Page:United States Statutes at Large Volume 120.djvu/1699

 120 STAT. 1668

PUBLIC LAW 109–304—OCT. 6, 2006

covering all marine and port risks, protection and indemnity risks, and all other hazards and liabilities, adequate to cover damages claimed against and losses sustained by the chartered vessel arising during the term of the charter. The insurance shall be in such form, in such amount, and with such companies as the Secretary of Transportation may require. In accordance with law, any of the insurance risks may be underwritten by the Secretary. ‘‘§ 57520. Vessel maintenance ‘‘(a) IN GENERAL.—A charter under this chapter shall require the charterer, at the charterer’s expense, to— ‘‘(1) keep the chartered vessel in good repair and efficient operating condition; and ‘‘(2) make any repairs required by the Secretary of Transportation. ‘‘(b) INSPECTION.—The charter shall provide that the Secretary has the right to inspect the vessel at any time to ascertain its condition. ‘‘§ 57521. Termination of charter during national emergency ‘‘A charter under this chapter shall provide that during a national emergency proclaimed by the President or a period for which the President has proclaimed that the security of the national defense makes it advisable, the Secretary of Transportation may terminate the charter without cost to the United States Government on such notice to the charterer as the President determines. ‘‘SUBCHAPTER III—MISCELLANEOUS ‘‘§ 57531. Construction and charter of vessels for unsuccessful routes ‘‘(a) IN GENERAL.—If the Secretary of Transportation finds that a trade route determined to be essential under section 50103 of this title cannot be successfully developed and maintained and the Secretary’s replacement program cannot be achieved under private operation of the trade route by a citizen of the United States with vessels documented under chapter 121 of this title, without further aid by the United States Government in addition to the financial aid authorized under titles V and VI of the Merchant Marine Act, 1936, the Secretary, without advertisement or competition, may— ‘‘(1) have constructed, in private shipyards or in navy yards, vessels of the types necessary for the trade route; and ‘‘(2) demise charter those new vessels to the operator of vessels of the United States established on the trade route. ‘‘(b) AMOUNT OF CHARTER HIRE.— ‘‘(1) IN GENERAL.—The annual charter hire under subsection (a) shall be at least 4 percent of the price (referred to in this section as the ‘foreign cost’) at which the vessel would be sold if constructed under title V of the Merchant Marine Act, 1936, plus— ‘‘(A) a percentage of the depreciated foreign cost computed annually determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the

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