skip navigation
search


NOTES:


Source

(June 29, 1936, ch. 858, title XI, § 1105, as added June 23, 1938, ch. 600, § 46, 52 Stat. 971; amended Aug. 15, 1953, ch. 513, § 3, 67 Stat. 626; Sept. 3, 1954, ch. 1265, § 5, 68 Stat. 1272; Aug. 7, 1956, ch. 1026, § 1(e)–(g), 70 Stat. 1087; Pub. L. 85–520, July 15, 1958, 72 Stat. 358; Pub. L. 91–469, § 33, Oct. 21, 1970, 84 Stat. 1035; Pub. L. 92–507, § 3, Oct. 19, 1972, 86 Stat. 914; Pub. L. 96–561, title II, § 220(4), Dec. 22, 1980, 94 Stat. 3294; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 97–35, title XVI, § 1606(e), Aug. 13, 1981, 95 Stat. 752; Pub. L. 98–595, § 1(8)–(11), Oct. 30, 1984, 98 Stat. 3131; Pub. L. 108–136, div. C, title XXXV, § 3524, Nov. 24, 2003, 117 Stat. 1801; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(F), (G), Jan. 6, 2006, 119 Stat. 3555.)

Codification

In subsec. (d), “chapter 31 of title 31” and “such chapter” substituted for “the Second Liberty Bond Act, as amended” and “such Act, as amended,”, respectively, on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.

Amendments

2006—Subsecs. (a) to (c). Pub. L. 109–163, § 3507(a)(1)(F), substituted “Secretary or Administrator” for “Secretary” wherever appearing.
Subsec. (d). Pub. L. 109–163, § 3507(a)(1)(G), substituted “Secretary or Administrator” for “Secretary” the first, second, third, fifth, and last places it appeared.
Subsec. (e). Pub. L. 109–163, § 3507(a)(1)(F), substituted “Secretary or Administrator” for “Secretary” wherever appearing.
2003—Subsec. (f). Pub. L. 108–136 added subsec. (f).
1984—Subsec. (a). Pub. L. 98–595, § 1(8), inserted “(unless the Secretary shall, upon such terms as may be provided in the obligation or related agreements, prior to that demand, have assumed the obligor’s rights and duties under the obligation and agreements and shall have made any payments in default)”.
Subsec. (b). Pub. L. 98–595, § 1(9), expanded provisions relating to the Secretary’s rights in the case of default under a security agreement between the obligor and the Secretary to include the option of assuming the obligor’s rights and duties under the agreement.
Subsec. (c). Pub. L. 98–595, § 1(10), inserted “or assumption”.
Subsec. (e). Pub. L. 98–595, § 1(11), substituted “the unpaid principal amount of the obligation and unpaid interest on the obligation and the expenses of collection of those amounts, the Secretary” for “any payment made to an obligee under subsection (a) or (b) of this section and the expenses of collection of such amounts, he”.
1981—Subsecs. (a) to (c). Pub. L. 97–31 struck out “of Commerce” after “Secretary” wherever appearing.
Subsec. (d). Pub. L. 97–35 struck out of first sentence the requirement of payment from the appropriate subfund established under section 1274 (g)(2) of this Appendix.
Pub. L. 97–31 struck out “of Commerce” after “Secretary” in five places.
Subsec. (e). Pub. L. 97–31 struck out “of Commerce” after “Secretary” in four places.
1980—Subsec. (d). Pub. L. 96–561 inserted in first sentence “, and shall be paid from the appropriate subfund required to be established under section 1274 (g)(2) of this Appendix” after “paid in cash”.
1972—Subsec. (a). Pub. L. 92–507 substituted provisions relating to the rights of obligee to demand and receive payment from the Secretary under certain circumstances, for provisions relating to the rights of mortgagee and lender to demand and receive payment under certain circumstances and the authority of the Secretary to terminate the insurance contract by notification to the mortgagee or the lender as the case may be.
Subsec. (b). Pub. L. 92–507 inserted provisions relating to notification of default to the obligee, and payment of unpaid principal and interest amount, by the Secretary within certain time. Former subsec. (b) redesignated (d).
Subsec. (c). Pub. L. 92–507 incorporated substantially the provisions of subsec. (d) into subsec. (c). Former subsec. (c) is now covered by subsec. (e).
Subsec. (d). Pub. L. 92–507 incorporated provisions of former subsec. (b) into subsec. (d). Former subsec. (d) is now covered by subsec. (c).
Subsec. (e). Pub. L. 92–507 incorporated provisions of former subsec. (c) relating to actions by the Secretary in the event of defaults by mortgagors and borrowers, into subsec. (e), and substituted therefor provisions relating to actions by the Secretary in the event of defaults by obligors of guaranteed obligations and related agreements. Provisions of former subsec. (e) relating to termination and cancellation of insurance contracts and the incontestability of such contracts except for fraud, duress or mutual mistake of fact are omitted.
1970—Subsec. (d). Pub. L. 91–469 substituted provision for inclusion of interest in the installments on the purchase price remaining unpaid at a rate not less than a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the average maturities of such installments, adjusted to the nearest one-eighth of 1 per centum plus an administrative cost allowance, for prior rate of 31/2 per centum per annum on installments of purchase price remaining unpaid.
1958—Subsec. (b). Pub. L. 85–520 authorized the Secretary of Commerce to issue notes or obligations whenever the moneys in the Federal Ship Mortgage Insurance Fund are insufficient to pay amounts required to be paid under subsec. (a) of this section.
1956—Subsec. (a)(1), (2). Act Aug. 7, 1956, § 1(e), struck out “the insured portion of” before “the unpaid principal amount”, wherever appearing.
Subsec. (c)(1). Act Aug. 7, 1956, § 1(f), substituted “such excess to the borrower” for “to the mortgagee such cash amounts to the extent that the mortgagee has not been made whole through other sources for amounts advanced to the mortgagor but in no event shall such payments to the mortgagee exceed 10 per centum of the unpaid principal amount of mortgage and the interest thereon, and any excess of the amounts thus due the Government and the mortgagee shall be paid to the mortgagor”.
Subsec. (c)(2). Act Aug. 7, 1956, § 1(g), substituted “such excess to the borrower” for “to the lender such cash amount to the extent that the lender has not been made whole through other sources for amounts advanced to the borrower but in no event shall such payment to the lender exceed 10 per centum of the unpaid principal amount of loan and the interest thereon, and any excess of the amounts thus due the Government and the lender shall be paid to the borrower”.
1954—Act Sept. 3, 1954, gave new rights to both borrowers and lenders and set up new foreclosure procedures.
1953—Act Aug. 15, 1953, provided that in the event of a default in payment of either principal or interest, the lender may tender an assignment of the mortgage and all collateral to the Secretary who shall promptly pay the unpaid balance in cash, provided for the foreclosure and repossession of mortgaged vessels; allowed the Secretary to take any necessary steps to minimize the loss, and made all insurance commitments conclusive.

Secretary of Commerce; Fishing Vessel Insurance

Pub. L. 86–577, July 5, 1960, 74 Stat. 314, provided: “That in order to permit the efficient execution of functions relating to the issuance of Federal ship mortgage insurance on fishing vessels, pursuant to the Merchant Marine Act of June 29, 1936, as amended [this chapter] (49 Stat. 1985; 46 U.S.C., 1952 edition, sec. 1271 and the following), which functions relating to fishing vessels have been transferred to the Secretary of the Interior pursuant to the Fish and Wildlife Act of 1956 [section 742a et seq. of Title 16, Conservation], the Secretary of the Interior hereafter may exercise authority comparable to the authority of the Secretary of Commerce under the said Merchant Marine Act of 1936 [this chapter], including, but not limited to the authority contained in the amendment to such Act of July 15, 1958 (72 Stat. 358) [amending this section].”
Functions relating to the issuance of Federal ship mortgage insurance on fishing vessels, which functions were transferred to the Secretary of the Interior, were retransferred to the Secretary of Commerce by Reorg. Plan No. 4 of 1970, § 1, eff. Oct. 3, 1970, 35 F.R. 15627, 84 Stat. 2090, set out in the Appendix to Title 5, Government Organization and Employees.

LII has no control over and does not endorse any external Internet site that contains links to or references LII.