Page:United States Statutes at Large Volume 98 Part 3.djvu/759

 PUBLIC LAW 98-595—OCT. 30, 1984

98 STAT. 3131

"(B) No commitment to guarantee, or guarantee of, an obligation shall be made by the Secretary of Commerce unless the Secretary finds, at or prior to the time such commitment is made or guarantee becomes effective, that the property or project with respect to which the obligation will be executed will be, in the Secretary's opinion, economically sound and in the case of fishing vessels, that the purpose of the financing or refinancing is consistent with the wise use of the fisheries resources and with the development, advancement, management, conservation, and protection of the fisheries resources, or with the need for technical improvements including but not limited to increased fuel efficiency or improved safety."; (7) in section 1104(h), after the word "acceleration", by adding ", assumption,"; (8) in section 1105(a), in the first sentence after the word "demand", by adding: "(unless the Secretary shall, upon such terms as may be provided in the obligation or related a^n'eements, prior to that demand, have assumed the obligor's rights and duties under the obligation and agreements and shall have made any payments in default)"; (9) in section 1105, by striking subsection (b) and substituting: "(b) In the event of a default under a mortgage, loan agreement. or other security agreement between the obligor and the Secretary, the Secretary may upon such terms as may be provided in the obligation or related agreement, either: "(1) assume the obligor's rights and duties under the agfreement, make any payment in default, and notify the obligee or the obligee's agent of the default and the assumption by the Secretary; or "(2) notify the obligee or the obligee's agent of the default, and the obligee or the obligee's agent shall have the right to demand at or before the expiration of such period as may be specified in the guarantee or related agreements, but not later than 60 days from the date of such notice, payment by the Secretary of the unpaid principal amount of said obligation and of the unpaid interest thereon. Within such period as may be specified in the guarantee or related agreements, but not later than 30 days from the date of such demand, the Secretary shall promptly pay to the obligee or the obligee's agent the unpaid principal amount of said obligation and unpaid interest thereon to the date of payment."; (10) in section 1105(c), first sentence, after the word "payment", by adding "or assumption"; (11) in section 1105(e), by striking the last sentence and substituting: "In the event that the Secretary shall receive through the sale of property an amount of cash in excess of the unpaid principal amount of the obligation and unpaid interest on the obligation and the expenses of collection of those amounts, the Secretary shall pay the excess to the obligor."; and (12) in section 1104(e), by adding the following sentence at the end thereof: "Such regulations shall provide a formula for determining the creditworthiness of obligors under which the most creditworthy obligors pay a fee computed on the lowest allowable percentage and the least creditworthy obligors pay a fee which may be computed on the highest allowable percentage (the range of creditworthiness to be based on obligors which have actually issued guaranteed obligations).".

46 USC app. 1274. 46 USC app. 1275.

Loans.

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