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Vessel and Shipyard Financing, Regulatory Revision
Plain English Summary
The U.S. Maritime Administration (MARAD) has updated its rules for the Vessel and Shipyard Financing Program. This change affects borrowers in the program by updating financing requirements and aligning them with current best practices. The new rules also simplify the regulations by removing outdated sections and improving the overall clarity of the text. Insurance agents should familiarize themselves with these updates to better assist clients involved in vessel and shipyard financing.
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This interim final rule revises MARAD regulations implementing the Vessel and Shipyard Financing Program (Title XI Program or the Program) financial and programmatic requirements. Specifically, MARAD implements statutory changes, updates the vessel project and shipyard project financing requirements imposed on Title XI Program borrowers, aligns the Title XI Program with modern Federal credit best practices, corrects numerous legal citations, improves accessibility by modernizing text, and removes obsolete references. This rule also streamlines the MARAD Title XI regulations by removing 14 of 34 sections of the existing regulations.