302. Individual fishing quota loans.

[Merchant Marine Act section 1104]


Summary:

Section 302(a) adds section 1104A(a)(7) to the Merchant Marine Act, so that the Secretary may guarantee or make a commitment to guarantee payment of principal and interest on an obligation that aids in the financing or refinancing (including, but not limited to, the reimbursement of obligors for expenditures previously made) for the purchase of IFQs in accordance with  303(d)(4) of the Magnuson Act. The IFQ loans are funded from a percentage of fees collected from a fishery related to the actual costs directly related to the management and enforcement of any IFQ program and any CDQ program that allocates a percentage of allowable catch. The fees must be deposited in the Treasury and are available, subject to annual appropriations, to cover the costs of these direct loan obligations or guaranteed loan commitments as required by the Federal Credit Reform Act. Section 302(b) prohibits loan guarantees for the construction of new vessels until October 1, 2001, unless such construction will not increase harvest capacity within the U.S. EEZ.
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