46 U.S.C. § 53702 — General authority

submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 376 words · no verdicts yet

in plain englishAI-generated · not legal advice

The Secretary or Administrator may guarantee 100 percent of principal and interest on eligible obligations, with the Federal Financing Bank as preferred lender. Since 1996, fishing-related obligations must instead be direct loans from the Secretary, at 2 percent plus the Treasury's borrowing cost. At least $59,000,000 a year must fund historic uses.

(a) In General. (1) The Secretary or Administrator may, on terms they set, guarantee — or promise to guarantee — full payment of principal and interest on an eligible obligation under this chapter. A guarantee must cover 100 percent of both principal and interest. (2) The Federal Financing Bank is the preferred lender for the guaranteed obligations issued under this chapter. (b) Direct Loans for Fisheries. (1) Despite any other part of this chapter, any obligation for a fishing vessel, fishery facility, aquaculture facility, individual fishing quota, or fishing-capacity-reduction program issued after October 11, 1996 must be a direct loan, with the Secretary as the lender — not a loan from someone else that the Secretary guarantees. A direct loan is treated the same as a guaranteed obligation, except for provisions that by nature only apply to guaranteed obligations. (2) The yearly interest rate an obligor pays on a direct loan is 2 percent plus whatever extra percent the Secretary must pay the Treasury to borrow the money for the loan. (3) Of the direct loans the Secretary issues, at least $59,000,000 each fiscal year must go to "historic uses." (4) The Secretary may also issue direct loans to finance building or rebuilding a fishing vessel in a limited-access fishery, or to finance buying harvesting rights in a federally managed limited-access fishery.

the actual law source: uscode.house.gov ↗public domain

(a)In General.—

(1)Guarantee of payments.—

The Secretary or Administrator, on terms the Secretary or Administrator may prescribe, may guarantee or make a commitment to guarantee the payment of the principal of and interest on an obligation eligible to be guaranteed under this chapter. A guarantee or commitment to guarantee shall cover 100 percent of the principal and interest.

(2)Preferred eligible lender.—

The Federal Financing Bank shall be the preferred eligible lender of the principal and interest of the guaranteed obligations issued under this chapter.

(b)Direct Loans for Fisheries.—

(1)In general.—

Notwithstanding any other provision of this chapter, any obligation involving a fishing vessel, fishery facility, aquaculture facility, individual fishing quota, or fishing capacity reduction program issued under this chapter after October 11, 1996, shall be a direct loan obligation for which the Secretary shall be the obligee, rather than an obligation issued to an obligee other than the Secretary and guaranteed by the Secretary. A direct loan obligation under this subsection shall be treated in the same manner and to the same extent as an obligation guaranteed under this chapter except with respect to provisions of this chapter that by their nature can only be applied to obligations guaranteed under this chapter.

(2)Interest rate.—

Notwithstanding any other provision of this chapter, the annual rate of interest an obligor shall pay on a direct loan obligation under this subsection is 2 percent plus the additional percent the Secretary must pay as interest to borrow from the Treasury the funds to make the loan.

(3)Minimum obligations available for historic uses.—

Of the direct loan obligations issued by the Secretary under this chapter, the Secretary shall make a minimum of $59,000,000 available each fiscal year for historic uses.

(4)Use of obligations in limited access fisheries.—

In addition to the other eligible purposes and uses of direct loan obligations provided for in this chapter, the Secretary may issue direct loan obligations for the purpose of—

(A)

financing the construction or reconstruction of a fishing vessel in a fishery managed under a limited access system; or

(B)

financing the purchase of harvesting rights in a fishery that is federally managed under a limited access system.

Source credit: (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1603; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C), (d), Jan. 6, 2006, 119 Stat. 3555, 3557; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(10)(B), (b), Jan. 28, 2008, 122 Stat. 598; Pub. L. 114–120, title III, § 302(a)(2), Feb. 8, 2016, 130 Stat. 52; Pub. L. 116–92, div. C, title XXXV, § 3506(b), Dec. 20, 2019, 133 Stat. 1971.)

history & why it existsrecord from the source credit

2006Enacted · Pub. L. 109-304 · 120 Stat. 1603
2006Amended · Pub. L. 109-163 · 119 Stat. 3555, 3557
2008Amended · Pub. L. 110-181 · 122 Stat. 598
2016Amended · Pub. L. 114-120 · 130 Stat. 52
2019Amended · Pub. L. 116-92 · 133 Stat. 1971

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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