46 U.S.C. § 53714 — Guarantee fees

(a) Regulations. Subject to this section, the Secretary^* or Administrator^* must write regulations to charge a fee for guaranteeing an obligation^*.

(b) Computation of Fee. (1) The total guarantee fee equals the sum of the amounts figured under (2) for each year the guarantee is in effect. (2) For each such year, that amount is the present value of the amount calculated under (3). To find present value, the Secretary or Administrator applies a discount rate set by the Secretary of the Treasury, based on current market yields on Treasury obligations with a similar time to maturity. (3) That amount equals (A) the estimated average unpaid principal outstanding that year (not counting the average non-interest amount held that year in an escrow fund under section 53715), multiplied by (B) the fee rate set under (4). (4) To set that fee rate, the Secretary or Administrator must build a formula that (A) accounts for the security backing the obligation, and (B) slides based on the obligor's creditworthiness — using the lowest allowed rate under (5) for the most creditworthy obligors and the highest allowed rate for the least creditworthy. (5) The fee rate must be (A) between 0.5 and 1 percent for a delivered vessel^* or equipment; and (B) between 0.25 and 0.5 percent for a vessel or equipment still to be built, rebuilt, reconditioned, or delivered.

(c) When Fee Collected. The guarantee fee must be collected no later than the date the first payment is made on the obligation.

(d) Financing the Fee. A fee paid under this section may itself be financed under this chapter and counts as part of the obligation's actual cost^*.

(e) Not Refundable. A fee paid under this section isn't refundable. But if the obligation is refinanced and guaranteed again under this chapter, the obligor^* gets credit for the fee already paid, covering the obligation's remaining term.