PUBLIC LAW 108–136—NOV. 24, 2003
117 STAT. 1801
SEC. 3524. DEFAULTS.
Section 1105 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1275) is amended by adding at the end the following: ‘‘(f) DEFAULT RESPONSE.—In the event of default on an obligation, the Secretary shall conduct operations under this title in a manner which— ‘‘(1) maximizes the net present value return from the sale or disposition of assets associated with the obligation, including prompt referral to the Attorney General for collection as appropriate; ‘‘(2) minimizes the amount of any loss realized in the resolution of the guarantee; ‘‘(3) ensures adequate competition and fair and consistent treatment of offerors; and ‘‘(4) requires appraisal of assets by an independent appraiser.’’. SEC. 3525. DECISION PERIOD.
Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C. App. 1274), as amended by section 3523, is amended by adding at the end the following: ‘‘(n) DECISION PERIOD.— ‘‘(1) IN GENERAL.—The Secretary of Transportation shall approve or deny an application for a loan guarantee under this title within 270 days after the date on which the signed application is received by the Secretary. ‘‘(2) EXTENSION.—Upon request by an applicant, the Secretary may extend the 270-day period in paragraph (1) to a date not later than 2 years after the date on which the signed application for the loan guarantee was received by the Secretary.’’. SEC. 3526. LOAN GUARANTEES.
Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C. App. 1274) is amended— (1) by striking subsection (d)(5); and (2) in subsection (f)— (A) by striking ‘‘(including for obtaining independent analysis under subsection (d)(4))’’; (B) by inserting ‘‘(1)’’ after ‘‘(f)’’; and (C) by adding at the end the following: ‘‘(2) The Secretary may make a determination that aspects of an application under this title require independent analysis to be conducted by third party experts due to risk factors associated with markets, technology, financial structures, or other risk factors identified by the Secretary. Any independent analysis conducted pursuant to this provision shall be performed by a party chosen by the Secretary. ‘‘(3) Notwithstanding any other provision of this title, the Secretary may make a determination that an application under this title requires additional equity because of increased risk factors associated with markets, technology, financial structures, or other risk factors identified by the Secretary. ‘‘(4) The Secretary may charge and collect fees to cover the costs of independent analysis under paragraph (2). Notwithstanding section 3302 of title 31, United States Code, any fee collected under this paragraph shall—
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