46 U.S.C. § 53721 — Rights of obligee
submitted 20 years ago by Pub. L. 109-304 to r/title-46-SHIPPING · 311 words · no verdicts yet
After 30 days of default, an obligee may demand that the Secretary or Administrator pay the unpaid principal and interest, within a set deadline. The Secretary or Administrator must then pay within 30 days of the demand, unless they find no real default occurred. This demand right doesn't apply if the government already stepped into the obligor's role and paid the missed amount.
(a) Demands by Obligees. Except as (c) provides, if an obligor* has been in default for 30 days on paying principal or interest on a guaranteed obligation*, the obligee* (or the obligee's agent) may demand that the Secretary* or Administrator* pay the unpaid principal and interest, up to the payment date. This demand must be made within the earlier of (1) a period the guarantee or a related agreement may set, or (2) 90 days after the default.
(b) Payments by Secretary or Administrator. (1) After a demand under (a), the Secretary or Administrator must pay the obligee or their agent the unpaid principal and interest, up to the payment date. Payment must happen within the earlier of (A) a period the guarantee or related agreement may set, or (B) 30 days after the demand. (2) The Secretary or Administrator doesn't have to pay if, within that period, they find the obligor wasn't actually in default, or the default was fixed before the demand.
(c) Assumption of Rights and Obligations Before Demand. An obligee or their agent can't demand payment under this section if the Secretary or Administrator, before the demand and under terms the obligation or a related agreement may set, already took over the obligor's rights and duties and paid any amount in default. But the guarantee stays in effect even after the Secretary or Administrator takes over.
Except as provided in subsection (c), if an obligor* has continued in default for 30 days in the payment of principal or interest on an obligation* guaranteed under this chapter, the obligee* or the obligee’s agent may demand that the Secretary* or Administrator* pay the unpaid principal amount of the obligation and the unpaid interest on the obligation to the date of payment. The demand must be made within the earlier of—
a period that may be specified in the guarantee or a related agreement; or
90 days from the date of the default.
If a demand is made under subsection (a), the Secretary or Administrator shall pay to the obligee or the obligee’s agent the unpaid principal amount of the obligation and the unpaid interest on the obligation to the date of payment. Payment shall be made within the earlier of—
a period that may be specified in the guarantee or a related agreement; or
30 days from the date of the demand.
The Secretary or Administrator is not required to make payment under this subsection if, within the appropriate period under paragraph (1), the Secretary or Administrator finds that the obligor was not in default or that the default was remedied before the demand.
An obligee or the obligee’s agent may not demand payment under this section if the Secretary or Administrator, before the demand and on terms that may be provided in the obligation or a related agreement, has assumed the obligor’s rights and duties under the obligation and any related agreement and made any payment in default. However, the guarantee of the obligation remains in effect after the Secretary’s or Administrator’s assumption.
Source credit: (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1617; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(C), (F), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(10)(B), (11), (b), Jan. 28, 2008, 122 Stat. 598.)
- 2006Enacted · Pub. L. 109-304 · 120 Stat. 1617
- 2006Amended · Pub. L. 109-163 · 119 Stat. 3555
- 2008Amended · Pub. L. 110-181 · 122 Stat. 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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