[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1346 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 1346

  To amend the guarantee fee provisions of the Federal Ship Mortgage 
          Insurance program in the Merchant Marine Act, 1936.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 1995

 Mr. Spence (for himself, Mr. Dellums, Mr. Bateman, and Mr. Taylor of 
Mississippi) (all by request) introduced the following bill; which was 
             referred to the Committee on National Security

_______________________________________________________________________

                                 A BILL


 
  To amend the guarantee fee provisions of the Federal Ship Mortgage 
          Insurance program in the Merchant Marine Act, 1936.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. COMPUTATION OF FEE FOR LOAN GUARANTEES UNDER TITLE XI OF 
              MERCHANT MARINE ACT, 1936.

    Section 1104A(e) of title XI of the Merchant Marine Act, 1936 (46 
App. U.S.C. 1274(e)) is amended to read as follows:
    ``(e) Guarantee Fees.--The Secretary is authorized to fix a fee for 
the guarantee of an obligation under this title. All guarantee fees 
shall be computed and shall be payable to the Secretary under such 
regulations as the Secretary may prescribe: Provided, That the rate 
governing such a fee shall not be less than \3/4\ of 1 percent per 
annum nor more than 1\1/2\ percent per annum; and: Provided, further, 
That when moneys are first advanced under a guaranteed obligation, the 
project's entire fee payment shall be made by the obligor to the 
Secretary in an amount equal to the sum of the present value of the 
separate products obtained by applying the guarantee fee rate to the 
projected amount of the guaranteed obligations outstanding, excluding 
the average amount (except interest) on deposit in the escrow fund 
created under section 1108 of this Act, for each year of the stated 
maturity of the guarantee obligation. Such regulations shall provide 
that the discount rate for calculating the present value of each 
product shall be a rate determined by the Secretary of the Treasury, 
taking into consideration current market yields on outstanding 
obligations of the United States of comparable maturity. Such 
regulations shall also provide a formula for determining the 
creditworthiness of obligors under which the most creditworthy obligors 
pay a fee computed on the lowest allowable percentage and the least 
creditworthy obligors pay a fee which may be computed on the highest 
allowable percentage. Under no circumstances may the Secretary refund 
the guarantee fee to the obligor. A guarantee fee paid pursuant to this 
section may be included in actual cost and is eligible to be financed 
under this title.''.
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