(a) After reviewing the application made under Sec. 151.1012, the Coast Guard either--
(1) Issues the conditional permit for a vessel under this section; or
(2) Denies the issuance of the conditional permit to the vessel in accordance with paragraph (c) of this section. On denying the issuance of the permit, the Coast Guard notifies the applicant of the--
(i) Denial and the reason for the denial; and
(ii) Procedures under Sec. 151.1021 for appealing the denial.
(b) Each conditional permit issued under this section is effective--
(1) On the date it is issued; and
(2) Until the expiration date stated on the conditional permit unless it is--
(i) Withdrawn under Sec. 151.1018;
(ii) Terminated because--
(A) The vessel is sold; or
(B) This subpart no longer applies to the vessel.
(c) The Coast Guard may deny the issuance of a conditional permit if--
(i) The application does not contain the information required under Sec. 151.1012; or
(ii) There is reason to believe that the information contained on the application is not true and correct.