112 STAT. 2681-617 PUBLIC LAW 105-277—OCT. 21, 1998 SEC. 202. STANDARD FOR FISHERY ENDORSEMENTS. (a) STANDARD.— Section 12102(c) of title 46, United States Code, is amended to read as follows— "(c)(1) A vessel owned by a corporation, partnership, association, trust, joint venture, limited liability company, limited liability partnership, or any other entity is not eligible for a fishery endorsement under section 12108 of this title unless at least 75 per centum of the interest in such entity, at each tier of ownership of such entity and in the aggregate, is owned and controlled by citizens of the United States. Applicability. " (2) The Secretary shall apply section 2(c) of the Shipping Act, 1916 (46 App. U.S.C. 802(c)) in determining under this subsection whether at least 75 per centum of the interest in a corporation, partnership, association, trust, joint venture, limited liability company, limited liability partnership, or any other entity is owned and controlled by citizens of the United States. For the purposes of this subsection and of applying the restrictions on controlling interest in section 2(c) of such Act, the terms 'control' or 'controlled'— "(A) shall include— "(i) the right to direct the business of the entity which owns the vessel; "(ii) the right to limit the actions of or replace the chief executive officer, a majority of the board of directors, any general partner, or any person serving in a management capacity of the entity which owns the vessel; or "(iii) the right to direct the transfer, operation or manning of a vessel with a fishery endorsement; and "(B) shall not include the right to simply participate in the activities under subparagraph (A), or the use by a mortgagee under paragraph (4) of loan covenemts approved by the Secretary. "(3) A fishery endorsement for a vessel that is chartered or leased to an individual who is not a citizen of the United States or to an entity that is not eligible to own a vessel with a fishery endorsement and used as a fishing vessel shall be invalid immediately upon such use. "(4)(A) An individual or entity that is otherwise eligible to own a vessel with a fishery endorsement shall be ineligible by reason of an instrument or evidence of indebtedness, secured by a mortgage of the vessel to a trustee eligible to own a vessel with a fishery endorsement that is issued, assigned, transferred or held in trust for a person not eligible to own a vessel with a fishery endorsement, unless the Secretary determines that the issuance, assignment, transfer, or trust arrangement does not result in an impermissible transfer of control of the vessel and that the trustee— "(i) is organized as a corporation, and is doing business, under the laws of the United States or of a State; "(ii) is authorized under those laws to exercise corporate trust powers; "(iii) is subject to supervision or examination by an official of the United States Government or a State; "(iv) has a combined capital and surplus (as stated in its most recent published report of condition) of at least $3,000,000; and
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