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part by a citizen of the United States; the term "shipyard, drydock, or shipbuilding or ship-repairing plant or facilities" means those the transfer of which to a person not a citizen of the United States is prohibited by section 37 of the Shipping Act, 1916, as amended; and the term “Vessel or Shipyard Financing Trust” means each trust under which a bank or trust company acts as trustee in connection with a bond, note or other evidence of indebtedness which is secured by a mortgage of a vessel to the trustee or by an assignment to the trustee of the owner's right, title or interest in a vessel under construction, or by a mortgage to the trustee on a shipyard, drydock, or ship-building or ship-repairing plant or facilities (irrespective of the number of such bonds, notes or other evidence of indebtedness, mortgages or assignments, vessels, or shipyards, drydocks, or ship-building or ship-repairing plants or facilities involved in the particular Vessel or Shipyard Financing Trust). [G.O. 107, 31 F.R. 4408, Mar. 15, 1966) 8 221.23 Applications.

(a) Any qualified bank or trust company acting or proposing to act as trustee under a Vessel or Shipyard Financing Trust may apply for approval as trustee pursuant to Public Law 89– 346 and $$ 221.21 to 221.30.

(b) Applications may be made at any time after the effective date of $8 221.21 to 221.30. Applications shall be submitted to the Secretary, Maritime Administration, Washington, D.C., 20235.

(c) Applications shall be made in triplicate on the form of Application for Approval as Trustee set forth in § 221.30 with only such changes therein as may be approved by the Maritime Administrator. Each copy of the application shall be completed by the insertion of appropriate and full information as indicated on the form; shall be executed by a duly authorized official of the applicant; and shall be accompanied by an affidavit of citizenship and the most recent published report of condition of the applicant, unless (with the concurrence of the Maritime Administrator) reference is made to an affidavit or report previously filed. The form of affidavit of citizenship to be used in connection with applications is that prescribed in 32A CFR AGE-2 with only such changes therein as may be approved by the Maritime Administrator.

(d) A single application will suffice for requesting approval of a single bank or trust company as trustee under all Vessel or Shipyard Financing Trusts under which the bank or trust company is then or may thereafter be acting as trustee.

(e) If upon a merger, consolidation or other organizational change the bank or trust company approved as trustee ceases to be the continuing entity, a new application for the continuing entity will be required if it has not already been approved as trustee. (G.O. 107, 31 F.R. 4408, Mar. 15, 1966] & 221.24 Agreements of applicants.

Each applicant shall be bound by the agreements contained in its application, which agreements shall survive the approval of the applicant as trustee. (G.O. 107, 31 F.R. 4408, Mar. 15, 1966] § 221.25 Approval of applicants.

(a) Applicants meeting the standards for trustees specified in Public Law 89346 will be eligible for approval as trustees. National banks, although designated national banking associations, will be eligible for approval as corporations organized and doing business under the laws of the United States. The Maritime Administrator, or his duly authorized representative, will indicate the approval of the Secretary of Commerce of an applicant as trustee by signing the Secretary's Approval appearing at the end of the application form and returning a duplicate signed copy to the applicant, but no approval shall be construed to alter retroactively any rights which were the subject matter of litigation pending on the date of enactment of Public Law 89–346.

(b) Upon approval, a Notice of Approval of Applicant as Trustee will be published. Upon receipt of notice of a change of name of an approved trustee (not requiring the filing of a new application pursuant to $ 221.23) a Notice of Change of Name of Approved Trustee will be published. [G.O. 107, 31 F.R. 4408, Mar. 15, 1966) § 221.26 Roster of approved trustees.

Upon approval, each applicant will be placed on a Roster of Approved Trustees to be maintained by the Maritime Administrator according to trustee's name, address, and date of approval. Upon receipt of notice of a change of name or address of an approved trustee (not requiring the filing of a new application

pursuant to 221.23), an appropriate endorsement will be made on the Roster to show the new name or address of the approved trustee. The Roster of Approved Trustees will be available for public inspection in the office of the Secretary, Maritime Administration, Washington, D.C., 20235, during official business hours. (G.O. 107, 31 F.R. 4408, Mar. 15, 1966] § 221.27 Disapproval of trustees.

(a) Approved trustees shall be subject to disapproval if they cease to meet the standards for trustees specified in Public Law 89–346. Disapproval of a trustee shall become effective upon the date of publication of a Notice of Disapproval of Trustee. A written notice of any proposed finding of lack of qualification of the trustee (which may include lack of qualification which will be inferred from the trustee's failure to furnish information relating to its qualification pursuant to the agreements contained in its application referred to in § 221.24) will first be mailed to the trustee. If the trustee satisfactorily demonstrates that no lack of qualification exists, a written notice of withdrawal of the proposed finding will be mailed to the trustee; otherwise a Notice of Proposed Finding of Lack of Qualification of Trustee will be published not less than 10 days after the date of said written notice to the trustee. If it is thereafter satisfactorily demonstrated that no lack of qualification exists a Notice of Withdrawal of Proposed Finding of Lack of Qualification of Trustee will be published; otherwise a Notice of Disapproval of Trustee will be published not less than 120 days after publication of the Notice of Proposed Finding of Lack of Qualification of Trustee.

(b) Copies of notices published pursuant to this section will be mailed to the trustee and to the borrowers under the trusts listed in the List of Vessel or Shipyard Financing Trusts (Executed) annexed to the Trustee's Application for Approval as Trustee, as from time to time supplemented and amended

(c) Upon publication of a Notice of Disapproval of Trustee, the name of the trustee will be removed from the Roster of Approved Trustees. (G.O. 107, 31 F.R. 4408, Mar. 15, 1966) § 221.28 Removal without disapproval.

(a) Any approved trustee may request removal from the Roster of Approved

Trustees without disapproval. Removal of a trustee shall become effective upon the date of publication of a Notice of Approval of Request for Removal from Roster of Approved Trustees. The trustee shall certify in its request for removal that it is no longer acting or proposing to act as trustee under a Vessel or Shipyard Financing Trust. A Notice of Request for Removal from Roster of Approved Trustees will first be published together with a statement of the trustee's aforesaid certification. If the approved trustee requests a withdrawal of its request for removal or if it is found that the trustee's certification is not correct based on information furnished to or otherwise available to the Maritime Administrator, a Notice of Withdrawal or Rejection of Request for Removal from Roster of Approved Trustees will be published; otherwise à Notice of Approval of Request for Removal from Roster of Approved Trustees will be published not less than 30 days after publication of the Notice of Request for Removal from Roster of Approved Trustees.

(b) Copies of notices published pursuant to this section will be mailed to the trustee and to the borrowers under the trusts listed in the List of Vessel or Shipyard Financing Trusts (Executed) annexed to the Trustee's Application for Approval as Trustee, as from time to time supplemented and amended.

(c) Upon publication of a Notice of Approval of Request for Withdrawal from Roster of Approved Trustees, the name of the trustee will be removed from the Roster of Approved Trustees. [G.O. 107, 31 F.R. 4409, Mar. 15, 1966] § 221.29 Publication of notices.

Whenever in $8 221.21 to 221.30 reference is made to the publication of a notice or to a notice as having been published it means publication in the FEDERAL REGISTER by the Maritime Administrator. [G.O. 107, 31 F.R. 4409, Mar. 15, 1966] [G.O. 107, 31 F.R. 4909 $ 221.30 Forms.

The forms of Application for Approval as Trustee referred to in § 221.23 and the Trustee's Annual Supplemental Certification referred to in said Application as follows:

(Form MA-579, Mar. 8, 1966)
DEPARTMENT OF COMMERCE,

MARITIME ADMINISTRATION APPLICATION FOR APPROVAL AS TRUSTEE The undersigned (the “Trustee") hereby applies for approval as trustee pursuant to Public Law 89-346 and the regulation prescribed by the Secretary of Commerce, acting by and through the Maritime Administrator (the "Secretary''), to implement the provisions of Public Law 89–346 (46 CFR 221.21-221.30; the “Regulation').

In support of this application the Trustee certifies to and agrees with the Secretary as hereinafter set forth.

The Trustee certifies:

(a) That it is acting or proposing to act as trustee under a Vessel or Shipyard Financing Trust (as defined in the Regulation);

(b) That the attached List of Vessel or Shipyard Financing Trusts is a true and correct list of the Vessel or Shipyard Financing Trusts under which the Trustee is acting or proposing to act as trustee; and

(c) That the Trustee is a bank or trust company which

(1) Is organized as a corporation, and is doing business, under the laws of the United States (--- ----------) or of the State

(Check, if applicable) of --------

(Insert name of State, if applicable) (2) Is authorized by such laws to exercise corporate trust powers:

(3) Is a citizen of the United States within the meaning of section 2 of the Shipping Act, 1916, as amended (46 U.S.C. 802), as evidenced by: (1) (-------------------) the at

(Check, if applicable) tached affidavit of citizenship dated the date hereof: or (i) (------ ---------) affidavit

(Check, if applicable) of citizenship dated ----------, as amended by updating affidavit(s) or certificate(s) heretofore filed with the Secretary (the last such updating affidavit or certificate being dated ----------), which affidavit of citizenship, as amended, is true and correct as of the date hereof, (----

(Check, if applicable) cept for changes reflected in the attached updating affidavit dated the date hereof.

(4) Is subject to supervision or examination by Federal (-------------------) or

(Check, if applicable) State (-------------------) authority; and

(Check, if applicable) (5) Has a combined capital and surplus of at least $3,000,000 as set forth in its most recent published report of condition, (-------------------) copy of which dated (Check, if applicable) -------- is attached, or (--

(Check, if applicable) copy of which dated -------- has heretofore been filed with the Secretary.

The Trustee agrees:

(a) That it will once each year, within 30 days after its annual meeting of stockholders, so long as it shall continue to be on the Roster of Approved Trustees referred to in the Regulation, file with the Secretary, Maritime Administration, a Trustee's Annual Supplemental Certification in the form prescribed by the Regulation, with only such changes therein as may be approved by the Maritime Administrator;

(b) That it will, so long as it shall continue to be on the Roster of Approved Trustees referred to in the Regulation:

(1) Forthwith as it gains knowledge of such fact, notify the Secretary, Maritime Administration, in writing if it shall cease to be a bank or trust company which (1) is organized as a corporation, and is doing business, under the laws as aforesaid, (ii) is authorized under such laws to exercise corporate trust powers, (iii) is a citizen of the United States as aforesaid, (iv) is subject to supervision or examination by Federal or State authority as aforesaid, and (v) has a combined capital and surplus (as set forth in its most recent published report of condition) of at least $3,000,000;

(2) Notify the Secretary, Maritime Administration, in writing of all deletions from and additions to the List of Vessel or Shipyard Financing Trusts (executed) under which it is acting as trustee as such changes occur;

(3) Notify the Secretary, Maritime Administration, in writing of any changes in its name or address, as such changes occur;

(4) Furnish to the Secretary such further relevant and material information concerning its qualifications as trustee under Public Law 89–346 and concerning the Vessel or Shipyard Financing Trusts under which it is acting or proposing to act as trustee, as the Secretary may from time to time request; and

(5) Permit the representatives of the Maritime Administrator, upon request, to examine its books and records relating to the matters referred to herein.

This Application is made in order to induce the Secretary to grant his approval of the undersigned as trustee pursuant to Public Law 89–346 and the Regulation, and may be relied on by the Secretary for such purpose.

Dated this ------ day of ----------, 19...

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the above-named Trustee is hereby approved as trustee pursuant to Public Law 89–346 and 46 CFR 221.21-221.30. Dated this ------ day of ----------, 19...

SECRETARY OF COMMERCE,

MARITIME ADMINISTRATOR, By ---

(Name)

(Title) LIST OF VESSEL OR SHIPYARD FINANCING

TRUSTS

certifications true and correct as of the

-----; date hereof)

(b) That the Trustee's affidavit of citizenship attached or referred to in our aforesaid Application for Approval as Trustee as heretofore supplemented and amended (1)

-------) is true and correct as (check, if applicable) of the date hereof, (--

(Check, if applicable) except for changes reflected in the attached updating affidavit dated the date hereof; or (2) (------------------) is superseded by

(Check, if applicable) the attached affidavit of citizenship dated the date hereof; and

(c) That the most recent published annual report of condition of the Trustee dated ---------- (1) (---------------------) 18

(Check, if applicable) attached, or (2) (--------------------) has

(Check, if applicable) heretofore been filed with the Secretary.

As agreed in our aforesaid Application for Approval as Trustee, we have notified you of all deletions from and additions to the List of Vessel or Shipyard Financing Trusts (Executed) under which we are acting as trustee.

This Certification is made in order to induce the Secretary to continue his approval of the undersigned as trustee pursuant to Public Law 89–346 and the Regulation, and may be relied on by the Secretary for such purpose. Dated this ------ day of ----------, 19...

(Names of trustee)

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(Address of trustee) By ----

(Name)

(Title)

Attest: (Seal)

(Name)

(Form MA-580, Mar. 8, 1966)
DEPARTMENT OF COMMERCE

MARITIME ADMINISTRATION
TRUSTEE'S ANNUAL SUPPLEMENTAL

CERTIFICATION Pursuant to the regulation prescribed by the Secretary of Commerce, acting by and through the Maritime Administrator (the “Secretary"), to implement the provisions of Public Law 89–346 (46 CFR 221.21-221.30; the “Regulation”), and to our Application for Approval as Trustee dated -the undersigned (the "Trustee") hereby certifies to the Secretary:

(a) That the certifications made in (c) (1), (2), (3), (4), and (5) of our aforesaid Application for Approval as Trustee as heretofore supplemented and amended (1)

---------) are true and correct as (Check, if applicable) of the date hereof; or (2) (-- -------------)

(Check, if applicable) are true and correct as of the date hereof, except for -------------------------------(Insert any change required to make such

(Title) (G.O. 61, 2d Rev., Amdt. 6, and G.O. 107, 31 F.R. 4409, Mar. 15, 1966)

APPENDIX I. TRANSFER OF U.S. PRIVATELY OWNED VESSELS TO FOREIGN REGISTRY OR OWNERSHIP OR BOTH

Each application for the transfer to foreign registry or ownership or both of any vessel of 3,000 gross tons and over will be evaluated on its individual merits with con. sideration being given to the following:

(1) The type, size, speed, general condi. tion, and age of the vessel;

(2) The acceptability of the foreign buyer and country of registry; and

(3) The need to retain the vessel under U.S. flag or ownership for the purposes of

national defense, maintenance of an adequate merchant marine, foreign policy of the United States, and the national interest.

II. CONDITIONS OF APPROVAL The Maritime Administration's approval of transfer of vessels of 3,000 gross tons and over to foreign ownership or registry, or both, under sections 9 or 37 or both of the Shipping Act, 1916, as amended (whether such trangfer is for operation or scrapping), shall be subject to the terms and conditions herein. after stated.

If the vessel is being transferred for foreign flag operation, the terms and conditions shall run with the title to the ship and shall remain in effect for the period of the remaining economic life of the ship or for the duration of the national emergency proclaimed by the President on December 16, 1950, whichever period is longer. The economic life of a ship for the purpose of this statement of policy is 25 years from the date the vessel was delivered by the shipbuilder. This period will be extended another five years or such other period of time approved by the Maritime Administrator if the vessel is converted or jumboized. The terms and conditions are as follows:

A. Transfer of vessels of 3,000 gross tons and over to either foreign ownership or registry or both, and new ship construction for foreign-flag ownership and registry.

(1) Ownership. (a) Without the prior approval of the Maritime Administration, there shall be no transfer in the ownership or change in the registry of such vessel.

(b) Without the prior approval of the Maritime Administration, there shall be no transfer of stock interest in the foreign corporate contractor to persons not citizens of the United States (within the meaning of Section 2 of the Shipping Act, 1916, as amended). However, transfers of such stock or changes in ownership resulting from the death of any stockholder or owner are not subject to this condition, Notification of any such transfer of stock or ownership occurring by reason of death shall be filed with the Maritime Administration within 60 days from the date of the transfer of stock or change of ownership.

(2) Availability. The vessel, whether owned by the foreign contractor or any subsequent transferee, shall, if requested by the United States or any qualified department or agency thereof, be sold or chartered to the United States on the same terms and conditions upon which a ship owned by a citizen of the United States could be requisitioned for purchase or charter as provided for in Section 902 of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1242). If the transfer of the vessel is to the flag of a country that is a member of the North Atlantic Treaty Organization (NATO), the Administrator will consider this condition satisfied if the vessel upon request is made available to a NATO country.

(3) Trade. (a) The vessel shall not en. gage in trade prohibited to U.S.-flag vessels under Department of Commerce Transportation Orders T-1 and T-2, as amended, or any modification thereof;

(b) The vessel shall not be chartered to aliens on a demise or bareboat basis without the prior approval of the Maritime Administration;

(c) The vessel shall not be chartered to aliens for carriage of cargoes of any kind to or from the Soviet Union, Latvia, Lithuania, Estonia, Czechoslovakia, Hungary, Bulgaria, Albania, North Korea, the Soviet Zone of Germany, Manchuria, Communist China, the Communist-controlled area of Vietnam, Cuba, or Southern Rhodesia, without the prior approval of the Maritime Administration; and

(d) The vessel shall not engage in trade prohibited to U.S.-flag vessels under Executive Order 11322 (32 F.R. 119, Jan. 7, 1967) and Secretary of Commerce Order (Title 15, Code of Federal Regulation, Subtitle A, Part 11, 32 F.R. 1126, Jan. 26, 1967), relating to trade and other transactions involving Southern Rhodesia.

(4) Default. In the event of default under conditions 1 or 2 or 3 above, the vessels approved for transfer shall be subject to the penalties imposed by Section 41 of the Shipping Act, 1916, as amended (46 U.S.C. 839). Pursuant to the provisions of Section 38 of the Shipping Act, 1916, as amended (46 U.S.C. 836), the Maritime Administrator may remit the forfeiture of the vessel provided for in Section 41 of the Shipping Act, 1916, as amended (46 U.S.C. 839), upon such conditions as may be required under the circumstances of the particular case, including the payment of a sum in lieu of forfeituro and the execution of a new agreement containing substantially the same conditions set forth above which will be applicable to the vessel for the remaining period of the original agreement. In order to secure the payment of any such sum of money, a foregin contractor owned or controlled by foreign citizens shall agree by way of a contract approved as to form by the General Counsel of the Maritime Administration to comply with the above conditions and to provide a United States commercial surety bond other surety acceptable to the Maritime Administrator for an amount ranging from $25,000 to $250,000 depending upon the type, size and condition of the vessel. "Other surety" may be any one of the following:

(a) An irrevocable letter of credit from a United States bank;

(b) United States Government bonds;

(c) The written guarantee of a friendly government of which the foreign buyer is a national;

(a) A written guarantee or penal bond by a United States corporation which is found to be financially qualified to service the undertaking to pay the stipulated amount; or

1 or

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