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Title 46 — ShippingRelease 119-73

§53509 Qualified withdrawals

Title 46 › Subtitle Subtitle V— - Merchant Marine › Part Part C— - Financial Assistance Programs › Chapter CHAPTER 535— - CAPITAL CONSTRUCTION FUNDS › § 53509

Last updated Apr 6, 2026|Official source

Summary

Allows money to be taken from a capital construction fund if the fund rules are followed and the money is used to buy, build, or rebuild a qualified vessel, or a barge or container that goes with that vessel, or to pay the principal on a loan used for those same purposes. A barge or container only qualifies if it was built in the United States, unless the Secretary makes rules saying otherwise. If the Secretary, under the rules they issue, finds that someone is not meeting a major promise in the fund agreement, the Secretary can give notice and a chance to be heard and then treat the money in the fund as taken out in a nonqualified way.

Full Legal Text

Title 46, §53509

Shipping — Source: USLM XML via OLRC

(a)Subject to subsection (b), a withdrawal from a capital construction fund is a qualified withdrawal if it is made under the terms of the agreement and is for—
(1)the acquisition, construction, or reconstruction of a qualified vessel or a barge or container that is part of the complement of a qualified vessel; or
(2)the payment of the principal on indebtedness incurred in the acquisition, construction, or reconstruction of a qualified vessel or a barge or container that is part of the complement of a qualified vessel.
(b)Except as provided in regulations prescribed by the Secretary, subsection (a) applies to a barge or container only if it is constructed in the United States.
(c)Under joint regulations, if the Secretary determines that a substantial obligation under an agreement is not being fulfilled, the Secretary, after notice and opportunity for a hearing to the person maintaining the fund, may treat any amount in the fund as an amount withdrawn from the fund in a nonqualified withdrawal.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Revised SectionSource (U.S. Code)Source (Statutes at Large) 5350946 App.:1177(f).June 29, 1936, ch. 858, title VI, § 607(f), 49 Stat. 2005; June 23, 1938, ch. 600, §§ 23–28, 52 Stat. 960; Aug. 4, 1939, ch. 417, § 10, 53 Stat. 1185; July 17, 1952, ch. 939, §§ 17–19, 66 Stat. 764; Pub. L. 85–637, Aug. 14, 1958, 72 Stat. 216; Pub. L. 86–518, § 1, June 12, 1960, 74 Stat. 216; Pub. L. 87–45, § 6, May 27, 1961, 75 Stat. 91; Pub. L. 87–271, Sept. 21, 1961, 75 Stat. 570; restated Pub. L. 91–469, § 21(a), Oct. 21, 1970, 84 Stat. 1029; Pub. L. 97–31, § 12(97)(A), Aug. 6, 1981, 95 Stat. 162. In subsection (c), the words “any amount in the fund” are substituted for “the entire fund or any portion thereof” to eliminate unnecessary words.

Reference

Citations & Metadata

Citation

46 U.S.C. § 53509

Title 46 — Shipping

Last Updated

Apr 6, 2026

Release point: 119-73