79TH CONG. , 2D SESS.-CH. 82 -MAR. 8, 1946 under section 504 of the Merchant Marine Act, 1936, as amended, and which was delivered by its builder after December 31, 1940; or (4) is party to a contract with a shipbuilder for the construction for him of a vessel, which has not yet been delivered to him, and on account of which a construction-differential subsidy was agreed, prior to such date, to be paid by the Commission under section 504 of the Merchant Marine Act, 1936, as amended; shall, except as hereinafter provided, be entitled to an adjustment in the price of such vessel under this section if he makes application therefor, in such form and manner as the Commission may prescribe, within sixty days after the date of publication of the applicable prewar domestic costs in the Federal Register under section 3 (c) of this Act. No adjustment shall be made under this section in respect of any vessel the contract for the construction of which was made after September 2, 1945, under the provisions of title V (in- cluding section 504) or title VII of the Merchant Marine Act, 1936, as amended. (b) Such adjustment shall be made, as hereinafter provided, by treating the vessel as if it were being sold to the applicant on the date of the enactment of this Act, and not before that time. The amount of such adjustment shall be determined as follows: (1) The Commission shall credit the applicant with the excess of the cash payments made upon the original purchase price of the vessel over 25 per centum of the statutory sales price of the vessel as of such date of enactment. If such payment was less than 25 per centum of the statutory sales price of the vessel, the applicant shall pay the difference to the Commission. (2) The applicant's indebtedness under any mortgage to the United States with respect to the vessel shall be adjusted. (3) The adjusted mortgage indebtedness shall be in an amount equal to the excess of the statutory sales price of the vessel as of the date of the enactment of this Act over the sum of the cash payment retained by the United States under paragraph (1) plus the read- justed trade-in allowance (determined under paragraph (7)) with respect to any vessel exchanged by the applicant on the original purchase. The adjusted mortgage indebtedness shall be payable in equal annual installments thereafter during the remaining life of such mortgage with interest on the portion of the statutory sales price remaining unpaid at the rate of 312 per centum per annum. (4) The Commission shall credit the applicant with the excess, if any, of the sum of the cash payments made by the applicant upon the original purchase price of the vessel plus the readjusted trade-in allowance (determined under paragraph (7)) over the statutory sales price of the vessel as of the date of the enactment of this Act to the extent not credited under paragraph (1). (5) The Commission shall also credit the applicant with an amount equal to interest at the rate of 31/2 per centum per annum (for the period beginning with the date of the original delivery of the vessel to the applicant and ending with the date of the enactment of this Act) on the excess of the original purchase price of the vessel over the amount of any allowance allowed by the Commission on the exchange of any vessel on such purchase; the amount of such credit first being reduced by any interest on the original mortgage indebtedness accrued up to such date of enact- ment and unpaid. Interest so accrued and unpaid shall be canceled. (6) The applicant shall credit the Commission with all amounts paid by the United States to him as charter hire for use of the 49 Stat. 1998. 46U. S. C. 1154. Supra. Price adjustments. Ante, p. 41. 49 Stat. 1995, 2008. 46U.S.C.§1151- 1155, 1156-1161, 1191- 1204; Supp. V, §§ 1152- 1161, 1194, 1195. Date of sale. Determination amount. of Credit for excess pay- ments, etc. Mortgage indebted- ness. Credit for exess pay ments, etc. Interest. Charter he. 60 STAT. ] 47
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