amount that the bank normally lends to 

 any one borrower, then proof of refusal 

 should be obtained from a correspondent 

 bank or from any other lending insutu- 

 tion whose lending capacity is adequate 

 to cover the loan applied for. Proof of 

 refusal of the credit applied for must 

 contain the date, amount, and terms re- 

 quested. Bank refusals to advance credit 

 will not be considered the full test of un- 

 availability of credit and, where there is 

 knowledge or reason to believe that 

 credit is otherwise available on reason- 

 able tertns from sources other than such 

 banks, the credit applied for cannot be 

 granted notwithstanding the receipt of 

 •written refusals from .such banks. 



(b) Other applicable Government fi- 

 nancing is not available to the applicant, 



5 160 6 Application. Any person de- 

 siring financial assistance from the fish- 

 eries loan fund shall make application to 

 the Pish and Wildlife Service, Depart- 

 ment of the Interior, Washington 25, 

 D. C, on a loan application form fur- 

 nished by that Service except that, in the 

 discretion of the Secretary, an applica- 

 tion made other than by use of the pre- 

 scribed form may be considered If the 

 application contains information deemed 

 to be sufficient. Such application shall 

 indicate the purposes for which the loan 

 is to be used, the period of the loan, and 

 the security to be offered. 



§ 160.7 Processing of loan applications. 

 If it is determined, on the basis of a pre- 



liminary review, that the application U 

 complete and appears to be in conform- 

 ity with established rules and procedures, 

 a field examination shall be made. Fol- 

 lowing completion of the field investiga- 

 tion the application will be forwarded 

 with an appropriate report to the Fish 

 and Wildlife Service, Department of the 

 Interior, Washington 25. D. C. 



§ 160.8 Approval ol loans. Loan 

 agreements shall be executed on a form 

 approved by the Secretary. The Secre- 

 tary will evidence his approval of the 

 loan by issuing a commitment order 

 covering the terms and conditions for 

 making the loan. Such commitment 

 order shall be referred to the Admin- 

 istrator who will direct the closing of the 

 loan with the apphcant in the field and 

 render services involving the collection 

 of repayments and such other loan 

 servicing functions as may be required. 

 Any modification of the terms of a loan 

 agreement following its execution must 

 be agreed to In writing by the borrower 

 and the Secretary. 



5 160.9 Interest. The rate of Interest 

 on all loans which may be granted is 

 f-xed at five per cent per annum. 



I 160 10 Maturity. The period of 

 maturity of any loan which may be 

 granted shall be determined and fixed 

 according to the circumstances but in 

 no event shall the date of maturity so 

 fixed exceed a period of ten years. 



§ 160.11 Security. Loans shall be ap- 

 proved only upon the furnishing of such 

 security or other reasonable assurance 

 of repayment as the Secretary may 

 require. 



5 160.12 Penalties on default. Unless 

 otherwise provided in the loan agree- 

 ment, failure on the part of n borrower 

 to conform to the terms of the loan 

 agreement will be deemed grounds upon 

 which the Secretary may cause any one 

 or all of the following steps to be taken: 



(a) Discontinue any further advances 

 of funds contemplated by the loan agree- 

 ment. 



(b) Take possession of any or all col- 

 lateral given as security and the property 

 purchased with borrowed funds. 



(c) Prosecute legal action against the 

 borrower. 



(d) Declare the entire amount ad- 

 vanced immediately due and payable. 



(e) Prevent further disbursement of 

 and withdraw any funds advanced to the 

 borrower and remaining under his con- 

 trol. 



These regulations shall become effec- 

 tive upon publication in the Federal Reg- 

 ister. 



Lssued at Washington, D. C, and dated 

 October 15, 1956, 



Fred A. Seatok, 

 Secretary o) the Interior. 



[P. R. Doc. 56-8421: Filed, Oct. 17, 1958: 

 8:53 a. m.] 



AMENDMENT TO PART 160 - LOAN PROCEDURES 

 Section 160.4 (b) has been amended to read as foUov^s: 

 160.4 Qualified Loan Applicants 

 (b) Applications for financial assistance cannot be considered if the loan is to be used for -- 



( 1) Any phase of a shore operation. 



(2) Refinancing existing preferred mortgages and secured loans except in those instances where the Secretary deems 

 such refinancing to be desirable in carrying out the purpose of the act. 



(3) Paying creditors for debts previously incurred, except for marshalling and liquidating the indebtedness of the 

 applicant to existing lien holders in those instances where the Secretary deems such action to be desirable in carrying out 

 the purpose of the act. 



(4) Purchasing a partial interest in other fishing vessels or fishing gear or buying a parmer's interest, 



(5) Financing new business ventures involving fishing operations. 



November 13, 1956 



