46 U.S.C. § 51320 Acceptance of Guarantees With Gifts For Major Projects

• Library: United States Statutes
• Edition: 2023 Edition
• Currency: Current through P.L. 118-19 (published on www.congress.gov on 10/06/2023)

(a) DEFINITIONS.-In this section:

(1) MAJOR PROJECT.-The term "major project" means a project estimated to cost at least $1,000,000 for-

(A) the purchase or other procurement of real or personal property; or

(B) the construction, renovation, or repair of real or personal property.

(2) MAJOR UNITED STATES COMMERCIAL BANK.-The term "major United States commercial bank" means a commercial bank that-

(A) is an insured bank (as defined in section 3(h) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(h) ));

(B) is headquartered in the United States; and

(C) has total net assets of an amount considered by the Maritime Administrator to qualify the bank as a major bank.

(3) MAJOR UNITED STATES INVESTMENT MANAGEMENT FIRM.-The term "major United States investment management firm" means-

(A) any broker or dealer (as such terms are defined in section 3 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c ));

(B) any investment adviser or provider of investment supervisory services (as such terms are defined in section 202 of the Investment Advisers Act of 1940 ( 15 U.S.C. 80b-2 )); or

(C) a major United States commercial bank that-

(i) is headquartered in the United States; and

(ii) holds for the account of others investment assets in a total amount considered by the Maritime Administrator to qualify the bank as a major investment management firm.

(4) QUALIFIED GUARANTEE.-The term "qualified guarantee", with respect to a major project, means a guarantee that-

(A) is made by 1 or more persons in connection with a donation for the project of a total amount in cash or securities that the Maritime Administrator determines is sufficient to defray a substantial portion of the total cost of the project;

(B) is made to facilitate or expedite the completion of the project in reasonable anticipation that other donors will contribute sufficient funds or other resources in amounts sufficient to pay for completion of the project;

(C) is set forth as a written agreement providing that the donor will furnish in cash or securities, in addition to the donor's other gift or gifts for the project, any additional amount that may become necessary for paying the cost of completing the project by reason of a failure to obtain from other donors or sources funds or other resources in amounts sufficient to pay the cost of completing the project; and

(D) is accompanied by-

(i) an irrevocable and unconditional standby letter of credit for the benefit of the United States Merchant Marine Academy that is in the amount of the guarantee and is issued by a major United States commercial bank; or