DEFAULTS.

SEC. 3524. DEFAULTS. Section 1105 of the Merchant Marine Act, 1936 (46 U.S.C. App. 1275) is amended by adding at the end the following:“(f) Default Response.—In the event of default on an obligation, the Secretary shall conduct operations under this title in a manner which—“(1) maximizes the net present value return from the sale or disposition of assets associated with the obligation, including prompt referral to the Attorney General for collection as appropriate;“(2) minimizes the amount of any loss realized in the resolution of the guarantee;“(3) ensures adequate competition and fair and consistent treatment of offerors; and“(4) requires appraisal of assets by an independent appraiser.”.