Page:United States Statutes at Large Volume 115 Part 1.djvu/191

 PUBLIC LAW 107-20-JULY 24, 2001 115 STAT. 169 "(B) a state or federally chartered financial institution that is insured by the Federal Deposit Insurance Corporation; "(C) a farm credit lender established under title 12, chapter 23 of the United States Code; "(D) a commercial fishing and agriculture bank established pursuant to State law; "(E) a commercial lender organized under the laws of the United States or of a State and eligible to own a vessel under section 12102(a) of this title; or "(F) a mortgage trustee under subsection (f) of this section.". (c) Section 31322 of title 46, United States Code is amended by adding at the end the following new subsections: "(f)(1) A mortgage trustee may hold in trust, for an individual or entity, an instrument or evidence of indebtedness, secured by a mortgage of the vessel to the mortgage trustee, provided that the mortgage trustee— "(A) is eligible to be a preferred mortgagee under subsection (a)(4), subparagraphs (A)-(E) of this section; "(B) is organized as a corporation, and is doing business, under the laws of the United States or of a State; "(C) is authorized under those laws to exercise corporate trust powers; "(D) is subject to supervision or examination by an official of the United States Government or a State; "(E) has a combined capital and surplus (as stated in its most recent published report of condition) of at least $3,000,000; and "(F) meets any other requirements prescribed by the Secretary. "(2) If the beneficiary under the trust arrangement is not a commercial lender, a lender syndicate or eligible to be a preferred mortgagee under subsection (a)(4), subparagraphs (A)-(E) of this section, the Secretary must determine that the issuance, assignment, transfer, or trust arrangement does not result in an impermissible transfer of control of the vessel to a person not eligible to own a vessel with a fishery endorsement under section 12102(c) of this title. "(3) A vessel with a fishery endorsement may be operated by a mortgage trustee only with the approval of the Secretary. "(4) A right under a mortgage of a vessel with a fishery endorsement may be issued, assigned, or transferred to a person not eligible to be a mortgagee of that vessel under this section only with the approval of the Secretary. "(5) The issuance, assignment, or transfer of an instrument or evidence of indebtedness contrary to this subsection is voidable by the Secretary. "(g) For purposes of this section a 'commercial lender' means an entity primarily engaged in the business of lending and other financing transactions with a loan portfolio in excess of $100,000,000, of which not more than 50 per centum in dollar amount consists of loans to borrowers in the commercial fishing industry, as certified to the Secretary by such lender. "(h) For purposes of this section a 'lender syndicate' means an arrangement established for the combined extension of credit of not less than $20,000,000 made up of four or more entities

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