Sec. 115. Improvements to the maritime guaranteed loan program
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/bill/116/s/1417/is/section-115·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 53701 of title 46, United States Code, is amended— by striking paragraph (5); by redesignating paragraphs
(6)through
(15)as paragraphs
(5)through (14), respectively; and by adding at the end the following: The term Vessel of National Interest means a vessel deemed to be of national interest that meets characteristics determined by the Administrator, in consultation with the Secretary of Defense, the Secretary of Homeland Security, or the heads of other Federal agencies, as described in section 53703(e). . Section 53702(a) of title 46, United States Code, is amended— by striking The Secretary or Administrator, on terms the Secretary or Administrator may prescribe, and inserting the following: The Secretary, acting through the Administrator, on terms the Secretary or Administrator may prescribe, ; and by adding at the end the following: The Federal Financing Bank shall be the preferred eligible lender of the principal and interest of the guaranteed obligations issued under this chapter. . Section 53703 of title 46, United States Code, is amended— in the section heading, by striking and inserting procedures ; and and administration by adding at the end the following: To assess and mitigate the risks due to factors associated with markets, technology, financial, or legal structures related to an application or guarantee under this chapter, the Secretary or Administrator may utilize third-party experts, including legal counsel, to— process and review applications under this chapter, including conducting independent analysis and review of aspects of an application; represent the Secretary or Administrator in structuring and documenting the obligation guarantee; analyze and review aspects of, structure, and document the obligation guarantee during the term of the guarantee; recommend financial covenants or financial ratios to be met by the applicant during the time a guarantee under this chapter is outstanding that are— based on the financial covenants or financial ratios, if any, that are then applicable to the obligor under private sector credit agreements; and in lieu of other financial covenants applicable to the obligor under this chapter with respect to requirements regarding long-term debt-to-equity, minimum working capital, or minimum amount of equity; and represent the Secretary or Administrator to protect the security interests of the Government relating to an obligation guarantee. Independent analysis, review, and representation conducted under this subsection shall be performed by a private sector expert in the applicable field who is selected by the Secretary or Administrator. The Secretary or Administrator may post a notice in the Federal Register regarding the availability of funding for obligation guarantees under this chapter for the construction, reconstruction, or reconditioning of a Vessel of National Interest and include a timeline for the submission of applications for such vessels. The Secretary or Administrator, in consultation with the Secretary of Defense, the Secretary of Homeland Security, or the heads of other Federal agencies, shall develop and publish a list of vessel types that would be considered Vessels of National Interest. Such list shall be reviewed and revised every 4 years or as necessary, as determined by the Administrator. . Section 53704 of title 46, United States Code, is amended— in subsection (a)— by striking that amount and all the follows through $850,000,000 and inserting that amount, $850,000,000 ; and by striking facilities and all that follows through the end of the subsection and inserting facilities. ; and in subsection (c)(4)— by striking subparagraph (A); and by redesignating subparagraphs
(B)through (K), as subparagraphs
(A)through (J), respectively. Section 53706 of title 46, United States Code, is amended— in subsection (a)(1)(A)— in the matter preceding clause (i), by striking (including an eligible export vessel) ; in clause
(iv)by adding or after the semicolon; in clause (v), by striking ; or and inserting a period; and by striking clause (vi); and in subsection (c)(1)— in subparagraph (A), by striking and after the semicolon; in subparagraph (B)(ii), by striking the period at the end and inserting ; and ; and by adding at the end the following: after applying subparagraphs
(A)and (B), Vessels of National Interest. . Section 53709(b) of title 46, United States Code, is amended— by striking paragraphs
(3)and (6); and by redesignating paragraphs
(4)and
(5)as paragraphs
(3)and (4), respectively. Section 53710 of title 46, United States Code, is amended— in subsection (a)(4)— in subparagraph (A)— by striking or, in the case of and all that follows through party ; and by striking and after the semicolon; in subparagraph (B), by striking the period at the end and inserting ; and ; and by adding at the end the following: documented under the laws of the United States for the term of the guarantee of the obligation or until the obligation is paid in full, whichever is sooner. ; and in subsection (c)— in the subsection heading, by inserting after and Provide for the Financial Stability of the Obligor ; Interests by striking provisions for the protection of and inserting provisions, which shall include— provisions for the protection of ; by striking , and other matters that the Secretary or Administrator may prescribe. and inserting ; and ; and by adding at the end the following: any other provisions that the Secretary or Administrator may prescribe. . Section 53713 of title 46, United States Code, is amended— in subsection (a)— in the matter preceding paragraph (1)— by striking shall and inserting may ; and by striking reasonable for— and inserting reasonable for processing the application and monitoring the loan guarantee, including for— ; in paragraph (4), by striking ; and and inserting or a deposit fund under section 53716 of this title; ; in paragraph (5), by striking the period at the end and inserting ; and ; and by adding at the end the following: monitoring and providing services related to the obligor’s compliance with any terms related to the obligations, the guarantee, or maintenance of the Secretary or Administrator’s security interests under this chapter. ; and in subsection (c)— in paragraph (1), by striking under section 53708(d) of this title and inserting under section 53703(d) of this title ; by redesignating paragraphs
(1)through
(3)as subparagraphs
(A)through (C), respectively; by striking The Secretary and inserting the following: The Secretary ; and by adding at the end the following: Fees collected under this subsection are not subject to the limitation of subsection (b). . Chapter 537 of title 46, United States Code, is further amended— in subchapter I, by adding at the end the following new section: The Secretary or Administrator shall ensure that all standard documents and agreements that relate to loan guarantees made pursuant to this chapter are reviewed and updated every four years to ensure that such documents and agreements meet the current commercial best practices to the extent permitted by law. ; and in subchapter III, by striking section 53732. Not later than 180 days after the date of enactment of this Act, the Administrator of the Maritime Administration shall, in consultation with affected stakeholders, create a process for express processing of low-risk maritime guaranteed loan applications under chapter 537 of title 46, United States Code, based on Federal and industry best practices, including proposals to better assist applicants to submit complete applications within 6 months of the initial application. The table of sections at the beginning of chapter 537 of title 46, United States Code, is amended by inserting after the item relating to section 53718 the following new item: 53719. Best practices. . The table of sections at the beginning of chapter 537 of title 46, United States Code, is further amended by striking the item relating to section 53732.