§53707 Findings Related to Obligors and Operators

Summary

Officials cannot guarantee a loan under this program unless they find the borrower is responsible and has the skills, experience, money, and other qualifications needed to run and care for each vessel used as loan security. For loans to build, rebuild, or refit liner vessels, the Administrator also needs the Federal Maritime Commission chairman to certify that, in the past 5 years, the operator was not found by the Commission to have violated part A of subtitle IV in a way that involved unfair or discriminatory treatment of U.S. shippers, ocean transportation intermediaries, ocean common carriers, or ports, and was not found to have violated part B of subtitle IV. For fishing vessel loans, the Secretary cannot guarantee a loan if the operator has unpaid penalties, fines, or unserved sentences under specific provisions: section 308 (16 U.S.C. 1858) or section 309 (16 U.S.C. 1859) of the Magnuson‑Stevens Act, section 105 (16 U.S.C. 1375) of the Marine Mammal Protection Act, or unpaid Coast Guard civil penalties under this title or title 33. The Secretary or Administrator must make rules about when financial‑condition rules can be waived or excepted. Those rules must ensure the economic soundness requirements in section 53708(a) are met after any waiver, and may require extra conditions to offset any added risk from the waiver.