Page:United States Statutes at Large Volume 120.djvu/1534

 PUBLIC LAW 109–304—OCT. 6, 2006

120 STAT. 1503

‘‘(b) REQUIREMENTS.—A coastwise endorsement may be issued for a vessel if— ‘‘(1) the vessel satisfies the requirements for a coastwise endorsement, except for the ownership requirement otherwise applicable without regard to this section; ‘‘(2) the person that owns the vessel (or, if the vessel is owned by a trust or similar arrangement, the beneficiary of the trust or similar arrangement) meets the requirements of subsection (c); ‘‘(3) the vessel is under a demise charter to a person that certifies to the Secretary that the person is a citizen of the United States under section 50501 of this title for engaging in the coastwise trade; and ‘‘(4) the demise charter is for a period of at least 3 years or a shorter period as may be prescribed by the Secretary. ‘‘(c) OWNERSHIP CERTIFICATION.— ‘‘(1) IN GENERAL.—A person meets the requirements of this subsection if the person transmits to the Secretary each year the certification required by paragraph (2) or (3) with respect to a vessel. ‘‘(2) INVESTMENT CERTIFICATION.—To meet the certification requirement of this paragraph, a person shall certify that it— ‘‘(A) is a leasing company, bank, or financial institution; ‘‘(B) owns, or holds the beneficial interest in, the vessel solely as a passive investment; ‘‘(C) does not operate any vessel for hire and is not an affiliate of any person that operates any vessel for hire; and ‘‘(D) is independent from, and not an affiliate of, any charterer of the vessel or any other person that has the right, directly or indirectly, to control or direct the movement or use of the vessel. ‘‘(3) CERTAIN TANK VESSELS.— ‘‘(A) IN GENERAL.—To meet the certification requirement of this paragraph, a person shall certify that— ‘‘(i) the aggregate book value of the vessels owned by the person and United States affiliates of the person does not exceed 10 percent of the aggregate book value of all assets owned by the person and its United States affiliates; ‘‘(ii) not more than 10 percent of the aggregate revenues of the person and its United States affiliates is derived from the ownership, operation, or management of vessels; ‘‘(iii) at least 70 percent of the aggregate tonnage of all cargo carried by all vessels owned by the person and its United States affiliates and documented with a coastwise endorsement is qualified proprietary cargo; ‘‘(iv) any cargo other than qualified proprietary cargo carried by all vessels owned by the person and its United States affiliates and documented with a coastwise endorsement consists of oil, petroleum products, petrochemicals, or liquified natural gas; ‘‘(v) no vessel owned by the person or any of its United States affiliates and documented with a coastwise endorsement carries molten sulphur; and

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