16 U.S.C. § 742c — Loans for financing or refinancing of cost of purchasing, constructing, equipping, maintaining, repairing, or operating commercial fishing vessels or gear

(a) Authorization. The Secretary may make these loans for financing or refinancing the listed costs. (b) Conditions. Each loan must meet these conditions: (1) Its interest rate must be at least the Treasury Secretary’s rate based on the average market yield for Treasury obligations with a similar maturity, plus any extra charge the Secretary sets to cover program costs consistently with the program’s purpose. (2) It must be due within 10 years, except a loan for some or all of constructing a new fishing vessel may last up to 14 years. (3) Assistance may be given only if reasonable assistance is not otherwise available on reasonable terms. (4) The applicant must provide security or another reasonable repayment assurance the Secretary requires. The collateral, the managers’ integrity and ability, and the applicant’s past and expected earnings must together reasonably assure repayment. This requirement must also consider the goals of improving commercial vessels and gear and providing otherwise unavailable assistance. (5) The applicant must have the ability, experience, resources, and other qualifications needed to operate and maintain the vessel or gear. (6) Before approving a loan for a new or used vessel that will not replace an existing commercial fishing vessel, the Secretary must decide that the planned fishery operation will not economically harm or injure efficient operators already in that fishery. (7) The applicant must be a United States citizen or national. (8) A corporation, partnership, or association counts as a United States citizen only if the Secretary decides it meets all the United States-citizenship requirements in 46 U.S.C. § 50501 for a corporation, partnership, or association operating a vessel in coastwise trade. (9)(A) The applicant’s nationality must be established to the Secretary’s satisfaction. A corporation, partnership, or association organized under American Samoa law counts as a United States national only if 75 percent of its interest is owned by United States nationals or citizens, or both; its president or other chief executive and board chair are United States nationals or citizens; and no more than a minority of the directors needed for a quorum are nonnationals and noncitizens. (B) For a corporation, 75 percent ownership is not established if: (i) title to 75 percent of its stock is not held by United States nationals or citizens free of a trust or fiduciary duty for a non-United States national or citizen; (ii) 75 percent of its voting power is not held by them; (iii) a contract or understanding lets a non-United States national or citizen exercise more than 25 percent of the voting power, directly or indirectly; or (iv) any other method gives or permits a non-United States national or citizen to control more than 25 percent of an interest in the corporation. (c) Fisheries loan fund. A fisheries loan fund is created as a revolving fund for these loans. Principal or interest received by September 30, 1986, must be deposited in the fund and may support more loans. Money received after that date must be paid into the Treasury as miscellaneous receipts. Congress may appropriate $20,000,000 as the fund’s initial capital. (d) Modification of loan contract. Subject to this section’s limits, the Secretary may agree to change a loan contract’s interest rate, payment time for a principal installment, or security. (e) Chartering vessels. Under prescribed terms and regulations, the Secretary may use funds under this section to lend commercial fishermen money to charter vessels while vessels lost, destroyed, or damaged by the March 27, 1964, earthquake and related tidal waves are built or repaired. The loan may be repaid only from the chartered vessel’s net profits, reduced by a reasonable amount the Secretary sets for the chartering fishermen’s salaries. These loans were not available after June 30, 1966.