Page:United States Statutes at Large Volume 120.djvu/1688

 PUBLIC LAW 109–304—OCT. 6, 2006

120 STAT. 1657

‘‘(1)(A) security for a mortgage indebtedness to the United States Government; or ‘‘(B) constructed under this subtitle or required by a contract under this subtitle to be operated on a certain essential foreign trade route; and ‘‘(2) necessary in the interests of commerce and national defense to be maintained in condition for prompt use. ‘‘§ 56502. Adjusting obligations and arranging maintenance ‘‘(a) GENERAL AUTHORITY.—On written application, the Secretary of Transportation may adjust obligations and arrange for maintenance of an essential vessel as provided in this chapter if the Secretary determines, after any investigation or proceeding the Secretary considers desirable, that— ‘‘(1) the operation of the vessel in the service, route, or line to which it is assigned under this subtitle, or in which it otherwise would be operated, is not— ‘‘(A) lawful under the Neutrality Act of 1939 (22 U.S.C. 441 et seq.) or a proclamation issued under that Act; or ‘‘(B) compatible with maintaining the availability of the vessel for national defense and commerce; ‘‘(2) it is not feasible under existing law to employ the vessel in any other service or operation in foreign or domestic trade (except temporary or emergency operation under section 56503(b)(5) of this title); and ‘‘(3) the applicant, because of the restrictions of the Neutrality Act of 1939 (22 U.S.C. 441 et seq.) or the withdrawal of vessels for national defense under paragraph (1), is not earning or will not earn a reasonable return on the capital necessarily employed in its business. ‘‘(b) EFFECTIVE PERIOD.—Adjustments and arrangements under subsection (a) shall continue in effect only as long as the circumstances described in subsection (a) continue to exist. ‘‘§ 56503. Types of adjustments and arrangements ‘‘(a) SUSPENSION REQUIREMENTS.—An adjustment or arrangement under this chapter shall include suspension of— ‘‘(1) the requirement to operate the vessel in foreign trade under the applicable operating-differential or construction-differential subsidy contract or mortgage or other agreement; and ‘‘(2) the right to operating-differential subsidy for the vessel. ‘‘(b) DISCRETIONARY ADJUSTMENTS AND ARRANGEMENTS.—To the extent the Secretary of Transportation considers appropriate to carry out the purposes of this subtitle, an adjustment or arrangement under this chapter may include any of the following: ‘‘(1) Lay-up of the vessel by the owner or in the custody of the Secretary, with payment or reimbursement by the Secretary of necessary and proper expenses (including reasonable overhead and insurance) or a fixed periodic allowance instead of payment or reimbursement. ‘‘(2) Postponement, for not more than the total period of the lay-up, of the maturity date of each installment of the principal of obligations to the United States Government for the vessel (regardless of whether the maturity date is during a lay-up period), or rearrangement of those maturities. ‘‘(3) Postponement or cancellation of interest accruing on the obligations during a lay-up period.

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