Page:United States Statutes at Large Volume 120.djvu/1637

 120 STAT. 1606

PUBLIC LAW 109–304—OCT. 6, 2006 ‘‘(I) the management and operating experience of an obligor or applicant for a guarantee; ‘‘(J) whether a guarantee under this chapter is or will be in effect during the construction period of the project; and ‘‘(K) the concentration risk presented by an unduly large percentage of loans outstanding by any one borrower or group of affiliated borrowers.

‘‘§ 53705. Pledge of United States Government ‘‘(a) FULL FAITH AND CREDIT.—The full faith and credit of the United States Government is pledged to the payment of a guarantee made under this chapter, for both principal and interest, including interest (as may be provided for in the guarantee) accruing between the date of default under a guaranteed obligation and the date of payment in full of the guarantee. ‘‘(b) INCONTESTABILITY.—A guarantee or commitment to guarantee made under this chapter is conclusive evidence of the eligibility of the obligation for the guarantee. The validity of a guarantee or commitment to guarantee made under this chapter is incontestable. ‘‘§ 53706. Eligible purposes of obligations ‘‘(a) IN GENERAL.—To be eligible for a guarantee under this chapter, an obligation must aid in any of the following: ‘‘(1)(A) Financing (including reimbursement of an obligor for expenditures previously made for) the construction, reconstruction, or reconditioning of a vessel (including an eligible export vessel) designed principally for research, or for commercial use— ‘‘(i) in the coastwise or intercoastal trade; ‘‘(ii) on the Great Lakes, or on bays, sounds, rivers, harbors, or inland lakes of the United States; ‘‘(iii) in foreign trade as defined in section 109(b) of this title; ‘‘(iv) as an ocean thermal energy conversion facility or plantship; ‘‘(v) as a floating drydock in the construction, reconstruction, reconditioning, or repair of vessels; or ‘‘(vi) as an eligible export vessel in worldwide trade. ‘‘(B) A guarantee under subparagraph (A) may not be made more than one year after delivery of the vessel (or redelivery if the vessel was reconstructed or reconditioned) unless the proceeds of the obligation are used to finance the construction, reconstruction, or reconditioning of a vessel or of facilities or equipment related to marine operations. ‘‘(2) Financing (including reimbursement of an obligor for expenditures previously made for) the construction, reconstruction, reconditioning, or purchase of a vessel owned by citizens of the United States and designed principally for research, or for commercial use in the fishing industry. ‘‘(3) Financing the purchase, reconstruction, or reconditioning of a vessel or fishery facility— ‘‘(A) for which an obligation was guaranteed under this chapter; and ‘‘(B) that, under subchapter II of this chapter—

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