{"data":{"id":"us/46-cfr-356.45","jurisdiction":"us","citation":"46 CFR 356.45","heading":"Advance of funds.","body":"(a) A Non-Citizen may advance funds to the owner or bareboat charterer of a Fishing Industry Vessel:\n(1) As provisional payment for products delivered for consignment sales, but not yet sold; or\n(2) Where the basis of the advancement is an agreement between the Non-Citizen and the vessel owner or bareboat charterer to sell all or a portion of the vessel's catch to the Non-Citizen and the agreement meets the following conditions:\n(i) The amount of the advancement does not exceed the annual value of the sales contract, measured as the value of the product to be supplied to the processor;\n(ii) The Non-Citizen is not granted any rights whatsoever to control the operation, management and harvesting activities of the Fishing Industry Vessel other than as provided for in § 356.43;\n(iii) The owner or bareboat charterer submits to the Citizenship Approval Officer within 30 days of execution a description of the arrangement and a certification and warranty that the agreement or contract with the Non-Citizen does not convey control over the vessel, the vessel owner or bareboat charterer in any manner whatsoever other than as provided for in § 356.43; and,\n(iv) No security interest in the vessel is conveyed as collateral for the advance of funds, unless a qualified Mortgage Trustee is used to hold the debt instrument for the benefit of the Non-Citizen.\n(b) An owner or bareboat charterer may enter into an unsecured letter of credit or promissory note with a U.S. branch of a Non-Citizen Lender if:\n(1) The Non-Citizen Lender is not affiliated with any party with whom the owner or bareboat charter has entered into a mortgage, long-term or exclusive sales or purchase agreement, or other similar contract;\n(2) The Non-Citizen Lender is not granted any rights whatsoever to control the owner or the operation, management and harvesting activities of the Fishing Industry Vessel; and,\n(3) The owner or bareboat charterer submits to the Citizenship Approval Officer within 30 days of execution a description of the arrangement and a certification and warranty that the agreement or contract with the Non-Citizen Lender does not convey control over the vessel, the vessel owner or bareboat charter in any manner whatsoever.\n(c) The Citizenship Approval Officer may request a copy of any agreement for an advance of funds or letter of credit in order to determine if it contains an impermissible conveyance of control to a Non-Citizen.","path":["Title 46—Shipping","CHAPTER II—MARITIME ADMINISTRATION, DEPARTMENT OF TRANSPORTATION","SUBCHAPTER J—MISCELLANEOUS","PART 356—REQUIREMENTS FOR VESSELS OF 100 FEET OR GREATER IN REGISTERED LENGTH TO OBTAIN A FISHERY ENDORSEMENT TO THE VESSEL'S DOCUMENTATION","Subpart F—Charters, Management Agreements and Exclusive or Long-Term Contracts"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-46.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:26:22Z","sha256":"9b35ca54841d6068d8385912e05b869935499fa232b668530bdf07ee173e5ecf","source_id":"us-cfr","stale":true,"prev":"us/46-cfr-356.43","next":"us/46-cfr-356.47"},"notice":"GroundRules: Original legal text. Not legal advice."}