Page:United States Statutes at Large Volume 49 Part 1.djvu/2042

 74m CONGRESS. SESS. II. CH. 858. JUN E 29, 1936 . 1997 twenty years after delivery of the vessel and in not to exceed twenty equal annual installments, the first of which shall be payable one year after the delivery of the vessel by the Commission to the applicant. Interest at the rate of 31/2 per centum per annum shall be paid on all Interest rate. installments of purchase price remaining unpaid. (d) In case a construction subsidy is applied for under this Aiplicants on Pacific title by an applicant who has as his principal place of business a place on the Pacific coast of the United States (but not including on e who, havin g been in bu siness on or befor e Augu st 1, 1935, has cha nged h is pri ncipal place of bu siness to a place on the Pacif ic coast of the United States after such date) to aid in the construc- tion or reconditioning of a vessel to be operated in foreign trade in a service, route, or line from ports on the Pacific coast of the United States, and the amount of the bid of the shipbuilder on Differential allow- the Pacific coast who is the lowest responsible bidder on such coast ante' for such construction or reconditioning does not exceed the amount of the bid of the shipbuilder on the Atlantic coast of the United States who is the lowest responsible bidder therefor by more than 6 per centum of the amount of the bid of such Atlantic coast ship- builder, the Commission shall, except as provided in subsection (e), approve such Pacific coast bid, and in such case no payment shall be made to aid in such construction or reconditioning unless the appl icant ac cepts th e bid of such Pa cific co ast shi pbuilder and agr ees to designate and continue as the home port of the vessel to be con- structed or reconditioned a port on the Pacific coast. (e) If no bids are received for the construction, outfitting, or strGovenme nt no bias equipping of such vessel, or if it appears to the Commission that received, or if collu- the bids received from privately owned shipyards of the United sive, eta . States are collusive, excessive, or unreasonable, and if the applicant agrees to purchase said vessel as provided in this section, then, to pro vide e mploym ent fo r citi zens o f the United State s, the Commi s- sion may have such vessel constructed, outfitted, or equipped at not in excess of the actual cost thereof in aa navy y ard of the U nited States under such regulations as may be promulgated by the Sec- retary of the Na vy and the Commission. In such event the Com- Payment from Com- mission's construction mission is authorized to pay for any such vessel so constructed from fund. its construction fund. The Commission is authorized to sell any Authority to se ll to apo vessel so constructed, outfitted, or equipped in a navy yard to an applicant for the fair and reasonable value thereof, but at not less than the cost thereof less the equivalent to the construction differ- ential subsidy determined as provided by subsection (b ), such sale to be in accordance with all the provisions of this title. SEC. 503. Upon completion of the construction of any vessel in 90Documentation of respect to which a construction subsidy is to be allowed under this title and its delivery by the shipbuilder to the Commission, the vessel shall be documented under the laws of the United States, and con curren tly th erewit h, or as soo n ther eafter as pr actica ble, t he with bill of sale »tl vessel shall be delivered with a bill of sale to the applicant with warranty against Yeas. warranty against liens, pursuant to the contract of purchase between the applicant and the Commission hereinbefore provided for. The do in nta eriO o aar vessel shall remain documented under the laws of the United States united states lawsn for not less than twenty years, and so long as there remains due the United States any principal or interest on account of the pur- chase price, whichever shall be the longer period. At the time of mortgage to secure deli very of the vess el the a pplicant shall e xecute and deli ver a fi rst pay me nt of su ms due. preferred mortgage to the United States to secure payment of any sums due fr om the appli cant i n resp ect to said vessel. The pur- so arceonvsy chaser shall also comply with all the provisions of section 9 of the ments. Merchant Marine Act, 1920. Vol .41,p.992.