; and (ii) funds equal to the fair market value of the title to or interest in the working waterfront shall be paid to the Secretary by the parties to the sale or exchange, and such funds shall be, at the discretion of the Secretary, paid to the relevant covered entity or a qualified holder of such covered entity for use in the implementation of the approved working waterfronts plan of the covered entity. (D) Such agreement shall be subject to enforcement and oversight by the covered entity or by another person as the Secretary determines appropriate. 306C. Working Waterfronts Preservation Loan Fund (a) General authority (1) Grants to eligible coastal states to establish working waterfronts preservation loan funds (A) In general The Secretary may enter into an agreement with an eligible coastal state to issue a capitalization grant, including a letter of credit, to such eligible coastal state to implement the approved working waterfronts plan of such eligible coastal state. (B) Establishment of working waterfronts preservation loan funds (i) In general To be eligible to receive a capitalization grant under this subsection, an eligible coastal state shall establish a working waterfronts preservation loan fund. (ii) Deposit Each capitalization grant made to an eligible coastal state under this paragraph shall be deposited in the working waterfronts preservation loan fund of such eligible coastal state. (C) Extended period A capitalization grant made to an eligible coastal state under this section shall be available to the eligible coastal state for obligation for a period of 2 fiscal years. (2) Use of funds (A) In general An eligible coastal state shall use amounts deposited in the working waterfronts preservation loan fund of such eligible coastal state, including loan repayments and interest earned on such amounts, to provide financial assistance described in subsection (f) to a covered entity to implement the approved working waterfronts plan of such eligible coastal state through preservation, improvement,