46 U.S.C. § 53709 — Amount of obligations
submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 487 words · no verdicts yet
The guaranteed loan principal generally can't exceed 75 percent of a vessel's actual or depreciated cost, rising to 87.5 percent for certain approved vessels and 80 percent for fishing vessels, under listed conditions. A single percentage can't be applied uniformly across all guarantees, and there's no minimum loan size for rebuilding a fishing vessel or facility.
(a) In General. The guaranteed principal can't be more than an approved percentage (set in (b)) of: (1) what the obligor* has paid, as determined by the Secretary* or Administrator* (a determination that is final), for building, rebuilding, or reconditioning* the vessel*; or (2) if the obligor sets up an escrow fund under section 53715, the vessel's actual cost*.
(b) Limitations on Amount Borrowed. (1) Generally, the guaranteed principal can't be more than 75 percent of the vessel's actual cost or depreciated actual cost, as the Secretary or Administrator determines. (2) It can go up to 87.5 percent if: (A) the Secretary or Administrator approves the vessel's size and speed; (B) the vessel is, or would have been, eligible for mortgage* aid under section 509 of the Merchant Marine Act, 1936 (or would have been, except that it got a construction*-differential subsidy that's since been repaid); and (C) the vessel is a type under that section requiring only a 12.5 percent minimum down payment. (3) For a fishing vessel* or fishery facility*, the guaranteed principal can't exceed 80 percent of actual or depreciated actual cost — but this debt can't go through the Federal Financing Bank. (4) For an ocean thermal energy conversion facility or plantship* built without a construction-differential subsidy, the guaranteed principal can't exceed 87.5 percent of actual or depreciated actual cost.
(c) Security Involving Multiple Vessels. If more than one vessel secures a single obligation*, the guaranteed principal can't exceed the sum of what each vessel would separately be allowed.
(d) Prohibition on Uniform Percentage Limitations. The Secretary or Administrator can't set a single percentage under (b) that applies uniformly to every guarantee made under that provision.
(e) Prohibition on Minimum Principal Amount. The Secretary can't require a minimum principal amount as a condition for guaranteeing a loan to rebuild or recondition a fishing vessel or fishery facility. For this chapter, routine minor repair or maintenance doesn't count as rebuilding or reconditioning.
The principal of an obligation* may not be guaranteed in an amount greater than the amount determined by multiplying the percentage applicable under subsection (b) by—
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*, reconstruction*, or reconditioning* of the vessel* used as security for the guarantee; or
if the obligor creates an escrow fund under section 53715 of this title, the actual cost* of the vessel.
Except as otherwise provided, the principal amount of an obligation guaranteed under this chapter may not exceed 75 percent of the actual cost or depreciated actual cost, as determined by the Secretary or Administrator, of the vessel used as security for the guarantee.
The principal amount may not exceed 87.5 percent of the actual cost or depreciated actual cost if—
the size and speed of the vessel are approved by the Secretary or Administrator;
the vessel is or would have been eligible 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-differential subsidy and the subsidy has been repaid; and
the vessel is of a type described in that section for which the minimum down payment required by that section is 12.5 percent of the cost of the vessel.
For a fishing vessel* or fishery facility*, the principal amount may not exceed 80 percent of the actual cost or depreciated actual cost. However, debt for the vessel or facility may not be placed through the Federal Financing Bank.
For an ocean thermal energy conversion facility or plantship* constructed without a construction-differential subsidy, the principal amount may not exceed 87.5 percent of the actual cost or depreciated actual cost of the facility or plantship.
The principal amount of an obligation having more than one vessel as security for the guarantee may not exceed the sum of the principal amounts allowable for all the vessels.
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.
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 reconditioning of a fishing vessel or fishery facility. For purposes of this chapter, the reconstruction or reconditioning of a fishing vessel or fishery facility does not include the routine minor repair or maintenance of the vessel or facility.
Source credit: (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.)
- 2006Enacted · Pub. L. 109-304 · 120 Stat. 1609
- 2006Amended · Pub. L. 109-163 · 119 Stat. 3555
- 2008Amended · Pub. L. 110-181 · 122 Stat. 598
- 2019Amended · Pub. L. 116-92 · 133 Stat. 1972
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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