Page:United States Statutes at Large Volume 67.djvu/662

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PUBLIC LAW 288-AUG. 15, 1953

Public Law 288 August 15, 1953 [H. R. 6441]

Merchant Marine Act, 1936, amendments. New s h i p construction. Mortgage insurance. 52 Stat. 969.

46 USC 12711279.

E l i g i b i l i t y requirements.

49 Stat. 1995. 46 USC 1 15 11161.

Payment after default.

[67

STA T.

CHAPTER 513

AN ACT To amend certain provisions of title XI of the Merchant Marine Act, 1936, as amended, to facilitate private financing of new ship construction, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 1103 of the Merchant Marine Act, 1936, as amended (U.S.C. title 46, sec. 1273), is amended by inserting " (a) " after the section number; and by inserting after the word "provided" and before the words "any mortgage offered" the words "90 per centum of the unpaid balance of"; and by striking dut the last sentence thereof, and inserting at the end of the section the following: " (b) The Secretary of Commerce is further authorized under such terms and conditions as he may prescribe not inconsistent with the provisions of this title, to insure against loss not to exceed 90 per centum of the unpaid balance of principal of loans and advances of credit made to finance the construction, reconstruction, or reconditioning of vessels with respect to which he is authorized to provide mortgage insurance under sections 1101 to 1109, inclusive: Provided, however, That the insurance authorized by this title may not be issued unless the Secretary of Commerce finds that the interest rate of the loan or mortgage to be insured is substantially less than the going interest rates generally charged for uninsured snip construction loans or ship mortgages of similar character and in the same area. " (c) The aggregate amount of insurance of principal obligations of all mortgages and loans under this title and outstanding at any one time shall not exceed $100,000,000." SEC. 2. Section 1104(a)(2) and (8) of such Act, as amended (U.S.C. title 46, sec. 1274), is amended— (1) by inserting in paragraph (2) after the words "financed by the loan or advance" the following "or, in the case of vessels constructed under title V of this Act, involve an obligation in a principal amount which does not exceed 75 per centum of the cost of the vessel (exclusive of construction-differential subsidy and cost of national-defense features),"; (2) by inserting in paragraph (8) after the words "new loan or advance made to aid in financing" the words "construction of vessels under title V of this Act, as amended, or"; (3) by amending clause (c) of paragraph (8) to read as follows: "in foreign trade". SEC. 3. Section 1105 of such Act, as amended (U.S.C. title 46, sec. 1275), is amended to read as follows: "SEC. 1105. (a)(1) I n the event of the failure of the mortgagor to pay the principal or interest under an insured mortgage giving the mortgagee the right to foreclose, and failure on the part of the mortgagor to correct the default within thirty days, the mortgagee, provided an assignment of the mortgage and of the notes, bonds, or other evidences of indebtedness secured by the mortgage, and of all collateral held by the mortgagee securing such mortgage be tendered to the Secretary of Commerce at or before the expiration of forty-five days from the date of such default, shall thereupon have the right to demand payment of the insured portion of the unpaid balance of principal of said mortgage. If within a period of sixty days from date of such default, the Secretary of Commerce finds that there has been a failure to pay principal or interest under the mortgage or that such failure has not been corrected within the said thirty days, he shall accept the assignment and promptly pay to the mortgagee the

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