Page:United States Statutes at Large Volume 120.djvu/1645

 120 STAT. 1614

PUBLIC LAW 109–304—OCT. 6, 2006

‘‘(A) for a delivered vessel or equipment, at least 0.5 percent and not more than 1 percent; and ‘‘(B) for a vessel to be constructed, reconstructed, or reconditioned or equipment to be delivered, at least 0.25 percent and not more than 0.5 percent. ‘‘(c) WHEN FEE COLLECTED.—A fee for the guarantee of an obligation under this chapter shall be collected not later than the date on which an amount is first paid on the obligation. ‘‘(d) FINANCING THE FEE.—A fee paid under this section is eligible to be financed under this chapter and shall be included in the actual cost of the obligation guaranteed. ‘‘(e) NOT REFUNDABLE.—A fee paid under this section is not refundable. However, an obligor shall receive credit for the amount paid for the remaining term of the obligation if the obligation is refinanced and guaranteed under this chapter after the refinancing. ‘‘§ 53715. Escrow fund ‘‘(a) IN GENERAL.—If the proceeds of an obligation guaranteed under this chapter are to be used to finance the construction, reconstruction, or reconditioning of a vessel that will serve as security for a guarantee under this chapter, the Secretary may accept and hold in escrow, under an escrow agreement with the obligor, a portion of the proceeds of all obligations guaranteed under this chapter whose proceeds are to be so used which is equal to— ‘‘(1) the excess of— ‘‘(A) the principal amount of all obligations whose proceeds are to be so used; over ‘‘(B) 75 percent or 87.5 percent, whichever is applicable under section 53709(b) of this title, of the amount paid by or for the account of the obligor for the construction, reconstruction, or reconditioning of the vessel; plus ‘‘(2) any interest the Secretary may require on the amount described in paragraph (1). ‘‘(b) SECURITY INVOLVING BOTH UNCOMPLETED AND DELIVERED VESSELS.—If the security for the guarantee of an obligation relates both to a vessel to be constructed, reconstructed, or reconditioned and to a delivered vessel, the principal amount of the obligation shall be prorated for purposes of subsection (a) under regulations prescribed by the Secretary. ‘‘(c) DISBURSEMENT BEFORE TERMINATION OF AGREEMENT.— ‘‘(1) PURPOSES.—The Secretary shall disburse amounts in the escrow fund, as specified in the escrow agreement, to— ‘‘(A) pay amounts the obligor is obligated to pay for— ‘‘(i) the construction, reconstruction, or reconditioning of a vessel used as security for the guarantee; and ‘‘(ii) interest on the obligations; ‘‘(B) redeem the obligations under a refinancing guaranteed under this chapter; and ‘‘(C) pay any excess interest deposits to the obligor at times provided for in the escrow agreement. ‘‘(2) MANNER OF PAYMENT.—If a payment becomes due under the guarantee before the termination of the escrow agreement, the amount in the escrow fund at the time the payment becomes due, including realized income not yet paid to the obligor, shall be paid into the appropriate account under section

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