46 U.S.C. § 53708 — Findings related to economic soundness
submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 467 words · no verdicts yet
The Administrator and Secretary must each separately find a financed project economically sound, considering factors like market demand, projected revenue, and, for fisheries, conservation and technical improvements. Used fishing vessels or facilities qualify only if rebuilt domestically or used in an underused fishery. Applications may require outside risk analysis or extra equity because of added risk.
(a) By Administrator*. The Administrator can't guarantee an obligation* unless finding the financed property or project will be economically sound. In deciding, the Administrator must consider: (1) whether that part of the maritime industry needs new or added capacity, including effects on existing guaranteed equipment; (2) the market potential for using the vessel* over the guarantee's life; (3) projected revenue and expenses from using the vessel; (4) any charter or transportation agreement relevant to using the vessel; (5) other relevant factors; and (6) for inland waterways, the need for technical improvements like better fuel efficiency or safety.
(b) By Secretary*. The Secretary can't guarantee an obligation unless finding, by the time the commitment or guarantee takes effect, that: (1) the property or project will be economically sound; and (2) for a fishing vessel*, the financing serves either (A) wise use, development, management, conservation, and protection of fishery resources, or (B) the need for technical improvements like fuel efficiency or safety.
(c) Used Fishing Vessels and Facilities. The Secretary can't guarantee an obligation to buy a used fishing vessel or facility unless it will be: (1) rebuilt or reconditioned in the U.S. and help develop the U.S. fishing industry; or (2) used (A) to harvest fish from an underused fishery, or (B) for a "fishery facility*" purpose (as defined in section 53701) tied to an underused fishery.
(d) Independent Analysis. The Secretary or Administrator may decide that parts of an application need independent analysis by outside experts because of market, technology, or financial-structure risks. That analysis must come from a private-sector expert in the relevant risk area, chosen by the Secretary or Administrator.
(e) Additional Equity Because of Increased Risks. Regardless of any other part of this chapter, the Secretary or Administrator may decide that an application needs extra equity because of increased market, technology, or financial-structure risks.
The Administrator may not guarantee or make a commitment to guarantee an obligation* under this chapter unless the Administrator finds that the property or project for which the obligation will be executed will be economically sound. In making that finding, the Administrator shall consider—
the need in the particular segment of the maritime industry for new or additional capacity, including any impact on existing equipment for which a guarantee under this chapter is in effect;
the market potential for employment of the vessel* over the life of the guarantee;
projected revenues and expenses associated with employment of the vessel;
any charter, contract of affreightment, transportation agreement, or similar agreement or undertaking relevant to the employment of the vessel;
other relevant criteria; and
for inland waterways, the need for technical improvements, including increased fuel efficiency or improved safety.
The Secretary may not guarantee or make a commitment to guarantee an obligation under this chapter unless the Secretary finds, at or prior to the time the commitment is made or the guarantee becomes effective, that—
the property or project for which the obligation will be executed will be economically sound; and
for a fishing vessel*, the purpose of the financing or refinancing is consistent with—
the wise use of the fisheries* resources and the development, advancement, management, conservation, and protection of the fisheries resources; or
the need for technical improvements, including increased fuel efficiency or improved safety.
The Secretary may not guarantee or make a commitment to guarantee an obligation under this chapter for the purchase of a used fishing vessel or used fishery facility* unless the vessel or facility will be—
reconstructed or reconditioned in the United States and will contribute to the development of the United States fishing industry; or
used—
in the harvesting of fish from an underused fishery; or
for a purpose described in the definition of “fishery facility” in section 53701 of this title with respect to an underused fishery.
The Secretary or Administrator may make a determination that aspects of an application under this chapter require independent analysis to be conducted by third party experts due to risk factors associated with markets, technology, or financial structures. A third party independent analysis conducted under this subsection shall be performed by a private sector expert in assessing such risk factors who is selected by the Secretary or Administrator.
Notwithstanding any other provision of this chapter, the Secretary or Administrator may make a determination that an application under this title requires additional equity because of increased risk factors associated with markets, technology, or financial structures.
Source credit: (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1608; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(D), (2)(D), (b)(3)(A), (4), Jan. 6, 2006, 119 Stat. 3555, 3556; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(4), (b), Jan. 28, 2008, 122 Stat. 597, 598.)
- 2006Enacted · Pub. L. 109-304 · 120 Stat. 1608
- 2006Amended · Pub. L. 109-163 · 119 Stat. 3555, 3556
- 2008Amended · Pub. L. 110-181 · 122 Stat. 597, 598
A history note hasn’t been published yet. The record shows enactment by Pub. L. 109-304 on 2006-10-06.
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