110 STAT. 3970 PUBLIC LAW 104-324—OCT. 19, 1996 a final destination in Alaska not receiving weekly service by water from common carriers,". SEC. 1111. FOREIGN PASSENGER VESSEL USER FEES. Section 3303 of title 46, United States Code, is amended— (1) by striking "(a)" in subsection (a); and (2) by striking subsection (b). SEC. 1112. COAST GUARD USER FEES. (a) LIMITS ON USER FEES. — Section 10401(g) of the Omnibus Budget Reconciliation Act of 1990 (46 U.S.C. 2110(a)(2)) is amended by adding after "annually." the following: "The Secretary may not establish a fee or charge under paragraph (1) for inspection or examination of a small passenger vessel under this title that is more than $300 annually for such vessels under 65 feet in length, or more than $600 annually for such vessels 65 feet in length and greater.". (b) FERRY EXEMPTION. — Such section is further amended by adding at the end the following: "The Secretary may not establish a fee or charge under paragraph (1) for inspection or examination under this title for any publicly-owned ferry.". SEC. 1113. VESSEL FINANCING. (a) ELIMINATION OF MORTGAGEE RESTRICTIONS. —Section 31322(a) of title 46, United States Code, is amended to read as follows: "(a) A preferred mortgage is a mortgage, whenever made, that— "(1) includes the whole of the vessel; "(2) is filed in substantial compliance with section 31321 of this title; and "(3)(A) covers a documented vessel; or "(B) covers a vessel for which an application for documentation is filed that is in substantial compliance with the requirements of chapter 121 of this title and the regulations prescribed under that chapter.". (b) ELIMINATION OF TRUSTEE RESTRICTIONS.— (1) REPEAL.— Section 31328 of title 46, United States Code, is repealed. (2) CONFORMING AMENDMENTS. —Section 31330(b) of title 46, United States Code, is amended in paragraphs (1), (2), and (3) by striking "31328 or" each place it appears. (3) CLERICAL AMENDMENT.— The table of sections at the beginning of chapter 313 of title 46, United States Code, is amended by striking the item relating to section 31328. (c) REMOVAL OF MORTGAGE RESTRICTIONS.— Section 9 of the Shipping Act, 1916 (46 App. U.S.C. 808), is amended— (1) in subsection (c)— (A) by striking "31328" and inserting "12106(e)"; and (B) in paragraph (1) by striking "mortgage," each place it appears; and (2) in subsection (d)— (A) in paragraph (1) by striking "treinsfer, or mortgage" and inserting "or transfer"; (B) in paragraph (2) by striking "transfers, or mortgages" and inserting "or transfers"; (C) in paragraph (3)(B) by striking "transfers, or mortgages" and inserting "or transfers"; and
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