Title 46 — ShippingRelease 119-73
§53308 Order and proportions of deposits and withdrawals
Title 46 › Subtitle Subtitle V— - Merchant Marine › Part Part C— - Financial Assistance Programs › Chapter CHAPTER 533— - CONSTRUCTION RESERVE FUNDS › § 53308
Summary
Treat any profit from a sale or an insurance payment as going into the deposits first when that money is split into more than one deposit. Money spent, promised, or taken out must be charged against deposits in the same order they were put in. If part of a deposit is a profit that is not counted under section 53306, any withdrawal from that deposit counts as profit in the same proportion that profit is of the deposit.
Full Legal Text
Title 46, §53308
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In this chapter—
(1)if the net proceeds of a sale or the net indemnity for a loss is deposited in more than one deposit, the amount consisting of the gain shall be deemed to be deposited first;
(2)amounts expended, obligated, or otherwise withdrawn shall be applied against the amounts deposited in the fund in the order of deposit; and
(3)if a deposit consists in part of a gain not recognized under section 53306 of this title, any expenditure, obligation, or withdrawal applied against that deposit shall be deemed to be a gain in the proportion that the part of the deposit consisting of a gain bears to the total amount of the deposit.
Legislative History
Notes & Related Subsidiaries
Historical and Revision Notes
Revised SectionSource (U.S. Code)Source (Statutes at Large) 5330846 App.:1161(e).June 29, 1936, ch. 858, title V, § 511(e), as added Oct. 10, 1940, ch. 849, 54 Stat. 1107.
Reference
Citations & Metadata
Citation
46 U.S.C. § 53308
Title 46 — Shipping
Last Updated
Apr 6, 2026
Release point: 119-73