Page:United States Statutes at Large Volume 120.djvu/1698

 PUBLIC LAW 109–304—OCT. 6, 2006

120 STAT. 1667

‘‘§ 57515. Awarding of charters ‘‘(a) IN GENERAL.—The Secretary of Transportation shall award the charter to the bidder proposing to pay the highest monthly charter hire. However, the Secretary may reject the highest or most advantageous or any other bid if the Secretary considers the charter hire offered too low or determines that the bidder lacks the qualifications required by section 57514 of this title. ‘‘(b) HIGHEST BID REJECTED.—If the Secretary rejects the highest bid, the Secretary may— ‘‘(1) award the charter to the next highest bidder; or ‘‘(2) reject all bids and either readvertise the line or operate the line until conditions appear more favorable to reoffer the line for private charter. ‘‘(c) REASON FOR REJECTION.—On request of a bidder, the reason for rejection shall be stated in writing to the bidder. ‘‘§ 57516. Operating-differential subsidies ‘‘If the Secretary of Transportation considers it necessary, the Secretary may make a contract with a charterer of a vessel owned by the Secretary for payment of an operating-differential subsidy, on the same terms and conditions, and subject to the same limitations and restrictions, as otherwise provided with respect to payment of operating-differential subsidies to operators of privatelyowned vessels. ‘‘§ 57517. Recovery of excess profits ‘‘(a) IN GENERAL.—A charter under this chapter shall provide that if, at the end of a calendar year subsequent to the execution of the charter, the cumulative net voyage profit (after payment of the charter hire reserved in the charter and payment of the charterer’s fair and reasonable overhead expenses applicable to operation of the chartered vessel) exceeds 10 percent a year of the charterer’s capital necessarily employed in the business of the chartered vessel, the charterer shall pay to the Secretary of Transportation, as additional charter hire, half the cumulative net voyage profit in excess of 10 percent a year. However, any cumulative net voyage profit accounted for under this subsection is not to be included in the calculation of cumulative net voyage profit in any subsequent year. ‘‘(b) TERMS TO BE DEFINED AND USED.—The Secretary shall define the terms ‘net voyage profit’, ‘fair and reasonable overhead expenses’, and ‘capital necessarily employed’ for this section. Each advertisement for bids and each charter shall contain these definitions, stating the formula for determining each of these three amounts. ‘‘§ 57518. Performance bond ‘‘The Secretary of Transportation shall require a charterer of a vessel of the Secretary to deposit with the Secretary an undertaking, with approved sureties, in such amount as the Secretary may require as security for the faithful performance of the terms of the charter, including indemnity against liens on the chartered vessel. ‘‘§ 57519. Insurance ‘‘A charter under this chapter shall require the charterer to carry, at the charterer’s expense, insurance on the chartered vessel

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