[PUBLIC LAW 89-254] [89TH CONGRESS, H.R. 728] [OCTOBER 10, 1965] AN ACT To amend section 510 of the Merchant Marine Act, 1936 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) the first sentence of subsection (i) of section 510 of the Merchant Marine Act, 1936, as amended (46 U.S.C. 1160 (i)), is amended as follows: 19 Stat. 980. rine Act, 1936, Merchant Ma amendments. (1) By striking out "within five years from the date of ston enactment of this Act war-built vessels (which are defined for purposes of this subsection as oceangoing" and inserting in lieu thereof the following: "before July 5, 1970,". (2) By striking out "during the period beginning September 3, 1939, and ending September 2, 1945)" and inserting in lieu thereof the following: "before September 3, 1945,". (3) By inserting immediately before the words "owned by the United States" the following: "(which are defined for purposes of this subsection as oceangoing vessels of one thousand five hundred gross tons or over which were constructed or contracted for by the United States shipyards during the period beginning September 3, 1939, and ending September 2, 1945)". (b) Paragraph (1) of subsection (i) of section 510 of the Merchant Marine Act, 1936, as amended, is amended to read as follows: 49 Stat. 2001. "(1) The traded-in vessel shall have been owned by a citizen or citizens of the United States, documented under the laws of the United States, and shall not have been operated with operating-differential subsidy under title 46 U.S.C. 1171VI of this Act by the applicant or any affiliate of the 1183. plicant for at least three years immediately prior to the date of the exchange." ap Valuation of (c) Paragraph (2) of subsection (i) of section 510 of vessels. 59-075 O-66--19 Tanker vessels. National defense reserve fleet. 60 Stat. 49. (d) Paragraph (9) of subsection (i) of section 510 of the Merchant Marine Act, 1936, as amended, is amended to read as follows: "(9) Except where traded out for use exclusively in trade and commerce on the Great Lakes, including the Saint Lawrence River and Gulf, tanker vessels may be traded out under the provisions of this subsection only for major conversions into dry cargo carriers or liquid bulk carriers, including natural gas carriers but excluding bulk petroleum carriers." SEC. 2. Section 510 of the Merchant Marine Act, 1936 is further amended by adding at the end thereof the following new subsection: "(j) Any vessel heretofore or hereafter acquired under this section, or otherwise acquired by the Secretary of Commerce under any other authority shall be placed in the national defense reserve fleet established under authority of section 11 of the Merchant Ship Sales Act of 1946 (50 U.S.C. App. 1744), and shall not be traded out or sold from such reserve fleet, except as provided for in subsections (g) and (i) of this section. This limitation shall not affect the rights of the Secretary of Commerce 46 U.S.C. 1191, to dispose of a vessel as provided in other sections of this title or in titles VII or XI of this Act." Approved October 10, 1965. 1271. House reports: LEGISLATIVE HISTORY No. 597 (Committee on Merchant Marine and Fisheries) and No. 1085 (Committee of Conference). Senate report No. 373 accompanying S. 2069 (Committee on Congressional record, volume 111 (1965): July 12: Passed House. August 26: Considered and passed Senate, amended, in lieu of S. 2069. September 24: House agreed to conference report. September 28: Senate agreed to conference report. 79 Stat. 1124. Lumber. Tariff filings. 75 Stat. 764; 77 Stat. 129. [PUBLIC LAW 89-303] [89TH CONGRESS, H.R. 10198] [OCTOBER 30, 1965] AN ACT To amend the requirements relating to lumber under the Shipping Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 18(b) (1) of the Shipping Act, 1916 (46 U.S.C. 817(b) (1)), is amended by inserting before the word "lumber" wherever it appears in this section the word "softwood". Approved October 30, 1965. LEGISLATIVE HISTORY House report No. 1088 (Committee on Merchant Marine and Fisheries). Senate report No. 873 (Committee on Commerce). Congressional Record, volume 111 (1965): October 5: Passed House. October 18: Considered and passed Senate. [PUBLIC LAW 89-346] [89TH CONGRESS, S. 2118] [NOVEMBER 8, 1965] AN ACT To amend sections 9 and 37 of the Shipping Act, 1916, and subsection O of the Ship Mortgage Act, 1920. Be it enacted by the Senate and House of Representa- 79 Stat. 1305. tives of the United States of America in Congress assembled, That section 9 of the Shipping Act, 1916 (46 Merchant U.S.C. 808), is amended by inserting a new paragraph between the existing third and fourth paragraphs thereof as follows: "The issuance, transfer, or assignment of a bond, note, or other evidence of indebtedness which is secured by a mortgage of a vessel to a trustee or by an assignment to a trustee of the owner's right, title, or interest in a vessel under construction, to a person not a citizen of the United States, without the approval of the Secretary of Commerce, is unlawful unless the trustee or a substitute trustee of such mortgage or assignment is approved by the Secretary of Commerce. The Secretary of Commerce shall grant his approval if such trustee or a substitute 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 any State thereof, (2) is authorized under such laws to exercise corporate trust powers, (3) is a citizen of the United States, (4) is subject to supervision or examination by Federal or State authority, and (5) has a combined capital and surplus (as set forth in its most recent published report of condition) of at least $3,000,000. If such trustee or a substitute trustee at any time ceases to meet the foregoing qualifications, the Secretary of Commerce shall disapprove such trustee or substitute trustee, and after such disapproval the transfer or assignment of such bond, note, or other evidence of indebtedness to a person not a citizen of the United States, without the approval of the Secretary of Commerce, shall vessels. Mortgage validity. 52 Stat. 79 Stat. 1305. 79 Stat. 1306. Restrictions during war or national emergency. 40 Stat. 901. be unlawful. The trustee or substitute trustee approved by the Secretary of Commerce shall not operate the vessel under the mortgage or assignment without the approval of the Secretary of Commerce. If a bond, note, or other evidence of indebtedness which is secured by a mortgage of a vessel to a trustee or by an assignment to a trustee of the owner's right, title, or interest in a vessel under construction, is issued, transferred, or assigned to a person not a citizen of the United States in violation of this section, the issuance, transfer, or assignment shall be void." SEC. 2. Section 37 of the Shipping Act, 1916 (46 U.S.C. 835), is amended as follows: (a) By relettering the existing subsections (c), (d), and (e) as (d), (e), and (f) and by inserting a new subsection (c) as follows: "(c) To issue, transfer, or assign a bond, note, or other evidence of indebtedness which is secured by a mortgage of a vessel to a trustee or by an assignment to a trustee of the owner's right, title, or interest in a vessel under construction, or by a mortgage to a trustee on a shipyard, drydock, or ship-building or ship-repairing plant or facilities, to a person not a citizen of the United States, unless the trustee or a substitute trustee of such mortgage or assignment is approved by the Secretary of Commerce: Provided, however, That the Secretary of Commerce shall grant his approval if such trustee or a substitute 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 any State thereof, (2) is authorized under such laws to exercise corporate trust powers, (3) is a citizen of the United States, (4) is subject to supervision or examination by Federal or State authority, and (5) has a combined capital and surplus (as set forth in its most recent published report of condition) of at least $3,000,000; or for the trustee or substitute trustee approved by the Secretary of Commerce to operate said vessel under the mortgage or assignment: Provided further, That if such trustee or a substitute trustee at any time ceases to meet the foregoing qualifications, the Secretary of Commerce shall disapprove such trustee or substitute trustee, and after such disapproval the transfer or assignment of such bond, note, or other evidence of indebtedness to a person not a citizen of the United States, without the approval of the Secretary of Commerce, shall be unlawful; or". (b) By inserting a new paragraph between the existing second and third paragraphs thereof as follows: "If a bond, note, or other evidence of indebtedness which is secured by a mortgage of a vessel to a trustee or by an assignment to a trustee of the owner's right, title, or interest in a vessel under construction, or by a mortgage to a trustee on a shipyard, drydock or ship-building or ship-repairing plant or facilities, is issued, transferred, or assigned to a person not a citizen of the United States in violation of subsection (c) of this section, the issuance, transfer or assignment shall be void." SEC. 3. Subsection O of the Ship Mortgage Act, 1920 (46 U.S.C. 961), is amended by relettering the existing paragraph (e) as paragraph (f) and by inserting a new paragraph (e) as follows: 79 Stat. 1307. "(e) No bond, note, or other evidence of indebtedness which is secured by a mortgage of a vessel to a trustee may be issued, transferred, or assigned to a person not a citizen of the United States, without the approval of the Secretary of Commerce, unless the trustee or substitute trustee of such mortgage is approved by the Secretary of Commerce. The Secretary of Commerce shall grant his approval if such trustee or substitute 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 any State thereof, (2) is authorized under such laws to exercise corporate trust powers, (3) is a citizen of the United States, (4) is subject to supervision or examina- 79 Stat. 1306. tion by Federal or State authority, and (5) has a combined capital and surplus (as set forth in its most recent published report of condition) of at least $3,000,000. If such trustee or a substitute trustee at any time ceases to meet the foregoing qualifications, the Secretary of Commerce shall disapprove such trustee or substitute trustee, and after such disapproval the transfer or assignment of such bond, note, or other evidence of indebtedness to a person not a citizen of the United States, without the approval of the Secretary of Commerce, shall be unlawful. If a bond, note, or other evidence of indebtedness which is secured by a mortgage of a vessel to a trustee is issued, transferred, or assigned to a person not a citizen of the United States in violation of this paragraph, the issuance, transfer, or assignment shall be void." bonds held by noncitizens. SEC. 4. Bonds, notes, and other evidence of indebted- Validity of ness which are secured by a mortgage of a vessel to a trustee or by an assignment to a trustee of the owner's right, title, or interest in a vessel under construction which have heretofore been issued, transferred, or assigned, or are issued, transferred, or assigned within one year after the enactment of this Act, to a person not a citizen of the United States without the approval of the Secretary of Commerce are valid in the hands of such person and the validity and preferred status of such mortgage and the validity and lawfulness of such issuance, transfer, or assignment shall not be affected by such issuance, transfer or assignment if the trustee or a substitute trustee is approved by the Secretary of Commerce within one year after enactment of this Act, under |