[Federal Register Volume 63, Number 28 (Wednesday, February 11, 1998)]
[Rules and Regulations]
[Pages 6880-6881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3346]



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DEPARTMENT OF TRANSPORTATION

Maritime Administration

46 CFR Part 221

[Docket No. R-170]
RIN 2133-AB29


Regulated Transactions Involving Documented Vessels and Other 
Maritime Interests: Elimination of Mortgagee and Trustee Restrictions

AGENCY: Maritime Administration, Department of Transportation.

ACTION: Final rule.

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SUMMARY: The Maritime Administration (MARAD) is issuing this final rule 
to conform its existing regulations to statutory changes that eliminate 
restrictions on mortgagees and trustees, thereby eliminating the need 
for approval by MARAD of mortgagees, trustees and mortgages held by 
noncitizens on U.S. documented vessels.

DATES: This rule is effective February 13, 1998.

FOR FURTHER INFORMATION CONTACT: Edmund T. Sommer, Jr., Chief, General 
and International Law Division, Telephone 202-366-5181.

SUPPLEMENTARY INFORMATION:

Background

    Section 9 of the Shipping Act, 1916 (46 App. U.S.C. 808), prior to 
amendment in 1996 by Pub. L. 104-324, required the approval of MARAD, 
pursuant to authority delegated by the Secretary of Transportation, to 
mortgage a U.S. documented vessel to a person not a citizen of the 
United States. Provisions in Chapter 313 of Title 46 U.S.C. likewise 
required MARAD approval of noncitizen mortgagees and U.S. trustees who 
would hold mortgages for noncitizens. Pub. L. 104-324 amended those 
statutes to eliminate the requirement for those approvals. Accordingly, 
MARAD is hereby conforming its regulations by removing requirements 
reflecting provisions formerly found in the above statutes for MARAD 
approval of mortgagees and trustees and mortgages to noncitizens. 
Existing mortgagees and trustees who have written approval from MARAD 
which may call for reapproval need not do so.

Rulemaking Analysis and Notices

Executive Order 12866 (Regulatory Planning and Review), Department of 
Transportation (DOT) Regulatory Policies and Procedures, and Pub. L. 
104-121

    This procedural rulemaking is not considered to be an economically 
significant regulatory action under E.O. 12866, and is also not 
considered a major rule for purposes of Congressional review under Pub. 
L. 104-121. It is not considered to be a significant rule under DOT's 
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979). 
Accordingly, it has not been reviewed by the Office of Management and 
Budget. This rule merely conforms MARAD's regulations at 46 CFR Part 
221 to changes in statutory authority for MARAD's administrative 
responsibilities for approving the foreign transfer of certain vessels 
and interests therein by removing restrictions in the regulations that 
may no longer be legally imposed. Accordingly, pursuant to provisions 
of the Administrative Procedure Act, 5 U.S.C. 553 (c) and (d), MARAD 
finds that notice and public procedure are unnecessary and that this 
rule may become effective in less that 30 days after its publication.

Federalism

    MARAD has analyzed this rulemaking in accordance with principles 
and criteria contained in E.O. 12612 and has determined that these 
regulations do not have sufficient federalism implications to warrant 
the preparation of a Federalism Assessment.

Regulatory Flexibility

    The Acting Maritime Administrator certifies that this rulemaking 
will not have a significant economic impact on a substantial number of 
small entities. Because fewer applications for approval will need to be 
filed, the affected public will save money.

Environmental Assessment

    MARAD has concluded that this final rule will have no environmental 
impact and that an environmental impact statement is not required.

Paperwork Reduction Act

    This rulemaking contains no new information collection 
requirements.
    This rule does not impose any unfunded mandates or requirements 
that will have an impact on the quality of the human environment.

List of Subjects in 46 CFR Part 221

    Maritime carriers, Reporting and recordkeeping requirements, Trusts 
and trustees.
    Accordingly, Part 221 of 46 CFR Chapter II, Subchapter B is amended 
as follows:

PART 221--REGULATED TRANSACTIONS INVOLVING DOCUMENTED VESSELS AND 
OTHER MARITIME INTERESTS

    1-2. The authority citation for part 221 continues to read as 
follows:

    Authority: 46 App. U.S.C. 802, 803, 808, 835, 839, 841a, 1114 
(b), 1195; 46 U.S.C. chs. 301 and 313; 49 U.S.C. 336; 49 CFR 1.66.


Sec. 221.1  [Amended]

    3. Sec. 221.1  Purpose, is amended as follows:
    a. By removing existing paragraph (a)(1)and redesignating 
paragraphs (a)(2) and (a)(3) as (a) (1) and (a)(2).
    b. In paragraph (b), by removing the words ``(1) through (3)'' and 
replacing them with the words ``(1) and (2)'' and by replacing the word 
``of'' after ``Secretary'' with the word ``to''.


Sec. 221.3  [Amended]

    4. Sec. 221.3  Definitions, is amended as follows:
    a. By removing paragraphs (f) Federally insured depository 
institution, and (k) Mortgagee.
    b. In paragraph (t) Trust, by removing paragraph (t)(2) and the 
designation ``(1)'' in paragraph (t)(1).
    c. By redesignating paragraphs (g) through (j) and (l) through (w) 
as (f) through (u).


Sec. 221.7  [Amended]

    5. Sec. 221.7  Applications and fees, is amended in paragraph (b) 
as follows:
    a. In paragraph (b)(1)(ii) by removing the introductory words 
``Mortgage of, or''.
    b. By removing paragraph (b)(1)(v).
    c. By removing paragraph (b)(2)(iv).


Sec. 221.11  [Amended]

    6. Sec. 221.11  Required approvals, is amended as follows:
    a. In paragraph (a) by removing the words ``sections 31322(a)(1)(d) 
and 31328'' and inserting in their place ``section 12106(e)''.
    b. In paragraph (a)(1) by removing the word ``mortgage'' and the 
comma thereafter .


Sec. 221.13  [Amended]

    7. Sec. 221.13  General approval, is amended as follows:
    a. In the introductory sentence of paragraph (a)(1) by removing the 
word ``mortgage'' and the comma thereafter.

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    b. By removing paragraph (a)(1)(iii) and redesignating existing 
paragraph (a)(1)(iv) as (a)(1)(iii).
    c. In paragraph (a)(3), by removing the words ``or mortgage'' and 
the preceding comma.


Sec. 221.15  [Amended]

    8. Sec. 221.15  Approval for transfer of registry or operation 
under authority of a foreign country or for scrapping in a foreign 
country, is amended by replacing the phrase in paragraph (c)(4)(i) 
``Federally Insured Depository Institution'' with the phrase 
``federally insured depository institution''.


Sec. 221.17  [Amended]

    9. Sec. 221.17  Sale of a documented vessel by order of a district 
court, is amended by replacing the word ``Mortgagee'' wherever it 
appears with the word ``mortgagee''.


Sec. 221.19  [Amended]

    10. Sec. 221.19  Possession or sale of vessels by mortgagees or 
trustees other than pursuant to court order, is amended by replacing 
the word ``Mortgagee'' wherever it appears with the word ``mortgagee''.
    11. Subpart C--Preferred Mortgagees on Documented Vessels: 
Mortgagees and Trustees, is hereby removed and the subpart is reserved.


Sec. 221.61  [Amended]

    12. Sec. 221.61  Purpose is amended by removing in the Note thereto 
the words ``31328 or'' and ``or mortgages'', and inserting the word 
``or'' before the word ``transfers''.

    By Order of the Acting Maritime Administrator.

    Dated: February 5, 1998.
Joel C. Richard,
Secretary.
[FR Doc. 98-3346 Filed 2-10-98; 8:45 am]
BILLING CODE 4910-81-P