Title 46 › Subtitle Subtitle V— Merchant Marine › Part C— Financial Assistance Programs › Chapter 537— LOANS AND GUARANTEES › Subchapter I— GENERAL › § 53712
The Secretary or Administrator must monitor an obligor’s finances and operations while a guarantee is active. They must write down the results yearly or quarterly depending on how risky the obligor looks. If the obligor needs extra protection, they must follow the steps in subsection (b). If the obligor’s problems threaten its ability to perform, they must decide right away whether to declare default and take actions to protect their interests. Loan agreements must give the Secretary or Administrator power to limit losses if a loan defaults or the obligor’s finances worsen. If a waiver under section 53707(d) was given, the loan must require extra payments, collateral, or equity when clear evidence shows the obligor can meet the waived requirement.
Full Legal Text
Shipping — Source: USLM XML via OLRC
Legislative History
Reference
Citation
46 U.S.C. § 53712
Title 46 — Shipping
Last Updated
Apr 5, 2026
Release point: 119-73not60