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PUBLIC LAW 86-518-JUNE 12, 1960

[74

ST A T,

Public Law 86-518 June 12, 1960 [H.R. 10646]

Vessels. Commercial expectancy. 52 Stat. 954. 46 U S C 11251277, passim. 60 Stat, 43. 50 U S C app. 1737. 52 Stat, 957. 46 USC 1152. 46 USC 1156.

46 USC 1181.

53 Stat. 1186. 46 USC 1204.

52 Stat. 972. 46 USC 1276. 46 USC 1277.

49 Stat. 1985, 46 USC 1245.

52 Stat. 954. 46 U S C 1125-

1277, passim.

52 Stat, 969. 46 U S C 12711279.

AN ACT To amend the Merchant Marine Act, 1936, in order to extend the life of certain vessels under the provisions of such Act from twenty to twenty-five years.

Be it enacted by the Seriate and House of Representatives of the United States of America in Congress assembled., That sections 216, 502(c), 503, 507, 509, 510 (d) and (g), 605(b), 607(b), 705, 1104(a) (3), and 1107(5) of the Merchant Marine Act, 1936, and section 4 of the Merchant Ship Sales Act of 1946, are amended by striking out the word "twenty" wherever appearing therein and inserting in lieu thereof "twenty-five". SEC. 2. Section 502(g) of the Merchant Marine Act, 1936, is amended by striking out "based on a twenty-year life expectancy" and inserting in lieu thereof "at the rate of 4 per centum per annum". SEC. 3. Section 506 of the Merchant Marine Act, 1936, is amended by striking out "one-twentieth" and inserting in lieu thereof "onetwenty-fifth". SEC. 4. Section 611(c) of the Merchant Marine Act, 1936, is amended by striking out "5 per centum" and inserting in lieu thereof "4 per centum". SEC. 5. Section 714 of the Merchant Marine Act, 1936, is amended (1) by striking out "5 per centum" and inserting in lieu thereof "4 per centum"; (2) by striking out "twenty" wherever appearing therein and inserting in lieu thereof "twenty-five"; and (3) by striking out "one-twentieth" and inserting in lieu thereof "one-twentyfifth". SEC. 6. Clauses (1), (2), and (3) of section 1106 of the Merchant Marine Act, 1936, are amended by striking out "the maturity date of the original mortgage" and inserting in lieu thereof "twenty-five years from the date of the original mortgage". SEC. 7. Section 1107(4) of the Merchant Marine Act, 1936, is amended by striking out "5 per centum" wherever appearing therein and inserting in lieu thereof "4 per centum". SEC. 8. (a) The amendments made by this Act shall apply only to vessels delivered by the shipbuilder on or after January 1, 1946, and with respect to such vessels shall become effective on January 1, 1960. With respect to vessels delivered by the shipbuilder before January 1, 1946^ the provisions of the Merchant Marine Act, 1936, existing immediately before the date of enactment of this Act shall continue in effect. (b) With respect to vessels delivered by the shipbuilder on or after January 1, 1946, and before January 1, 1960, depreciation under sections 215, 502(g), 607, 510(d), 607(b), 611(c), 705, 714, and 1107(4) of the Merchant Marine Act, 1936, shall be taken (unless a contract which is in effect on January 1, 1960, otherwise provides) for the period prior to January 1, 1960, at the rate provided by the Merchant Marine Act^ 1936, as it existed immediately prior to the amendments made by this Act, and for the period after January 1, 1960, such depreciation shall be taken on the basis of the remaining years of a useful life of twenty-five years unless the vessel is reconstructed or reconditioned in which event such depreciation, from the time of such reconstruction or reconditioning, shall be taken on the basis of the remaining years of a useful life of the vessel determined jointly by the Secretary of Commerce and the Secretary of the Treasury. (c) Any contract (including but not limited to mortgage insurance contracts), commitment to insure a mortgage under title X I of the Merchant Marine Act, 1936, or mortgage, between any person and the United States or any agency thereof, or any mortgage insurance

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