Page:United States Statutes at Large Volume 120.djvu/1640

 PUBLIC LAW 109–304—OCT. 6, 2006

120 STAT. 1609

‘‘(6) for inland waterways, the need for technical improvements, including increased fuel efficiency or improved safety. ‘‘(b) BY SECRETARY OF COMMERCE.—The Secretary of Commerce may not guarantee or make a commitment to guarantee an obligation under this chapter unless the Secretary finds, at or prior to the time the commitment is made or the guarantee becomes effective, that— ‘‘(1) the property or project for which the obligation will be executed will be economically sound; and ‘‘(2) for a fishing vessel, the purpose of the financing or refinancing is consistent with— ‘‘(A) the wise use of the fisheries resources and the development, advancement, management, conservation, and protection of the fisheries resources; or ‘‘(B) the need for technical improvements, including increased fuel efficiency or improved safety. ‘‘(c) USED FISHING VESSELS AND FACILITIES.—The Secretary of Commerce may not guarantee or make a commitment to guarantee an obligation under this chapter for the purchase of a used fishing vessel or used fishery facility unless the vessel or facility will be— ‘‘(1) reconstructed or reconditioned in the United States and will contribute to the development of the United States fishing industry; or ‘‘(2) used— ‘‘(A) in the harvesting of fish from an underused fishery; or ‘‘(B) for a purpose described in the definition of ‘fishery facility’ in section 53701 of this title with respect to an underused fishery. ‘‘(d) INDEPENDENT ANALYSIS.—The Secretary may make a determination that aspects of an application under this chapter require independent analysis to be conducted by third party experts due to risk factors associated with markets, technology, financial structures, or other risk factors identified by the Secretary. Any independent analysis conducted under this subsection shall be performed by a party chosen by the Secretary. ‘‘(e) ADDITIONAL EQUITY BECAUSE OF INCREASED RISKS.—Notwithstanding any other provision of this chapter, the Secretary may make a determination that an application under this title requires additional equity because of increased risk factors associated with markets, technology, financial structures, or other risk factors identified by the Secretary. ‘‘§ 53709. Amount of obligations ‘‘(a) IN GENERAL.—The principal of an obligation may not be guaranteed in an amount greater than the amount determined by multiplying the percentage applicable under subsection (b) by— ‘‘(1) the amount paid by or for the account of the obligor (as determined by the Secretary, which determination shall be conclusive) for the construction, reconstruction, or reconditioning of the vessel used as security for the guarantee; or ‘‘(2) if the obligor creates an escrow fund under section 53715 of this title, the actual cost of the vessel. ‘‘(b) LIMITATIONS ON AMOUNT BORROWED.— ‘‘(1) IN GENERAL.—Except as otherwise provided, the principal amount of an obligation guaranteed under this chapter

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