418 



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 appli- 

 cant's past and prospective earnings, repayment 

 of the loan will be reasonably assured. 



(5) The applicant shall possess the ability, ex- 

 perience, resources, and other qualifications neces- 

 sary 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 com- 

 mercial 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 op- 

 erating in that fishery. 



(7) An applicant for a fishery loan must be a 

 citizen or national of the United States. 



(8) Within the meaning of this section, a cor- 

 poration, partnership, or association shall not be 

 deemed to be a citizen of the United States unless 

 the Secretary determines that it satisfactorily 

 meets all of the requirements set forth in section 

 802 of Title 46, for determining the United States 

 citizenship of a corporation, partnership, or as- 

 sociation operating a vessel in the coastwise trade. 



(9) (A) The nationality of an applicant shall be 

 established to the satisfaction of the Secretary. 

 Within the meaning of this section, no corpora- 

 tion, partnership, or association organized under 

 the laws of American Samoa shall be deemed a i 

 national of the United States unless 75 per centum 

 of the interest therein is owned by nationals of 

 the United States, citizens of the United States, 

 or both, and in the case of a corporation, unless its 

 president or other chief executive officer and the 

 chaiiman of its board are nationals or citizens of 

 the United States and unless no more of its direc- 

 tors than a minority of the number necessary 

 to constitute a quorum are nonnationals and 

 noncitizens. 



(B) Seventy-five per centum of the interest in 

 a corporation shall not be deemed to be owned by 

 nationals of the United States, citizens of the 

 United States, or both, <i) if the title to 75 per 

 centvun of its stock is not vested in such nationals 

 and citizens free from any trust or fiduciary obli- 

 gation in favor of any person not a national or 

 citizen of the United States; or (ii) if 75 per cen- 

 tum of the voting power in such corporation is 

 not vested in nationals of the United States, citi- 

 zens of the United States, or both; or (ill) If 

 through any contract or understanding it is so 

 arranged that more than 25 per centum of the 

 voting power may be exercised, directly or indi- 

 rectly, in behalf of any person who is not a na- 

 tional or citizen of the United States; or (iv) if 

 by any other means whatsoever control of any In- 

 terest in the corporation in excess of 25 per centum 

 is conferred upon or permitted to be exercised by 



any person who is not a national or citizen of the 

 United States. 



(c) Fisheries loan fund; interest payments on appro- 

 priations available as capital to the fund leas aver- 

 age 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 u'nder this sec- 

 tion. Any funds received by the Secretary on or be- 

 fore September 30, 1980, 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. The Secretary shall pay 

 from the fund into the miscellaneous receipts of the 

 Treasury, at the close of each fiscal year, interest on 

 the cumulative amount of appropriations available 

 as capital to the fund from and after July 1, 1965, less 

 the average undispersed cash balance in the fund 

 during the year. The rate of such interest shall be 

 determined by the Secretary of the Treasury, taking 

 into consideration the average market yield during 

 the month preceding each fiscal year on outstanding 

 Treasury obligations of maturity comparable to the 

 average maturity of loans made from the fund. In- 

 terest payments may be deferred with the approval 

 of the Secretary of the Treasury, but any Interest 

 payments so deferred shall themselves bear interest. 

 Any funds received In the fisheries loan fund after 

 September 30, 1980, and any balance remaining 

 therein at the close of September 30, 1980 (at which 

 time the fund shall cease to exist) , shall be covered 

 into the Treasury as miscellaneous receipts. There 

 is authorized to be appropriated to the fisheries 

 loan fund the sum of $20,000,000 to provide initial 

 capital. 



(d) Modification of loan contract. 



The Secretary, subject to the specific limitations 

 in this section, may consent to the modification, 

 with respect to the rate of interest, time of pay- 

 ment of any installment of principal, or security, of 

 any loan contract to which he is a party. 



(e) Chartering vessels; loans to Alaskan earthquake 

 victims; termination date. 



The Secretary Is authorized under such terms and 

 conditions and pursuant to regulations prescribed by 

 him to use the funds appropriated under this section 

 to make loans to commercial fishermen for the pur- 

 pose of chartering fishing vessels pending the con- 

 struction or repair of vessels lost, destroyed, or dam- 

 aged by the earthquake of March 27, 1964, and sub- 

 sequent tidal waves related thereto: Provided, That 

 any loans made under this subsection shall only be 

 repaid from the net profits of the operations of such 

 chartered vessels, which profits shall be reduced by 

 such reasonable amount as determined by the Sec- 

 retary for the salary of the fishermen chartering 

 such vessels. The funds authorized herein shall 

 not be available for such loans after June 30. 1966. 

 (Aug. 8. 1956. ch. 1036, §4, 70 Stat. 1121; Sept. 2, 

 1958, Pub. L. 85-888. 72 Stat. 1710; May 20. 1964, 

 Pub. L. 88-309, § 9, 78 Stat. 199; July 24, 1965, Pub. 

 L. 89-85, §§ 1-4, 79 Stat. 262; June 12, 1970, Pub. L. 

 91-279, § 9. 84 Stat. 309; Aug. 24, 1970, Pub. L. 91- 



387, §§ 1, 2, 84 Stat. 829.) 



Amendments 

 1970— Subsec. (I3)(2). Pub. L. 91-279 provided m»- 



