[Code of Federal Regulations]
[Title 50, Volume 7]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 50CFR253.14]

[Page 636-637]
 
                    TITLE 50--WILDLIFE AND FISHERIES
 
  CHAPTER II--NATIONAL MARINE FISHERIES SERVICE, NATIONAL OCEANIC AND 
           ATMOSPHERIC ADMINISTRATION, DEPARTMENT OF COMMERCE
 
PART 253_FISHERIES ASSISTANCE PROGRAMS--Table of Contents
 
            Subpart B_Fisheries Obligation Guarantee Program
 
Sec. 253.14  Economic and financial requirements.

    (a) Income and expense projections. The Division's conservative 
income and expense projections for the project property's operation must 
prospectively indicate net earnings that can service all debt, properly 
maintain the project property, and protect the U.S. against the 
industry's cyclical economics and other risks of loss.
    (b) Working capital. The Division's conservative assessment of an 
applicant's financial condition must indicate initial working capital 
prospectively sufficient to provide for the project property to achieve 
net earnings projections, fund all foreseeable contingencies, and 
protect the U.S. At the Division's discretion, some portion of projected 
working capital needs may be met by something other than current assets 
minus current liabilities (i.e., by a line or letter of credit, 
noncurrent assets readily capable of generating working capital, a 
guarantor with sufficient financial resources, etc.).
    (c) Audited financial statements. These will ordinarily be required 
for any notemaker with large or financially extensive operations whose 
financial condition the Division believes it cannot

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otherwise assess with reasonable certainty.
    (d) Consultant services. Infrequently, expert consulting services 
may be necessary to help the Division assess a project's economic, 
technical, or financial feasibility. The Division will select and employ 
the necessary consultant, but require the applicant to reimburse the 
Division. A subsequently approved application will not be closed until 
the applicant reimburses the Division. This cost may, at the Division's 
discretion, be included in a guaranteed note's amount. For a declined 
application, the Division may reimburse itself from the remaining 25 
percent of the application fee.