(2) Matvire in not more than ten years; 



(3) No financial assistance shall "be expended 

 pursuant to this section unless reasonable financial 

 assistance applied for is not otherwise available on 

 reasonable tex*ms, 



(c) There is hereby 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 

 Jiine 30, 1965, in payment of principal or interest on any 

 loans so made, shall be deposited in the fund and be 

 available for making additional loans under this section. 

 Any funds so received after June 30, I965 (at which time 

 the fund shall cease to exist), shall be covered into tha 

 Treasury as miscellaneous receipts. There are hereby 

 authorized to be appropriated to the fund the sum of 

 $10,000,000 to provide initial capital, 



(d) The Secretary, subject to the specific limitations 

 in this section, may consent to the modification, 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. 



Suppliers of marine equipment and supplies have in the past 

 been notably lenient about granting terms and extending payments. 

 The drastic fall in slirimp prices in 195^. however, forced them to 

 revise their policies, and many are now requiring payment on a strict 

 30-day basis. This fact is partially responsible for the trend back 

 to fleet affiliation since affiliation often enables the individual 

 fisherman to obtain financial backing from the fleet operator and thus 

 purchase supplies on a term payment basis. Similarly, the position of 

 the marketing cooperative has been strengthened by virtue of its ability 

 to aid the boat owner in times of financial stress. 



Insurance 



In order to obtain financing for his boat the boat owner is 

 required by the lending agency to cari-y both hull and protection and 

 indemnity instirance. Insurance of this type is expensive. Hates range 

 from as low as 3-1/2 percent of the value of the boat to as high as 18 

 percent. The insm-ance company uses varying criteria to determine the 

 rate to be charged for the insurance, among which are age of the vessel, 

 its condition, and type of ownership. Until recently, insurance compa- 

 nies have felt that boats that are fleet-affiliated are less subject to 



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