Page:United States Statutes at Large Volume 115 Part 2.djvu/408

 115 STAT. 1392 PUBLIC LAW 107-107—DEC. 28, 2001 (A) $100,000,000 is for the cost (as defined in section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5))) of loan guarantees under the program; and (B) $3,978,000 is for administrative expenses related to loan guarantee commitments under the program. (3) For expenses to dispose of obsolete vessels in the National Defense Reserve Fleet, $10,000,000. SEC. 3502. DEFINE "WAR RISKS" TO VESSELS TO INCLUDE CONFISCA- TION, EXPROPRIATION, NATIONALIZATION, AND DEPRI- VATION OF THE VESSELS. Section 1201(c) of the Merchant Marine Act, 1936 (46 App. U.S.C. 1281(c)) is amended to read as follows: "(c) The term 'war risks' includes to such extent as the Secretary may determine— "(1) all or any part of any loss that is excluded from marine insurance coverage under a 'free of capture or seizure' clause, or under analogous clauses; and "(2) other losses from hostile acts, including confiscation, expropriation, nationalization, or deprivation.". SEC. 3503. HOLDING OBLIGOR'S CASH AS COLLATERAL UNDER TITLE XI OF MERCHANT MARINE ACT, 1936. Title XI of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.) is amended by inserting after section 1108 the following: 46 USC app. "SEC. 1109. DEPOSIT FXWD. 1279b "(a) ESTABLISHMENT OF DEPOSIT FUND.—There is established in the Treasury a deposit fund for purposes of this section. The Secretary may, in accordance with an agreement under subsection (b), deposit into and hold in the deposit fund cash belonging to an obligor to serve as collateral for a guarantee under this title made with respect to the obligor. "(b) AGREEMENT.— "(1) IN GENERAL.— The Secretary and an obligor shall enter into a reserve fund or other collateral account agreement to govern the deposit, withdrawal, retention, use, and reinvestment of cash of the obligor held in the deposit fund established by subsection (a). "(2) TERMS. —The agreement shall contain such terms and conditions as are required under this section and such additional terms as are considered by the Secretary to be necessary to protect fully the interests of the United States. " (3) SECURITY INTEREST OF UNITED STATES.— The agreement shall include terms that grant to the United States a security interest in all amounts deposited into the deposit fund. "(c) INVESTMENT. —The Secretary may invest and reinvest any part of the amounts in the deposit fund established by subsection (a) in obligations of the United States with such maturities as ensure that amounts in the deposit fund will be available as required for purposes of agreements under subsection (b). Cash balances of the deposit fund in excess of current requirements shall be maintained in a form of uninvested funds and the Secretary of the Treasury shall pay interest on these funds. "(d) WITHDRAWALS. —

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