Title 46ShippingRelease 119-73

§53205 Obligations and rights under operating agreements

Title 46 › Subtitle Subtitle V— - Merchant Marine › Part Part C— - Financial Assistance Programs › Chapter CHAPTER 532— - CABLE SECURITY FLEET › § 53205

Last updated Apr 6, 2026|Official source

Summary

Requires vessels in an Operating Agreement to be used for cable services or be chartered to the United States, and to stay documented under chapter 121 while the agreement is in effect. If money is available, the Secretary must pay the Contractor as explained in section 53206. The Operating Agreement is a U.S. government contract to pay those amounts, but only up to the funds actually appropriated. The Contractor must keep following section 53207 and any Contingency Agreement under that section until the Operating Agreement would end under its own terms, unless the Contractor and the Operating Agency both agree to change the contingency terms. The Contractor may not transfer an Operating Agreement. A Contractor can replace a vessel with another one eligible under section 53202(b) if the Secretary and the Operating Agency jointly approve and find it meets national security needs.

Full Legal Text

Title 46, §53205

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(a)An Operating Agreement under this chapter shall require that, during the period the vessel is operating under the Agreement, the vessel—
(1)shall be operated in the trade for Cable Services, or under a charter to the United States; and
(2)shall be documented under chapter 121 of this title.
(b)(1)An Operating Agreement under this chapter shall require, subject to the availability of appropriations, that the Secretary make payment to the Contractor in accordance with section 53206.
(2)An Operating Agreement under this chapter constitutes a contractual obligation of the United States Government to pay the amounts provided for in the Operating Agreement to the extent of actual appropriations.
(c)Each vessel covered by an Operating Agreement (including an Agreement terminated under section 53204(c)(2)) shall remain documented under chapter 121 of this title, until the date the Operating Agreement would terminate according to its own terms.
(d)(1)A Contractor with respect to an Operating Agreement (including an Agreement terminated under section 53204(c)(2)) shall continue to be bound by the provisions of section 53207 until the date the Operating Agreement would terminate according to its terms.
(2)All terms and conditions of a Contingency Agreement entered into under section 53207 shall remain in effect until a date the Operating Agreement would terminate according to its terms, except that the terms of such Contingency Agreement may be modified by the mutual consent of the Contractor, and the Operating Agency.
(e)Operating Agreements shall not be transferrable by the Contractor.
(f)A Contractor may replace a vessel under an Operating Agreement with another vessel that is eligible to be included in the Fleet under section 53202(b), if the Secretary and the Operating Agency jointly determine that the replacement vessel meets national security requirements and approve the replacement.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53205

Title 46Shipping

Last Updated

Apr 6, 2026

Release point: 119-73