484
(b) PERIOD OF AVAILABILITY.—Funds appropriated
pursuant to the authorization of appropriations in sub-
section (a) shall remain available until expended.
TITLE XXXV—MARITIME
ADMINISTRATION
SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FIS-
CAL YEAR 2002.
Funds are hereby authorized to be appropriated for fis-
cal year 2002, to be available without fiscal year limitation
if so provided in appropriations Acts, for the use of the De-
partment of Transportation for the Maritime Administra-
tion as follows:
(1) For expenses necessary for operations and
training activities, $89,054,000.
(2) For expenses under the loan guarantee pro-
gram authorized by title XI of the Merchant Marine
Act, 
1936 
(46 
App. 
U.S.C. 
1271 
et 
seq.),
$103,978,000, of which—
(A) $100,000,000 is for the cost (as defined
in section 502(5) of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661a(5))) of loan guaran-
tees under the program; and
(B) $3,978,000 is for administrative ex-
penses related to loan guarantee commitments
under the program.
485
(3) For expenses to dispose of obsolete vessels in
the National Defense Reserve Fleet, $10,000,000.
SEC. 3502. DEFINE ‘‘WAR RISKS’’ TO VESSELS TO INCLUDE
CONFISCATION, EXPROPRIATION, NATIONAL-
IZATION, AND DEPRIVATION OF THE VES-
SELS.
Section 1201(c) of the Merchant Marine Act, 1936 (46
App. U.S.C. 1281(c)) is amended to read as follows:
‘‘(c) The term ‘war risks’ includes to such extent as
the Secretary may determine—
‘‘(1) all or any part of any loss that is excluded
from marine insurance coverage under a ‘free of cap-
ture or seizure’ clause, or under analogous clauses;
and
‘‘(2) other losses from hostile acts, including con-
fiscation, expropriation, nationalization, or depriva-
tion.’’.
SEC. 3503. HOLDING OBLIGOR’S CASH AS COLLATERAL
UNDER TITLE XI OF MERCHANT MARINE ACT,
1936.
Title XI of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1271 et seq.) is amended by inserting after section
1108 the following:
486
‘‘SEC. 1109. DEPOSIT FUND.
‘‘(a) ESTABLISHMENT OF DEPOSIT FUND.—There is
established in the Treasury a deposit fund for purposes of
this section. The Secretary may, in accordance with an
agreement under subsection (b), deposit into and hold in
the deposit fund cash belonging to an obligor to serve as
collateral for a guarantee under this title made with respect
to the obligor.
‘‘(b) AGREEMENT.—
‘‘(1) IN GENERAL.—The Secretary and an obli-
gor shall enter into a reserve fund or other collateral
account agreement to govern the deposit, withdrawal,
retention, use, and reinvestment of cash of the obligor
held in the deposit fund established by subsection (a).
‘‘(2) TERMS.—The agreement shall contain such
terms and conditions as are required under this sec-
tion and such additional terms as are considered by
the Secretary to be necessary to protect fully the inter-
ests of the United States.
‘‘(3) SECURITY INTEREST OF UNITED STATES.—
The agreement shall include terms that grant to the
United States a security interest in all amounts de-
posited into the deposit fund.
‘‘(c) INVESTMENT.—The Secretary may invest and re-
invest any part of the amounts in the deposit fund estab-
lished by subsection (a) in obligations of the United States
487
with such maturities as ensure that amounts in the deposit
fund will be available as required for purposes of agree-
ments under subsection (b). Cash balances of the deposit
fund in excess of current requirements shall be maintained
in a form of uninvested funds and the Secretary of the
Treasury shall pay interest on these funds.
‘‘(d) WITHDRAWALS.—
‘‘(1) IN GENERAL.—The cash deposited into the
deposit fund established by subsection (a) may not be
withdrawn without the consent of the Secretary.
‘‘(2) USE OF INCOME.—Subject to paragraph (3),
the Secretary may pay any income earned on cash of
an obligor deposited into the deposit fund in accord-
ance with the terms of the agreement with the obligor
under subsection (b).
‘‘(3) RETENTION AGAINST DEFAULT.—The Sec-
retary may retain and offset any or all of the cash
of an obligor in the deposit fund, and any income re-
alized thereon, as part of the Secretary’s recovery
against the obligor in case of a default by the obligor
on an obligation.’’.
Amend the title so as to read: ‘‘A bill to authorize
appropriations for fiscal year 2002 for military activities
of the Department of Defense, for military construction,
and for defense activities of the Department of Energy,
to prescribe personnel strengths for such fiscal year for
the Armed Forces, and for other purposes.’’.
Union Calendar No. 113
107TH CONGRESS
1ST SESSION
H. R. 2586
[Report No. 107–194]
A BILL
To authorize appropriations for fiscal year 2002 for
military activities of the Department of Defense,
to prescribe military personnel strengths for fis-
cal year 2002, and for other purposes.
SEPTEMBER 4, 2001
Reported with amendments, committed to the Committee
of the Whole House on the State of the Union, and or-
dered to be printed