. § 53735. Fisheries financing and capacity reduc- tion (a) DEFINITION.—In this section, the term ‘‘pro- gram’’ means a fishing capacity reduction pro- gram established under section 312 of the Mag- nuson-Stevens Fishery Conservation and Man- agement Act (16 U.S.C. 1861a). (b) GUARANTEE AUTHORITY.—The Secretary may guarantee the repayment of debt obliga- tions issued by entities under this section. Debt obligations to be guaranteed may be issued by any entity that has been approved by the Sec- retary and has agreed with the Secretary to con- ditions the Secretary considers necessary for this section to achieve the objective of the pro- gram and to protect the interest of the United States. (c) REQUIREMENTS OF OBLIGATIONS.—A debt ob- ligation guaranteed under this section shall— (1) be treated in the same manner and to the same extent as other obligations guaranteed under this chapter, except with respect to pro- visions of this chapter that by their nature cannot be applied to obligations guaranteed under this section; (2) have the fishing fees established under the program paid into a separate subaccount of the fishing capacity reduction fund estab- lished under this section; (3) not exceed $100,000,000 in an unpaid prin- cipal amount outstanding at any one time for a program; (4) have such maturity (not to exceed 20 years), take such form, and contain such con- ditions as the Secretary determines necessary for the program to which they relate; (5) have as the exclusive source of repay- ment (subject to the second sentence of sub- section (d)(2)) and as the exclusive payment security, the fishing fees established under the program; and (6) at the discretion of the Secretary be issued in the public market or sold to the Fed- eral Financing Bank. (d) FISHING CAPACITY REDUCTION FUND.— (1) IN GENERAL.—There is a separate account in the Treasury, known as the Fishing Capac- ity Reduction Fund. Within the Fund, at least one subaccount shall be established for each program into which shall be paid all fishing fees established under the program and other amounts authorized for the program. (2) AVAILABILITY OF AMOUNTS.—Amounts in the Fund shall be available, without appro- priation or fiscal year limitation, to the Sec- retary to pay the cost of the program, includ- ing payments to financial institutions to pay debt obligations incurred by entities under this section. Funds available for this purpose from other amounts available for the program may also be used to pay those debt obliga- tions. (3) INVESTMENT.—Amounts in the Fund that are not currently needed for the purpose of this section shall be kept on deposit or in- vested in obligations of the United States Gov- ernment. (e) REGULATIONS.—The Secretary shall pre- scribe regulations the Secretary considers nec- essary to carry out this section. (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1625; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(H), (d), Jan. 6, 2006, 119 Stat. 3555, 3557; Pub. L. 110–181, div. C, title XXXV, § 3522(b), Jan. 28, 2008, 122 Stat. 598.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 53735(a) ...... 46 App.:1279f(e). June 29, 1936, ch. 858, title XI, § 1111, as added Pub. L. 104–297, title III, § 303, Oct. 11, 1996, 110 Stat. 3616; Pub. L. 104–208, title I, § 101 [title II, § 211(b)], Sept. 30, 1996, 110 Stat. 3009–41. 53735(b) ...... 46 App.:1279f(a). 53735(c) ...... 46 App.:1279f(b). 53735(d) ...... 46 App.:1279f(c). 53735(e) ...... 46 App.:1279f(d). Editorial Notes CODIFICATION This section was derived from section 1111 of act June 29, 1936, as added by Pub. L. 104–297, § 303, which was classified to section 1279f of the former Appendix to this title. Section 1111 was renumbered section 1113 of the Act by Pub. L. 109–163, div. C, title XXXV, § 3507(d), Jan. 6, 2006, 119 Stat. 3557, which was repealed by Pub. L. 110–181, div. C, title XXXV, § 3522(b), Jan. 28, 2008, 122 Stat. 598. See Historical and Revision notes above and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title. AMENDMENTS 2008—Pub. L. 110–181 repealed Pub. L. 109–163, § 3507(a)(1)(H), (d). See 2006 Amendment note below and Codification note above. 2006—Pub. L. 109–163, § 3507(a)(1)(H), which directed the amendment of section 1279f of the former Appendix to this title from which this section was derived by substituting ‘‘Secretary or Administrator’’ for ‘‘Sec- retary’’ wherever appearing, was repealed by Pub. L. 110–181, § 3522(b). See Historical and Revision notes above. CHAPTER 539—WAR RISK INSURANCE Sec. 53901. Definitions. 53902. Authority to provide insurance. 53903. Insurable interests. 53904. Liability insurance for persons involved in war or defense efforts. 53905. Agency insurance. 53906. Hull insurance valuation. 53907. Reinsurance. 53908. Additional insurance privately obtained. 53909. War risk insurance revolving fund. 53910. Administrative. 53911. Civil actions for losses. [53912. Repealed.] Editorial Notes AMENDMENTS 2018—Pub. L. 115–232, div. C, title XXXV, § 3504(b), Aug. 13, 2018, 132 Stat. 2308, struck out item 53912 ‘‘Ex- piration date’’. § 53901. Definitions In this chapter: