Common use of REDUCTIONS IN PAYMENTS Clause in Contracts

REDUCTIONS IN PAYMENTS. With respect to payments under this chapter for a vessel covered by an operating agreement, the Secretary— (1) except as provided in paragraph (2), shall not reduce any payment for the operation of the vessel to carry military or other pref- erence cargoes under section 55302(a), 55304, 55305, or 55314 of this title, section 2631 of title 10, or any other cargo preference law of the United States; (2) shall not make any payment for any day that the vessel is engaged in transporting more than 7,500 tons of civilian bulk pref- erence cargoes pursuant to section 55302(a), 55305, or 55314 of this title that is bulk cargo; and (3) shall make a pro rata reduction in pay- ment for each day less than 320 in a fiscal year that the vessel is not operated in accordance with section 53105(a)(1), with days during which the vessel is drydocked or undergoing survey, inspection, or repair considered to be days on which the vessel is operated.

REDUCTIONS IN PAYMENTS. With respect to payments under this chapter for a vessel covered by an operating agreement, the Secretary— (1) except as provided in paragraph (2), shall not reduce any payment for the operation of the vessel to carry military or other pref- erence cargoes under section 55302(a), 55304, 55305, or 55314 of this title, section 2631 of title 10, or any other cargo preference law of the United States; (2) shall not make any payment for any day that the vessel is engaged in transporting more than 7,500 tons of civilian bulk pref- erence cargoes pursuant to section 55302(a), 55305, or 55314 of this title that is bulk cargo; and (3) shall make a pro rata reduction in pay- ment for each day less than 320 in a fiscal year that the vessel is not operated in accordance with paragraph (1) and (2) of section 53105(a)(153105(a), as otherwise applicable with respect to such vessel, with days during which the vessel is drydocked or undergoing survey, inspection, or repair considered to be days on which the vessel is operated.