Page:United States Statutes at Large Volume 120.djvu/1656

 PUBLIC LAW 109–304—OCT. 6, 2006

120 STAT. 1625

‘‘(3) the applicant is presently engaged in transporting cargoes in vessels of the type and class that will be constructed or reconstructed under this section and agrees to employ vessels constructed or reconstructed under this section as replacements only for vessels made obsolete by the change in operating standards; ‘‘(4) the capacity of the vessels to be constructed or reconstructed under this section will not increase the cargo carrying capacity of the vessels being replaced; ‘‘(5) the Secretary has not determined that the market demand for the vessel over its useful life will diminish so as to make granting the guarantee fiduciarily imprudent; ‘‘(6) the vessel, if to be reconstructed, will have a useful life of at least 15 years after the reconstruction; and ‘‘(7) the Secretary has considered the criteria specified in section 53708(a)(3)–(5) of this title. ‘‘(b) TERM AND AMOUNT OF OBLIGATION.— ‘‘(1) TERM.—The term of an obligation guaranteed under this section may not exceed 25 years. ‘‘(2) AMOUNT.—The amount of an obligation guaranteed under this section may not exceed 87.5 percent of the actual cost or depreciated actual cost to the applicant for the construction or reconstruction of the vessel. The Secretary may not establish a percentage under this paragraph that is to be applied uniformly to all guarantees or commitments to guarantee made under this section. ‘‘(c) APPLICABILITY OF OTHER PROVISIONS.—A guarantee or commitment to guarantee under this section is also subject to sections 53701, 53702(a), 53704, 53705, 53707(a), 53708(d) and (e), 53709(a), 53710(a)(1), (2), and (4) and (c), 53711(a), 53713, 53714, 53717, and 53721–53725 of this title. ‘‘(d) SECURITY AGAINST DEFAULT.—The Secretary shall require by regulation that an applicant under this section provide adequate security against default. ‘‘(e) GUARANTEE FEES.—The Secretary may establish a fee for the guarantee of an obligation under this section that is in addition to the fee established under section 53714 of this title. The fee may be— ‘‘(1) an annual fee of not more than an additional 1 percent added to the fee established under section 53714 of this title; or ‘‘(2) a fee based on the amount of the obligation versus the percentage of the obligor’s fleet being replaced by vessels constructed or reconstructed under this section.

Regulations.

‘‘§ 53735. Fisheries financing and capacity reduction ‘‘(a) DEFINITION.—In this section, the term ‘program’ means a fishing capacity reduction program established under section 312 of the Magnuson-Stevens Fishery Conservation and Management Act (16 U.S.C. 1861a). ‘‘(b) GUARANTEE AUTHORITY.—The Secretary may guarantee the repayment of debt obligations issued by entities under this section. Debt obligations to be guaranteed may be issued by any entity that has been approved by the Secretary and has agreed with the Secretary to conditions the Secretary considers necessary for this section to achieve the objective of the program and to protect the interest of the United States.

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