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.
Return to Table of Contents?