Advances

(a) In general. MARAD has the discretion to make or commit to make an advance or payment of funds to, or on behalf of the owner, or operator or directly to any other person or entity for items, such as principal, interest, and Vessel-related expenses or fees.

(1) MARAD will make advances or payments only to protect, preserve or improve the collateral held as our security for program debt.

(2) When requesting an advance, a Borrower must demonstrate that:

(i) The issues are short term (less than two years) by using market and cash flow analysis and other projections;

(ii) An advance(s), would assist with temporary difficulties; and

(iii) There is adequate collateral for the advance.

(b) Request requirements. A Borrower must apply for an advance or other payment as early as is reasonably possible. Any requests for advances must be accompanied by supporting data regarding:

(1) Need for the advance;

(2) Financial assistance sought from other sources;

(3) Measures that have been taken to alleviate the situation;

(4) Financial projections;

(5) Proposed term of the repayment;

(6) Current and projected market conditions;

(7) Information on other available collateral;

(8) Liens and other creditor information; and

(9) Any other information MARAD may request.