Public Law 288.

2,329 words·~11 min read·/statutes-at-large/vol-67/public-law-288·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

67 Stat. 626 Public Law 288 chapter 513 AN ACT To amend certain provisions of title XI of the Merchant Marine Act, 1936, as amended, to facilitate private financing of new ship construction, and for other purposes.August 15, 1953 [[H. R. 6441](/us/bill/83/hr/6441)] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Merchant Marine Act, 1936, amendments. New ship construction. Mortgage insurance. [52 Stat. 969](/us/stat/52/969).

That section 1103 of the Merchant Marine Act, 1936, as amended (U. S. C., title 46, sec. 1273), is amended by inserting “(a)” after the section number; and by inserting after the word “provided” and before the words “any mortgage offered” the words “90 per centum of the unpaid balance of”; and by striking Out the last, sentence thereof, and inserting at the end of the section the following,: " “(b) The Secretary of Commerce is further authorized under such terms and conditions as he may prescribe not inconsistent with the provisions of this title, to insure against loss not to exceed 90 per centum of the unpaid balance of principal of loans and advances of credit made to finance the construction, reconstruction, or reconditioning of vessels with respect to which he is authorized to provide [46 USC 1271–1279](/us/usc/t46/s1271–1279).mortgage insurance under sections 1101 to 1109, inclusive: *Provided, however*, That the insurance authorized by this title may not be issued unless the Secretary of Commerce finds that the interest rate of the loan or mortgage to be insured is substantially less than the going interest rates generally charged for uninsured snip construction loans or ship mortgages of similar character and in the same area.

“(c) The aggregate amount of insurance of principal obligations of all mortgages and loans under this title and outstanding at any one time shall not exceed $100,000,000.” " Sec. 2. Section 1104

(2)and

(8)of such Act, as amendedEligibility requirements. (U. S. C., title 46, sec. 1274), is amended—

(1)by inserting in paragraph

(2)after the words “financed by the loan or advance” the following “or, in the case of vessels [49 Stat. 1995](/us/stat/49/1995). [46 USC 1151–1161](/us/usc/t46/s1151–1161).constructed under title V of this Act, involve an obligation in a principal amount which does not exceed 75 per centum of the cost of the vessel (exclusive of construction-differential subsidy and cost of national defense features)”;

(2)by inserting in paragraph

(8)after the words “new loan or advance made to aid in financing” the words “construction of vessels under title V of this Act, as amended, or”;

(3)by amending clause

(c)of paragraph

(8)to read as follows: “in foreign trade”. Sec. 3. Section 1105 of such Act, as amended (U. S. C., title 46, sec.Payment after default. 1275), is amended to read as follows: " “Sec. 1105.

(1)In the event of the failure of the mortgagor to pay the principal or interest under an insured mortgage giving the mortgagee the right to foreclose, and failure on the part of the mortgagor to correct the default within thirty days, the mortgagee, provided an assignment of the mortgage and of the notes, bonds, or other evidences of indebtedness secured by the mortgage, and of all collateral held by the mortgagee securing such mortgage be tendered to the Secretary of Commerce at or before the expiration of forty-five days from the date of such default, shall thereupon have the right to demand payment of the insured portion of the unpaid balance of principal of said mortgage. If within a period of sixty days from date of such default, the Secretary of Commerce finds that there has been a failure to pay principal or interest under the mortgage or that such failure has not been corrected within the said thirty days, he shall accept the assignment and promptly pay to the mortgagee the 67 Stat. 627 insured amount, of the unpaid balance of principal of the said mortgage. Upon acceptance of such assignment, the obligations of the mortgagee to pay the premium charges for insurance shall cease. “(2) In the event of the failure of the borrower to pay principal or interest due under an insured loan, the lender shall have the benefits of insurance against loss provided under section 1103

(b)of this title*Ante*, p. 626. upon compliance with the terms and conditions of such insurance. “(b) Any amount required to be paid by the Secretary of Commerce pursuant to subsection

(a)shall be paid out of the fund to the extent that funds are available therein at the time such payment becomes due, and to the extent such funds are not available, the Secretary of Commerce shall pay to the assignor of the insured mortgage any amount required to fully satisfy the claim, which amount is hereby authorized to be appropriated out of any money in the Treasury not otherwise appropriated. “(c) The Secretary of Commerce shall cause the mortgage to be foreclosed and shall repossess the mortgaged vessel forthwith, and take such other action against the mortgagor or any other parties liable under the mortgage or the collateral, that, in his discretion, may be required to protect the interests of the United States and the insured lender, as they may appear, and such suits may be brought in the name of the United States, or in the name of the insured lender or assignee, and such lender or assignee shall make available to the United States all records and evidence necessary to prosecute any such suit. The Secretary of Commerce shall have the right in his discretion to accept a conveyance of title to and possession of the vessel from the mortgagor, and in the event of a sale under foreclosure proceedings, may purchase the vessel for an amount not greater than the insured portion of the unpaid balance of such mortgage or loan. In the event the Secretary of Commerce shall receive through the sale of the vessel or other collateral assigned to him an amount of cash in excess of the amount of any payment under section 1105

(1)and the expenses of collection of such amount, he shall pay to the insured lender such cash amount, but not in excess of 10 per centum of the unpaid principal amount of such loan or mortgage, and unpaid interest to which the lender is entitled under the loan. “(d) Notwithstanding any other provision of law relating to the acquisition, handling or disposal of property by the United States, the Secretary of Commerce shall have the right in his discretion to complete, recondition, reconstruct, renovate, repair, maintain, operate, charter or sell any property acquired by him pursuant to the assignment. as provided in this section and may place the mortgaged vessel in the national defense reserve or may sell the same upon competitive bids for not less than the minimum sales price provided by the Merchant Marine Act, 1936, as amended. The buyer shall be required to[49 Stat. 1986](/us/stat/49/1986). make [46 USC 1245](/us/stat/46/1245).cash payment to the Secretary of Commerce of not less than 25 per centum of the sale price, and the balance shall be paid in equal annual installments over the remaining period of the expected useful life of such vessel. Interest at the rate of 3½ per centum per annum shall be paid on all such installments of the purchase price remaining impaid. The Secretary shall also have the power to pursue to final collection, by way of compromise or otherwise, all claims against mortgagors or persons liable under collateral assigned to the Secretary of Commerce as herein provided. “(e) Any contract, or commitment, of insurance entered into by the Secretary of Commerce under this title shall be final and conclusive and shall not be subject to avoidance by any officer, employee, or agent of the United States, except, in case of fraud, duress, or mutual mistake of fact.” " Approved August 15, 1953. REORGANIZATION PLANS REORGANIZATION PLAN NO. 1 OF 1953 Prepared by the President and transmitted to the Senate and the House of Representatives in Congress assembled, March 12, 1953, pursuant to the provisions of the Reorganization Act of 1949, approved June 20, 1949, as amended.Transmitted Mar. 12, 1953. Effective Apr. 11, 1953. [63 Stat. 203](/us/stat/63/203). [5 USC 138s note](/us/usc/t5/s138s). Department of Health, Education, and Welfare Section 1. *Creation of Department; Secretary*.— There is hereby established an executive department, which shah be known as the Department of Health, Education, and Welfare (hereafter in this reorganization plan referred to as the Department). There shah be at the head of the Department a Secretary of Health, Education, and Welfare (hereafter in this reorganization plan referred to as the Secretary), who shah be appointed by the President by and with the advice and consent of the Senate, and who shall receive compensation at the rate now or hereafter prescribed by law for the heads of executive departments. The Department shall be administered under the supervision and direction of the Secretary. Sec. 2. *Under Secretary and Assistant Secretaries*.— There shall be in the Department an Under Secretary of Health, Education, and Welfare and two Assistant Secretaries of Health, Education, and Welfare, each of whom shall be appointed by the President by and with the advice and consent of the Senate, shall perform such functions as the Secretary may prescribe, and shall receive compensation at the rate now or hereafter provided by law for under secretaries and assistant secretaries, respectively, of executive departments. The Under Secretary (or, during the absence or disability of the Under Secretary or in the event of a vacancy in the office of Under Secretary, an Assistant Secretary determined according to such order as the Secretary shall prescribe) shall act as Secretary during the absence or disability of the Secretary or in the event of a vacancy in the office of Secretary. Sec. 3. *Special Assistant*.— There shall he in the Department a Special Assistant to the Secretary (Health and Medical Affairs) who snail be appointed by the President by and with the advice and consent of the Senate from among persons who are recognized leaders in the medical field with wide nongovernmental experience, shall review the health and medical programs of the Department and advise the Secretary with respect to the improvement of such programs and with respect to necessary legislation in the health and medical fields, and shall receive compensation at the rate now or hereafter provided by law for assistant, secretaries of executive departments. Sec. 4. *Commissioner of Social Security*.— There shall be in the Department a Commissioner of Social Security who shall be appointed by the President by and with the advice and consent of the Senate, snail perform such functions concerning social security and public welfare as the Secretary may prescribe, and shall receive compensation at the rate now or hereafter fixed by law for Grade GS–18 of the 631 67 Stat. 632 general schedule established by the Classification Act of 1949, as amended. Sec. 5. *Transfers to the Department*.— All functions of the Federal[63 Stat. 963, 963](/us/stat/63/963/963). [5 USC 1112, 1113](/us/usc/t5/s1112/1113). Security Administrator are hereby transferred to the Secretary. All agencies of the Federal Security Agency, together with their respective functions, personnel, property, records, and unexpended balances of appropriations, allocations, and other funds (available or to be made available), and all other functions, personnel, property, records, and unexpended balances of appropriations, allocations, and other funds (available or to be made available) of the Federal Security Agency are hereby transferred to the Department. Sec. 6. *Performance of Functions of the Secretary*.— The Secretary may from time to time make such provisions as the Secretary deems appropriate authorizing the performance of any of the functions of the Secretary by any other officer, or by any agency or employee, of the Department. Sec. 7. *Administrative Services*.— In the interest of economy and efficiency the Secretary may from time to time establish central administrative services in the fields of procurement, budgeting, accounting, personnel, library, legal, and other services and activities common to the several agencies of the Department; and the Secretary may effect such transfers within the Department of the personnel employed, the property and records used or held, and the funds available for use in connection with such administrative service activities as the Secretary may deem necessary for the conduct of any services so established: *Provided*, That no professional or substantive function vested by law in any officer shall be removed from the jurisdiction of such officer under this section. Sec. 8. *Abolitions*.— The Federal Security Agency (exclusive of the agencies thereof transferred by section 5 of this reorganization plan) the offices of Federal Security Administrator and Assistant Federal Security Administrator created by Reorganization Plan No. I (53 [3 USC 133t note](/us/usc/t3/s133t).Stat. 1423), the two offices of assistant heads of the Federal Security [5 USC 133y–16 note](/us/usc/t5/s133y–16).Agency created by Reorganization Plan No. 2 of 1946 (60 Stat. 1095), and the office of Commissioner for Social Security created by section [42 USC 901](/us/usc/t42/s901).701 of the Social Security Act, as amended (64 Stat. 558), are hereby abolished. The Secretary shall make such provisions as may be necessary in order to wind up any outstanding affairs of the Agency and offices abolished by this section which are not otherwise provided for in this reorganization plan. Sec. 9. *Interim Provisions*.— The President may authorize the persons who immediately prior to the time this reorganization plan takes effect occupy the offices of Federal Security Administrator, Assistant Federal Security Administrator, assistant heads of the Federal Security Agency, and Commissioner for Social Security to act as Secretary, Under Secretary, and Assistant Secretaries of Health, Education, and Welfare and as Commissioner of Social Security, respectively, until those offices are filled by appointment in the manner provided by sections 1,2, and 4 of this reorganization plan, but not for a period of more than 60 days. While so acting, such persons shall receive compensation at the rates provided by this reorganization plan for the offices the functions of which they perform.

Connections2 cite this · traces to 3

Cited by 2 sections

statutes-at-large

Traces to 3 documents

statutes-at-large

U.S. Code