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Title 46 — ShippingRelease 119-73

§53206 Payments

Title 46 › Subtitle Subtitle V— - Merchant Marine › Part Part C— - Financial Assistance Programs › Chapter CHAPTER 532— - CABLE SECURITY FLEET › § 53206

Last updated Apr 6, 2026|Official source

Summary

The Secretary must pay each Contractor $5,000,000 for every vessel covered by an operating agreement for each fiscal year 2021 through 2035, if appropriated funds are available and other rules here are met. Payments come in equal monthly amounts at the end of each month and will not be cut except as this section or section 51307(b) allow. To receive the money, the Contractor must certify the vessel was and will be operated as required by section 53205(a)(1) for 365 days each year. Up to 30 days in drydock, survey, inspection, or repair count as days of operation. No payment will be made for days the vessel is not run or kept under an Operating Agreement or for vessels over 40 years old. The yearly payment is reduced each day the vessel is short of 365 operating days.

Full Legal Text

Title 46, §53206

Shipping — Source: USLM XML via OLRC

(a)(1)The Secretary, subject to availability of appropriations and other provisions of this section, shall pay to the Contractor for an operating agreement, for each vessel that is covered by the operating agreement, an amount equal to $5,000,000 for each fiscal year 2021 through 2035.
(2)This amount shall be paid in equal monthly installments at the end of each month. The amount shall not be reduced except as provided by this section or section 51307(b).
(b)As a condition of receiving payment under this section for a fiscal year for a vessel, the Contractor for the vessel shall certify that the vessel has been and will be operated in accordance with section 53205(a)(1) for 365 days in each fiscal year. Up to thirty (30) days during which the vessel is drydocked, surveyed, inspected, or repaired shall be considered days of operation for purposes of this subsection.
(c)The Secretary shall not make any payment under this chapter for a vessel with respect to any days for which the vessel is—
(1)not operated or maintained in accordance with an Operating Agreement under this chapter; or
(2)more than 40 years of age.
(d)With respect to payments under this chapter for a vessel covered by an Operating Agreement, the Secretary shall make a pro rata reduction for each day less than 365 in a fiscal year that the vessel is not operated in accordance with section 53205(a)(1), with days during which the vessel is drydocked or undergoing survey, inspection or repair to be considered days on which the vessel is operated as provided in subsection (b).

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2022—Subsec. (a)(2). Pub. L. 117–263 inserted “or section 51307(b)” after “this section”.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53206

Title 46 — Shipping

Last Updated

Apr 6, 2026

Release point: 119-73