Title 46

SECTION 298.27

298.27 Advances.

§ 298.27 Advances.

(a) In general. (1) In accordance with section 207 and Title XI of the Act, we have the discretion to make or commit to make an advance or payment of funds to, or on behalf of the owner, or operator or directly to any other person or entity for items, including, but not limited to:

(i) Principal,

(ii) Interest,

(iii) Insurance, and

(iv) Other vessel-related expenses or fees.

(2) We will make advances or payments only to protect, preserve or improve the collateral held as our security for Title XI debt.

(3) When requesting an advance, you must demonstrate that:

(i) Your problems are short term (less than two years) by using market and cash flow analysis and other projections.

(ii) An advance(s), would assist you over temporary difficulties; and

(iii) There is adequate collateral for the advance.

(b) Filing requirements. (1) You shall apply for an advance or other payment as early as is reasonably possible.

(2) Principal and interest payments. We must receive a request for an advance for principal and interest payments at least 30 days before the initial payment date.

(3) Insurance payments. We must receive a request for an advance of insurance payments at least 30 days before a renewal or termination date.

(4) Extenuating circumstances. We may consider requests for assistance with less notice, upon written documentation of extenuating circumstances.

(5) Supporting data. Any requests for assistance must be accompanied by supporting data regarding:

(i) Need for the advance,

(ii) Financial assistance you sought from other sources,

(iii) The measures that you are taking and have taken to alleviate the situation,

(iv) Financial projections,

(v) Proposed term of the repayment,

(vi) Current and projected market conditions,

(vii) Information on other available collateral,

(viii) Liens and other creditor information, and

(ix) Any other information which we may request.

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