[Federal Register Volume 63, Number 28 (Wednesday, February 11, 1998)]
[Rules and Regulations]
[Pages 6880-6881]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3346]
[[Page 6880]]
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DEPARTMENT OF TRANSPORTATION
Maritime Administration
46 CFR Part 221
[Docket No. R-170]
RIN 2133-AB29
Regulated Transactions Involving Documented Vessels and Other
Maritime Interests: Elimination of Mortgagee and Trustee Restrictions
AGENCY: Maritime Administration, Department of Transportation.
ACTION: Final rule.
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SUMMARY: The Maritime Administration (MARAD) is issuing this final rule
to conform its existing regulations to statutory changes that eliminate
restrictions on mortgagees and trustees, thereby eliminating the need
for approval by MARAD of mortgagees, trustees and mortgages held by
noncitizens on U.S. documented vessels.
DATES: This rule is effective February 13, 1998.
FOR FURTHER INFORMATION CONTACT: Edmund T. Sommer, Jr., Chief, General
and International Law Division, Telephone 202-366-5181.
SUPPLEMENTARY INFORMATION:
Background
Section 9 of the Shipping Act, 1916 (46 App. U.S.C. 808), prior to
amendment in 1996 by Pub. L. 104-324, required the approval of MARAD,
pursuant to authority delegated by the Secretary of Transportation, to
mortgage a U.S. documented vessel to a person not a citizen of the
United States. Provisions in Chapter 313 of Title 46 U.S.C. likewise
required MARAD approval of noncitizen mortgagees and U.S. trustees who
would hold mortgages for noncitizens. Pub. L. 104-324 amended those
statutes to eliminate the requirement for those approvals. Accordingly,
MARAD is hereby conforming its regulations by removing requirements
reflecting provisions formerly found in the above statutes for MARAD
approval of mortgagees and trustees and mortgages to noncitizens.
Existing mortgagees and trustees who have written approval from MARAD
which may call for reapproval need not do so.
Rulemaking Analysis and Notices
Executive Order 12866 (Regulatory Planning and Review), Department of
Transportation (DOT) Regulatory Policies and Procedures, and Pub. L.
104-121
This procedural rulemaking is not considered to be an economically
significant regulatory action under E.O. 12866, and is also not
considered a major rule for purposes of Congressional review under Pub.
L. 104-121. It is not considered to be a significant rule under DOT's
Regulatory Policies and Procedures (44 FR 11034; February 26, 1979).
Accordingly, it has not been reviewed by the Office of Management and
Budget. This rule merely conforms MARAD's regulations at 46 CFR Part
221 to changes in statutory authority for MARAD's administrative
responsibilities for approving the foreign transfer of certain vessels
and interests therein by removing restrictions in the regulations that
may no longer be legally imposed. Accordingly, pursuant to provisions
of the Administrative Procedure Act, 5 U.S.C. 553 (c) and (d), MARAD
finds that notice and public procedure are unnecessary and that this
rule may become effective in less that 30 days after its publication.
Federalism
MARAD has analyzed this rulemaking in accordance with principles
and criteria contained in E.O. 12612 and has determined that these
regulations do not have sufficient federalism implications to warrant
the preparation of a Federalism Assessment.
Regulatory Flexibility
The Acting Maritime Administrator certifies that this rulemaking
will not have a significant economic impact on a substantial number of
small entities. Because fewer applications for approval will need to be
filed, the affected public will save money.
Environmental Assessment
MARAD has concluded that this final rule will have no environmental
impact and that an environmental impact statement is not required.
Paperwork Reduction Act
This rulemaking contains no new information collection
requirements.
This rule does not impose any unfunded mandates or requirements
that will have an impact on the quality of the human environment.
List of Subjects in 46 CFR Part 221
Maritime carriers, Reporting and recordkeeping requirements, Trusts
and trustees.
Accordingly, Part 221 of 46 CFR Chapter II, Subchapter B is amended
as follows:
PART 221--REGULATED TRANSACTIONS INVOLVING DOCUMENTED VESSELS AND
OTHER MARITIME INTERESTS
1-2. The authority citation for part 221 continues to read as
follows:
Authority: 46 App. U.S.C. 802, 803, 808, 835, 839, 841a, 1114
(b), 1195; 46 U.S.C. chs. 301 and 313; 49 U.S.C. 336; 49 CFR 1.66.
Sec. 221.1 [Amended]
3. Sec. 221.1 Purpose, is amended as follows:
a. By removing existing paragraph (a)(1)and redesignating
paragraphs (a)(2) and (a)(3) as (a) (1) and (a)(2).
b. In paragraph (b), by removing the words ``(1) through (3)'' and
replacing them with the words ``(1) and (2)'' and by replacing the word
``of'' after ``Secretary'' with the word ``to''.
Sec. 221.3 [Amended]
4. Sec. 221.3 Definitions, is amended as follows:
a. By removing paragraphs (f) Federally insured depository
institution, and (k) Mortgagee.
b. In paragraph (t) Trust, by removing paragraph (t)(2) and the
designation ``(1)'' in paragraph (t)(1).
c. By redesignating paragraphs (g) through (j) and (l) through (w)
as (f) through (u).
Sec. 221.7 [Amended]
5. Sec. 221.7 Applications and fees, is amended in paragraph (b)
as follows:
a. In paragraph (b)(1)(ii) by removing the introductory words
``Mortgage of, or''.
b. By removing paragraph (b)(1)(v).
c. By removing paragraph (b)(2)(iv).
Sec. 221.11 [Amended]
6. Sec. 221.11 Required approvals, is amended as follows:
a. In paragraph (a) by removing the words ``sections 31322(a)(1)(d)
and 31328'' and inserting in their place ``section 12106(e)''.
b. In paragraph (a)(1) by removing the word ``mortgage'' and the
comma thereafter .
Sec. 221.13 [Amended]
7. Sec. 221.13 General approval, is amended as follows:
a. In the introductory sentence of paragraph (a)(1) by removing the
word ``mortgage'' and the comma thereafter.
[[Page 6881]]
b. By removing paragraph (a)(1)(iii) and redesignating existing
paragraph (a)(1)(iv) as (a)(1)(iii).
c. In paragraph (a)(3), by removing the words ``or mortgage'' and
the preceding comma.
Sec. 221.15 [Amended]
8. Sec. 221.15 Approval for transfer of registry or operation
under authority of a foreign country or for scrapping in a foreign
country, is amended by replacing the phrase in paragraph (c)(4)(i)
``Federally Insured Depository Institution'' with the phrase
``federally insured depository institution''.
Sec. 221.17 [Amended]
9. Sec. 221.17 Sale of a documented vessel by order of a district
court, is amended by replacing the word ``Mortgagee'' wherever it
appears with the word ``mortgagee''.
Sec. 221.19 [Amended]
10. Sec. 221.19 Possession or sale of vessels by mortgagees or
trustees other than pursuant to court order, is amended by replacing
the word ``Mortgagee'' wherever it appears with the word ``mortgagee''.
11. Subpart C--Preferred Mortgagees on Documented Vessels:
Mortgagees and Trustees, is hereby removed and the subpart is reserved.
Sec. 221.61 [Amended]
12. Sec. 221.61 Purpose is amended by removing in the Note thereto
the words ``31328 or'' and ``or mortgages'', and inserting the word
``or'' before the word ``transfers''.
By Order of the Acting Maritime Administrator.
Dated: February 5, 1998.
Joel C. Richard,
Secretary.
[FR Doc. 98-3346 Filed 2-10-98; 8:45 am]
BILLING CODE 4910-81-P