--- kind: "section" citation: "46 U.S.C. § 53714" title: "46" title_heading: "Shipping" number: "53714" heading: "Guarantee fees" release: "119-102" date: "2026-07-12" url: "https://uscodex.org/usc/46/53714" units: - "Subtitle V — Merchant Marine" - "Part C — Financial Assistance Programs" - "Chapter 537 — Loans and Guarantees" - "Subchapter I — General" --- # §53714. Guarantee fees - (a) **Regulations.—** Subject to this section, the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) shall prescribe regulations to assess a fee for guaranteeing an [obligation](/usc/46/53701.md?p=9) under this chapter. - (b) **Computation of Fee.—** - (1) **In general.—** The amount of the fee for a guarantee under this chapter shall be equal to the sum of the amounts determined under [paragraph (2)](#b-2) for the years in which the guarantee is in effect. - (2) **Present value for each year.—** The amount referred to in [paragraph (1)](#b-1) for a year in which the guarantee is in effect is the present value of the amount calculated under [paragraph (3)](#b-3). To determine the present value, the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) shall apply a discount rate determined by the [Secretary](/usc/46/53101.md?p=8) of the Treasury, considering current market yields on outstanding [obligations](/usc/46/53701.md?p=9) of the [United States](/usc/46/53101.md?p=10) Government having periods to maturity comparable to the period to maturity for the guaranteed [obligation](/usc/46/53701.md?p=9). - (3) **Calculation of amount.—** The amount referred to in [paragraph (2)](#b-2) shall be calculated by multiplying— - (A) the estimated average unpaid principal amount of the [obligation](/usc/46/53701.md?p=9) that will be outstanding during the year (excluding the average amount, other than interest, on deposit during the year in an escrow fund under [section 53715 of this title](/usc/46/53715.md)); by - (B) the fee rate set under [paragraph (4)](#b-4). - (4) **Setting fee rates.—** To set the fee rate referred to in [paragraph (3)(B)](#b-3-B), the [Secretary](/usc/46/53101.md?p=8) or [Administrator](/usc/46/53701.md?p=2) shall establish a formula that— - (A) takes into account the security provided for the guaranteed [obligation](/usc/46/53701.md?p=9); and - (B) is a sliding scale based on the creditworthiness of the [obligor](/usc/46/53701.md?p=11), using— - (i) the lowest allowable rate under [paragraph (5)](#b-5) for the most creditworthy [obligors](/usc/46/53701.md?p=11); and - (ii) the highest allowable rate under [paragraph (5)](#b-5) for the least creditworthy [obligors](/usc/46/53701.md?p=11). - (5) **Permissible range of rates.—** The fee rate set under [paragraph (4)](#b-4) shall be— - (A) for a delivered [vessel](/usc/46/53501.md?p=9) or equipment, at least 0.5 percent and not more than 1 percent; and - (B) for a [vessel](/usc/46/53501.md?p=9) to be constructed, reconstructed, or reconditioned or equipment to be delivered, at least 0.25 percent and not more than 0.5 percent. - (c) **When Fee Collected.—** A fee for the guarantee of an [obligation](/usc/46/53701.md?p=9) under this chapter shall be collected not later than the date on which an amount is first paid on the [obligation](/usc/46/53701.md?p=9). - (d) **Financing the Fee.—** A fee paid under this section is eligible to be financed under this chapter and shall be included in the [actual cost](/usc/46/53701.md?p=1) of the [obligation](/usc/46/53701.md?p=9) guaranteed. - (e) **Not Refundable.—** A fee paid under this section is not refundable. However, an [obligor](/usc/46/53701.md?p=11) shall receive credit for the amount paid for the remaining term of the [obligation](/usc/46/53701.md?p=9) if the [obligation](/usc/46/53701.md?p=9) is refinanced and guaranteed under this chapter after the refinancing. ## Source credit (Pub. L. 109–304, § 8(c), Oct. 6, 2006, 120 Stat. 1613; Pub. L. 109–163, div. C, title XXXV, § 3507(a)(1)(D), Jan. 6, 2006, 119 Stat. 3555; Pub. L. 110–181, div. C, title XXXV, § 3522(a)(10)(B), (b), Jan. 28, 2008, 122 Stat. 598.) ## Notes | Historical and Revision Notes | | | | --- | --- | --- | | Revised
Section | Source (U.S. Code) | Source (Statutes at Large) | | 53714(a) | 46 App.:1274(e)(1). | June 29, 1936, ch. 858, title XI, § 1104A(e) [§ 1104A formerly § 1104], as added June 23, 1938, ch. 600, § 46, 52 Stat. 970; Aug. 4, 1939, ch. 417, § 14, 53 Stat. 1187; Sept. 28, 1950, ch. 1093, § 4, 64 Stat. 1078; Aug. 15, 1953, ch. 513, § 2, 67 Stat. 626; Sept. 3, 1954, ch. 1265, § 4, 68 Stat. 1269; Pub. L. 86–123, §§ 1(3), 2, July 31, 1959, 73 Stat. 269, 271; Pub. L. 86–127, § 1(3), (4), July 31, 1959, 73 Stat. 273; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 86–685, §§ 2, 3, Sept. 2, 1960, 74 Stat. 733; Pub. L. 90–341, June 15, 1968, 82 Stat. 180; Pub. L. 91–469, §§ 31, 32, Oct. 21, 1970, 84 Stat. 1035; restated Pub. L. 92–507, § 3, Oct. 19, 1972, 86 Stat. 913; Pub. L. 97–31, § 12(136), Aug. 6, 1981, 95 Stat. 166; Pub. L. 98–595, § 1(12), Oct. 30, 1984, 98 Stat. 3131; § 1104 renumbered as § 1104A, Pub. L. 101–380, title IV, § 4115(f)(1), Aug. 18, 1990, 104 Stat. 521; Pub. L. 104–239, § 13(c), Oct. 8, 1996, 110 Stat. 3136. | | 53714(b) | 46 App.:1274(e)(2). | | | 53714(c) | 46 App.:1274(e)(3). | | | 53714(d) | 46 App.:1274(e)(5). | | | 53714(e) | 46 App.:1274(e)(4). | | ### Editorial Notes ### Amendments 2008—Pub. L. 110–181, § 3522(b), repealed Pub. L. 109–163, § 3507(a)(1)(D). See 2006 Amendment note below. Subsecs. (a), (b)(2), (4). Pub. L. 110–181, § 3522(a)(10)(B), incorporated the substance of the amendment by Pub. L. 109–163, § 3507(a)(1)(D), into this section by inserting “or Administrator” after “Secretary”, except the second place appearing in subsec. (b)(2). See 2006 Amendment note below and section 18(a) of Pub. L. 109–304, set out as a Legislative Purpose and Construction note preceding section 101 of this title. 2006—Pub. L. 109–163, § 3507(a)(1)(D), which directed the amendment of section 1274(e) of the former Appendix to this title from which this section was derived, was repealed by Pub. L. 110–181, § 3522(b). See 2008 Amendment note for subsecs. (a), (b)(2), (4) and Historical and Revision notes above.