APPENDIX B 



FEDERAL REGISTER 



Wednesday, August 13, 1958 



RULES AND REGULATIONS 



TITLE 5&->WILDLlFE 



Chapter I — Fish and Wildlife Service, 

 Department of the Interior 



Svbchapt*r J— FUb*rit« Leon Fiwd 

 Pari 160 — Loak Procedtteis 



Notice was published In tbe Federal 

 Recistie on JuD€ 26, 1958 (23 F. R. 4700) 

 that pursuant to tbe authority vested In 

 the Secretary of the Interior by section 

 4 ot the Fish and wndllfe Act of 1B56 

 (70 Stat. 1H9, 1121; 16D. S. C. sec 742c). 

 It was proposed to adopt the regxilations 

 set forth below as a revision of Part 

 160 — Loan Procedures. Interested per- 

 sons were Invited to submit in writing 

 any comments, suggestions or objections 

 relating to the proposed regulations 

 within thirty days of the date of publi- 

 cation of the notice tn the Federal Reg- 

 ister. No comments, suggestions or ob- 

 jections were submitted within tbt thirty 

 day t>erlod. 



The ptirpose of this revision is to clar- 

 ify the meaning of several sections of 

 the regulations, to include fishery mar- 

 keting cooperatives as qualified loan ap- 

 plicants, to delete the provision allowing 

 a person using a fishing vessel or fishing 

 gear imder his control on a lease or share 

 basis to be a qualified applicant for fi- 

 nancial assistance, and to specify addi- 

 tional purposes for which applications 

 for financial aasiatance cannot be con- 

 sidered. 



The revised regulations are hereby 

 adopted without change and are set forth 

 below. 



Dated: August 7. 1958. 



Fred A. Seaton, 

 Secretarn of the Interior. 

 Sec. 



160.1 Definition of ternu. 

 ieo.2 Purposes of loan fund. 



160.3 Interpretation ol loan authorization. 



160.4 Qualified loan appUcanta. 



160.6 Basic limitations. 

 ieo.6 Applications. 



160.7 Processing of loan applications. 



160.8 Approval of loans. 



160.9 Interest. 



160.10 Maturity. 



160.11 Sec\irlty. 



160.12 Books, records, and reports. 



160.13 Penalties on default. 



AnTHO«rrT: 15 160.1 to 160.13 Issued under 

 Bee. 4, 70 Stat. 1121: 18 U. 8. C. 742c. 



9 160.1 Definitions of terms. For the 

 purposes of this part, the following terms 

 shall be construed, respectively, to mean 

 and to include: 



(a) Secretary. The Secretary of the 

 Interior or his authorized representative. 



(b) Administrator. Administrator of 

 tbe Small Business Administration or his 

 authorized representative. 



(c) Person. Individual, association, 

 partnership or corporation, any one or 

 aU as the context requires. 



(d) State. Any State, the Territories 

 and possessions of the United States, the 

 Commonwealth of Puerto Rico, and the 

 District of Columbia. 



i 160.2 Purposes of loan fund. The 

 broad objective of the fisheries loan fund 

 created by the Fish and Wildlife Act of 

 19S6 is to provide financial assistance 

 which will aid the commercial fishing 

 industry to bring about a general up- 

 grading of the condition of both fishing 

 vessels and fishing gear thereby con- 

 tributing to more efficient and profitable 

 fishing operations. 



(a) Under section 4 of the act, tbe 

 Secretary is authorized, among other 

 things: 



(1) To make loans for financing and 

 refinancing of operations, maintenance, 

 replacement, repair and equipment of 

 fishing gear and vessels, and for research 

 into the basic problems of fisheries. 



(2) Subject to the specific limitations 

 in the section, to consent to the modifica- 

 tion, with respect to the rate of interest, 

 time of payment of any installment of 

 principal, or security, of any loan con- 

 tract to which he is a party. 



(b) All financial assistance granted by 

 the Secretary must be for one or more of 

 the purposes set forth In paragraph (a) 

 of this section. 



! 160.3 Interpretation of loan author- 

 ization. The terms used in the act to 

 describe the purposes for which loans 

 may be granted are construed to be 

 limited to the meanings ascribed In this 

 section. 



(a) Operation of fishing gear and ves- 

 sels. The words "operation of fishing 

 gear and vessels" mean and include all 

 phases of activity directly associated 

 with the catching of fish and sheilflsb 

 for commercial purposes. 



(b) Maintenance of flahing geai and 

 t>essel3. The words "malnteniuicu ot 

 fishing gear and vessels" mean the 

 normal and routine upkeep of all parts 

 of fishing gear and fUhing vessels. In- 

 cluding machinery and equipment. 



<c) Replacement of fishing gear and 

 vessels. The words "replacement of fish- 

 ing gear and vess^" contemplate the 

 purchase of fishing gear or equipment, 

 parts, machinery, or other items incident 

 to outfitting for fishing to replace lost, 

 damaged, worn, obsolete, inefficient, or 

 discarded items of a similar nature, or 

 the purchase or construction of a fishing 

 vessel to operate the same type of fishing 

 gear as a comparable vessel which has 

 been lost, destroyed or abandoned or has 

 become obsolete or Inefficient. Any ves- 

 sel lost, destroyed or abandoned more 

 than two years prior to thf date of 

 receipt of the application shall not be 

 considered eligible for replacement. 



(d) Repair of fishing gear and vessels. 

 The words "repair of fishing gear and 

 vessels" mean the restoration of any 

 worn or damaged part of fishing gear 

 or fishing vessels to an efficient operating 

 condition. 



(e) Equipynent of fishing gear xind 

 vessels. The words "equipment of fish- 

 ing gear and vessels" mean the par^, 

 machinery, or other items incident to 

 outfitting for fishing which are pur- 

 chased for use in fishing operations. 



(f) Research into the basic problems 

 of fisheries. The words "research into 

 the basic problems of fisheries" mean in- 

 vestigation or experimentation designed 

 to lead to fundamental improvements in 

 the capture or landing of fish conducted 

 as an integral part of vessel or gear 

 operations. 



i 160.4 Qualified loan applicants, (a) 

 Any pCTSon residing or conducting busi- 

 ness In any State shall be deemed to be 

 a qualified applicant for financial assist- 

 ance if such person; 



(1) Owns a commercial fishing vessel 

 of United States registry (if registration 

 is required) used directly in the conduct 

 of fishing operations, irrespective of the 

 type, size, power, or other characteristics 

 of such vessel; 



(2) Owns any type of commercial fish- 

 ing gear used directly in the catching of 

 fish or shellfish; 



(3) Owns any property, equipment, or 

 facilities useful in conducting research 

 into the basic problems of fisheries or 

 possesses scientific, technological or 

 other skills useful in conducting such 

 research. 



(4) Is a fishery marketing cooperative 

 engaged in marketing all catches of fish 

 or FheUflsh by its memljers pursuant to 

 ctmtractual or other enforceable ar- 

 rangements which empower the coopera- 

 tive to exercise full control over the con- 

 ditions of sale of all such catches and 

 disburse the proceeds from all such sales. 



(b) Applications for financial assist- 

 ance cannot be considered if the loan is 

 to be used for: 



(1) Any phase of a shore operation. 



(2) Refinancing existing preferred 

 mortgages or secured loans on fishing 

 gear and vessels, except in those In- 

 stances where the Secretary deems such 



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