§ 298.29 Financing a vessel more than a year after delivery.
(a) MARAD may approve a MARAD Guarantee of a Note for a Vessel that has been delivered (or redelivered in the case of Reconstruction or Reconditioning of a Vessel) more than one year prior to the issuance of a MARAD Guarantee of a Note for one of the purposes set forth in the Act only if the purpose of the Note issuance for financing such existing Vessel is to facilitate financing of:
(1) The Construction, Reconstruction, or Reconditioning of a different Vessel within one year of that Vessel's delivery or redelivery; or
(2) Facilities or equipment pertaining to marine operations. Such facilities or equipment must be of a specialized nature, used principally for servicing Vessels and in handling waterborne cargo in the proximity of the berthing area, excluding over-the-road equipment (other than chassis and containers), permanent or semi-permanent structures and real estate, as well as new or less than one year old.
(b) At the Note Closing covered by this section, an Applicant must deposit any proceeds of the Note into an escrow fund established to pay for the cost unless such Applicant demonstrates to MARAD's satisfaction that all such costs have been paid.