46 U.S.C. § 53710: Contents of obligations

provide for payments by the obligor satisfactory to the Secretary or Administrator; provide for interest (exclusive of guarantee fees and other fees) at a rate not more than the annual rate on the unpaid principal that the Secretary or Administrator determines is reasonable, considering the range of interest rates prevailing in the private market for similar loans and the risks assumed by the Secretary or Administrator; not more than 25 years after the date of delivery of the vessel used as security for the guarantee; or 25 years after the date of delivery of the vessel; or the remaining years of useful life of the vessel as determined by the Secretary or Administrator; and in class A–1, American Bureau of Shipping, or meet other standards acceptable to the Secretary or Administrator, with all required certificates, including marine inspection certificates of the Coast Guard, and with all outstanding requirements and recommendations necessary for class retention accomplished, unless the Secretary or Administrator permits a deferment of repairs necessary to meet these requirements; well equipped, in good repair, and in every respect seaworthy and fit for service; and documented under the laws of the United States for the term of the guarantee of the obligation or until the obligation is paid in full, whichever is sooner. the only recourse by the United States Government against the obligor for payments under the guarantee will be repossession of the vessel and assignment of insurance claims; and the obligor’s liability for payments under the guarantee will be satisfied and discharged by the surrender of the vessel and all interest in the vessel to the Government in the condition described in paragraph (2). free and clear of all liens and encumbrances except the security interest conveyed to the Administrator under this chapter; in class; and in as good order and condition (ordinary wear and tear excepted) as when acquired by the obligor. To the extent covered by insurance, a deficiency related to a requirement in subparagraph (A) may be satisfied by assignment of the obligor’s insurance claims to the Government. provisions for the protection of the security interests of the Government (including acceleration, assumption, and subrogation provisions and the issuance of notes by the obligor to the Secretary or Administrator), liens and releases of liens, payment of taxes; and any other provisions that the Secretary or Administrator may prescribe.