APPENDIX NO. 4 



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FEDERAL 



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VOLUME 21 ^<^/ '^^IcA^ 



REGISTER 



NUMBER 203 



Washingfon, Thursday, October 18, J 956 



TITLE 50— WILDLIFE 



Chapter I — Fish and Wildlife Service, 

 Department of the Interior 



Subchapter J — Fisheriei Loan Fund 



Part 160 — Loan Procedures 



Basis and purpose. Section 4 of the 

 Fish and Wildlife Act of -1956 (70 Stat. 

 1119, 1121). created a Fisheries Loan 

 Fund to be used by the Secretary of the 

 Interior under rules and regulations and 

 under terms and conditions to be pre- 

 scribed by him to make loans for financ- 

 ing and refinancing of operations, main- 

 tenance, replacement, repair, and equip- 

 ment of fishing gear and vessels, and for 

 research into the basic problems of fish- 

 eries. To implement the authorization 

 thus granted, the following regulations, 

 con-^titutins a new subchapter and part, 

 are adopted. 



St.r. 

 160.1 



ieo.3 



1603 



iro4 



160.S 



160.6 



1607 



1608 



1609 



ICO. 10 



160.11 



leo.ia 



Definitions of terms. 



Purposes of loan fund. 



Interpretation oT loan authorization. 



Qualified loan applicants. 



Basic limitations. 



Applications. 



Processing of loan applications. 



Approval of loans. 



Interest. 



Maturity. 



Security. 



Penalties on default. 



Atn-HORiTir: §« 160.1 to 160.12 Issued under 

 sec. 4, 70 Stat. 1121. 



! 160 1 Deftnitions 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. 



lb) Administrator. Admmistrator of 

 the Small Business Administration or his 

 authorized representative. 



(O Person. Individual, association, 

 partnership or corporation, any one or 

 all. 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. 



5 160.2 Purposes o/ loan fund, (a) 

 I'nder section 4 of the Pish and Wildlife 

 Act of 1956. the Secretary is authorized, 

 among other things. 



(1) To make loarLS for financing and 

 refinancing of operations, maintenance, 

 replacement, repair, and equipment of 

 fishing gear and vessels, and for re- 



search Into the baisic problems of fish- 

 eries. 



<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. 



The broad objective of the fisheries loan 

 fund created by the Act Is ' to provide 

 financial assistance which will aid the 

 commercial fishing industry to bring 

 about a general upgrading of the condi- 

 tion of both fishing vessels and fishing 

 gear thereby contributing to more effi- 

 cient and profitable fishing operations. 



(b) All financial assistance granted by 

 the Secretary mustjie for one or more of 

 the purposes set forth In paragraph (a) 

 of this section. 



§ 160.3 Interpretation of loan au- 

 thorization. The terms used in the Act 

 to describe the purposes lor which loans 

 may be granted are construed to be 

 limited to the meanings ascribed in this 

 section. 



(a) Operation of fishing gear and 

 vessels. The words "operation of fishing 

 gear and vessels" mean and include all 

 phases of activity directly associated 

 with the capture or landing of fish. 



(b) Maintenance of fishing gear and 

 vessels. The words "maintenance of 

 fishing gear and vessels" mean the nor- 

 mal and routine upkeep of all parts of 

 fishing gear and fishing vessels, includ- 

 ing machinery and equipment. 



ic) Replacement of fishing gear and 

 vessels. The words "replacement of fish- 

 ing gear and vessels" contemplate the 

 purchase of fishing gear or fishing vessels 

 or any 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. 



'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 

 fi.'Oiing vessels to an efficient operating 

 condition. 



le) Equipment of fishing gear and 

 vessels. The words "equipment of fish- 

 ing gear and vessels" mean the parts, 

 machinery, or other items incident to 

 outfitting for fishing which aie pur- 

 chased for use in fishing operations. 



If I Research into the bcsic problems 

 ot fisheri's. 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 oper- 

 ations. 



§ 160 4 Qualified loan applicants, (a) 

 Any person residing or conducting busi- 

 ness in any State shall be deemed to be a 

 qualified applicant for financial assist- 

 ance if — 



(1) He owns a commercial fishing ves- 

 sel of United States registry lif registra- 

 tion is required) used directly in the 

 conduct of fishing operations, irrespec- 

 tive of the type, size, power, or other 

 characteristics of such vessel; 



(2) He owns any type of commercial 

 fishing gear used directly in the capture 

 of fish; 



(3) He is directly engaged in commer- 

 cial fishing operations using a fishing 

 vessel of United States registry (if regis- 

 tration is required) or fishing gear under 

 his control on a lease or share basis ; c 



1 4 ) He owns or controls any property, 

 equipment, or facilities useful in con- 

 ducting research into the basic problems 

 of fisheries or possesses scientific, tech- 

 nological, or other skills useful in con- 

 ducting such research. 



(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 an existing loan made 

 upon reasonable terms. 



(3) Paying creditors for debts previ- 

 ously Incurred (except where loans 

 deemed to be based upon unreasonable 

 terms are refinanced) . 



(4) Purchasing a partial Interest In 

 other fishing vessels or fishing gear or 

 buying a partner's Interest. 



(5) Financing new business ventures 

 Involving fishing operations. 



§1605 Basic limitations. Applica- 

 tions for financial assistance may be con- 

 sidered only when there is evidence that 

 the credit applied for Is not otherwise 

 available on reasonable terms. The fi- 

 nancial assistance applied for shall be 

 deemed to be otherwise available on rea- 

 sonable terms, unless it is satisfactorily 

 demonstrated that — 



(a) Proof of refusal of the desired 

 credit has been obtained from the appli- 

 cant's bank of account; Provided. That 

 if the amount of the loan applied for is in 

 excess of the legal lending limit of the 

 applicant's bank or in excess of the 



