Public Law 92-504 An Act To amend the Sockeye Salmon or Pink Salmon Fishery Act of 1947 to authorize the restoration and extension of the sockeye and pink salmon stocks of the Fraser River system, 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 8 of the Sockeye Salmon or Pink Salmon Fishery Act of 1947 (61 Stat. 314; 16 U.S.C. 776f) is amended by (a) designating existing section 8 as "section 8(a)"; and (b) inserting at the end thereof the following new section: "(b) In addition to the amounts authorized in subsection (a) of this section, there is authorized to be appropriated the sum of $7,000,000 for the share of the United States of costs and expenses incident to the development and construction of salmon enhancement facilities pursuant to the program for the restoration and extension of the Sockeye and pink salmon stocks of the Fraser River system as approved by the Commission, to remain available until expended." Approved October 18, 1972. 86 STAT, 907 Salmon stocks, extension. Appropriation. LEGISLATIVE HISTORY: HOUSE REPORT No. 92-1474 (Comm. on Merchant Marine and Fisheries). Oct. 5, considered and passed House. Oct. 10, considered and passed Senate, in lieu of S. 4037. Public Law 92-507 92nd Congress, H. R. 9756 October 19, 1972 An Act To amend the Merchant Marine Act, 1936, as amended. Be it enacted by the Senate and House of Representatires of the United States of America in Congress assembled, 86 STAT. 909 Federal Ship of 1972. SECTION 1. Section 1101 of the Merchant Marine Act, 1936, as Financing Aot amended (46 U.S.C. 1271), is amended by striking out the entire section and inserting the following: "SEC. 1101. As used in this title 68 Stat. 1267; 84 Stat. 1035. Definitions. "(a) The term 'mortgage' includes a preferred mortgage as defined in the Ship Mortgage Act, 1920, as amended, on any vessel of the 41 Stat. 1000; United States (other than a towboat, barge, scow, lighter, car float, 49 Stat. 424. canal boat, or tank vessel of less than twenty-five gross tons), and a 46 USC 922. mortgage on such a vessel which will become a preferred mortgage when recorded and endorsed as required by the Ship Mortgage Act, 1920, as amended: "(b) The term 'vessel' includes all types, whether in existence or under construction, of passenger cargo and combination passengercargo carrying vessels, tankers, tugs, towboats, barges and dredges which are or will be documented under the laws of the United States, fishing vessels whose ownership will meet the citizenship requirements for documenting vessels in the coast wise trade within the meaning of section 2 of the Shipping Act, 1916, as amended, floating drydocks 41 Stat. 1008; which have a capacity of thirty-five thousand or more lifting tons and 73 Stat. 597. a beam of one hundred and twenty-five feet or more between the wing 46 USC 802. walls and oceanographic research or instruction or pollution treatment, abatement or control vessels owned by citizens of the United States; “(c) The term 'obligation' shall mean any note, bond, debenture, or other evidence of indebtedness (exclusive of notes or other obligations issued by the Secretary of Commerce pursuant to subsection (d) of section 1105 of this title and obligations eligible for investment of Post, p. 914. funds under section 1102 and subsection (d) of section 1108 of this Post, pp.910, title), issued for one of the purposes specified in subsection (a) of 916. section 1104 of this title; "(d) The term 'obligor' shall mean any party primarily liable for payment of the principal of or interest on any obligation; (e) The term 'obligee' shall mean the holder of an obligation; "(f) The term 'actual cost' of a vessel as of any specified date means the aggregate, as determined by the Secretary of Commerce, of (i) all amounts paid by or for the account of the obligor on or before that date, and (ii) all amounts which the obligor is then obligated to pay from time to time thereafter, for the construction, reconstruction, or reconditioning of such vessel; "(g) The term 'depreciated actual cost' of a vessel means the actual cost of the vessel depreciated on a straightline basis over the useful life of the vessel as determined by the Secretary of Commerce, not to exceed twenty-five years from the date the vessel was delivered by the shipbuilder, or, if the vessel has been reconstructed or reconditioned, the actual cost of the vessel depreciated on a straightline basis from the date the vessel was delivered by the shipbuilder to the date of such reconstruction or reconditioning on the basis of the original useful life of the vessel and from the date of such reconstruction or reconditioning on a straightline basis and on the basis of a useful life of the vessel determined by the Secretary of Commerce, plus all amounts paid or obligated to be paid for the reconstruction or reconditioning depreciated on a straightline basis and on the basis of a useful life of the vessel determined by the Secretary of Commerce; and Post, p. 910. 68 Stat. 1268; 73 Stat. 269. 46 USC 12768. Obligations, guaranteed payment. Security interest, conveyance. Limitation. Infra. Post, p. 916. Guarantee, validity. Limitation. Eligibility requirements. Supra. 86 STAT. 910 86 STAT. 911 "(h) The terms 'construction', 'reconstruction', or 'reconditioning' shall include, but shall not be limited to, designing, inspecting, outfitting, and equipping." SEC. 2. Section 1102 of the Merchant Marine Act, 1936 (46 U.S.C. 1272) is amended as follows: (1) By striking from the first sentence thereof the words "Federal Ship Mortgage Insurance Fund (hereinafter referred to as the fund)" and inserting in lieu thereof the words "Federal Ship Financing Fund (hereinafter referred to as the Fund)". (2) By deleting the word "fund" immediately preceding the words "the sum of $1,000,000" and inserting in lieu thereof the word "Fund". (3) By deleting the words "Section 1110 (46 U.S.C. 1279)" at the end of the first sentence thereof and inserting in lieu thereof "Section 1107 (46 U.S.C. )". (4) By deleting the word "fund" from the last sentence thereof wherever it appears and inserting in lieu thereof the word "Fund". SEC. 3. Sections 1103 through 1109 of the Merchant Marine Act, 1936 (46 U.S.C. 1273-1278) are amended by striking such sections entirely and inserting in lieu thereof the following: "SEO. 1103. (a) The Secretary of Commerce, upon application by a citizen of the United States, is authorized to guarantee, and to enter into commitments to guarantee, the payment of the interest on, and the unpaid balance of the principal of, any obligation which is eligible to be guaranteed under this title. (b) No obligation shall be guaranteed under this title unless the obligor conveys or agrees to convey to the Secretary of Commerce such security interest, which may include a mortgage or mortgages on a vessel or vessels, as the Secretary of Commerce may reasonably require to protect the interests of the United States. (c) The Secretary of Commerce shall not guarantee the principal of obligations in an amount in excess of 75 per centum, or 871⁄2 per centum, whichever is applicable under section 1104 of this title, of the amount, as determined by the Secretary of Commerce which determination shall be conclusive, paid by or for the account of the obligor for the construction, reconstruction, or reconditioning of a vessel or vessels with respect to which a security interest has been conveyed to the Secretary of Commerce, unless the obligor creates an escrow fund as authorized by section 1108 of this title, in which case the Secretary of Commerce may guarantee 75 per centum or 8712 per centum, whichever is applicable under section 1104 of this title, of the actual cost of such vessel or vessels. "(d) The full faith and credit of the United States is pledged to the payment of all guarantees made under this title with respect to both principal and interest, including interest, as may be provided for in the guarantee, accruing between the date of default under a guaranteed obligation and the payment in full of the guarantee. "(e) Any guarantee, or commitment to guarantee, made by the Secretary of Commerce under this title shall be conclusive evidence of the eligibility of the obligations for such guarantee, and the validity of any guarantee, or commitment to guarantee, so made shall be incontestable. "(f) The aggregate unpaid principal amount of the obligations guaranteed under this section and outstanding at any one time shall not exceed $3,000,000,000. "SEC. 1104. (a) Pursuant to the authority granted under section 1103 (a), the Secretary of Commerce, upon such terms as he shall prescribe, may guarantee or make a commitment to guarantee, payment of the principal of and interest on an obligation which aids in "(1) financing, including reimbursement of an obligor for expenditures previously made for, construction, reconstruction, or reconditioning of a vessel or vessels owned by citizens of the United States which are designed principally for research, or for commercial use (A) in the coastwise or intercoastal trade; (B) on the Great Lakes, or on bays, sounds, rivers, harbors, or inland lakes of the United States; (C) in foreign trade as defined in section 905 of this Act for purposes of title V of this Act; (D) in the fishing trade or industry; or (E) with respect to floating drydocks, in the construction, reconstruction, reconditioning, or repair of vessels: Provided, however, That no guarantee shall be entered into pursuant to this paragraph (a) (1) later than one year after delivery, or redelivery in the case of reconstruction or reconditioning of any such vessel unless the proceeds of the obligation are used to finance the construction, reconstruction, or reconditioning of a vessel or vessels, or facilities or equipment pertaining to marine operations; 52 Stat. 964; 84 Stat. 1034. 46 USC 1244, 1151. Limitation. "(2) financing the purchase of vessels theretofore acquired by the Fund under the provisions of section 1105 and reconditioning Post, p. 914. and reconstructing such vessels; "(3) financing, in whole or in part, the repayment to the United States of any amount of construction-differential subsidy paid with respect to a vessel pursuant to title V of this Act, as amended; or "(4) refinancing existing obligations issued for one of the purposes specified in (1), (2), or (3) whether or not guaranteed under this title, including, but not limited to, short-term obligations incurred for the purpose of obtaining temporary funds with the view to refinancing from time to time. "(b) Obligations guaranteed under this title "(1) shall have an obligor approved by the Secretary of Commerce as responsible and possessing the ability, experience, finan/cial resources, and other qualifications necessary to the adequate operation and maintenance of the vessel or vessels which serve as security for the guarantee of the Secretary of Commerce; "(2) subject to the provisions of paragraph (1) of subsection Limitations. (c) of this section, shall be in an aggregate principal amount which does not exceed 75 per centum of the actual cost or depreciated actual cost, as determined by the Secretary of Commerce, of the vessel which is used as security for the guarantee of the Secretary of Commerce: Provided, however, That in the case of a vessel, the size and speed of which are approved by the Secretary of Commerce, and which is or would have been eligible for mortgage aid for construction under section 509 of this Act (or would Ante, p. 528. have been eligible for mortgage aid under section 509 of this Act except that the vessel was built with the aid of constructiondifferential subsidy and said subsidy has been repaid) and in respect of which the minimum downpayment by the mortgagor required by that section would be or would have been 1211⁄2 per centum of the cost of such vessel, such obligations may be in an amount which does not exceed 871⁄2 per centum of such actual cost or depreciated actual cost: Provided, further, That the obligations which relate to a barge which is constructed without the aid of construction-differential subsidy, or, if so subsidized, on which said subsidy has been repaid, may be in an aggregate principal amount which does not exceed 872 per centum of the actual cost or depreciated actual cost thereof; "(3) shall have maturity dates satisfactory to the Secretary of Commerce but, subject to the provisions of paragraph (2) of subsection (c) of this section, not to exceed twenty-five years from the date of the delivery of the vessel which serves as security for the guarantee of the Secretary of Commerce or, if the vessel has been reconstructed or reconditioned, not to exceed the later of (i) twenty-five years from the date of delivery of the vessel and (ii) the remaining years of the useful life of the vessel as determined by the Secretary of Commerce; Maturity dates. 86 STAT. 911 86 STAT. 912 Standards. 46 USC 1151. Security. 86 STAT. 912 86 STAT. 913 Fishing vessels. "(4) shall provide for payments by the obligor satisfactory to the Secretary of Commerce; "(5) shall bear interest (exclusive of charges for the guarantee and service charges, if any) at rates not to exceed such per centum per annum on the unpaid principal as the Secretary of Commerce determines to be reasonable, taking into account the range of interest rates prevailing in the private market for similar loans and the risks assumed by the Secretary of Commerce; "(6) shall provide, or a related agreement shall provide, that if the vessel used as security for the guarantee of the Secretary of Commerce is a delivered vessel, the vessel shall be in class A-1, American Bureau of Shipping, or shall meet such other standards as may be acceptable to the Secretary of Commerce, with all required certificates, including but not limited to, marine inspection certificates of the United States Coast Guard, with all outstanding requirements and recommendations necessary for retention of class accomplished, unless the Secretary of Commerce permits a deferment of such repairs, and shall be tight, stanch, strong, and well and sufficiently tackled, appareled, furnished, and equipped, and in every respect seaworthy and in good running condition and repair, and in all respects fit for service; and "(7) may provide, or a related agreement may provide, if the vessel used as security for the guarantee of the Secretary of Commerce is a passenger vessel having the tonnage, speed, passenger accommodations and other characteristics set forth in title V of this Act, as amended, and if the Secretary of Commerce approves, that the sole recourse against the obligor by the United States for any payments under the guarantee shall be limited to repossession of the vessel and the assignment of insurance claims and that the liability of the obligor for any payments of principal and interest under the guarantee shall be satisfied and discharged by the surrender of the vessel and all right, title, and interest therein to the United States: Provided, That the vessel upon surrender shall be (i) free and clear of all liens and encumbrances whatsoever except the security interest conveyed to the Secretary of Commerce under this title, (ii) in class, and (iii) in as good order and condition, ordinary wear and tear excepted, as when acquired by the obligor, except that any deficiencies with respect to freedom from encumbrances, condition and class may, to the extent covered by valid policies of insurance, be satisfied by the assignment to the Secretary of Commerce of claims of the obligor under such policies. "(c) (1) The security for the guarantee of an obligation by the Secretary of Commerce under this title may relate to more than one vessel and may consist of any combination of types of security. The aggregate principal amount of obligations which have more than one vessel as security for the guarantee of the Secretary of Commerce under this title may equal, but not exceed, the sum of the principal amount of obligations permissible with respect to each vessel. (2) If the security for the guarantee of an obligation by the Secretary of Commerce under this title relates to more than one vessel, such obligation may have the latest maturity date permissible under subsection (b) of this section with respect to any of such vessels: Provided, That the Secretary of Commerce may require such payments of principal, prior to maturity, with respect to all related obligations as he deems necessary in order to maintain adequate security for his guarantee. "(d) No commitment to guarantee an obligation shall be made by the Secretary of Commerce unless he finds, at or prior to the time such commitment is made, that the property or project with respect to which the obligation will be executed will be, in his opinion, economically sound and in the case of fishing vessels, that the purpose of the |