Page:United States Statutes at Large Volume 120.djvu/1532

 PUBLIC LAW 109–304—OCT. 6, 2006

120 STAT. 1501

‘‘(B) the vessel and its owner and master are entitled to the same benefits and are subject to the same requirements and penalties as if the vessel were otherwise documented or exempt from documentation under this chapter. ‘‘(2) TRANSPORTATION OF PASSENGERS OR MERCHANDISE.— A vessel documented under this section may transport passengers or merchandise for hire in the coastwise trade only— ‘‘(A) as a service for a parent or subsidiary of the corporation owning the vessel; or ‘‘(B) when under a demise or bareboat charter, at prevailing rates for use not in the domestic noncontiguous trades, from the corporation owning the vessel to a carrier that— ‘‘(i) is subject to jurisdiction under subchapter II of chapter 135 of title 49; ‘‘(ii) otherwise qualifies as a citizen of the United States under section 50501 of this title; and ‘‘(iii) is not owned or controlled, directly or indirectly, by the corporation owning the vessel. ‘‘(e) VALIDITY OF CORPORATE CERTIFICATE.—A certificate filed by a corporation under this section remains valid only as long as the corporation continues to satisfy the conditions required of the corporation by this section. When a corporation no longer satisfies those conditions, the corporation loses its status under this section and immediately shall surrender to the Secretary any documents issued to it based on that status. ‘‘(f) PENALTIES.— ‘‘(1) FALSIFYING MATERIAL FACT.—If a corporation knowingly falsifies a material fact in a certificate filed under subsection (a), the vessel (or its value) documented or operated under this section shall be forfeited. ‘‘(2) TRANSPORTING MERCHANDISE.—If a vessel transports merchandise for hire in violation of this section, the merchandise shall be forfeited to the United States Government. ‘‘(3) TRANSPORTING PASSENGERS.—If a vessel transports passengers for hire in violation of this section, the vessel is liable for a penalty of $200 for each passenger so transported. ‘‘(4) REMISSION OR MITIGATION.—A penalty or forfeiture incurred under this subsection may be remitted or mitigated under section 2107(b) of this title. ‘‘§ 12119. Owners engaged primarily in leasing or financing transactions ‘‘(a) DEFINITIONS.—In this section: ‘‘(1) AFFILIATE.—The term ‘affiliate’ means, with respect to any person, any other person that is— ‘‘(i) directly or indirectly controlled by, under common control with, or controlling that person; or ‘‘(ii) named as being part of the same consolidated group in any report or other document submitted to the United States Securities and Exchange Commission or the Internal Revenue Service. ‘‘(2) CARGO.—The term ‘cargo’ does not include cargo to which title is held for non-commercial reasons and primarily for the purpose of evading the requirements of subsection (c)(3). ‘‘(3) OIL.—The term ‘oil’ has the meaning given that term in section 2101(20) of this title.

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