Page:United States Statutes at Large Volume 52.djvu/999

 PUBLIC LAWS-CH. 600-JUNE 23, 1938 Delivery. and concurrently therewith, or as soon thereafter as practicable, the vessel shall be delivered with a bill of sale to the applicant with war- ranty against liens, pursuant to the contract of purchase between the tation of documen- applicant and the Commission. The vessel shall remain documented under the laws of the United States for not less than twenty years, or so long as there remains due the United States any principal or interest on account of the purchase price, which ever is the longer paymentuagetscure period. At the time of delivery of the vessel the applicant shall execute and deliver a first preferred mortgage to the United States to secure payment of any sums due from the applicant in respect to 46 Uta.t.S. 8s said vessel. The purchaser shall also comply with all the provisions of section 9 of the Merchant Marine Act, 1920." 49 Stat. 199. SEC. 16. Section 504 of such Act is amended to read as follows: Financing construc- tion by applicant in "SEC. 504. Where an eligible applicant under the terms of this title lieu of purchase. desires to finance the construction of a proposed vessel according to approved plans and specifications rather than purchase the same vessel from the Commission as hereinabove authorized, the Commission may permit the applicant to obtain and submit to it competitive bids from Approvalofbid,etc. domestic shipyards for such work. If the Commission considers the bid of the shipyard in which the applicant desires to have the vessel built fair and reasonable, it may approve such bid and become a party to the contract or contracts or other arrangements for the construction of such proposed vessel and may agree to pay a construc- tion-differential subsidy in an amount determined by the Commission Ante, p. 956. in accordance with section 502 of this title, and for the cost of national- Subsidy, etc. defense features. The construction-differential subsidy and payments for national-defense features shall be based on the lowest responsible domestic bid. No construction-differential subsidy, as provided in this section, shall be paid unless the said contract or contracts or other arrangements contain such provisions as are provided in this title to protect the interests of the United States as the Commission deems Documentation. necessary. Such vessel shall be documented under the laws of the Ante, p. 97. United States as provided in section 503 of this title and operated as approved by the Commission under the requirements applicable to vessels constructed under this Act." iontracts for scien- SEC. 17. The last proviso in section 505 (b) of such Act is amended tific equipment. 49 Stat. 1999. to read as follows: "Provided, That this section shall not apply to 46 U. S. C., Supp. in, §is'5 ( ub). contracts or subcontracts for scientific equipment used for communi- cation and navigation as may be so designated by the Commission, nor to contracts or other arrangements entered into under this title by the terms of which the United States undertakes to pay only for Reportto Congress. national-defense features, and the Commission shall report annally I to Congress the names of such contractors and subcontractors affected by this provision, together with the applicable contracts and the amounts thereof." 49Stat. . SEC. 18. Section 506 of such Act is amended to read as follows: Operation of sub- "Section 506. Every owner of a vessel for which a construction- sidly-constructed ves- selexelusively in for- differential subsidy has been paid shall agree that the vessel shall be operated exclusively in foreign trade, or on a round-the-world voyage, or on a round voyage from the west coast of the United States to a European port or ports which includes intercoastal ports of the United States, or a round voyage from the Atlantic coast of the United States to the Orient which includes intercoastal ports of the United States, or on a voyage in foreign trade on which the vessel may stop at an island possession or island territory of the United States, and that if the vessel is operated in the domestic trade So in original. 958 [52 STAT.

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