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U.S. Code as of:
01/19/04
Section 742c. Loans for financing or refinancing of cost of purchasing, constructing, equipping, maintaining, repairing, or operating commercial fishing vessels or gear
(a) Authorization
The Secretary of the Interior is authorized, under such rules and
regulations and under such terms and conditions as he may
prescribe, to make loans for financing or refinancing of the cost
of purchasing, constructing, equipping, maintaining, repairing, or
operating new or used commercial fishing vessels or gear.
(b) Conditions
Any loans made under the provisions of this section shall be
subject to the following restrictions:
(1) Bear an interest rate of not less than (a) a rate
determined by the Secretary of the Treasury, taking into
consideration the average market yield on outstanding Treasury
obligations of comparable maturity, plus (b) such additional
charge, if any, toward covering other costs of the program as the
Secretary may determine to be consistent with its purpose.
(2) Mature in not more than ten years, except that where a loan
is for all or part of the costs of constructing a new fishing
vessel, such period may be fourteen years.
(3) No financial assistance shall be extended pursuant to this
section unless reasonable financial assistance applied for is not
otherwise available on reasonable terms.
(4) Loans shall be approved only upon the furnishing of such
security or other reasonable assurance of repayment as the
Secretary may require considering the objectives of this section
which are to upgrade commercial fishing vessels and gear and to
provide reasonable financial assistance not otherwise available
to commercial fishermen. The proposed collateral for a loan must
be of such a nature that, when considered with the integrity and
ability of the management, and the applicant's past and
prospective earnings, repayment of the loan will be reasonably
assured.
(5) The applicant shall possess the ability, experience,
resources, and other qualifications necessary to enable him to
operate and maintain new or used commercial fishing vessels or
gear.
(6) Before the Secretary approves a loan for the purchase or
construction of a new or used vessel which will not replace an
existing commercial fishing vessel, he shall determine that the
applicant's contemplated operation of such vessel in a fishery
will not cause economic hardship or injury to the efficient
vessel operators already operating in that fishery.
(7) An applicant for a fishery loan must be a citizen or
national of the United States.
(8) Within the meaning of this section, a corporation,
partnership, or association shall not be deemed to be a citizen
of the United States unless the Secretary determines that it
satisfactorily meets all of the requirements set forth in
sections 802 and 803 of title 46, Appendix, for determining the
United States citizenship of a corporation, partnership, or
association operating a vessel in the coastwise trade.
(9)(A) The nationality of an applicant shall be established to
the satisfaction of the Secretary. Within the meaning of this
section, no corporation, partnership, or association organized
under the laws of American Samoa shall be deemed a national of
the United States unless 75 per centum of the interest therein is
owned by nationals of the United States, citizens of the United
States, or both, and in the case of a corporation, unless its
president or other chief executive officer and the chairman of
its board are nationals or citizens of the United States and
unless no more of its directors than a minority of the number
necessary to constitute a quorum are nonnationals and
noncitizens.
(B) Seventy-five per centum of the interest in a corporation
shall not be deemed to be owned by nationals of the United
States, citizens of the United States, or both, (i) if the title
to 75 per centum of its stock is not vested in such nationals and
citizens free from any trust or fiduciary obligation in favor of
any person not a national or citizen of the United States; or
(ii) if 75 per centum of the voting power in such corporation is
not vested in nationals of the United States, citizens of the
United States, or both; or (iii) if through any contract or
understanding it is so arranged that more than 25 per centum of
the voting power may be exercised, directly or indirectly, in
behalf of any person who is not a national or citizen of the
United States; or (iv) if by any other means whatsoever control
of any interest in the corporation in excess of 25 per centum is
conferred upon or permitted to be exercised by any person who is
not a national or citizen of the United States.
(c) Fisheries loan fund; interest payments on appropriations
available as capital to the fund less average undispersed cash
balance
There is created a fisheries loan fund, which shall be used by
the Secretary as a revolving fund to make loans for financing and
refinancing under this section. Any funds received by the Secretary
on or before September 30, 1986, in payment of principal or
interest on any loans so made shall be deposited in the fund and be
available for making additional loans under this section. Any funds
received in the fisheries loan fund after September 30, 1986, shall
be covered into the Treasury as miscellaneous receipts. There is
authorized to be appropriated to the fisheries loan fund the sum of
$20,000,000 to provide initial capital.
(d) Modification of loan contract
The Secretary, subject to the specific limitations in this
section, may consent to the modification, with respect to the rate
of interest, time of payment of any installment of principal, or
security, of any loan contract to which he is a party.
(e) Chartering vessels; loans to Alaskan earthquake victims;
termination date
The Secretary is authorized under such terms and conditions and
pursuant to regulations prescribed by him to use the funds
appropriated under this section to make loans to commercial
fishermen for the purpose of chartering fishing vessels pending the
construction or repair of vessels lost, destroyed, or damaged by
the earthquake of March 27, 1964, and subsequent tidal waves
related thereto: Provided, That any loans made under this
subsection shall only be repaid from the net profits of the
operations of such chartered vessels, which profits shall be
reduced by such reasonable amount as determined by the Secretary
for the salary of the fishermen chartering such vessels. The funds
authorized herein shall not be available for such loans after June
30, 1966.
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