(a) Authorization. 



The Secretary of the Interior is authorized, under such rules 

 and regulations and under such terms and conditions as he may- 

 prescribe, to make loans for financing or refinancing of the cost of 

 purchasing, constructing, equipping, maintaining, repairing, or op- 

 erating new or used commercial fishing vessels or gear. 



(b) Conditions. 



Any loans made under the provisions of this section shall be 

 subject to the following restrictions: 



(1) Bear an interest rate of not less than (a) a rate determined 

 by the Secretary of the Treasury, taking into consideration the 

 average market yield on outstanding Treasury obligations of 

 comparable maturity, plus (b) such additional charge, if any, 

 toward covering other costs of the program as the Secretary may 

 determine to be consistent with its purpose; 



(2) Mature in not more than ten years; 



(3) No financial assistance shall be extended pursuant to this 

 section unless reasonable financial assistance applied for is not 

 otherwise available on reasonable terms. 



(4) Loans shall be approved only upon the furnishing of such 

 security or other reasonable assurance of repayment as the 

 Secretary may require considering the objectives of this section 

 which are to upgrade commercial fishing vessels and gear and to 

 provide reasonable financial assistance not otherwise available to 

 commercial fishermen. The proposed collateral for a loan must 

 be of such a nature that, when considered with the integrity and 

 ability of the management, and the applicant' s past and prospective 

 earnings, repayment of the loan will be reasonably assured. 



(5) The applicant shall possess the ability, experience, resources, 

 and other qualifications necessary to enable him to operate and 

 maintain new or used commercial fishing vessels or gear. 



(6) Before the Secretary approves a loan for the purchase or 

 construction of a new or used vessel which will not replace an 

 existing commercial fishing vessel, he shall determine that the 

 applicant's contemplated operation of such vessel in a fishery 

 will not cause economic hardship or injury to the efficient vessel 

 operators already operating in that fishery. 



(7) An applicant for a fishery loanmustbe a citizen of the United 

 States. 



(8) The United States citizenship of each applicant shall be 

 established within the meaning of section 80Z of Title 46, to the 

 satisfaction of the Secretary. 



(c) Fisheries loan fund; interest payments on appropriations avail- 

 able as capital to the fund less average undispersed cash 

 balance. 



There is created a fisheries loan fund, which shall be used by 

 the Secretary as a revolving fund to make loans for financing and 

 refinancing under this section. Any funds received by the Secretary 

 on or before June 30, 1970, in payment of principal or interest on 

 any loans so made shall be deposited in the fund and be available for 



