Page:United States Statutes at Large Volume 110 Part 5.djvu/62

 110 STAT. 3136 PUBLIC LAW 104-239—OCT. 8, 1996 any amounts that are unobligated on or after the date of enactment of this Act. (c) GUARANTEE FEES.—Section 1104A(e) of title XI of the Merchant Marine Act, 1936 (46 U.S.C. App. 1274(e)) is amended to read as follows: "(e)(1) Except as otherwise provided in this subsection, the Secretary shall prescribe regulations to assess in accordance with this subsection a fee for the guarantee of an obligation under this title. "(2)(A) The amount of a fee under this subsection for a guarantee is equal to the sum determined by adding the amounts determined under subparagraph (B) for the years in which the guarantee is in effect. "(B) The amount referred to in subparagraph (A) for a year is the present value (determined by applying the discount rate determined under subparagraph (F)) of the amount determined by multiplying— "(i) the estimated average unpaid principal amount of the obligation that will be outstanding during the year (determined in accordance with subparagraph (E)), by "(ii) the fee rate established under subparagraph (C) for the obligation for each year. "(C) The fee rate referred to in subparagraph (B)(ii) for an obligation shall be— "(i) in the case of an obligation for a delivered vessel or equipment, not less than one-half of 1 percent and not more than 1 percent, determined by the Secretary for the obligation under the formula established under subparagraph (D);or "(ii) in the case of an obligation for a vessel to be constructed, reconstructed, or reconditioned, or of equipment to be delivered, not less than one-quarter of 1 percent and not more than one-half of 1 percent, determined by the Secretary for the obligation under the formula established under subparagraph (D). "(D) The Secretary shall establish a formula for determining the fee rate for an ooligation for purposes of subparagraph (C), that— "(i) is a sliding scale based on the creditworthiness of the obligor; "(ii) takes into account the security provided for a guarantee under this title for the obligation; and "(iii) uses— "(I) in the case of the most creditworthy obligors, the lowest rate authorized under subparagraph (C)(i) or (ii), as applicable; and "(II) in the case of the least creditworthy obligors, the highest rate authorized under subparagraph (C)(i) or (ii), as applicable. "(E) For purposes of subparagraph (B)(i), the estimated average unpaid principal amount does not include the average amount (except interest) on deposit in a year in the escrow fund under section 1108. "(F) For purposes of determining present value under subparagraph (B) for an obligation, the Secretary shall apply a discount rate determined by the Secretary of the Treasury taking into consideration current market yields on outstanding obligations of the

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